Country Report: Switzerland Introduction

Introduction

This report has been written as a part of the Europe INNOVA Cluster Mapping Project. One part of the project is a mapping of cluster policies, cluster institutions and cluster programmes in European Countries. For each country, a separate report has been written. Oxford Research AS in Nor- way has been responsible for the mapping of cluster policies. Oxford Research has developed the structure of the mapping and prepared the final reports. Most of the work has however been done by research institutes or consultancies in the different countries. These organisations are members of “The European Network for Social and Economic Research – ENSR” or partners in the Europe INNOVA Cluster Mapping Project. Based on the national reports, the main findings have been summarised by Oxford Research in a separate report. The Europe INNOVA Cluster Mapping Project has been financed by the European Commission. The views expressed in this report, as well as the information included in it, do however not necessarily reflect the opinion or position of the European Commission and in no way commits the institution.

Kristiansand, Norway, December 2007.

Harald Furre Managing director Oxford Research AS

Please find more information about the Cluster Mapping Project and the Authors of this report on: www.clusterobservatory.eu www.oxfordresearch.eu www.ensr-net.com

Forfatter: HF Sist lagret: 21.12.2007 16:42:00 Sist utskrevet: 21.12.2007 17:36:00 O:\Aktive prosjekter\54 EU cluster mapping\Country reports\Country reports copy\Switzerland.doc Versjon: 12 Antall sider: 16

Report written by: Dr. Heiko Bergmann and Walter Weber KMU-HSG – Swiss Research Institute of Small Business and Entrepreneurship at the University of St. Gallen, Dufourstrasse 40a, CH-9000 St. Gallen Telephone: +41 71 224 71 00, Fax +41 71 224 71 01 Email: [email protected], [email protected]

Main ministries responsible for Finance/ Science/ Trade/ Interior Other implementing cluster policy Economy Research Industry x Key agencies responsible for State secretariat for Economic affairs (SECO) Location Switzerland implementing cluster policy Is cluster Yes No x policy their only task?

Are there any national cluster Yes No x Number of programmes? programmes Are there any regional cluster Yes x No 4 programmes?

Source of financing National programmes Regional programmes National ministries x EU structural fund Regional budget x Business x Other x

Importance of cluster policy Low Medium High National level x Regional level x Policy papers on national level Yes No x Cluster policy over time Increased impor- Reduced importance Shifted tance

Since when has cluster policy been used? 1990-95 1995-2000 2000-05 2005- x Cluster development related to a particu- Yes x No lar person/organization? Individual Business org. Political party Agency x Research inst. Successful cluster programmes There are no comprehensive evaluations of cluster programmes in Switzerland so far

Is there a cluster or Yes No A general council exists competitive council? Degree of obstacles when No/Low Medium Important building cluster policy General assessments of competitiveness? Yes No x

Role of clusters as framework in policy areas Low Medium High Business network policy x FDI attraction policy x Export promotion policy x Sectoral industry policy x 2

Science and education policy x Competition and marked integration x Source: Oxford Research

1.1 Terminology

In each country there will be one or possibly several terms or phrases used to de- scribe clusters. In some cases, different terms represent “competing” perspectives on clusters and, as perspectives change over time, one term may gradually replace an- other. In Switzerland the most common word for cluster is, as in the English language, “Cluster”.

1.2 Cluster development programmes and cluster organisations

In many countries, there are programmes set up specifically to promote cluster development. Such programmes can be carried out by existing actors (for example a government agency), or new actors can be set up to run them. Often, one of the purposes of such programmes is to help initiate cluster organisations, that is, the programme provides financing or otherwise promotes the formation of cluster- specific organisations, typically in some form of public-private partnership. A country can have many (even hundreds) of such cluster-level organisations in operation. Here is presented the identified cluster agencies and cluster programmes at national and regional level in Switzerland.

1.2.1 Agencies for cluster policy implementation

There is no explicit cluster policy at the national level in Switzerland. A cluster policy would come close to an industrial policy and Switzerland explicitly does not follow an industrial policy. Therefore, there is also no ministry department, agency or other government organization responsible for the implementation of cluster policy in Switzerland. However, certain fields of economic policy, business promotion and innovation policy also affect cluster development in Switzerland.

SECO The ministry for economic affairs in Switzerland is the “State Secretariat for Eco- nomic Affairs” (SECO). Within this ministry, the main department that deals with matters relating to cluster development is the Directorate for business and location promotion (“Direction für Standortförderung”). This department deals with Small Business Policy, Export and Investment promotion, Regional Policy and Tourism. For more information, please contact State Secretariat for Economic Affairs SECO Effingerstrasse 31 CH-3003 Bern 3

Tel. +41 (0)31 322 56 56 Fax +41 (0)31 322 27 49 www.seco.admin.ch

”Location Switzerland” “Location Switzerland” as part of the SECO (see above) generally supports the establishment of new enterprises in Switzerland. In this context it explicitly mentions clusters in Switzerland (clusters in biotechnology, medical technology, ICT, shared services, micro technology and nanotechnology and environmental technologies) as point of interest for foreign investors. As kind of a marketing organisation “Location Switzerland” looks at Switzerland as one big “cluster of clusters”. Nevertheless there are no active cluster policies or active cluster programmes. For more information, please contact Switzerland Headquarters Effingerstrasse 31-35 CH-3003 Bern Tel.: + 41 31 323 07 10 Fax: + 41 31 324 86 00 E-mail: [email protected] www.locationswitzerland.ch

The “Federal Office for Professional Education and Technology” (BBT) The “Federal Office for Professional Education and Technology” (BBT) supports innovative technologies and innovative start-ups. It does not follow a specific regional cluster policy but it offers support for innovative start-ups from universities and research institutions and contributes to the development of clusters in Switzer- land. For more information, please contact CTI: The Innovation Promotion Agency (KTI) Federal Office for Professional Education and Technology OPET (BBT) Effingerstrasse 27 CH-3003 Bern Tel. +41 (0)31 322 21 29 Fax +41 (0)31 324 96 15 www.bbt.admin.ch/kti/

All the above mentioned organisations have (many) other tasks besides cluster development. As already mentioned, there is no explicit cluster policy at the national level in Swit- zerland. Therefore, cluster development is not a specific task of these organisations. The organisations deal with policies that (may) affect cluster development. There are 26 Cantons in Switzerland which have a number of responsibilities and authorities. Most cantons have departments for business development which are interested in the development of business and industry in their Canton. Some Canton actively support Cluster development, partly only in a more idealistic way, partly also by giving financial support to cluster initiatives. 4

Source: See Websites above; Interview with Mr Rudolf Schiess and Mr Patrick Laederach from “seco”

1.2.2 National cluster programmes

As already mentioned, there is no explicit cluster policy at the national level in Swit- zerland. There are also no explicit programmes for cluster development at the national level. The Law about Regional Policy in Switzerland (Gesetz über Regionalpolitik, 6 Octo- ber 2006) does not mention the word "Cluster". However, it states that financial support can be given to initiatives, programmes and projects that support the innovation potential of a region, enhance the utilization of the regional capability and build up or improve regional value creation systems. The Nanocluster Bodensee is one initiative that gets as a pilot project financial support from the federal government as part of this regional policy.

1.2.3 Regional cluster programme

There are four regional cluster programmes in Switzerland a) The Ark (Canton of Valais) b) Cluster Policy of the Canton of Bern c) Biovalley Basel d) Nanocluster Bodensee

1.2.3.1 “The Ark” (Canton of Valais)

The programme has been initiated by the Canton of Valais and is supported by the Swiss Secretariat for Economic Affairs, the Communes of Martigny, Monthey, Sierre, Sion, Visp and Brig and the regions “ARS” (region of Sion), “ARMS” (region of Monthey-St-Maurice) and “Sierre Région” (region of Sierry) Time horizon: unlimited Programme initiator: Canton of Valais Programme actor: “Foundation The Ark”, Canton of Valais, Sion. “The Ark” was founded by the earlier “Valais-Technologies” project The initiation department of canton of the Valais is also responsible for the economic development of the canton.

Geographic coverage: Canton of Valais “The Arch” aims at bringing actors in the supported sector together. Programme contents: The Ark is a project of economic development launched by Canton of Valais. It combines several technology sites, the “BioArk” in Mothey and 5

the “PhytoArk” in Sion (both life science sector) and the “IdeArk” in Martigny and the “TechnoArk” in Sierre (both information and communication science sector) into one and the same entity. Prioritised areas: Life Sciences, Computer Sciences, Engineering sciences (but also services, tourism and the environment) Ambitions/goals: The Ark aims to make the Valais a true technology park with promise for the future and recognized as such in Switzerland and around the world. The Ark aims to nurture research and to foster the capacity for innovation among existing businesses. Finally, The Ark facilitates the creation of new businesses and the relocation of others in the Valais. Target group: Research centres, also technology companies, start-ups and R&D divi- sions. Focus on SMEs: Each site provides services as well as support programmes designed to accompany entrepreneurs in all phases of development, i.e. especially in the first phase. Cross-country/interregional activity: “The Ark” is associated with several networks of technology parks (BioAlps, SwissBiotech, Swissparks and others. Source: www.theark.ch

1.2.3.2 Cluster programme of the Canton of Bern Since the second half of the 90ies the Canton of Bern has designed cluster support measures aimed at strengthening the knowledge exchange through the local and regional networking of firms and research and education organisations. Policy is oriented towards six clusters (Berne Economic Development Agency BEDA, 2006): 1) Precision industry, 2) telematics/information technology, 3) Medical technology, 4) Services, 5) Environmental and energy technology and 6) Design. The canton of Bern has been running its cluster policy for approximately 10 years now. Specifically, Bern established four cluster organisations (1-4) and 2 centres of competence (5+6) with the aim of adding attractiveness to Bern as a location for companies within the selected clusters (Berne Economic Development Agency BEDA, 2006). 1) Precision Industry (www.cluster-precision.ch). Founded in 2006, the goal is to strengthen the network within the cluster in the area in and around Bern. 2) Telematics/IT (www.tcbe.ch). Founded in 1996, currently 220 members. In six different work groups the association collaborates closely with companies and organ- izes various events, business (cluster) networking. Main achievements of the association are the launch of an informatics apprenticeship programme and an annual conference on telematics.

3) Medical Technology (www.medizinal-cluster.ch). Founded in 1997, it has 50 members from several cantons in the Bern area. Three workgroups are in place. Mile- stones of the association are the establishment of educational programmes tailored to suit the needs of the cluster at the University of Bern and the Universities of Applied Sciences Bern. 4) Services/Consulting (www.wbcb.ch). Founded in 2000, it counts 630 members from of consulting, finance, insurance, associations and universities. Eight working groups are in place and an annual conference is held. 5) Environmental and Energy Technology (www.zut.ch and www.energie-cluster.ch). The Centre for Environmental Technology (ZUT) is the competence centre for environmental technology and specialises in knowledge transfer between the scientific and the corporate world. 6) Design (www.designnet.ch). The Design Centre Langenthal BE holds events to promote the importance of design in the area. An annual competition and various events around the topic are organized. The four cluster associations meet on a yearly basis to exchange experiences and present their activities. This event is called the "Bern Cluster Day". Financing: The Cluster initiatives are public-private partnerships. Financing comes from the Canton of Berne (each cluster: 80'000 CHF/year) and membership fees. Budget: The four cluster organisations (precision industry, telematics/information technology, medical technology, services) are managed by the cantonal centre for technology and knowledge transfer called InnoBE (www.innobe.ch) with budgets between 100'000 and 170’000 CHF per cluster and year (Biedermann, 2006). All of the four “clusters” are organized in the legal form of an association and supported by the canton of Bern with 80’000 CHF each (interview Bieri) (Source: Barjak/Bienz 2006). Programme initiator: The Canton of Berne Carried out by which actor: Bern established four cluster organisations (1-4) and 2 centres of competence (5+6) (see above). The four cluster organisations are managed by the cantonal centre for technology and knowledge transfer called InnoBE. Purpose: InnoBE was founded in 1999 as central contact point for knowledge- and technology-transfer in the Canton of Bern. Its predecessor was BETECH (Bernische Genossenschaft für Technologievermittlung). Other tasks apart from this programme: Technology transfer. Geographic coverage: Canton of Berne The precision industry is a mature industry in Switzerland and forms a cluster in the Swiss Jura arc, of which parts are in the Canton of Bern. The other industries, which are supported by the cluster initiatives, can be described as emerging or relatively mature industries. However, it is unclear, whether the supported industries exhibit the characteristics of a cluster in the canton of Bern. Patrick Dümmler (2005) has written his PhD-Thesis about clusters in the medical devices industry in Switzerland. He found out that the regional concentrations of companies in these sectors in Switzerland do not exhibit the characteristics of a cluster, because regional interactions only play a very minor role.

InnoBe, which is responsible for the cluster management of four cluster organisations aims at supporting companies, training institutions, trade associations and local authorities in order to strengthen the cluster sectors in the canton of Bern. Target group: Research institutions, companies/Start-ups in the respective industries. There is no particular focus on SMEs, but most of the member companies of the cluster organisations are SMEs. Cross-country/interregional activity: The ICT Cluster takes part in the EU-Project NICE (Networking ICT Clusters in Europe). The clusters have been assessed in the OECD-Nutek Regional Strategies Study (Barjak/Bienz 2006). Approach in selection of clusters to support: Top-Down. Planned future: According to the manager of the four cluster associations, Peter Biedermann, there is still potential to be tapped by the cluster policy in Bern. He mentions that many events focus on presentation of success stories and do not solve problems. He would also like to see joint product development by the cluster expo- nents which could not be realised so far. He further states that the approach is still too top-down, the contents and activities should be more influenced by industry (Biedermann, 2006). (Source: Barjak/Bienz 2006).

Sources: Barjak, Franz; Abplanalp, Peter; Bienz, Philip (2006): Schaffung innovativer Wirtschaftsräume und wettbewerbsfähigker Unternehmen. Sind Cluster die Lösung? Discussion Paper 2006-W01. Fachhochschule Nordwestschweiz. (PDF available at: http://www.fhso.ch/pdf/publikationen/dp06-01.pdf) Barjak, Franz; Bienz, Philip (2006): Regional Economic Policy and the Life Sciences in Northwestern Switzerland, Ques- tionnaire for the OECD-Nutek Regional Strategies Study, unpublished document. Fachhochschule Nordwestschweiz, Olten. Berne Economic Development Agency BEDA. (2006). Clusters. Retrieved 17. May, 2006, from http://www.berneinvest.com/2260/2270/2287.asp Biedermann, P. (2006). Schaffung innovativer Wirtschaftsräume und wettbewerbsfähiger Unternehmen - Sind Cluster die Lösung? Paper presented at the conference „Schaffung innovativer Wirtschaftsräume und wettbewerbsfähiger Unterneh- men - Sind Cluster die Lösung?“ FHNW: Olten. (Summary available in: Barjak, Franz/Abplanalp, Peter/Bienz, Philip (2006)) Dümmler, P. (2005): Wissensbasierte Cluster in der Schweiz: Realität oder Fiktion? Das Beispiel der Medizinaltechnik- branche. Dissertation ETH Zürich Nr. 16082, Zürich. Terstriep, Judith (2006): NICE - Networking ICT Clusters in Europe - Innovation through Collaboration. Conference Paper, XVI international RESER conference, Lisbon, September 28-30, 2006. http://www.iatge.de/aktuell/veroeff/2006/terstriep01.pdf

1.2.3.3 Biovalley Basel

Financing: Interreg II and III, German regional ministries and business associations, Swiss cantons and Swiss government, French partners. Budget: 2.4 Mio Euro (2002 to 2005). Time horizon: Founded in 1996 (after “Ciba-Geigy” and “Sandoz” went to fusion to new “Novartis”), long time planning is foreseen. Programme initiator: Georg H. Endress (local businessman) and Hans Briner (first president of “Regio Basiliensis”). Actor: Three associations in Switzerland (BioValley platform Basel), France (Associa- tion Alsace BioValley) and Germany (BioValley Germany), plus a central association. 8

The actor formed for in 1996 this purpose, and does not have other tasks apart from this programme. Organisational set up at programme and project level: See “actor”: a trinational management team is in charge of the organisation. Geographic coverage: Northwest Switzerland (Basel area), South-Baden (Germany) and Alsace (France). Policy focus: The focus is on bringing together already strong actors in one particular sector, over national borders. Programme contents: With about 300 life science companies, including major global players in pharma and agro business, 40 scientific institutions and 4 universities with about 280 research groups, the players in the target region build one of the largest biotech-regions in Europe. The “BioValley” tries to bundle the power of that cluster. Activities – prioritised areas: • Removal of the disadvantages of a national border location or fragmentation, • Strengthening of the whole area in national and international competition, • Exploitation of specific innovation potential in the individual parts of the region, • Promotion of start-ups, • Building up of an infrastructure for relocating and new companies, • Provision of start-up and risk capital, • Networking of participants, in particular the universities, • Setting a focus for scientific institutions. Ambitions/goals: The vision of a trinational region, strategically located in the Upper Rhine Valley which extends over northwest Switzerland, South-Baden and Alsace, becoming a European centre for biotechnology. The main objective of BioValley is the promotion of cooperation between companies involved in the biotechnological and biomedical sectors and the internationally respected scientific institutions associated with universities in the BioValley area. Target group: Actors in the Basel trinational region. Focus on SMEs: The intention of the project is to address not only the many phar- maceutical concerns already present in the BioValley area, but also to involve the region's numerous smaller enterprises and suppliers. Cross-country/interregional activities: This is a trinational project. In addition, it cov- ers more than one Swiss canton. Approach in selection of clusters to support: Top-down Planned future: The BioValley is seen as a long term project. (at least 15 to 20 years).

Sources: • www.biovalley.com • Barjak, Franz; Bienz, Philip (2006): Regional Economic Policy and the Life Sciences in North-western Switzerland, Questionnaire for the OECD-Nutek Regional Strategies Study, unpublished document. Fachhochschule Nordwestschweiz, Olten. • BioValley cluster analysis, Executive Summary October 2004, PDF, available at www.biovalley.com (as of March 29 2007) 9

• 10 years Biovalley, Survey and prospects, PDF, available at www.biovalley.com (as of March 29 2007)

1.2.3.4 Nano-Cluster Bodensee

Financing: The initiative is mainly financed by the National State Secretariat for Eco- nomic Affairs SECO and the Canton of St. Gallen. Both contribute equal amounts to the project (Co-Financing). The project is a pilot-project for the new federal regional policy ("Neue Regionalpolitik").

National State Secretariat for Economic Affairs SECO Effingerstrasse 31 CH-3003 Bern www.seco.admin.ch

Canton of St. Gallen Business Development Agency Davidstrasse 35 CH-9000 St. Gallen http://www.location.sg.ch/

Further funding comes from membership fees of members of the unincorporated association and projects. Budget: 800'000 CHF (equals 500'000 EUR) per Year. Time horizon: Funding from 2004-2007. Evaluation of the program in fall 2007. At the moment the initiative is working to get public funding for the following years. Programme initiator: There has been a large technological project in the field of Nano-technology which ended in 2003. A number of participants in this project wanted to continue the work and develop nano-technology activities in the region. Actor: The Cluster initiative Nano-Cluster Bodensee is run by an unincorporated association called "Verein Mikro- und Nanotechnologie Euregio Bodensee". The office of the association is located at the EMPA, which is a materials science and technology research institution in St. Gallen. The initiative employs one CEO and two other employees.

Nano-Cluster Bodensee Lerchenfeldstrasse 5 CH-9014 St.Gallen Tel. +41 (0)71 274 73 81 Fax +41 (0)71 274 73 86 www.ncb.ch

The unincorporated association was formed for this purpose on 1. July 2004. It does not have other tasks apart from this programme.

Geographic coverage: Lake-Constance-Region: Canton of St. Gallen (CH), Canton of Thurgau (CH), Southern Baden-Württemberg (D), Vorarlberg (AT), Liechtenstein (LIE). Policy focus: Science and Technology Policy The targeted cluster is emerging. Activities: Nano-Cluster "Bodensee" is based on three elements: - Nanofair (International Fair on Nanotechnology in St. Gallen (Switzerland) and Düsseldorf (Germany) - Nano Conference (International Conference on Nanotechnology) - Nano Projects (Results from research and lesson are to be incorporated in the products of the industry on site by means of a guided technology transfer). Nano Projects can have three different forms: 1) Information events/ networking events, 2) groups that meet regularly to exchange experiences (8-12 people from different companies / institutions) and 3) Cooperation projects that aim at making research output usable and accessible. Ambitions/goals: Goals of Nano-Cluster Bodensee: Promotion of the economical realization of nano- and micro technology research results. Enhancement of innovation and competitiveness of companies in the area of the "Lake of Constance" and maintenance respectively creation of jobs. Nano Cluster Bodensee is an active contribution to the security, respectively promotion of welfare in our economic area. Economic realization of nano- and micro technology research results and their implementation in the international area around the "Lake of Constance". Broad variety of ways to access nano- and microtechnology for the industry on site. Target group: Companies, Research institutions, Universities There is no particular focus on SMEs. Level of R&D involvement: Research is not the primary target of the initiative: "Our strength and our assignment lie in the implementation; hence, research is not our primary target. NCB, however, aims to make results and competencies of the local as well as of the international nano-research usable and accessible." What the programme offers the projects: Different forms of support are possible: Financial support, networks etc. Cross-country/interregional activity: Yes, the initiative is intended to be a multina- tional initiative with partners from around the Lake of Constance (Switzerland, Ger- many, Austria and Liechtenstein). There are members and cooperation partners from Switzerland, Germany and Austria. However, the project is mainly financed by the Swiss state and the Swiss Canton of St. Gallen, where the office of the initiative is also based. Based on applications or appointments: There is no predefined way of applying for support from the initiative. Companies can become active and apply for funding, but the initiative itself can also develop ideas and encourage partners to cooperate in projects. Approach in selection of clusters to support: The initiative originated from a large technological project in the field of Nano-technology which ended in 2003. A num- 11

ber of participants in this project wanted to continue the work and further develop nano-technology activities in the region. In this way the selection of nanotechnology was more of a bottom-up approach. Evaluation: There is no evaluation so far. The initiative is to be evaluated in fall of 2007. Planned future: The initiative is working to get funding for the years 2008-. There needs to be some public money to sustain the initiative. Joerg Guettinger, the CEO of Nanocluster Bodensee, is confident, that the initiative will obtain public funding. However, the amount of funding for the next years is still an open question.

Source: http://www.ncb.ch/index.html and telephone conversation with Dr. Joerg Guettinger, CEO of Nanocluster Bodensee, 3. April 2007.

2.4 Successful cluster programmes

There are no evaluations of cluster programmes in Switzerland. Existing successful clusters in Switzerland (like the life sciences cluster in Basel, the watch industry and precision instruments industry cluster in the Swiss Jura Arc or the financial industry cluster in Zurich) originated without support from any specific cluster development programme. The existing regional cluster programmes are either very young or so far do not seem to have a major effect on the development of the industry in the specific regions. Therefore, it cannot be delivered an example for a successful cluster programme.

1.3 Cluster policies

Above the level of agencies and programmes is the policy level. On the policy level, plans and strategies are developed in the form of policy documents, directives and legislation, rather than concrete programmes and organisations. There may be one overarching policy for clusters, a “cluster policy”, outlining specifically how cluster development should be pursued. In addition, clusters may form a framework in a long range of policy fields. Primarily, this is often the case in three key areas: innovation and technology policies, regional economic development policy, and entrepreneurship/SME policy. However, it can also occur in many other policy areas.

1.3.1 Overarching cluster policy

General remark: In the shopping list a "cluster" is defined as a geographically proxi- mate group of companies. However, as Switzerland is a relatively small country with 7.5 million inhabitants, it can be considered as one big cluster. Therefore, national policy measures (e.g. technology policy) without any specific regional focus might be considered as clusters policies. However, “cluster policy” or “cluster programmes” as a vehicle of active economic development is not a primary policy issue. There a Swiss cantons who promote clus- 12

ter institutions (see 2.2.1), but this is more like an additional measure so ensure economic wealth. It is broadly accepted in Swiss politics that a sound and attractive business environment is a better way of supporting business than too much government support and programmes (see on this also point 2.5.). In 1996 the Canton of Bern began to support cluster initiatives. The BioValley (Basel) was also founded in 1996. In 2001 and 2002 the State Secretariat for Economic Affairs SECO commissioned a group of experts to evaluate the existing regional policy in Switzerland and to pro- pose new measures for regional policy in Switzerland. There were two input papers concerning clusters. Input paper 5, written by Thomas Kärcher-Vital, states that clusters are a fact in Switzerland and that cluster-oriented policy measures can be successful, if certain preconditions apply. Input paper 6, written by Silvio Borner, states that the state should not support clusters because this would lead to rent seeking activities and distortions. The state should foster economic growth by establishing sound framework conditions and macroeconomic stability. The Final report of this group of experts was published at the beginning of 2003. The report states that the New Regional Policy should support initiatives that aim at supporting clusters and regional value creation systems. The final Law about regional policy is described in 2.3.2. Furthermore, the Institute for Public Services and Tourism (IDT-HSG) at the Uni- versity of St. Gallen (Prof. Dr. Thomas Bieger), the University of Applied Sciences Northwestern Switzerland, School of Business (Fachhochschule Nordwestschweiz, Hochschule für Wirtschaft, Franz Barjak, Prof. Dr. Peter Abplanalp) and the Swiss Federal Institute of Technology Zurich (ETH Zurich) contribute to the debate about clusters in Switzerland.

Sources: http://www.seco.admin.ch/themen/00476/00496/00498/00500/index.html?lang=de Expertenkommission "Überprüfung und Neukonzeption der Regionalpolitik" (2006): Neue Regionalpolitik (NRP), Schlussbericht. Zürich, 6. February 2003.

1.3.2 Clusters as framework in key policy areas

Clusters do not play a specific role in this policy area on the national level. As explained above, some cantons (Bern, Basel, St. Gallen, Valais) support cluster organisations that aim at improving technology transfer and company development in specific sectors. The procedure of creating a new regional policy at a federal level in Switzerland has been explained in 2.3.1. The Law about Regional Policy in Switzer- land (Gesetz über Regionalpolitik, 6. October 2006) does not mention the word "Cluster". However, it states that financial support can be given to initiatives, programmes and projects that support the innovation potential of region, enhance the utilization of the regional capability and build up or improve regional value creation systems. The Nanocluster Bodensee is one initiative that gets as a pilot project financial support from the federal government as part of the regional policy.

Source: http://www.admin.ch/ch/d/ff/2006/8417.pdf

1.3.3 Clusters as framework in various policy areas

There is no business network policy in Switzerland. Location Switzerland promotes the advantages of locating your business in Switzerland especially for the following industries: · biotechnology/life sciences · medical technology · information and communications technologies (ICT) · shared services · microtechnology and nanotechnology · environmental technologies

There is no specific regional focus. However, it can be argued that Switzerland as a whole forms one cluster, see also 2.2.1. Export promotion policy in Switzerland does not focus on any specific industry. There is no sectoral industry policy in Switzerland Source: http://www.standortschweiz.ch/

1.4 Cluster or competitiveness councils

In some countries, councils have been set up to promote a dialogue about clusters and competitiveness. Often, these councils have representatives from the government sector as well as from the academic world and the business community.

1.5 Other policy issues

Sometimes it is useful to know about any other issues that have an impact on clusters in a country. Such issues could be, for example, any macro economic policies that may be relevant for clusters (tax regimes, etc), or if any general evaluation has been made about the country’s competitiveness and barriers to competitiveness. As mentioned under point 2.3.1, it is broadly accepted in Switzerland that the economic success of the country is based on the following economic pillars: “…main pillars of our success: High productivity together with high quality products and services Liberal authorities in a country with modest taxes Currency and price stability, low capital costs State-of-the-art infrastructure and high quality of life Efficient capital market and a highly professional banking system Excellent level of education of the workforce as a result of the varied curricula in the public education and training system International reputation of its universities, technical colleges and R&D institutes 14

Social peace and political stability.”

Switzerland does not follow an explicit industry industrial policy and also no active cluster policy, at least not on the national level. Source: www.standortschweiz.ch This question implies that having a cluster policy is necessary or a good thing. But this is far from being certain. Having clusters might be a good thing but it has not been proven that governments should have explicit programmes for cluster development. Economic policy in Switzerland can be characterized as being liberal and non- interventionist (see “main pillars” in the first part of this section): There is no industrial policy, there is no explicit cluster policy at the national level and there is also the perception that there is no need for a specific cluster policy. It is a fact that a number of industries in Switzerland are highly geographically concentrated (life sciences sector in Basel, financial industry in Zurich, watch and precision industry in the Swiss Jura Arc etc.). These industries exhibit the characteristics of clusters. However, these industries have developed without explicit government support. Although there are some cluster organisations and initiatives on regional level, we don't know whether or not there have been any obstacles in the process of building cluster policy. In recent years there have been a number of academic publications on clusters in Switzerland. On the political side there is also an interest in clusters. However, in our perception the majority of policy makers believe that politics cannot and should not try to actively support cluster development. The number of cantons that actively support certain clusters is small compared to the overall number of Cantons in Swit- zerland. According to the Global Competitiveness Reports, Switzerland is one of the most competitive countries in the world. Market efficiency is negatively influenced by agri- cultural policy costs and the prevalence of trade barriers in certain areas. Apart from that there is no general assessment of competitiveness in Switzerland. There is a report concerning the relations towards Europe and the EU, which is called "Europe Report 2006". This report deals with a number of economic issues and the question of competitiveness. It comes to the conclusion that Switzerland’s objectives and interests with regard to Europe can be best achieved through the further development of the bilateral contractual framework.

1.6 Policy trends

Policy trends Policy Stream Old Approach New Approach Cluster Programme Focus

Regional policy Redistribution from Building competi- Target or often include lagging regions leading to lagging tive regions by Focus on smaller firms as opposed to larger regions bringing local firms, if not explicitly than de facto actors and assets Broad approach to sector and innovation together targets Emphasis on engagement of actors 15

Policy trends Policy Stream Old Approach New Approach Cluster Programme Focus

Science and Financing of individ- Financing of col- Usually high technology focus technology ual, laborative research Both take advantage of and reinforce the policy single sector projects involving networks spatial impacts of R&D investment in basic research with industry and Promote collaborative R&D instruments to links with commer- support commercialisation cialisation Include both large and small firms; can emphasise support for spin-off start ups

Industrial and Subsidies to firms; Supporting com- Programmes often adopt one of the following enterprise national champions mon needs of firm approaches: policy groups and tech- Target the "drivers" of national growth nology absorption Support industries undergoing transition and (especially SMEs) thus shedding jobs Help small firms overcome obstacles to technology absorption and growth Create competitive advantages to attract inward investment and brand for exports

Source: OECDA review of national cluster policies: Why are they popular, again?, June 2006