Launching of the first edition of the Deep Tech Index by ECEPR

The Deep Tech Index is one of the first international and systematic mappings of the world's leading deep tech companies. According to the index, Sweden is one of Europe's leading countries in deep tech.

The index from the European Centre for Entrepreneurship and Policy Reform (ECEPR), produced with the support of Nordic Capital¹, examines the 500 leading deep tech companies in the world and where they are located. The data was compiled at the end of 2023. Additionally, it evaluates the conducive factors within specific countries for nurturing deep tech companies, along with their ramifications on the labour market.

There are significant economic values ​​to having a strong, deep tech sector. In the Deep Tech Index, one leading deep tech company per million adults is linked to 1.26 percentage points lower unemployment. For Sweden, this would mean that for every new leading deep tech company, the number of unemployed decreases by approximately 10,000. Sweden has 0.77 deep tech companies per million adults.

In the USA, it is 1.58, roughly twice as high relative to Sweden. Sweden's goal should be to catch up with the USA. In such cases, the number of deep tech companies in Sweden needs to be doubled from five to ten, meaning that the number of unemployed is expected to decrease by approximately 50,000 people.

"Strengthening the competition for deep tech is an important challenge for Sweden and Europe. Europe is ahead of Asia, but the distance to the US is significant. If Sweden were to reach the same number of companies as the US per capita, it would lead to a reduction in unemployment by around 50,000 people, says Nima Sanandaji, CEO of ECEPR.

"We see that the countries with world-leading technological universities and colleges are also leaders in the number of deep tech companies. There are opportunities for Sweden to raise its position as one of the world's leading tech nations by investing in universities and colleges, marketing Sweden as a country of competence to attract international competence, and by maintaining competitive tax rules," says Klas Tikkanen, Chief Operating Officer, Nordic Capital Advisors.

Report summary:

Deep tech is dominated by the US

68 percent of the world's leading deep tech companies are found in the United States (72 percent together with Canada). 14 percent are found in Europe and 11 percent in Asia. Africa, South America and Oceania each have one percent of the leading deep tech companies.

Europe's strengths are in greentech, biotech, photonics & electronics, as well as robotics & communication

North America is particularly dominant in computers & quantum computers, pharmaceuticals and artificial intelligence. Asia is relatively strong in fintech, space & advanced materials, and greentech. Europe is relatively strong in cleantech, biotech, photonics & electronics, as well as robotics & communication.

Stockholm is one of the leading regions for the development of deep tech

Santa Clara Valley, California, USA, is the most important region for the development of deep tech. As many as 24 percent of the leading companies globally are found there. This region is followed by; New York (7.8%), Boston (6.8%) and Los Angeles (3.4%). Outside the US, the leading cities are London (2.6%), Tel Aviv (1.8%), New Delhi (1.6%), Toronto (1.6%), Paris (1.2%), Tokyo (1.2%), Bengaluru (1.0%), Amsterdam (1.0%), Berlin (0.8%), Stockholm (0.8%), Montreal (0.8%) and Dublin (0.8%).

Sweden is ranked eighth in the world in terms of the concentration of deep tech companies

The highest percentage of deep tech companies per million adults is found in Israel (1.75 deep tech companies per million inhabitants), followed by the United States (1.58), Ireland (1.2), Estonia (1.18), Switzerland (0 .87), Denmark (0.8), Canada (0.79), Sweden (0.77), the Netherlands (0.7) and Great Britain (0.54).

A strong connection to the labour market

One leading deep tech company per million adults is linked to 1.26 percentage points lower unemployment. Promoting deep tech is needed to increase employment, as well as technological innovation and general prosperity.

Factors that promote development

To promote deep tech, nations need to invest in universities and colleges. Countries with universities and colleges among the top 100 in engineering and mathematics also tend to have more deep tech companies. In addition, countries need to maintain competitive tax rules.

Deep technology means leading global companies in artificial intelligence, clean energy, clean environment, biotechnology, photonics & electronics, robotics & communication, computers & quantum computers, pharmaceuticals, fintech and space & advanced materials. The data was compiled at the end of 2023.

For more information, please contact Nima Sanandaji at nima@sanandaji.se

¹Nordic Capital’s community engagement agenda is led by a dedicated Corporate and Social (CSR) Committee consisting of senior partners at Nordic Capital Advisors with a deep and long-term commitment to Nordic Capital’s mission, vision and values, that coordinates CSR-commitments and other support by Nordic Capital Advisors, its partners and the foundations Nordic Capitals Utbildningsstiftelse and Nordic Capitals Välgörenhetsstiftelse.

“Nordic Capital” refers to, depending on the context, any, or all, Nordic Capital branded entities, vehicles, structures, and associated entities. The general partners and/or delegated portfolio managers of Nordic Capital’s entities and vehicles are advised by several non-discretionary sub-advisory entities, any or all of which are referred to as “Nordic Capital Advisors”.