Sweden’s Life Science Sector Shows Strong Growth Amid Funding Challenges
Sweden's life science sector is expanding rapidly with rising exports and employment but faces venture capital access challenges, while research funding supports its continued innovation.
- • Life science sector generated 508 billion SEK revenue in 2023, employing over 53,000 people across nearly 3,900 companies.
- • Women’s leadership in life science rose from 39% to 46% in eight years, exceeding average corporate levels.
- • Only 0.7% of total venture capital was invested in unlisted Swedish life science firms last year, indicating funding challenges.
- • Umeå University received 71.85 million SEK for 14 health projects, ranking fifth nationally in research funding.
Key details
Sweden's life science sector continues to be a significant growth engine, contributing both economic and societal benefits, according to Vinnova's latest annual report. In 2023, the sector generated 508 billion SEK in revenue, employed over 53,000 people, and accounted for 7-11% of the country's total exports since 2009. Notably, women's representation in leadership has grown from 39% to 46% over eight years, surpassing the Swedish corporate average. Despite these achievements, access to venture capital remains a critical challenge. Only 0.7% of total venture capital was invested in unlisted Swedish life science companies last year. Mattias Gäreskog of Business Sweden noted that post-pandemic caution among investors has hindered growth, suggesting increased participation in international forums to attract more funding, with Sweden planning engagement at the upcoming Bio International conference.
Meanwhile, research funding continues to support health innovation, with the Swedish Research Council awarding significant grants to institutions like Umeå University. The university secured 71.85 million SEK for 14 health projects, maintaining its fifth-place funding rank in Sweden. This support complements the sector's larger growth trajectory and highlights ongoing investment in scientific advancement tied to education, natural sciences, and medicine.
Darja Isaksson, Director General of Vinnova, emphasized that life science’s impact extends beyond health to drive technological development and increase export revenues, reinforcing its strategic importance for Sweden’s economy and society.