The Nordics strengthen Europe’s competitiveness through the new Nordic Compass alliance

In an era of multiple crises, trust in the rules-based international order is wavering and the need for cooperation is growing. New partnerships are now being built, particularly among smaller but strategically significant middle powers, to safeguard competitiveness and resilience.

The Nordics’ historical success has not emerged by chance; it has been built through trust, competence and close cooperation. Taken together, the Nordic region ranks among the world’s largest economies, yet cooperation across the region remains underutilised.

“Now the Nordics must write a new chapter in which wellbeing, competitiveness and technological transformation reinforce one another even in an uncertain world. This chapter must be built on our strengths, such as quantum, space and dual-use technologies,” says Atte Jääskeläinen, President of Sitra.

Nordic Compass brings together 25 leading Nordic companies and organisations. Partners include, among others, Aker ASA, Aker Solutions, Alfa Laval, atNorth, Carl Bennet AB, Chr. Augustinus Fabrikker, Danfoss, Embla Medical, EQT, Ericsson, EY, KONE, Kromann Reumert, McKinsey & Company, Nasdaq Nordic, Nokia, Nordea, Nordic Innovation, Novo Nordisk Foundation, Nscale, Saab, SEB, The Finnish Innovation Fund Sitra, Vattenfall, Wallenberg Investments ja Ørsted. In addition, the initiative is being developed together with public sector actors and Nordic research institutes.

Nordic solutions for Europe

The ambition is to move faster than current European processes and turn Nordic industrial strengths into measurable results through coordinated public–private action. The aim is to turn the region’s technological and industrial strengths into concrete solutions that also support the renewal of Europe as a whole.

“Europe is engaged in a timely debate about competitiveness and renewal. But while European-level processes will take time, the Nordics are able to move faster and demonstrate effective implementation. Nordic Compass has been established to realize the opportunity for the Nordic countries and corporates to act together, shape markets, set standards, and power innovation in the most critical sectors of our time” said Jyrki Katainen, Chair of the Nordic Compass Board, Group Head of Public & Regulatory Affairs at Nordea, and former Prime Minister of Finland, and former Vice-President of the European Commission for Jobs, Growth, Investment and Competitiveness.

“Finland and the Nordic region have world-class industrial and technological capabilities, but to compete globally we need stronger coordination. With this initiative, business leaders across the entire region will work together with governments to enhance our joint competitiveness and resilience, transforming Nordic strengths into concrete initiatives in critical areas,” says Antti Herlin, Chair of the Board of Directors of KONE Corporation.

During its first year, Nordic Compass partners will focus on four strategic areas that require an ambitious uplift if the Nordics are to remain competitive and resilient globally: Capital Markets, Deep Tech, Defense, and Energy. Experts will identify industry-backed initiatives in each priority area that can be scaled and implemented through Nordic coordination. The first set of initiatives will be presented at the Nordic Compass Summit in November in Gothenburg, Sweden.

“No single organization can meet today’s challenges on its own,” says Mikko Hautala, Chief Geopolitical & Government Relations Officer and Chairman, Nokia Defense. “This new Nordic alliance brings together complementary expertise to advance defense and technology innovation and scale solutions that have a real impact in the Nordic region and Europe.”

Kristin Skogen Lund, vice-chair of the Nordic Compass Board, and chair of the Board, INSEAD, said: “The private sector has a unique role in reinforcing long-term resilience and competitiveness here in the Nordics. I believe that when this group of leading businesses in the Nordics join forces, we can really succeed in building stronger cross-border alignment. This in turn will enable us to scale innovation faster and build a more competitive and resilient region.”