The first phase of immigration consisted of workers from southern Europe, who were actively wooed over by campaigns of advertisement and recruitment in their home countries, for instance Italy & Austria.
Because of neutrality politics, most military equipment was produced and developed in Sweden by companies such as SAAB, Kockums, Bofors and Hägglund & Söner.
Prime minister Olof Palme summarized Swedish neutrality in a speech in 1985: Vi står för Sveriges oberoende i fred och kommer med fasthet att värna vårt territorium mot varje inkräktare (en: We stand for Sweden's independence in peacetime and will, with firmness, defend our territory against every foreign intruder).
As part of the military cooperation, the US provided much help in the development of the Saab 37 Viggen, as a strong Swedish air force was seen as necessary to keep Soviet anti-submarine aircraft from operating in the missile launch area.
In return, Swedish scientists at the Royal Institute of Technology made considerable contributions to enhancing the targeting performance of the Polaris missiles.
Swedish film and music achieved international fame with names like Ingmar Bergman, Sven Nykvist, Lasse Hallström, Birgit Nilsson, ABBA, Europe, Ace of Base, Entombed, Roxette, Denniz Pop and Max Martin.
Sweden produced many world-famous athletes during this period, among them boxer Ingemar Johansson and ice hockey player Börje Salming.