Sweden has once again secured its spot as the world's second most innovative economy. According to the Global Innovation Index 2026, published by the World Intellectual Property Organization (WIPO). Sweden ranks second out of 139 economies, just behind Switzerland and ahead of the United States. Having held second place in six of the last seven years, few countries can match Sweden's consistent performance.
This strong standing rests on deep research capacity. Based on its GII 2026 economy profile, Sweden ranks first globally for researchers per capita, international patent applications relative to GDP, and income from intellectual property. Furthermore, Sweden ranks third for knowledge-intensive employment and fourth for R&D spending as a share of GDP. It outperforms European and high-income averages across all seven index pillars, with its infrastructure taking the top spot worldwide. Swedish companies are also among the leading global investors in overseas R&D projects. Last year, global corporate R&D hit a record USD 1.5 trillion, while venture capital rose 28% in 2025, fueled primarily by AI.
This year's GII theme, "Powering entrepreneurs at the frontier of science", highlights Sweden's core challenge. While Sweden excels in research, it needs to boost business R&D investment so that it returns to growth rather than plateauing. It must also expand scale-up capital and demand, including public procurement, to successfully carry deep-science ventures from pilot stage to market.
US companies and investors remain among Sweden's closest innovation partners. While Sweden's second-place ranking is a major achievement, maintaining this position will depend on continuously renewing investment in the R&D engine that drove its success.