APRIL 08 2025
The DeepTech Index 2025 highlights a significant transformation in the global technology landscape, as emerging hubs in Europe and Asia increasingly challenge North America's traditional dominance. This shift is primarily driven by regions demonstrating strong property rights, low capital gains taxes, high PISA scores, and a robust academic environment.
For the second time running, the European Centre for Entrepreneurship and Policy Reform (ECEPR), with the support of Nordic Capital*, identifies the world's 500 leading DeepTech companies and analyses the conditions that foster their growth and their impact on the labour market. By mapping these companies’ presence relative to the adult population, the Index provides critical insights into their contributions to economic growth and technological progress.
The report for 2025 sees that while Santa Clara Valley in the US remains a leader, its dominance is gradually diminishing. Instead, cities like New Delhi, Vancouver, Mumbai, Singapore, Toronto, Zurich, Eindhoven, Stockholm, and Tel Aviv are emerging as significant innovation clusters, reflecting a diversifying global competition. These findings underscore a broader geographical spread of leading companies, with non-traditional hubs gaining traction and setting the stage for a more balanced global tech ecosystem.
"Europe is experiencing a remarkable uplift this year. We're witnessing a gradual geographical spread globally, with more leading companies now situated outside traditional clusters. This trend offers an exciting route for Sweden and Europe to close the gap with North America," says Nima Sanandaji, CEO of ECEPR.
"Investments in quality education and skills development are paramount, with leading countries boasting top-ranked institutions in these fields. Through targeted educational programs and more predictable and internationally competitive tax policies, nations can strengthen their standing in this sector and more easily attract both domestic and international talent," adds Klas Tikkanen, Chief Operating Officer, Nordic Capital Advisors.
Report Conclusions 2025:
- Regional strengths: Europe leads in environmental and energy technology, photonics and electronics, computers and quantum computing, as well as fintech. North America excels in artificial intelligence, biotechnology, robotics, communication, computers and quantum computing, and pharmaceuticals. Asia shows strength in energy technology, photonics and electronics, pharmaceuticals, and space and advanced materials.
- Leading DeepTech regions: Santa Clara Valley in the US remains a leader, with Boston, New York, London, and Los Angeles also in the top five. In addition to Stockholm, ranked among the top global DeepTech regions, other prominent non-US hubs include New Delhi, Vancouver, Mumbai, Singapore, Toronto, Zurich, Eindhoven, and Tel Aviv.
- Sweden's global standing: Leading the list is Luxembourg with 2.17, followed by Singapore, Switzerland, the USA, and Israel. Sweden ranks 11th with 0.61 leading deep tech companies per million inhabitants. The remaining Nordic neighbours also receive favourable rankings this year.
- Labour market correlation: Each deep tech company per million adults correlates with a 0.46 percentage point drop in unemployment rates. The effect on youth unemployment is nearly twice as significant.
- Development factors: Nations with a high concentration of DeepTech companies often benefit from strong property rights, low capital gains taxes, high PISA scores, and numerous leading universities in mathematics and engineering.