ABSTRACT
Sweden has for its size a large and advanced defence industry covering many product areas, including fighters, naval ships, submarines and armoured fighting vehicles. It is a strong net exporter, but exports have steadily declined over the period 2008–2017. Sweden has been highly liberal in its policies regarding defence acquisition and the domestic defence industry (by ending state ownership in 1999 and allowing substantial foreign ownership). Sweden has, however, shown a marked discrepancy between its policies for defence acquisition: policies stress off-the-shelf acquisition and limited domestic development, whereas practice shows a marked preference for domestic acquisition and more than 50% of acquisition appropriations directed to domestic development. Swedish military doctrine has experienced considerable swings since the Cold War, with a sequence of periods focusing on homeland defence; disarmament, troop and regiment reductions; international peace-keeping operations; and since 2014 a strong redirection towards homeland defence, capability re-enactment and a strategic priority of a domestic defence industry. This fluidity in doctrine has led to considerable challenges for the domestic defence industry. It has, however, managed to the most parts remain as globally competitive companies. The government presented in May 2019 a Defence White book that brings promises of large increases in defence acquisition. It is too early to tell how this will eventually play out for the Swedish defence industry.
