Exploring the Nordics
Anders Månsson, Senior Advisor and Nordic Pundit
The North Star is known for its unchanging position in the night sky. It has guided sailors, explorers, and dreamers for centuries. Beyond its astronomical role, the North Star also has deep cultural significance. It symbolizes guidance, hope, and constancy. And these are qualities – perhaps much needed in today’s political turmoil and market dynamics – that might be ascribed to the Nordic region as a whole.
We are happy bunch, we Nordic people. In the recently published World Population Review of the happiest countries in the world, Finland, Denmark, Iceland and Sweden rank at the very top, with the final Nordic country, Norway, coming in 7th. Thus, all Nordic countries are in the top 10 list, and the top 4 positions are occupied exclusively by Nordic countries. I think that says something.
Happiness rankings are determined by analyzing comprehensive Gallup polling data from 149 countries in six categories: gross domestic product per capita, social support, healthy life expectancy, freedom to make your own life choices, generosity of the general population, and perceptions of internal and external corruption levels. In short, results indicate that the stability and trust that exist in Nordic societies also seem to generate the confidence to explore.
For when I say the Nordics are stable, it by no means signifies a lack of innovation - quite the contrary! For when you look at patents/capita, a well-established innovation indicator, you again find Finland, Denmark and Sweden in the top 10 list, with Norway sliding in just outside the top, ranked as number 11 in the world (Source: Countries Compared by Industry > Patent applications > Residents > Per capita. International Statistics at NationMaster.com).
In terms of the biotech and pharmaceutical industry in particular, the Nordic region also performs extremely well with some different highlights per country:
Denmark: Denmark leads the Nordics in terms of Big Pharma presence, largely due to Novo Nordisk, a global leader in diabetes and obesity treatments. Novo Nordisk alone accounts for a significant portion of the region's pharmaceutical revenue, with strong sales of drugs like Semaglutide (Ozempic, Wegovy, Rybelsus). The Danish pharmaceutical sector experienced exceptional growth in in recent years, contributing heavily to the Nordic market's overall expansion.
Sweden: Sweden ranks second, with a robust life sciences sector that contributes significantly to its economy. The country is home to major pharmaceutical companies and a vast number of innovative biotech firms.
Norway: Norway is the fastest-growing pharmaceutical market in the region, projected to post double-digit compound annual growth rates in the near term. Despite its smaller size compared to Denmark and Sweden, Norway's market shows strong potential for future expansion, and it is particularly strong in radiopharmaceuticals.
Finland: Finland's pharmaceutical market is smaller but growing steadily.
Furthermore, If the Nordics were viewed as one “country”, it would rank as the 11th largest economy in the world by GDP, placing it among the world's richest nations; not bad for a population of only about 27 million people.
Thus, the Nordic region certainly has economic scale, it has a societal infrastructure that is conducive for business, it has a substantial innovation climate, applied not in the least the Life Sciences sector, with Novo Nordisk being the leading Big Pharma beacon of the region, supported by a vast array of biotech and pharma companies of various sizes, centered around innovation hubs across the region as a whole.
It should be noted, however, that the Nordics is not one country. There are different languages and cultures, different pricing and regulatory systems, and even different levels of affiliation to the EU. Also, its pharmaceutical markets are somewhat dissimilar in terms of stakeholder power and dynamics. It does take some level of local expertise and experience to effectively navigate the idiosyncrasies of the countries of this region. In Ventures Accelerated we have access to this expertise, and if your company is thinking about investing in or developing a presence in the Nordic region, we have the competencies to help you all the way. Let us be your guiding star to the North!
Anders Månsson
Senior Advisor and Nordic Pundit