The individual tree growth in stands of mixed Norway spruce (Picea abies(L.) Karst.) and birch (Betula pendulaRoth &Betula pubescensEhrh.) is estimated using basal area and height growth functions for each species separately. The individual tree growth models are distant dependent and the number, size and proximity of neighbours are expressed as size‐ratio competition indices. The competition indices were calculated using a basal area factor gauge to define competitors. The tree growth functions are based on data from nine mixed stands of Norway spruce and birch. The recursive multivariate regression approach is used. The growth functions have standard deviation about the function/standard deviation about the mean (sf/sm) values between 31 and 61% and the evaluations made with root mean square error (rmse) give estimates which vary between 8 and 45%of the observed mean value. These values are comparable with the precision reported in other studies. In the present investigation the distant dependent indices are important independent variables. It seems suitable to describe the change in growth conditions from retarded to released growth by means of size ratio competition indices. For birch, a positive effect on growth is obtained the more the total competition consists of Norway spruce. For Norway spruce a negative effect on growth is obtained the more the total competition consists of Norway spruce. The lower competitors have a positive effect on the growth of the spruce trees. The interpretation should be that it is better to have a small competitor than a larger one, not that small competitors as such have a positive effect on growth of Norway spruce.