Europe’s Deep-Tech Paradox

Europe does not suffer from a shortage of capital. What it lacks is the legal courage and analytical competence required to direct that capital toward the areas where it can create the greatest long-term value: SciTech startups. This gap shapes the entire continent’s innovation landscape, and Sweden is no exception. Even as Sweden is celebrated as Europe’s leading producer of unicorns per capita, that success sits uneasily alongside a structural weakness that continues to hold back the ventures most critical to Europe’s future competitiveness.

The urgency of this debate has sharpened in the wake of the Draghi report, which underscored Europe’s declining growth trajectory relative to the United States and the rapid advance of China. Competitiveness is now a strategic necessity in a world defined by geopolitical instability, climate transformation, and digital acceleration. At the same time, Sweden appears to be thriving. According to The State ...