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WHY DOES SWEDEN PRODUCE SO MANY STARTUPS?

Aruba, January 22, 2018 - What do Spotify, Minecraft and Candy Crush Saga have in common?

They were all made in Sweden.
 
Skype was co-founded by Swedes and SoundCloud started in Stockholm before moving to its current home in Berlin.
 
Sweden is home to Europe’s largest tech companies and its capital is second only to Silicon Valley when it comes to the number of “unicorns” – billion-dollar tech companies – that it produces per capita.
 
Why has Sweden proven so successful in encouraging digital entrepreneurs to start and grow new businesses?
 
One counter-intuitive and somewhat controversial answer is its high levels of taxation.
 
Taxing economy
 
Despite research showing that countries with large government and high tax-and-spend tend to be less entrepreneurial, Sweden’s tech businesses have benefitted from both the social and physical infrastructure that such an approach can provide.
 
When it comes to average internet speeds, the country is only bettered by its neighbour Norway and South Korea.
 
More than 60% of the country has access to super-fast fiber-optic broadband with speeds of 100 megabits per second, and the Swedish government wants that figure to rise 90% by 2020.
 
The rollout of this fiber-optic infrastructure has been directly financed by the Swedish government in rural areas, and heavily subsidized everywhere else.
 
It isn’t the first time the government has funded a mass rollout of technology: in the 1990s it subsidized households to buy PCs, which academics claim meant there was soon a computer in nearly every Swedish home.
 
 
 

By orbitalnets.com