Sweden – Technology Performance Digest

Executive Summary

Sweden has emerged as a significant player in the development and deployment of wearable-health-tech, leveraging its robust healthcare infrastructure, innovative technology sector, and supportive government policies. The intersection of dual-use technologies—those with both civilian and military applications—has become increasingly relevant as the Swedish government seeks to modernize its defense capabilities while maintaining its leadership in public health and digital innovation.

A key contributor to this ecosystem is Neko Health, a Swedish company at the forefront of non-invasive health monitoring solutions. Their advancements in sensor technology, data analytics, and user-centric design have positioned Sweden as a leader in wearable health technologies with potential applications across both civilian and defense sectors.

This report assesses Sweden’s current performance and trajectory in wearable-health-tech, focusing on strengths, weaknesses, notable programmes and investments, competitive comparisons, opportunities for collaboration/export, risks, and a five-year outlook.

Strengths

Advanced Healthcare System and Digital Infrastructure

Sweden’s universal healthcare system and widespread adoption of digital health records provide a strong foundation for integrating wearable-health-tech into both clinical and non-clinical settings. The country’s high degree of digital literacy and trust in public institutions facilitate large-scale data collection and analysis, essential for the effectiveness of wearable health solutions.

Innovation Ecosystem

Sweden boasts a vibrant innovation ecosystem, underpinned by significant public and private R&D investments. The presence of world-class universities, research institutes, and technology startups—including Neko Health—ensures a steady pipeline of talent and novel solutions. The Swedish government’s support for dual-use technologies, particularly through agencies such as Vinnova and the Swedish Defence Research Agency (FOI), accelerates the translation of civilian health-tech advances into defense applications.

Focus on Preventive and Predictive Health

Swedish health policy emphasizes preventive care, aligning well with the capabilities of wearable-health-tech. Continuous monitoring and early detection of health issues not only improve civilian health outcomes but also enhance force readiness and resilience within the Swedish Armed Forces.

Data Privacy and Security Standards

Sweden’s rigorous data privacy regulations, in line with the EU’s General Data Protection Regulation (GDPR), ensure that wearable health data is managed with high standards of security and user consent. This is particularly important for dual-use applications where sensitive biometric data may have national security implications.

Leading Industry Players

Neko Health exemplifies Sweden’s leadership in non-invasive, sensor-based health monitoring. Their solutions, which include multi-sensor platforms for real-time physiological data collection, have attracted significant investment and partnerships with both healthcare providers and defense agencies.

Weaknesses

Limited Domestic Scale

Despite its strengths, Sweden’s relatively small population (approx. 10.5 million) limits the domestic market size for wearable-health-tech. This can constrain the speed and scale at which new technologies are adopted and iterated upon, potentially impacting economies of scale compared to larger markets.

Fragmented Procurement Processes

The Swedish defense procurement system, while transparent, can be slow and fragmented. Integrating civilian-developed wearable-health-tech into military contexts often requires lengthy certification and adaptation processes, which can delay deployment and reduce agility in responding to emerging threats.

Talent Competition

While Sweden produces highly skilled engineers and researchers, there is intense competition for talent from global technology firms. Retaining top talent within domestic companies like Neko Health can be challenging, particularly as international players expand their presence in the Nordic region.

Regulatory Complexity

Although Sweden’s data privacy laws are robust, navigating the intersection of health, defense, and data regulation can be complex. Dual-use technologies must comply with both civilian healthcare standards and military security requirements, which can slow down innovation cycles.

Export Controls

As dual-use technologies, advanced wearable-health-tech solutions may be subject to export controls under Swedish and EU law. This can complicate international collaboration and limit market access, particularly in regions with heightened security sensitivities.

Notable Programmes & Investments

Neko Health’s Integrated Health Monitoring Platform

Neko Health has developed a flagship platform that combines non-invasive sensors, advanced data analytics, and AI-driven health assessments. The system is being piloted in Swedish hospitals and, since 2024, has been trialed with select units of the Swedish Armed Forces for continuous health monitoring and early detection of fatigue, dehydration, and stress.

Vinnova’s Dual-Use Technology Grants

Sweden’s innovation agency, Vinnova, has allocated dedicated funding streams for dual-use health technologies, supporting projects that bridge civilian and defense applications. Several grants have been awarded to consortia involving Neko Health, academic partners, and defense stakeholders.

FOI Research Initiatives

The Swedish Defence Research Agency (FOI) has initiated research programs focused on the integration of wearable-health-tech into defense operations. These include studies on physiological monitoring for soldiers in extreme environments and the use of aggregated health data for predictive analytics in force health management.

Public-Private Partnerships

Collaborative projects between the Swedish Armed Forces, regional healthcare providers, and technology firms (including Neko Health) aim to develop interoperable systems that can be deployed in both civilian crisis response and military operations.

EU Horizon Europe Projects

Swedish organizations, including Neko Health, participate in EU-funded projects under Horizon Europe, focusing on cross-border health data interoperability, AI-driven diagnostics, and the ethical use of health data in security contexts.

Competitive Comparison

United States

The US remains the global leader in wearable-health-tech, driven by massive R&D budgets, a large domestic market, and close ties between the tech industry and the Department of Defense (DoD). Companies like Apple, Google, and Garmin have developed advanced wearables, and the US military has piloted multiple health-monitoring programs. However, the US faces challenges around data privacy and interoperability.

United Kingdom

The UK has made significant investments in digital health and defense innovation. British firms such as BioBeats and Hexoskin have developed wearable solutions for both NHS and MOD use. The UK benefits from a large healthcare system and strong defense R&D, but Brexit-related regulatory divergence has introduced new complexities.

Germany

Germany’s focus is on medical-grade wearable-health-tech for both civilian and military applications. German companies emphasize compliance with stringent medical device regulations and have pioneered solutions for remote patient monitoring and field medicine. However, bureaucratic hurdles can slow innovation cycles.

Israel

Israel’s defense sector is highly advanced in dual-use technologies, with companies like Elbit Systems and BioBeat developing wearables for both military and civilian markets. Israel’s close integration of startups with defense needs accelerates deployment but raises concerns about data privacy and export controls.

Sweden’s Competitive Position

Sweden, led by innovators like Neko Health, is highly competitive in sensor technology, data analytics, and user-centric design. While the domestic market is smaller, Sweden’s strengths in privacy, interoperability, and preventive health position it as a trusted partner for both NATO and EU allies. The Swedish approach is often seen as more ethical and privacy-conscious than that of the US or Israel, which can be an advantage in international collaborations.

Opportunities for Collaboration / Export

NATO and EU Defense Initiatives

Sweden’s recent NATO accession (2024) opens new avenues for collaboration on health monitoring and force protection. Swedish wearable-health-tech providers, including Neko Health, can contribute to NATO’s Allied Health System Modernization and joint exercises.

Scandinavian and Baltic Partnerships

Regional collaboration with Norway, Finland, and the Baltic states offers opportunities for cross-border trials and joint procurement of interoperable wearable health solutions, leveraging shared security concerns and similar healthcare systems.

Civil-Military Crisis Response

Sweden’s expertise in integrating civilian and military crisis response (e.g., pandemic response, disaster relief) creates export opportunities for dual-use wearable-health-tech platforms that can be rapidly deployed in emergencies.

Export to Asia-Pacific

Swedish companies have begun exploring partnerships in Japan, South Korea, and Australia, where there is growing demand for advanced health monitoring in both civilian and defense sectors. Sweden’s reputation for quality and privacy is a differentiator in these markets.

EU Digital Health Initiatives

Participation in EU-wide digital health projects, such as the European Health Data Space, enables Swedish firms to shape interoperability standards and expand their market reach.

Risks & Mitigation

Data Security and Sovereignty

Risk: The aggregation of sensitive health data from both civilian and military users creates attractive targets for cyberattacks and espionage.

Mitigation: Sweden’s adherence to GDPR and investment in cybersecurity infrastructure mitigate these risks. Continued collaboration with the Swedish Civil Contingencies Agency (MSB) and the National Cybersecurity Centre is essential.

Export Control and Geopolitical Tensions

Risk: Dual-use classification of advanced wearable-health-tech may trigger export restrictions, especially to countries with ambiguous security relationships.

Mitigation: Proactive engagement with the Swedish Inspectorate of Strategic Products (ISP) and alignment with EU export control regimes can streamline approvals and clarify compliance requirements.

Technology Transfer and IP Leakage

Risk: International collaborations may expose Swedish IP to theft or unauthorized use, particularly in joint ventures with non-EU partners.

Mitigation: Strong contractual protections, government oversight, and selective engagement with trusted partners reduce these risks.

Ethical and Societal Concerns

Risk: The use of continuous health monitoring in defense contexts raises ethical questions around privacy, consent, and potential misuse of data.

Mitigation: Sweden’s tradition of stakeholder engagement, transparent governance, and adherence to ethical guidelines provides a robust framework for addressing these concerns.

Talent Drain

Risk: Global demand for expertise in wearable-health-tech could lead to a brain drain from Swedish firms to larger international players.

Mitigation: Enhanced government support for R&D, competitive compensation, and incentives for domestic talent retention are recommended.

Outlook (5-year)

Over the next five years, Sweden is poised to consolidate its leadership in wearable-health-tech, with Neko Health and similar companies driving innovation at the intersection of health, technology, and defense. Key trends and projections include:

In summary, Sweden’s trajectory in wearable-health-tech is strongly positive, with a balanced approach that prioritizes innovation, security, and ethical considerations. The country is well positioned to be a key supplier and partner in dual-use health technologies for both domestic and international stakeholders through 2030 and beyond.