New report: The Nordics are world leaders in innovation, but fragmentation is holding the region back

Stockholm/Copenhagen, 27 August 2026

The Nordic countries consistently rank among the world’s leading innovation economies, yet startups continue to leave the region as they enter the scale-up phase. A new report, State of the Nordic Innovation Ecosystem, concludes that the main challenge is not a lack of innovation, talent or entrepreneurship, but fragmentation. Despite operating in one of the world’s strongest innovation regions, companies still face six separate markets for capital, regulation and growth.

The report is the result of the Nordic Innovation Ecosystem Mobilisation project, commissioned by Nordic Innovation and delivered by a consortium led by SISP and Smart Innovation Norway together with TechBBQ, Startup Estonia, Maria 01 and KLAK.

Based on a mapping of 898 ecosystem organisations, 74 stakeholder interviews, and analysis of more than 21,000 startups across Sweden, Denmark, Finland, Iceland, Norway and Estonia, the report identifies the structural barriers preventing the Nordics from functioning as a truly integrated innovation ecosystem.

”The Nordics already have everything needed to become one of the world’s most competitive innovation regions. The missing piece is not capability, it’s coordination. We need to think and act as one innovation ecosystem if we want more Nordic companies to scale and stay in the region,” says Ellinor Bokedal, Project Lead and Policy Director at SISP.

The report highlights three strategic priorities for strengthening Nordic competitiveness:

• Build demand and create a single Nordic front door for startups and scaleups through coordinated market access, first-customer programmes and a shared international brand.
• Become Europe’s regulatory frontrunner by harmonising frameworks for stock options, capital gains, cross-border employment and implementing a Nordic approach to the proposed EU Inc.
• Build a stronger Nordic capital stack through a pan-Nordic fund-of-funds and new co-investment mechanisms that enable more companies to scale with Nordic capital.

Underlying these recommendations is one critical prerequisite: establishing a shared Nordic data foundation. Without harmonised ecosystem data, policymakers and ecosystem actors cannot effectively target support, measure impact or make informed decisions.

The report was officially launched during The Nordic Paradox: From Mapping to Action at TechBBQ in Copenhagen on 27 August, where ecosystem leaders, investors, founders and policymakers discussed how to translate the findings into concrete action. The program included an opening interview on the report’s findings, a panel discussion on Nordic capital and data infrastructure, reflections from leading Nordic innovation voices, and networking with participants from across the region.

Download the full report: https://www.nordicinnovation.org/2026/state-nordic-innovation-ecosystem

About the project

Nordic Innovation Ecosystem Mobilisation is a Nordic Innovation project exploring how the Nordic region can become a more coordinated and globally competitive innovation ecosystem. The project combines ecosystem mapping, stakeholder engagement and system-level analysis to provide practical recommendations for strengthening Nordic cooperation.

Media contact

Ellinor Bokedal
Director Strategic Communications & Policy, SISP
ellinor.bokedal@sisp.se
+46 (0)73 983 07 61