It’s an early spring afternoon and I’m in Sweden driving a ‘snow’ 2025 Polestar 2 with a so-called performance package. It’s the first time I’ve driven an electric car and very different from the 20-year-old petrol VW Golf that I’ve driven for the past five years.
Unfortunately, I realise I’m in Gothenburg, not at home in the UK, and I’m on the wrong side of the road. My passengers point this out with increasing alarm, but I use the impressive electric acceleration, and the crisis is averted.
We all make mistakes, but when it comes to positioning itself as an emerging tech hub, Gothenburg doesn’t seem to be missing a step. While this seems to be the success story that not enough people know about… this writer did include it in a Top 5 list earlier this year.
Gothenburg, Sweden’s second-largest city, has quietly emerged as one of Europe’s most dynamic and sustainable technology hubs. With a blend of industrial heritage, cutting-edge research and a collaborative innovation culture, the city is redefining what it means to be a modern tech ecosystem.
Historically known for its shipbuilding and heavy industry, Gothenburg has transformed into a center for advanced technology and sustainable innovation.
ICT sector growth
The ICT sector in Gothenburg has seen rapid growth, with the number of employees tripling between 2008 and 2021. The city boasts a high concentration of engineers and is a hotspot for innovation in areas such as AI, quantum technology and 5G/6G development.
Moreover, Gothenburg is recognized as the world’s most sustainable city, topping the Global Destination Sustainability Index for four consecutive years. The city’s commitment to sustainability is evident in its public transportation system powered largely by renewable energy, extensive recycling initiatives and eco-friendly urban planning.
According to Invest In Gothenburg, the city now accounts for approximately 35% of Sweden’s private-sector R&D investment, more than any other region in the country.
This transformation is anchored by global giants such as Volvo Cars, Volvo Group, AstraZeneca and Ericsson all of which have deep roots in the region as well as hosting upcoming electric car brands such as the aforesaid Polestar.
These companies not only ‘drive’ innovation within their sectors but also collaborate with startups and research institutions, fostering a symbiotic ecosystem that accelerates technological advancement.
Unsurprisingly, mobility is the city’s mainstay. Home to the aforesaid Volvo, next month the city will host EVS38 for the first time; the ‘longest-running premier showcase devoted to electric transportation, technologies and industry innovation’.
Lutz Stiegler is the CTO of Polestar and effuses about Gothenburg and the benefits it offers to his company and how EVS38 is recognition of that connection.
“Gothenburg is an incredible location to establish an electric car brand such as Polestar. The city is brimming with innovation and engineering competence, with sustainability woven into business strategies. The (upcoming) EVS conference will be an excellent opportunity to harness the energy from the whole sector, right in the heart of our city,” he says.
A city dominated by engineering
This engineering expertise is a theme that recurs throughout my two-day trip to the city, meeting those established brands as well as the impressive startups that are spread throughout the city. My fellow (alarmed) passenger in the Polestar 2 Christian Borg, Head of Media Relations for Gothenburg describes the city as being ‘dominated by engineering’. He has a point.
But engineering, however dominant and ubiquitous, cannot exist by itself and entrepreneurship has to flourish within the tech ecosystem. At the heart of Gothenburg’s tech scene lies a culture of collaboration.
The city’s startup ecosystem is flourishing, with 565 startups and 13 accelerators contributing to a tech ecosystem valued at €26 billion. Notably, the city has produced two unicorns and has seen significant venture capital investment, totaling €1.9 billion since 2015.
The city’s collaborative environment has led to impressive startup success rates; 45% of Gothenburg’s startups scale successfully, twice the European average. This success is attributed to the close partnerships between startups and established companies, as well as support from academic institutions.
Volvo Cars exemplifies this commitment, aiming for all its plastics to be made of at least 25% recycled materials by 2025 and striving to become carbon-neutral as a company. Such initiatives reflect the Swedish concept of 'lagom', promoting moderation and balance in sustainable practices.
Institutions such as Chalmers University of Technology and the University of Gothenburg supply 63% of the region’s tech workforce, creating a robust talent pipeline. These universities work closely with industry partners, launching incubators and funding mechanisms that bridge the gap between academic research and commercial application.
Chalmers University of Technology
I visit the Chalmers University of Technology early one morning where I meet respectively Zeropoint Technologies, which increases efficiencies for semiconductors, Atley Solutions, ‘manufacturing solutions for At-211 radiopharmaceuticals’ and Nyctea Technologies, which is creating a ‘world for affordable medicine’.
A completely different article could be written about the three founders introducing these three companies, whose enthusiasm and intelligence were sometimes too dazzling, but the common ingredient was how the Chalmers University of Technology supported them as they scaled their businesses. It’s worth watching out for them in 2025.
As Pontus Ottosson, CEO Chalmers Ventures, said to me offer a much-needed coffee:
“We want to be a world-leading university in the next 20 years and our 2041 vision reflects that. In Sweden we also have a unique possession and that is ‘professor’s privilege’ whereby all our companies receive our investment, but they all hold on to their IP.”
I wasn’t aware of the phrase before, which is apparently also known as ‘teacher’s exemption’. In short, this means that students own the results of their research, professor's privilege, being based on legislation and custom that has been further specified in university guidelines. A path to entrepreneurship is therefore much easier without the need to give away equity and ownership.
Other notable startup founders worth mentioning are Ödgärd Andersson, CEO of Zenseact, Hans Salomonsson, CEO of Embedl and Oscar Petersson, Co-Founder of Kognic. I also had deep conversations with two stalwarts of the city, Staffan Truvé, CTO, Recorded Future, an AI-powered cybersecurity Unicorn and Lorenzo Roversi, MD UK and the Nordics, of quantum behemoth and NYSE-listed IonQ.
Lindholmen Science Park
On the other side of town to the centrally based Chalmers University, is the Lindholmen Science Park that exemplifies more collaborative spirit. Home to more than 250 companies and 24,000 employees, it serves as a hub for research and development in areas such as intelligent transport systems, mobile communication and media.
Major players such as Volvo Cars, Ericsson and IBM operate alongside startups and academic institutions, creating a vibrant environment for innovation.
I am shown a VTG and wireless charging project demonstrated by the effervescent Anne Piegsa from the Business Region Gothenburg, ably backed up by Lars Bern of the Lindholmen Science Park.
The two of them live, breathe and sleep mobility and it shows in their enthusiasm as I see a local taxi driver position his car over a ‘charging plate’ in the road. I’m reminded of Scalextric and cars that are charged as they drive.
The neighboring city of Mölndal, part of the Gothenburg metropolitan area, is a center for life sciences, housing AstraZeneca’s global research center with more than 3,100 employees. The region supports a cluster of companies specializing in pharmaceuticals, biomedicine, and biotechnology, benefiting from proximity to leading universities and research institutes.
The adjacent GoCo Health Innovation City, where more than 200,000 square meters are being developed to attract researchers, entrepreneurs, and talents from around the world. The vision is to create a world-class innovation cluster for health - where collaboration is built into the core.
Gothenburg is a leader in automotive innovation, particularly in the development of electric and autonomous vehicles. Volvo’s “Drive Me” project, for instance, tested 100 autonomous cars on public roads in Gothenburg, aiming to make self-driving technology a reality.
A bicoastal company
I meet Henrik Green, GM, Einride Autonomous Technology and see a presentation of its self-driving trucks. His company is based in both Gothenburg and Stockholm and when I ask him if he thinks of Einride as a Gothenburg company, he replies that he prefers 'bicoastal', which is the funniest thing I've heard all trip.
After a brief trip to Volvo World, the company's downtown showcase of its brand and vehicles, it's time to leave Gothenburg and contemplate what I've seen.
While Gothenburg’s tech ecosystem is robust, it faces challenges common to rapidly growing tech hubs, such as talent retention and competition for investment. However, the city’s strong foundation in collaboration, sustainability, and innovation positions it well to navigate these challenges.
As Gothenburg continues to evolve, it serves as a model for how mid-sized cities can leverage their unique strengths to become leaders in technology and sustainability.
By fostering a collaborative ecosystem that integrates academia, industry and government, Gothenburg demonstrates that sustainable innovation is not only possible but also a pathway to economic and social prosperity.
The city is driving ahead and, unlike this writer, seems to be driving on the right side of the road. It will be interesting to see where this particular road ends up.
Would you like to write the first comment?
Login to post comments