Investment race intensifies – boost Switzerland’s appeal now

The new investments made by leading Swiss pharmaceutical companies in the US clearly show: the international competition for research-related jobs and value creation is heating up. These investments demonstrate the global strength of the industry – and are at the same time a wake-up call for Switzerland as a business location. Because Switzerland is losing ground. Access to important export markets – especially the EU – is restricted and becoming increasingly difficult. The number of clinical trials is rapidly declining. And in key policy areas, a coherent future vision is missing. 

The call for a coherent location strategy is not new – scienceindustries has been advocating for one for a long time. But recent developments have made it even more urgent. “If you want investments, you need to offer attractive conditions. Other countries act strategically – Switzerland should do the same,” says Stephan Mumenthaler, Director of scienceindustries. 

Switzerland does have strong foundations – excellent research, skilled professionals, stable structures – but that is no longer enough. To regain its leading role in international competition, Switzerland must make bold, targeted decisions: 

• Ensure tax predictability: Switzerland must respond quickly and decisively to the OECD minimum tax in order to remain attractive for research-intensive companies. Implementation must take into account international developments and support Switzerland’s efforts to promote its business environment. Companies need planning certainty – not additional uncertainties. 

• Secure access to global markets: Export-oriented industries such as chemicals, pharmaceuticals and life sciences depend on stable trade relations. This requires long-term stable relations with the EU – Switzerland’s most important export market – further expansion of the network of free trade agreements and the modernisation of existing ones. New approaches, such as sectoral agreements with like-minded partners, should be considered. 

• Make innovations rapidly available in Switzerland: Rapid access to new therapies and a remuneration system that rewards innovation strengthen confidence in the domestic market and send an important signal to internationally active companies.

• A visionary strategy for good framework conditions in high innovation potential sectors: This includes in particular biomedical and clinical research – a field of central importance for Switzerland’s innovation hub. The discontinuation of strategic initiatives such as the Biomedical Masterplan underscores the need for a new, broadly supported location strategy. Only with a clear direction can Switzerland safeguard its competitiveness in the long term and retain international R&D investments. 

• Boost Switzerland’s competitiveness: Unnecessary regulations and additional financial burdens for companies must be avoided. Proposals that could place a further burden on Swiss companies should be critically examined. Compared to the US and China, high energy prices in Switzerland need to be adjusted accordingly. 

Switzerland has a lot to offer – but not everything. And it has something to lose. Now is the time to take a strategic and bold approach to the location question. Politics and administration must ask themselves honestly what role Switzerland wants to play in international competition in the future. The answers must be found in collaboration with the private sector – before others set the course. 

Further information:

Stephan Mumenthaler, Director
Phone: +41 44 368 17 20, stephan.mumenthaler@scienceindustries.ch