Time to give Sweden's SMEs a real chance in defense

In a debate article on Defense sector news SME-D gives Defense Minister Pål Jonson (M) suggestions on how defense authorities should improve cooperation with small and medium-sized companies to strengthen the country's total defense.

In light of an increasingly uncertain world and Sweden’s growing need to strengthen its overall defense, it is clear that the country faces a significant challenge. Despite a united voice from authorities, media and public forums on the necessity to urgently build up our defense preparedness, a worrying gap between ambition and reality is emerging, especially when it comes to small and medium-sized enterprises (SMEs). These companies, which form the backbone of Swedish innovation, risk being neglected at a time when their contribution is needed more than ever.

What has become increasingly apparent is that Sweden, despite good intentions, is failing to bridge the gap between theory and practice to truly benefit from the potential of SMEs in total defense. Experiences from Ukraine have clearly demonstrated the importance of these companies' contributions to national security and resilience. Yet SMEs in Sweden face a wall of bureaucracy, rigid procurement rules and a lack of agile tools for collaboration, which excludes them from the opportunity to contribute to Sweden's defense in a meaningful way.

Although Sweden has a legal and regulatory process for public procurement, which is both desirable and necessary, it is clear that the current system is not adapted to the unique needs and conditions under which SMEs operate. The whole thing is based on the fact that companies themselves either have the muscle for a single tender or the muscle to put together a tender with several companies. Even there, a lot of SMEs are excluded because they lack that type of resources, that is the nature of the matter.

Furthermore, the current regulatory framework reflects a peacetime economy, and does not take into account the rapid and flexible responses that crisis situations and defense contexts require. The Armed Forces and the Swedish Defence Materiel Administration (FMV) lack the tools required to effectively include SMEs in defense planning and procurement, which could ultimately be costly for Sweden, both financially and in terms of security.

Take the example of Sweden's SMEs in drone technology. Here, there are companies that are leading the development of innovative technology, where one company is responsible for manufacturing, another for image processing, a third for communication. The opportunity for these companies to collaborate and create synergies that can strengthen Sweden's defense is a resource that is currently being wasted.

In other words, we are at a critical crossroads where Sweden has the opportunity to truly harness the innovative power and technical expertise that exists within the country's SMEs. By adapting procurement processes, creating incentives for collaboration and ensuring that these companies can act quickly in crisis situations, Sweden can secure a stronger and more resilient defense. For this to become a reality, however, decisive leadership is required that dares to reconsider old structures and that puts action before words.

It is time for a shift and it must be led from the top. We, the trade association for small and medium-sized companies operating in the defense sector, would therefore like to urge the Minister of Defense, Pål Jonson, to urgently instruct the responsible authorities to develop practical tools and methods to ensure that all conceivable innovation and action potential is utilized within the Swedish military defense.

Debate