“Sweden has been ranked the European Union’s innovation leader for the fifth or sixth year in a row, and we’re second globally. We have 4,000 life science companies—a remarkably high number for a country of 10 million people.”
Dr Marjo Puumalainen, International Director of SwedenBIO, brings extensive life science experience from both startup environments and academic research. Having previously served as Chief Scientific Officer at a CRISPR-based antivirals startup and completed her PhD in Switzerland, she now dedicates her role to strengthening Sweden’s international presence through fostering partnerships, investments and global collaborations.
In the latest PharmaSource podcast episode, Marjo explains why Sweden consistently ranks as Europe’s innovation leader, how the Nordic countries collaborate rather than compete, and what makes the region attractive for international life science investment. With Nordic Life Science Days (NLS Days) taking place 13-14 October in Gothenburg, she shares insights into Sweden’s unique ecosystem and the opportunities it presents for global biotech partnerships.
Sweden’s Academic Foundation and Teachers Exemption Rule
Sweden’s strong academic research institutions, particularly Karolinska Institute, provide a robust foundation for life science innovation. The annual Nobel Prize ceremonies in Stockholm create unique visibility for life science research among the public.
A distinctive feature of Sweden’s ecosystem is the Teachers Exemption rule, which allows academic researchers to own the commercial rights to their findings rather than the university owning the patents.
“This has created a culture of founding companies in Sweden,” Marjo explains. “It’s very common for academic researchers to start a company based on their findings, thinking beyond just publishing research to how they could commercialise their discoveries.”
This policy has resulted in approximately 4,000 life science companies in Sweden. The landscape includes many young, small companies alongside major players like AstraZeneca. Pharmaceutical manufacturing represents the third largest export value item in Sweden, generating $15 billion in 2024.
“This is important because politicians listen when pharmaceutical manufacturing makes a real difference to the economy,” Marjo notes.
Cultural Advantages Driving Innovation and Business
Sweden’s business culture offers several competitive advantages that foster innovation and attract international investment.
“Swedish business culture is very inclusive,” Marjo emphasises. “Diversity isn’t just something you write in grant applications—it’s something you live. We have a very flat hierarchy, which means people with good ideas can actually voice them.”
The emphasis on work-life balance may seem counterintuitive for driving innovation, but Marjo argues it creates space for creative thinking.
“Where do you get your best ideas? When you work 10 hours behind your computer, or when you go out with your family and change the scenery? Innovation comes from bringing different types of talents together to exchange ideas.”
From an international company perspective, Sweden offers an attractive proposition combining high-quality talent with competitive costs.
“We have low salaries within life science compared to Denmark,” Marjo acknowledges. “But you get exceptional talent. Our level of PhDs and people engaged in R&D is extremely high, whilst salaries remain competitive. That’s attractive from an international point of view.”
The country also provides stability for business planning. Energy prices are very low, with 98% of energy coming from sustainable sources including wind and solar power.
“Sweden is a very stable country—both our economy and political systems are very stable, which is good for business,” Marjo says. “We also have abundant space and we’re far ahead on sustainability, especially with sustainable energy sources.”
Funding Challenges and SwedenBIO Support Mechanisms
Despite the robust ecosystem, financing remains a significant challenge for early-stage companies.
“Biotech takes a long time, and R&D is a heavy burden,” Marjo acknowledges. “With our high number of young companies founded from the academic environment, this is a big challenge.”
SwedenBIO addresses this challenge through multiple approaches. The organisation brings together companies of all sizes, from one-person startups to major players like AstraZeneca.
“Network is extremely important,” Marjo says. “Trust is a big thing in our industry. Getting to know the community is super important for young companies, especially knowing the investors.”
For smaller companies, SwedenBIO organises international delegations to events, strengthening visibility through collective presence.
“Small companies can be quite lonely at JPM or other partnering events,” Marjo notes. “It’s good to have your peers with you so we can increase Sweden’s visibility together.”
The organisation also works on educating investors about biotech’s unique characteristics.
“We need to educate tech investors about how biotech works,” Marjo explains. “The exit strategy for biotechs is quite different—a licensing deal is an exit strategy for most biotech companies. The time horizon and investment amounts are much higher, but the return on investment can be much higher down the line.”
SwedenBIO examines successful models from neighbouring countries. “Denmark has done interesting work with the Bio Innovation Institute,” Marjo says. “We’re looking into how we could get something similar in Sweden.”
Nordic Collaboration and Nordic Life Science Days
The Nordic countries recognise their collective strength on the international stage.
“We’re all aware we have very small countries, and we share similarities in working culture,” Marjo explains. “When doing business outside Europe, it’s much stronger to be Nordic than separate countries.”
Medicon Valley represents one of the most successful examples of cross-border collaboration, bringing together southern Sweden and the Copenhagen region into a leading European life science cluster.
This collaborative approach extends to Nordic Life Science Days, which has grown consistently over its 13-year history. The event now attracts 40% of attendees from outside the Nordics.
“We put a lot of focus on investors, given that we have so many young companies needing financing,” Marjo says. “The day before the conference, we have an investor dinner where Nordic investors can meet international investors to create more syndications.”
Each year, the event rotates between Nordic cities to showcase different regional strengths. This year’s location in Gothenburg highlights AstraZeneca’s major R&D site, Thermo Fisher’s recent heavy investment, and the presence of science parks.
“It’s very much about showcasing what’s happening in the Nordics,” Marjo explains. “We’re still a small enough event that we can do customised introductions. Depending on who you want to meet in Swedish or Nordic life science industry, this is a nice place to do that in a relaxed environment.”
