Life Sciences: Switzerland must become more active

A liberal framework is essential, but it is no longer enough, explains Annette Luther, President of scienceindustries.

For years, Switzerland has benefited from growth in the life sciences, which is attributable to its leading position in the field of innovation. However, profound changes in the global economy are forcing it to adapt. Annette Luther is particularly well placed to highlight the challenges. She is President of scienceindustries – and in this role she answers questions from Allnews – and also holds key positions in science and banking:

How do you find a common thread between your various roles when it comes to priorities for Switzerland?

I use the same levers everywhere: strengthening innovation, attracting talent and securing our international integration. Our industries generate more than half of the country's exports – they depend on stable and predictable framework conditions. I am committed to ensuring that market access, energy supply and research remain in place so that companies can invest in Switzerland with confidence.

Can Switzerland remain a leader in innovation in a world where geopolitical power carries more weight than the rule of law?

Yes, but only if we respond proactively. US tariffs have shown how quickly international upheavals can occur. We must stabilise our relations with the EU, strengthen our partnerships with the US and maintain a strong research network. To stay at the top, we must participate in the global game – and not just watch from the sidelines. 

While many life science companies are investing more heavily in Asia and the US, what does it take to strengthen the Swiss cluster?

Conditions must be created that encourage investment here: reliable access to the European market, competitive energy prices, fast work permits and regulations that promote innovation rather than hinder it. If we address these factors, Switzerland will remain an attractive investment location despite increasingly fierce competition.

Will interest in innovation in Switzerland come more from Asia or from other regions in the future?

From all regions, but for different reasons. Europe sets standards and regulations – we must maintain our presence there. The US is a driving force in biomedical research and opens up important markets. Asia is growing rapidly, but proximity to excellent universities remains crucial for high technology. We must maintain and expand these networks – Horizon plays a decisive role in this.

The life sciences have contributed significantly to Switzerland's growth. Is this cycle now coming to an end?

No, provided we take action. The new Global Industrial Competitiveness Index (GICI) shows that we have fallen back to third place. This does not mean that we are losing quality, but rather speed. We must secure access to markets, strengthen research and retain talent. If we consolidate these foundations, Switzerland will remain a leading location; otherwise, investments will shift faster than we think.

Why are the Bilateral Agreements III indispensable for the Swiss life sciences?

Because they stabilise our business location. Without the MRA – the agreement that enables mutual recognition of technical regulations and avoids double checks – costs rise. Without the free movement of persons, companies lose talent. And limited participation in Horizon has significantly weakened us. With Bilateral Agreements III, we regain room for manoeuvre, planning security and unrestricted networking. This benefits the entire industry. 

Do these new agreements jeopardise sovereignty, democracy or subsidiarity?

No. On the contrary, we are regaining clarity and influence. Today, we largely adopt European rules without being able to help shape them. With Bilateral Agreements III, we are getting defined processes, a neutral arbitration tribunal and greater legal certainty. This increases our ability to act – not that of others.

Does Switzerland need a location policy or just a liberal framework?

We need to become more active. A liberal framework is important, but it is no longer enough. It is not about state industrial policy, but about creating competitive conditions: open markets, strong research, available talent and energy security. To maintain a business location, you have to nurture it – not just manage it.

How important is the European research programme Horizon for Switzerland?

It is of crucial importance. The restrictions of recent years have significantly weakened our innovative capacity and unsettled young talent. Horizon connects us with the best research groups in Europe. In order to keep pace, remain visible and competitive, we must participate fully.

How important are energy costs for the life sciences, particularly in an international comparison?

They are crucial for investment. An energy-intensive high-tech industry needs reliable prices and a stable supply. An electricity agreement reduces risks, increases predictability and improves our international competitiveness. Companies invest where the energy supply is secure and predictable – and we must ensure that Switzerland is one of those places.

This article first appeared on 9 January 2026 on Allnews.ch.