Unlocking Sweden's regional startup potential through data-driven strategy

1

STARTUP NATION

$3B

SWEDISH ECOSYSTEM VALUE

23

STOCKHOLM’S GLOBAL RANKING

Challenge: Scaling beyond urban hubs

In 2021, despite Sweden's global reputation as an innovation powerhouse, startup success has been highly concentrated in major urban hubs like Stockholm and Gothenburg. This uneven distribution constrained national economic potential, resulting in missed opportunities for talent activation, R&D commercialization, and inclusive economic growth.

Vinnova, Sweden's national innovation agency, recognized the urgency to diversify and scale entrepreneurial success across the country. Key structural barriers hindered this ambition: regional ecosystems lacked global connectivity, early-stage funding infrastructure was underdeveloped, and there was no clear leadership or orchestration structure in emerging regions to guide cohesive development.

Solution: Benchmarking regional innovation performance

Startup Genome partnered with Vinnova to conduct a Comprehensive Ecosystem Assessment across three target regions: Västra Götaland, Östergötland, and Västernorrland. Utilizing our Ecosystem Lifecycle Model and stakeholder-driven methodology, we mapped each ecosystem's development phase, identified gaps in startup success factors, and facilitated strategic workshops to align local actors on tailored priorities.

The engagement included deep diagnostics, founder surveys, sector benchmarking, and the design of regional roadmaps. Each roadmap was customized based on lifecycle stage and local strengths, supporting efforts to globalize, build founder communities, and attract targeted funding. These strategies enabled each region to move from fragmented activity to coherent, evidence-based ecosystem building.

Highlights

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ECOSYSTEMS ANALYZED

130+

FOUNDER SURVEYS

50+

ENGAGED STAKEHOLDERS

Marc Penzel

Founder & President

This project aimed to equip Sweden’s national and regional leaders with the data, frameworks, and language needed to advance meaningful startup ecosystem dialogue. We built on strong existing efforts and helped highlight the untapped potential of capable entrepreneurs across the country."

Heartbeat of the project:Ecosystem Assessment

Our team delivered a comprehensive analysis of Sweden’s regional startup ecosystems, combining data-driven diagnostics with stakeholder engagement. The project produced tailored assessments of each region, grounded in lifecycle maturity, founder feedback, and global benchmarks—enabling informed, high-impact decision-making at both regional and national levels.

Ecosystem Lifecycle Model

Mapped each region's development stage within the Startup Genome Lifecycle Model to align next-step strategies.

Voice of the Entrepreneur insights

Captured regional startup sentiment through 130+ founder responses, revealing barriers in funding, ambition, connectivity, and inclusion.

Startup DNA Assessment

Profiled founder demographics, ambition levels, and gaps in representation versus local population, identifying potential issues in access and inclusion.

Global Benchmarking & Sub-Sector Strengths

Compared each region to global peers, highlighting sub-sector strengths and surfacing opportunities for specialization.

Best Practice Recommendations

Delivered tactical guidance and roadmap actions tailored to each region's maturity and ecosystem asset.

Assessment results:
Examples of uncovered insights

Connectivity lags behind peers

Despite being a sizable and competitive ecosystem nearing the Globalization phase, Västra Götaland exhibits low connectivity to leading global startup hubs. Local entrepreneurs are, on average, connected to fewer than three global peers—well below the norm for ecosystems at a similar stage or aspirational peers—limiting access to international knowledge and capital.

Clusters with high-growth potential uncovered

Östergötland demonstrates strong momentum in sectors like Agtech & New Foods and Advanced Manufacturing & Robotics. Deeper qualitative research suggested untapped potential to enhance growth through specialized support programs and sector-focused initiatives.

Creating Space for Entrepreneurial Ambition

Västernorrland is an early-stage ecosystem that must build foundational entrepreneurial momentum. Startups have limited access to experienced engineers and few engineers have startup experience. Activating the innovation ecosystem requires specialized focus on culture change and policy support to encourage starting technology companies.

Key takeaways

Lifecycle strategy beats one-size-fits-all

A data-driven, lifecycle-based approach brings clarity to ecosystem development. By aligning strategies to each region’s maturity, stakeholders can prioritize actions that are realistic, phased, and tailored—avoiding one-size-fits-all efforts and accelerating meaningful progress.

Community involvement shifts ecosystem trajectories

Stakeholder engagement is a powerful catalyst. Bringing together founders, policymakers, and ecosystem leaders through structured workshops and diagnostics not only uncovers insights—it creates buy-in, fosters alignment, and increases the likelihood of successful implementation.

National strategy, regional roots

National impact depends on strong regional foundations. Sweden’s innovation future requires scaling success beyond its major hubs. Empowering emerging ecosystems with the right data, leadership structures, and support systems is essential for truly inclusive, countrywide growth.

Curious how these results could work for your ecosystem?

Every success starts with a deep understanding of local context and a commitment to measurable outcomes. Let’s explore how we can collaborate on a similar project.