The defence industry in Sweden is to a large extent internationalised in terms of foreign ownership and through ex- port. The degree of international integration is however substantially lower in terms of participation in concrete colla- borations. The reasons are partly historical with the non-alignment policy including the post-WW2 emphasis on domestic development and production that for decades prevented Swedish actors from participating in the defence materiel collaboration within Nato and related European structures. It is important to monitor how the defence industry in Sweden will act in relation to the ongoing European as well as the emerging transatlantic restructuring. From a Swedish perspective it would be detrimental if the increased transatlantic collaboration were to focus around a few very large companies. Besides establishing relations with the large European companies, it is therefore also desirable to create direct links with US defence companies. These efforts aim partly at creating better access to important technologies, partly at improving international market opportunities. The report proposes different measures to facilitate deepened cross-border corporate relations within the defence sector, including further intergovernmental collaboration to remove remaining obstacles for cross-border industrial collaboration. Sweden should work for increased scope for market logic on the defence market and actively participate in initiatives to create common standards and interfaces. Furthermore, the report proposes government loans/venture capital to facilitate the creation of influential industrial actors within strong Swedish technology areas.