Middle Switzerland

An information magazine of the Federal Statistical Office – Number 1/2013 Special topic: ???

Geneva Plainpalais

2 FSO ValueS Foreword

On average...

Dr François Baumgartner Director General ad interim, Federal Statistical Office Neuchâtel/Switzerland

Let’s assume that you are an “average” reader. According to experts, you have a reading speed of between 100 and 150 words per minute. This means that you will take around 411 minutes to read this edition of ValueS. You will understand around 50–70% of the content and will still remember around 2% of what you have read the day after tomorrow. Or perhaps you are not so average? Middle Switzerland is the subject of this edition of ValueS. In order to plan for the future, it is essential to know where the “middle” or the mean is. Any decimal points required for data on humans sometimes confuse the mean value, for example, the 1.5 children born on average for every woman in Switzer land or the 198.9 inhabitants per km2. But despite the apparent absurdity of this, the average does have a valuable, recognised value and is even a real talking point sometimes. Take the average weather, for example. A longer and colder winter than average in 2012/2013 was followed by a spring with around 40% fewer hours of sunshine than the annual average since 1959. This figure may explain the mood of some of our fellow human beings... In statistics, it is often useful to condense data volumes – including huge amounts of data – to give one value. This single number describes a phenomenon’s central trend. For example, the long list of the ages of all of a country’s inhabitants is reduced to the arithmetic average age: in Switzerland, this was 41.5 years in 2011. Sometimes, the arithmetic mean is considerably influenced by extreme val ues. In these cases, statistics make use of the median which divides the observation values into two equally sized halves. One half of the values is above the median, the other half below. What does it mean to be to the right or left of the mean value? This means, for example, having a bi gger or smaller disposable income than average or dying earlier or later than indicated by the statistical life expectancy. Yet in the long-term and in context, averages are an essential way to identify patterns and trends and to monitor change.

FSO ValueS 3 Focus on the “middle”

Fears about the gradual erosion of the “middle class” or speculation on the ever-increasing burden of compulsory expenditure are often at the centre of public debate. Despite wide coverage in the media, the availa- bility of statistical data on the topic is sparse. This gap has now been filled with a study on the trends affec- ting middle income groups and their composition as well as the burden of compulsory expenditure on them. Caterina Modetta

uch attention in politics and in the of between CHF 3693 and 7913 belonged to the media is paid to the topic of society’s middle income group as did for example couples “middle”. The financial situation usually with two children with a gross monthly household M 2 lies at the heart of the discussion. In times of eco- income of between CHF 7755 to 16,618. nomic boom the middle income groups in Switzer- Analysis of trends in the middle income group land are said to benefit too little from growth in from 1998 to 2009 has shown that this group is relation to their contribution to prosperity. During not at all homogeneous. Due to its heterogene- a recession it is feared that middle income groups ous composition, distinction is made between an will slide into a precarious existence. Sometimes upper and a lower middle for certain analyses, for conjecture is even made about an increasing po- example for the analysis of household structure. larisation of society with a dwindling “middle”. Although such ideas may appear exaggerated, No polarisation of income groups they do show that the middle income groups are According to the definition used there is no ascribed the role of supporting the state and that evidence to support the hypothesis of a polari- a weakening of this class is seen as a danger for sation of income groups with a “dwindling mid- the social peace and prosperity of the country. dle”. Overall the middle income group remained The Federal Statistical Office’s study, Focus on mostly stable in the period from 1998 to 2009 the “middle”, considers how the proportion of with regard to the upper and lower groups. people considered middle class changed from 1998 Only for the years between 2003 and 2007 to 2009 as well how great the burden of compul- can a trend towards a slight decline in the popula- sory expenditure was during this period. The analy- tion share of the “middle“ be seen. However, the ses are based on data from the Household Budget differences in income between the income groups 1 Further information on the HBS Survey (HBS) of the FSO, which collects detailed did increase slightly on occasion. From 2001 to can be found in this edition on data on the income and expenditure of private 2007, a slight widening of the income gap in par- page 7. 1 households. According to this study, in 2009 a ticular between the lower income group and the 2 person living alone with a gross monthly income middle income group can be observed. See box Who is in the “middle”?

Trends in income group proportions, 1998–2009 100% High income 90% 19.5 20.6 18.7 19.7 18.4 19.8 18.4 19.5 20.2 19.9 18.7 (> 150% of median)

80% Upper middle income (> 100% to 150% 70% of median) 30.5 29.4 31.3 30.3 31.6 30.2 31.7 30.4 29.8 30.0 31.3 60% Lower middle income 50% (≥ 70% to 100% of median) 40% 26.5 28.7 28.9 27.6 29.5 29.2 27.9 27.4 27.8 27.8 30.0 Low income 30% (< 70% of median) Total percentages may not add up to 20% 100% as the ﬁgures have been rounded. 10% 23.5 21.3 21.1 22.4 20.5 20.8 22.1 22.6 22.2 22.2 20.0 All the variation coefﬁcients < 10%.

0% Source: FSO – HBS 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

4 FSO ValueS Trends in middle income group proportions, 1998–2009

1998 Lower and upper middle income group cumulated

2000 Conﬁdence interval 95% 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: FSO – HBS 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70%

Household structure by income group, 1998 and 2006 –20093 Personal level 100% (6.3) 7.8 7.6 Persons in other 9.6 12.8 13.5 10.9 11.0 10.3 9.8 (2.9) household types 90% (4.3) 6.9 5.4 (0.8) (0.9) 2.3 4.1 (1.1) (2.9) (3.6) 2.3 13.3 10.3 (6.5) 4.9 10.9 8.3 Single parent family with 80% 15.7 child(ren) 19.9 21.4 21.4 70% Couples with 3 children or more 34.2 33.8 60% 38.1 35.9 31.6 43.8 Couples with 1–2 47.4 50% 32.2 child(ren) Couples with no other 40% 47.7 48.6 person in household 30% 29.0 Single person households 21.2 27.8 29.0 17.9 26.8 21.6 20% 18.0 Total percentages may not add up to 100% as the ﬁgures have been 10% 16.2 18.3 15.5 15.6 15.8 15.0 rounded. Between brackets: estimate 10.5 11.3 13.7 13.8 showing great variability, variation 0% coefﬁcient > 10%. 1998 2006 –2009 1998 2006 –2009 1998 2006 –2009 1998 2006 –2009 1998 2006 –2009 Low income Lower middle income Upper middle income High income Total Source: FSO – HBS

3 For the years 2006–2009 a pooled sample was used. As the size of the annual sample for the HBS (e.g. 3317 households in 2009) does not allow for analysis of small population groups, as of 2000 three (or four) consecutive years are pooled together for certain analyses so that the sample can be enlarged and therefore the quality of the results improved.

Increase in compulsory expenditure family households can be seen, particularly in the in all population groups middle income groups. The proportions in the The hypothesis of an “excessively burdened middle income groups at either end of the scale have class” is not backed up by the study. No excessive hardly changed. The proportion of persons in burdening of the middle income groups through larger family households (3 children and more) compulsory expenditure can be seen either in is also in decline; this is the case, however, for cross-societal comparison or within the period all income groups in the study. The share of per- under observation. The burden of compulsory ex- sons living alone has remained stable or increased penditure has increased for all population groups. slightly for all income groups. On the other hand persons in couple households without children Decline of traditional family households have slightly increased their share in particular in middle income groups in the middle income groups. They continue to Those in traditional family households (couple be well-represented among the highest income with one to two children) are typical for the group, where they make up almost half of this household structure of middle income groups. A population group. Persons living in single-parent particularly high proportion of these families is households are almost non-existent among the found in the lower middle. In comparison with high income group. In the remaining income 1998 the decline in persons living in traditional groups their percentage has increased since 1998.

FSO ValueS 5 Results do not confirm fears come groups? Is it not more likely that the middle This text is taken from the pub income group’s possible fears of slipping down lication: Die «Mitte» im Fokus. The analyses suggest a certain discrepancy be- Die Entwicklung der mittleren tween the frequently expressed fears about the the social ladder are more decisive here than Einkommensgruppen von 1998 “middle” in public debate and the actual results. the measurable standard of living? We can only bis 2009. FSO, Neuchâtel speculate here. Periods of negative economic 2013. Available in French and It is justifiable to wonder why such statements so German. often colour public discussion: Could the reason trends, in particular the latest financial and eco- be problems projected onto the middle income nomic crisis, have certainly had an influence on group that are actually to do with structural the aforementioned discussions. change? Are the income thresholds of the middle income group often subjectively over- and underestimated, thus wrongly attributing to the Caterina Modetta is a research associate in the income and middle the problems of the upper and lower in- poverty analysis unit of the FSO’s Social Analysis section

Who is in the “middle”? Threshold amounts of different household The thresholds used to classify the income types for assignment to the middle income group, 2009 groups are derived from the distribution of the gross equivalised income3. The income thresh- Gross household income in CHF per month olds depend on the median income4 in each observation year (“relative change in prosper- Lower threshold Upper threshold ity”): All persons whose household has a gross Person living alone 3,693 7,913 income of between 70% and 150% of the Couple 5,539 11,870 median income belong to the middle. Persons Couple with 1 child 6,647 14,244 whose household has less than 70% of the me- Couple with 2 children 7,755 16,618 dian are considered as low income; those with Couple with 3 children 8,863 18,992 over 150% are considered as high income. The threshold between the lower and upper middle Single parent family 4,801 10,287 with 1 child 3 is the median. Single parent family with 5,909 12,661 The gross household income is According to the figure selected, in 2009 mem- 2 children comprised of the income of all bers of the middle income group had a gross members of a household. This Assumption: all children aged under 14 includes the gross wage (be monthly equivalised income of between CHF Source: Household budget survey fore social deductions), in 3693 and 7913, with a median of CHF 5276. come from self-employment, Calculated on the basis of a four-person house- income is converted to a one-person household, pensions, interest, transfers hold (couple with two children under 14) this i.e. divided by the corresponding “equivalence from other households, in come in kind from one’s own corresponds to a gross monthly household in- value”. This is determined by weighting the in- firm, benefits in kind from em come of CHF 7755 to 16,618. dividual persons of the household: the first adult ployer, products from private person is assigned a value of 1.0, the second garden plot etc. How is a gross equivalised income calculated? and each additional person aged 14 and above 4 The gross equivalised income is calculated on is assigned 0.5 and each child under age 14 The median or central value di vides the observation values the basis of the gross household income. In is assigned 0.3 (corresponding to the OECD- classified by size into two order to take account of differences in house- modified equivalence scale). The “equivalence equally sized halves. One half hold size and composition, the gross household value” results from the sum of these weightings. of the values is above the me dian, the other half below.

6 FSO ValueS

BFS ValeurS 1 The Household Budget Survey

The Household Budget Survey provides the statistical basis for a series of analyses and indicators. It gathers detailed and comprehensive data on the expenditure and income of the population in private households. In combination with results from previous surveys, the data enable the analysis of long-term trends, as illustrated, for example, in the article “The Middle in Focus”. As far as household consumption is concerned, the statistical series covers a time period spanning almost 100 years. Ueli Oetliker

The Household Budget Survey provides a com- household members or – in the case of online plete and detailed overview of the expenditure purchases – the sales channel. Furthermore, the and income of the population living in private survey covers such topics as the production of households in Switzerland. For this purpose, home-grown food or transfers between house- some 3000 households are interviewed annually holds in the form of gifts, invitations and also – roughly 250 per month. Every day for a month, benefit payments. the selected households keep a meticulous record The detailed comprehensiveness of the house- of all expenditure (and income) in a diary specially hold budget data means that they can be used for designed for this. In order to obtain a sample a wide range of purposes. Findings from the sur- that is as unbiased as possible, households are vey are used in many areas to provide a statistical selected on a random basis. base, especially for various federal offices, the During the survey period, the households are cantons and communes as well as in the world of provided with telephone support by experienced science and research. The annual recalculation of specialists who also carry out the electronic the basket of goods for the Swiss consumer price recording of the manually written data in the index (CPI) for example, is based on this data. household diaries. Data quality is considerably It is worth noting that almost every country improved by explanatory and clarifying phone conducts a household budget survey on a regular calls between the households and specialists, the Household expenditure basis. The type of approach adopted will depend over time objective being to obtain a record of the whole largely on the country’s circumstances. Countries spectrum of the household budget that is as com- The composition of household with a low literacy rate for example will not be expenditure has changed signi plete and undistorted as possible. able to use paper questionnaires without further ficantly over time. These chan A complex set of questionnaires, examples and measures. The definitions are coordinated at a ges are considerably larger guidelines, together with data registration tech- than the differences between global level by the International Labour Office households today. For example, niques and plausibility rules, ensures that the data (ILO) and at European level by Eurostat in Lux- the share of total expenditure collected reflect as closely as possible the reality embourg. represented by expenditure on of each household’s budget and should prevent food and non-alcoholic drinks in Because of its important economic role in de- 1945 was 35%, but nowadays any event being forgotten or incorrectly recorded. termining the CPI basket of goods, the detailed this has fallen to 7%. In cont In addition to detailed information on the registration of the expenditure structure has long rast the proportion of other ex household budget, questions are asked regard- penditure has increased, such been one of the core tasks of official statistics. ing other related areas such as the living arrange- as expenditure on transport, The first figures for the whole of Switzerland were which has risen from around ments or presence of consumer durables such as recorded in 1912. Since this time – with a few 2% to over 8%. cars and other large household appliances, but interruptions – data have been collected to esta also smaller ones such as computers and mobile Trends in selected household blish the composition of the household budget. expenditure items telephones. This information, as well as further details about the household and its members, is 40% 100% = total expenditure Food and non-alcoholic beverages gathered by telephone interview. Ueli Oetliker is responsible for the Household Budget Survey in 30% Almost 1000 different expenditure and income the Income, Consumption and Living Conditions Section of the FSO Housing and energy 20% items are available for the analysis. These can be combined with additional variables such as the 10% quantity of food consumed, date of purchase, 0% Transport assignment of individual expenditure to different 1945 1970 1990 2011

FSO ValueS 7 Espace Mittelland: a little Switzerland?

For statistical purposes “Espace Mittelland” is one of Switzerland’s major regions and in many ways represents a “mean”. Although it is not at the centre of the country from a geographical point of view, the region is the most populous in Switzerland; across the central plateau it connects the Jura mountain range to the Alps, is home to the Swiss capital, has a similar population density to that of Switzerland as a whole, is multi- lingual – as is Switzerland, is an important economic region of the country and is both urban and rural in character. Viktor Goebel and Barbara Jeanneret

The Espace Mittelland, a statistical unit The character of the Espace Mittelland Important and versatile The Espace Mittelland, not to be con- With almost a million inhabitants at the economic region fused with the Swiss plateau (Schweizer end of 2011, the canton of Bern made With a gross domestic product (GDP) Mittelland in German), is one of Switzer- up 56% of the Espace Mittelland’s of almost CHF 110 billion in 2010, the land’s seven major regions.1 These seven population, thus wielding considerable Espace Mittelland represents 19% of major regions were established in 1997 influence on the statistical picture of the Swiss GDP and in this respect holds by dividing the cantons of Switzerland region. The population density in the third place, behind the major regions into groups so that the country could major region was 181 inhabitants (IN) of Zurich and Lake Geneva. However, be integrated into the European statisti- per km². This value is close to the Swiss its GDP per capita (CHF 62,450) is cal system for the purposes of regional average. But the population is not equally higher only than that of Eastern Swit- and international statistical comparison. distributed over the territory; the popu- zerland and is below the Swiss average. These regions are equivalent to Euro- lation density in the canton of Solothurn This figure conceals marked regional stat’s (the EU’s statistics office) NUTS 22 is 325 IN/ km² and almost four times as differences, particularly between the regions and since their creation have high as in Jura (84). Between 2001 and cantons of Bern and Neuchâtel, which been binding for Swiss statistics. These 20113, at 6.2%, population growth in show a GDP per capita of more than regional divisions do not represent an in- the Espace Mittelland was not as strong CHF 66,000, and the canton of Fri- stitutional unit as such but the aspiration as in Switzerland as a whole (+9.6%). bourg (less than CHF 50,000). of these newly formed regions extends The canton of Fribourg was an excep- The economic structure of the Espace beyond purely statistical matters and tion: the population there grew 18.4% Mittelland can be described as follows: is in step with changes in society, the over the same period. This growth was measured in terms of gross value added, economy and politics. mainly attributable to immigration. primary sector activities, industry and The Espace Mittelland comprises the Land use follows the natural features public administration are over-repre- cantons of Bern, Fribourg, Solothurn, of the landscape. The relatively flat terrain sented in comparison with the country as Neuchâtel and Jura, and with a little over between the Jura and Alps, for example, a whole. Banks and insurances, on the 1,770,000 inhabitants at the end of 2011 is favourable to development, building other hand, are clearly under-represented and a surface area of almost 10,100 ac- and economic activities. The area utilised (see graph p.9). counts for almost a quarter of the total in the canton of Solothurn for housing The economic fabric of the Espace population (22%) and the surface area as well as trade and industry is 13.9% Mittelland is one of great contrast: the (24%) of the country. Its largest town, compared with 6.7% in Jura. This fig- Jurassic Arc stands out thanks to the large Bern, is the centre of one of Switzerland’s ure is 7.8% in the major region overall share of its manufacturing industry in larger urban zones, as well as being the (data from the survey period 2004/09). the value added. In fact, taken together, seat of the federal government. Extend- At 13.5%, the growth of settlement and the cantons of Solothurn, Neuchâtel and ing from the Jura mountain range in urban areas between the survey periods Jura generate almost 40% of their value the North West via the Swiss plateau to 1992/97 and 2004/09 in the canton of added from the mining (extractive) in- the Alps in the South East, having both Jura was considerably higher than the dustry, manufacturing and construction German-speaking and French-speaking major region’s average of 9.3% or the compared with an average of 24% in the areas, its territory is both rural and urban canton of Bern (7.9%). The canton of cantons of Bern and Fribourg as well in and varied in character. Fribourg also showed high growth of Switzerland overall. settlement and urban areas.

8 FSO ValueS The Espace Mittelland: some key figures

Settlement and urban Settlement areas, as and urban Part-time Permanent % of total area Gross Agricultu- Education employ- Major regions/ resident Population surface growth, domestic ral produc- - tertiary Doctor ment rate, geographical unit population density1 area as % product2 tion, as %3 level4 density5 as %

1992/97– 2011 2011 2004/09 2004/09 2010 2012 2011 2011 2010

Switzerland 7 954 662 199 …6 …6 72 905 100 35.2 388 28.7

Espace Mittelland 1 770 429 181 7.8 9.3 62 448 30.0 32.1 361 30.7 Bern 985 046 169 6.9 7.9 66 616 54.67 32.7 433 32.2 Freiburg 284 668 179 8.4 13.2 49 592 23.37 32.2 244 29.5 Solothurn 256 990 325 13.9 9.8 59 571 7.7 7 31.2 270 27.8 Neuenburg 173 183 242 8.3 5.8 66 282 7.17 32.4 326 29.1

Jura 70 542 84 6.7 13.5 55 919 7. 3 7 25.4 245 28.8

Lake Geneva region 1 503 500 182 6.6 8.9 75 447 18.6 39.0 453 27.6

Northwest Switzerland 1 079 913 554 18.1 8.1 80 796 8.1 35.1 416 29.3

Zurich 1 392 396 838 21.9 8.6 91 001 7.9 42.1 465 28.7

Eastern Switzerland 1 113 929 98 …6 …6 60 784 20.8 30.0 303 27.5

Central Switzerland 757 552 178 6.4 12.8 68 929 13.2 32.5 280 27.8

Ticino 336 943 123 5.6 6.7 65 254 1.3 29.3 352 25.6

1 Inhabitants per km2 of total surface area 2 At current prices in CHF per capita 3 Of total Swiss agricultral production, at current prices, estimate 4 Percentage of permanent resident population aged 25 to 64 with tertiary level (ISCED 5-6) as highest completed qualification 5 Doctors in out-patient, hospital and other sectors per 100,000 inhabitants 6 Not yet available 7 Espace Mittelland = 100%

Sources: FSO – Swiss Medical Association (FMH) and Eurostat

Added value, distribution by branch, in 2010

Agriculture, forestry and ﬁshing Switzerland Mining industries (extractive), manufacturing and Espace construction industries Mittelland Trade, vehicle repair, transport, accommodation and food services, information and communication Bern Financial activities and insurance

Fribourg Real estate, scientiﬁc, technical, administration and supporting activities, arts, performance and recreational activities, other services Solothurn Public administration

Neuchâtel Production and distribution of electricity, gas, steam and air conditioning, production and distribution of water,waste disposal and recycling, teaching, human health Jura Households as producing units

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: FSO – National Accounts

BFS ValeurS 1 FSO ValueS 9 Jobs in the «high-tech» branches*, 2008

Number of jobs (full-time equivalents) SH BS 21 290 TG 5 000 1 000 ZH BL AG CH: 329 177 FTE JU AR SO AI Location quotient** ≥ 1.50 ZG SG 1.30 – 1.49 Espace LU SZ 1.10 – 1.29 NE Mittelland GL 0.90 – 1.09 NW 0.70 – 0.89 BE OW 0.50 – 0.69 FR UR < 0.50 GR VD CH: 1.00

TI VS GE * According to NOGA 2008; Sections 20, 21, 25.4, 26-30, 32.5 ** The location quotient is the proportion of jobs in the MS region in Spatial division: relation to the proportion of jobs in this branch in Switzerland overall. Spatial mobility regions 0 25 50 km

Source: FSO – Business Census (BC) 2008 © FSO, ThemaKart, Neuchâtel 2013

There is a clear north-south divide Jura, zones of crop production stretch Jura (245), as well as the whole Espace with the major region, especially in the across the Ajoie and the Plateau, wine- Mittelland (361) are substantially lower. high-tech branches4 (including precision growing and vegetable crops characterise In comparison with the figures observed mechanics and manufacture of electronic the Three Lakes region and lastly, beef for North-west Switzerland, the regions devices). The watch industry makes itself and milk production are typical of the of Zurich and Lake Geneva as well as felt in Jura (see map above) employing a Emmental, the Fribourg pre-Alps and the those for Switzerland as a whole, the considerably higher proportion of people Oberland. doctor density in the Espace Mittelland is than the national average in this branch. Analysis of the employment struc- rather moderate. The differences reflect The primary sector represents 1.1% ture of the Espace Mittelland reveals, a certain centralisation in Swiss health of the gross value added of the Espace amongst other things, that in 2010 the care provision, which goes hand in hand Mittelland’s total economy, a figure that part-time employment rate was 30.7%, with specialisation. The Inselspital in is higher than the national average which two percentage points above the Swiss Bern, for example, admits patients from was 0.8% in 2010. The Espace Mittelland national average of 28.7%. The canton neighbouring cantons where adequate is Switzerland’s largest agricultural region, of Bern is mainly responsible for this high medical care for particular diagnoses is farming 35% of the utilised agricultural figure (at 32.2% one of the forerunners not available. area, rearing 35% of the cattle stock and in Switzerland). The unemployment rate generating 30% of Swiss agricultural pro- in the major region fluctuates between High level of education duction. The focus of this major region’s 2.0% in the canton of Bern and 4.7% in in European comparison agriculture is slightly more focused on the canton of Neuchâtel, with a national The major regions were established es- beef and dairy production in comparison average of 2.9% (data from 2012). Since sentially for reasons of international with the Swiss average. This is due to the the economic crisis of 2010, the canton comparability. Take for example the preponderance of hilly and mountainous of Jura has today managed to reduce its population aged 25 to 64 years having areas (60% of the utilised agricultural above-average unemployment rate con- completed education at tertiary level area compared with a national average siderably. and compare them to other regions of of 53%), typically used for grazing. The Europe: at slightly more than 32% in agriculture of the Espace Mittelland cov- Moderate density of doctors 2011, the rate in the Espace Mittelland, ers practically the whole range of Swiss An examination of certain aspects of although lower than the national aver- agricultural products and yet this vast re- health care provision shows that the doc- age (35%), that of Central Switzerland gion encompasses specific intra-regional tor density in the canton of Bern is 433 (33%), Northwest Switzerland (35%), agricultural features. Livestock and dairy doctors per 100,000 inhabitants. The fig- Lake Geneva (39%) and Zurich (42%), production are fairly widely found in the ures for the cantons of Fribourg (244) and is still in the upper third of the NUTS 2

10 FSO ValueS Tertiary education level in European comparison¹, 2011 Persons aged 25–64 with tertiary education (ISCED levels 5 and 6) attainment, as % of the resident population of the same age group > 35 30.0 – 35.0 25.0 – 30.0 20.0 – 25.0 <= 20.0 Data not available EU-27: 26,8

(¹) Sweden, provisional; Finland and Croatia, national level

Spatial division: NUTS 2 Cartographic base: Eurostat – GISCO 0 200 400 km Source: Eurostat (edat_lfse_11) © FSO, ThemaKart, Neuchâtel 2013

European regions and is clearly above the EU27 average of 27%. The differences between these NUTS 2 regions are considerable and range from a rate of more than 40% in certain parts of Great Britain, Belgium, the Scandinavian countries, in Île de France and the major region of Zurich to less than 15% in southern and eastern regions of Europe.

The Espace Mittelland: a little Switzerland? Overall, the figures achieved by the Es- pace Mittelland are often close to those of the Swiss average. Within this major region, however, great differences exist for some of the selected criteria, for ex- 1 The other major regions of Switzerland are: Lake ample in the case of land use. Geneva Region, Northwest Switzerland, Zurich, The Espace Mittelland represents Eastern Switzerland, Central Switzerland, and Ticino. on the one hand an average and on 2 the other is full of differences. For this Classification of statistical territorial units. reason a comparison with multifaceted 3 Switzerland is completely justified. Data source for 2001: “ESPOP – Annual population statistics”, for 2011: “STATPOP – Population and Household statistics”. It should be noted that the sur veys use different methods: e.g. according to the new Viktor Goebel and Barbara Jeanneret work as definition those in the asylum process who have been research associates in the Environment, Sustainable in the country for at least twelve months are also in Development and Territory Section, FSO cluded in the permanent resident population.

4 According to a UE definition, these branches stand out for their high proportion of research activities and innovation as well as highly qualified personnel.

FSO ValueS 11 12 FSO ValueS Urner Talboden, near Attinghausen

FSO ValueS 13 14 FSO ValueS Zurich, Pfingstweidstrasse

FSO ValueS 15 When Luca meets Laura

In 2011, the average Swiss national was 43 years old and was female; in this age group the gender ratio is 96 men to 100 women. As is the case for two-thirds of her contemporaries, she is married or in a registered partnership. From the first breath of life until death, the road of life in Switzerland is strewn with an abundance of data averages from official statistics. Do you recognise yourself? Fabienne Rausa

or the past ten years1, an average 75,700 registered each year in Switzerland. Her name will 1 babies have been born annually in Switzer- be Laura4. She will be approximately 29 years old Observation years, 2001 to 2011 land, the majority of whom are boys: 106 when she says “I do” to Luca. Two years later 5 a F 2 2 boys to 100 girls. His name is Luca . As with most little boy will be born. But their wish for children Most common boy’s name in other children, this little boy will grow up in a cou- will not stop at this first child, as during her life- Switzerland during the years ple with child(ren), go to school and move on to time Laura will give birth on average to 1.3 chil- under observation: more than new horizons. On reaching adolescence he will dren. 5,000 times. Only this spelling was taken into account. have to be careful, however. Surveys show that As for approximately 90% of the male popula- 6 3 young men aged 15 to 24 years have constituted tion living in a couple with a young child , Luca Since 2011, the STATPOP sta for a number of years the group at greatest risk will continue to work full-time. Laura will tem- tistics provide information on of death among persons under 25 years of age. porarily stop work or choose to work part-time, the country of destination of emigrants. Between the ages of 20 and 39 he will be the which is a characteristic of women’s professional most mobile: cheaper living costs, studies or travel life (around 57% of mothers with a partner and 4 Most common girl’s name in lead 14,800 young adults to leave Switzerland child(ren) aged under seven years work part- Switzerland during the years every year compared with only 11,300 who re- time). This choice enables her to spend time with under observation: more than turn. France (14.3%) was the country of choice the children, to help other people or to attend to 4,000 times. for young Swiss nationals emigrating in 20113, household tasks for which she is mainly responsi- 5 most of them from French-speaking Switzerland. ble, like roughly eight out of ten women. Average age of Swiss women at the birth of 1st child: between This was followed by Germany (9.7%), the United Laura and Luca’s marriage will probably go 30 and 31 years depending on States (8.3%) and the United Kingdom (6.0%). through some rough times, in particular towards years under observation Then, around the age of 32, and as for almost the 6th and 7th year of marriage, a difficult mile- 6 two-thirds of Swiss nationals, Luca will join the stone for many couples who often decide to get Children aged under seven. Work-life balance data are group of people who have the opportunity to get divorced at this moment. Their marriage will in taken from the Swiss Labour married, completing the list of 40,700 marriages fact last an average of 15.5 years. Will they get Force Survey.

Divorces by length of marriage Average age at divorce Swiss nationals, index 2001 = 100 Swiss nationals 300 50

20 years and more 250 48 Men

200 46 The lengths of marriage of divorcing couples shown in 150 44 the graph at the far left are between 5 and 9 years Women those where the majority of di vorces have occurred. A more 100 42 marked trend in the number of divorces after 20 years of 50 40 marriage can be observed, in fluencing the increase in the average age at the moment of 0 divorce. From 2010, there has 2001 2003 2005 2007 2009 2011 2001 2003 2005 2007 2009 2011 been a break in the series of Source: FSO – BEVNAT, ESPOP and STATPOP divorces.

16 FSO ValueS Emigration of Swiss nationals aged 20 to 39 by canton of origin, in 2011 to France to Germany

Geneva Zurich Vaud Bern Neuchâtel Aargau Valais St. Gallen Zurich Basel-Stadt Bern Basel-Landschaft Fribourg Vaud Basel-Stadt Lucerne Jura Thurgau Basel-Landschaft Solothurn Aargau Graubünden St. Gallen Fribourg Ticino Schaffhausen Solothurn Schwyz Lucerne Geneva Thurgau Neuchâtel Graubünden Valais Appenzell Ausserrhoden Ticino Uri Zug Schaffhausen Appenzell Ausserrhoden Zug Obwald Schwyz Glarus Glarus Uri Obwald Nidwald Nidwald Appenzell Innerrhoden Appenzell Innerrhoden Jura

0% 10% 20% 30% 40% 50% 0% 10% 20% 30% 40% 50% Source: FSO – STATPOP

divorced? History does not tell us but figures Considering their advanced age, the probabil- show that the risk is great. 17,300 divorces are ity of them remarrying is relatively slight but can- pronounced each year, with the probability of not be excluded. If Laura follows the example of one marriage in two ending in divorce. 2.1% of widows in Switzerland, she will remarry If their marriage is dissolved, Laura will be aged one day. If on the other hand, Luca outlives Laura, about 43. Like an increasing number of women, like 7.9% of widowers, he will be more likely to about 54% today, her experience of marriage will remarry. end there. Luca, on the other hand, will get mar- And when the time comes, the greatest prob- ried a second time, like the majority of divorced ability is that Luca and Laura will die from cardio- men (between 51% and 59% depending on the vascular disease. years under observation). If their marriage survives, it will end when one of the partners dies. Widowhood is occur- Fabienne Rausa is a research associate in the Demography and Migration Section, Demographic Analyses Unit of the FSO ring later and later in women’s lives as in those of men, thus following the general trend in life expectancy. The chances are great, therefore, that Laura will end up a widow, as her life expectancy (84 years) is longer than Luca’s (79 years). She will be around 72 years old when she buries Luca. He will be around 75 if she dies first.

FSO ValueS 17 The push towards the political centre

The political centre is at present enjoying great popularity – in contrast to the situation in the 1990s, for example. In those days the Social Democratic Party and the Swiss People’s Party – parties at opposite poles of the political spectrum – took up an explicitly left or right-wing stance and considerably increased their share of the vote in the elections. In contrast, the Christian Democratic People’s Party and The Liberals, whose politics were cri ticised as lacking in profile, came out as losers and the traditional centre party, the Ring of Independents (LdU/AdI) actually disbanded in 1999. Werner Seitz and Madeleine Schneider

hat is the political centre? Primarily conservative Party of Farmers, Small Business it is a relative position, located in the Holders and Citizens (BGB/PAB) modernised its W political party spectrum between left image and its political objectives. It merged with and right. In Europe, especially in Germany, Austria the Democrats in Graubünden and Glarus and re- and Italy, a push towards the political centre was named itself the Swiss People’s Party (SVP/UDC). first observed on a larger scale after the Second The push to the centre is clearly expressed in the World War, when the parties, some of them party’s French name: “Union Démocratique du newly founded, were trying to appeal to a larger Centre”. section of the population. The major parties of The Social Democratic Party (SP/PS), which had the left and right discarded their image of la- already abandoned the class struggle before the bour or conservative party and called themselves Second World War and pledged itself to the cause “People’s Parties”. of national defence, thought of itself even then as In Switzerland, the two conservative parties made the left-wing party of the people. In the 1980s, this transition at the beginning of the 1970s: The the SP shifted to the left, whilst in the 1990s – Catholic Conservatives erased the “conserva- particularly in German-speaking Switzerland – tive” from their name and in the style of their parts of the SP turned increasingly to the political west European sister parties adopted the term centre. With reference to the British sociologist “Christian Democratic”. In its 1971 manifesto, Anthony Giddens and the social democratic the Christian Democratic People’s Party (CVP- models in England and Germany (Tony Blair, Ger- PDC) defined itself as the “dynamic centre”. The hard Schröder) they attempted to create a third

National Council Elections: electoral strength of the centre parties

12% Ring of Independents (LdU) Green Liberals (GLP)

German-speaking French-speaking Switzerland German-speaking French-speaking Switzerland 10% Conservative Democratic Party of Switzerland (BDP)

German-speaking French-speaking Switzerland 8%

6% 11.3 9.3 4% 7.9 7. 2 7.1 7.0 7.0 6.6 6.4 6.4 5.9 5.5 5.5 5.3 5.2 2% 3.7 2.8 2.8 2.8 2.4 1.9 0.4 0.3 0.3 1.6 0.2 0.2 0.2 * 0.0 0.0 0.0 * * 1.0 1.0 0.8 0% 0.8 1935 19391 1943 1947 1951 1955 1959 1963 1967 1971 1975 1979 1983 1987 1991 1995 1999 2007 2011 * No candidates 1 Tacit elections were carried out in several cantons.

Source: FSO – Election statistics

18 FSO ValueS way between neo-liberal capitalism and classic BDP/PBD came into being after disputes within social democracy. The best known example in the SVP/UDC regarding the orientation and style Switzerland is the Gurten manifesto that was of the SVP under the leadership of Christoph compiled and championed by the current Federal Blocher. In addition to the break-away sections Councillor, Simonetta Sommaruga, amongst oth- of the SVP in Bern, Glarus and Graubünden, it ers. With a series of publications, the former Price also includes newly-founded cantonal parties. Supervisor, Rudolf Strahm, also campaigned for The strongholds of the BDP, which in many a heightened orientation of the SP towards the places is embedded in the centre-right faction, middle classes. tend to be located in rural areas, the GLP in There had already been a centre party in Swit- urban regions. For the time being, both par- zerland for some time: The liberal-social Ring of ties are mainly established in German-speaking Independents (LdU/AdI). This was founded in Switzerland (GLP: 6.4%, BDP: 7%). the 1930s as the “social capital” party between How does this political middle course manifest the SP and the liberal centre-right and it held its itself? Is it lacking in concept and ideas as is often ground – particularly in German-speaking Swit- criticised? It is obvious that the newly-founded zerland – with 5-7% of the vote. The party in- parties are investing little in the clarification of creased this share considerably from the 1950s political goals and instead – in order to distinguish when the left wing in Switzerland came under themselves from the “Pole Parties” – they are pressure in German-speaking regions from the pitching themselves as a solution-oriented force, pervading anti-communist climate and began as a force of social and political balance, also em- losing votes. With a few rare exceptions, the phasising the question of style. communists collapsed completely and support for the SP was weakened. The centre party LdU/ AdI benefited from these losses and increased its Werner Seitz is Head of the Politics, Culture and Media Section, FSO share of the vote to 11%. A political centre such as this did not exist in French and Italian-speaking Madeleine Schneider is Head of the Elections and Referendums Unit in the Politics, Culture and Media Section, FSO Switzerland, where the political landscape was more polarised. From the 1970s the LdU was Further information can be found in Werner Seitz’s publication “Konfessionen, Sprachen, Stadt und Land. Die Geschichte der po put under pressure, initially by the parties of the litischen Gräben in der Schweiz” (Denominations, languages, town 1968 generation and subsequently in the 1980s and country. The history of the political rifts in Switzerland), by the Greens. In 1999 the LdU was finished. The which will be published this autumn in the series “Kompaktwis sen” by Rüegger-Verlag. Evangelical People’s Party (EVP) is sometimes considered as belonging to the political centre. Since 1919 it has had a small but stable share of the vote and has a conservative and a social wing. From a spatial perspective, the political cen- The current debate on the political centre can tre is located where voters and electors cast only be understood in the light of the 1990s. At the “most average” number of votes. In the that time, politics in Switzerland were coloured by 2011 National Council elections, the share of the recession and the question of joining Europe, the votes received by each party was closest issues where the SP and especially the SVP could to the national average in the communes of win points. In contrast, the other major parties, Bolken (SO), Biel-Benken (BL) and Pfeffingen the FDP and CVP were caught off guard and (BL). If one considers the last four National ended up on the losing side. From the mid-2000s, Council elections since 1999, voting behaviour a certain dissatisfaction about the polarisation of in Rapperswil-Jona and Brugg is closest to the politics was felt among the general public. When national average. new occupants took over the political centre, Over the past ten years, Interlaken and Kriens they were not, however, the FDP or the CVP but were the communes where voters most often two newly-founded parties: the Green Liberals voted in (almost) the same way as the Swiss (GLP) and the Conservative Democratic Party national average in federal referendums. of Switzerland (BDP/PBD). The former resulted Analyses and detailed data on elections in from a split from the Green Party and was soon Switzerland in German and French: www. adopted as party of reference by those from the statistik.ch > Themen > 17 - Politik > Wahlen liberal centre-right with an ecological bent. The

FSO ValueS 19 660 158/183 641: journey to the middle of Switzerland

The journey to the middle of Switzerland begins with a visit to a Swiss government office: Wabern near Bern, 264 Seftigen Street. This is the right address for the fundamental question: why do we need yet another middle? Switzerland has its political centre in Bern, its economic hub in Zurich, its historical site at the Rütli as well as the Matterhorn for tourists. Now an alp has muscled its way into this clique: the Älggi alp in the canton of Obwalden. Christian Schmidt

artin Gurtner, a surveyor at the Federal A fourth method, however, was decided upon, Office of Topography, is fascinated by as a look at the map was enough to show that Mmental mapping – our ability to find the other three middles were not really in the our way to the fridge in the dark of night with- middle. Faido as the centre of Switzerland! But out bumping into the television or cat tray – and this fourth method promised a different result. knows why we need another middle. The answer It was to establish the point where the country is simple: the year 1988 – the year of the Federal finds its balance, its inner equilibrium. The Office Office of Topography’s 150th anniversary. Gurtner already had some experience here, as a former saw an opportunity to clear up this matter once employee, Mr Knöpfli, had already carried out and for all. Every time the question of Switzer- some experiments with this method. He stuck land’s middle had arisen, the population had been a 1:3000,000 scale map of Switzerland onto a fobbed off with the answer that the Confedera- piece of cardboard, and cut out Switzerland’s tion’s most central point could be located more or borders with a pair of scissors. With the help of less. But in a country renowned for its precision, a needle he looked for the point at which the that wasn’t good enough. country was equally balanced. In plain language Once the decision was made, theoretical this is called the centre of area. By simply cutting discussions followed as to which was the best out a map, Mr Knöpfli arrived very close to the surveying method. Depending on the approach centre that has now been calculated: the Älggi used, different results would be obtained: the alp in the canton of Obwalden, three and a quar- middle is not always the middle. ter hour’s walk above Sachseln by Lake Sarner.

The middle is not always the middle The centre is primarily a number Gurtner said, for example, that he had looked So this middle is no god-given idiosyncrasy? for the middle of the largest circle that he could Not some bizarre stone bowling pin that once place within the national borders. That was one emerged inexplicably from the ground, or the possible Swiss middle. Result: north-west of only mountain peak among seven peaks of equal Thun near Uetendorf. He also investigated the height to be void of snow. No Stonehenge, nor centre of the smallest circle that could encom- a hole in the rock through which the sun shines pass the irregular contours of Switzerland. That on a particular day? No sensation? No. This middle was another method of determining the middle. is calculated using a computer and a complicated The result: the Escherhorn between Grindelwald formula. The geographical centre of Switzerland and Grimselpass. Or a third acceptable middle is primarily a number. 660 158/183 641 means was the intersection of the north-south and that Älggi lies 660 kilometers and 158 meters east-west axes joining the most distant points east and 183 kilometers and 641 meters north of Switzerland. This intersection would be situ- of the zero-point of the geographic projected ated at Motto Crostell, in the mountains above coordinate system. This zero-point is near Bor- Faido in the Leventina district in Ticino. deaux in France.

20 FSO ValueS But although the centre of Switzerland was larger, shrank and grew again; the middle has measured down to the last meter, it is not moved with these events, rolling like a ball on exactly in the middle. The triangulation point on a sloping plane, rolling here and there and back the Älggi is not standing on the exact middle again to find its resting place in Älggi. of Switzerland. That is something of a novelty. Älggi is a worthy middle. Martin Gurtner, Martin Gurtner: “We cheated a little.” We had the surveyor at 264 Seftigen Street in Wabern to move the middle 500m in a south-easterly near Bern is struck by the significance of a pine direction because the number 660 158/183 641 tree found close to the middle point, which was landed on a cliff face, home to only mountain sculpted into a cross without the help of a car- goats and blueberries, among fallen fir trees and penter. The cross-beams had already grown on moss-covered stones. “That wasn’t so practical the trunk at the right height. “I’m not a catholic“, because nobody could reach it. Now we’re a bit says Gurtner, “but it seemed somehow appro- higher up”, says Gurtner, “on a peak in open priate“. terrain. The middle point can then be used for something”. It might appear as if this middle were a rather Christian Schmidt is an independent journalist and author modest affair: nothing more than a number that This article was taken from the illustrated book “Vom Kern der has been shifted for convenience’s sake. As if Schweiz”, Christian Schmidt and others. Kontrast, Zürich 1998. the middle could be located at another spot in Switzerland, in the middle of a lowland field, on a factory roof, beneath a motorway flyover, in a lake, in a supermarket car park (or just next to it if an obstacle is in the way). But that is an illusion. The middle is located in Älggi because there was no other choice. Älggi is the result of two thousand years of history. In the point of the needle balancing the cut-out Helvetia, the historical and political events of the country are concentrated in an unfathomable multitude.

Collision of tectonic plates The middle is located in Älggi, because after Napoleon’s downfall the cantons of Valais, Neuchâtel and Vaud became part of Switzerland, because the Confederation’s policy of expansion towards Italy came to a halt at Marignano, because in the middle of the 3rd century AD, the Teutons forced back to the Rhine the southern boundaries of modern Germany, because in the year 58 BC in the Battle of Bibracte, Julius Caesar prevented the exodus of the Helvetii to South-Western France, because the collision of the North African and European continental plates pushed the Alps out of the ground, creat- ing natural borders. The middle point was created at the whim of natural forces, as the ultimate consequence of belligerent massacre and theoretical deliberation. As the result of blue-blooded marriages and inheritances. The country grew

FSO ValueS 21 Mean values – The middle in various places

Statistical parameters are used to describe a population and are often based on a large number of observations in public statistics. So-called measures of location are most commonly used to provide information about «average» data. The most renowned location measurement is the arithmetic mean, but there are also other measures of central tendency to describe the «middle» which may be more suitable depending on the data in question. Statistical Methods Section, summary by Cornelia Neubacher

The arithmetic mean product of the observed values , to : The arithmetic mean is the most frequently used . Let us consider the ex- statistical measure. We know it well from our ample of a commune which had 1000 inhabit- childhood, for example, as it is used to calculate ants in 1990, 1060 inhabitants in 2000 and 1908 average marks at school. This is the measurement inhabitants in 2010. The population increase was that is generally meant when we talk about aver- therefore 6% between 1990 and 2000 and 80% ages on an everyday level. It is calculated by add- between 2000 and 2010. This means that the ing the individual observed values and dividing average population increase between 1990 and the total by the number of observed values. In this 2010 is , or 38%, and not way, for example, the ages of all of a country’s in- 43% , the arithmetic mean. In the habitants can be described using the average age: calculation of the geometric mean, extraordinar- in Switzerland, this was 41.5 years in 2011. ily high or low values have a lesser impact. In mathematic notation, the mean of a number of observed values , to is defined The harmonic mean as . The arith- Mean value calculations where reciprocal values metic mean is considerably influenced by the size turn the balance – for example, in the case of of the extreme values. Therefore, it is only ap- speeds for constant distances – are based on the propriate for describing a distribution when the harmonic mean. The harmonic mean is calculated distribution is relatively symmetric. by dividing by the total of the reciprocal values, where is the number of observations. The geometric mean The geometric mean is used when an average change is of interest. The geometric mean is calculated from the th root of the

Correlation of the three classic means if there are only two positive values in a right-angled triangle using Euclid’s theo rems – height and cathetus theorems.

22 FSO ValueS The average speed of a vehicle which, for distribution with high extreme values, it is below example, travels the first 100 km at 150 km/h the arithmetic mean and above it if there are low and the next 100 km at 50 km/h is accordingly extreme values. 75 km/h. The first 100 km take 40 minutes and the second 100 km 2 hours, corresponding to a Mode or modal value total journey time of 160 minutes. The average Also frequently used, the mode or modal value journey speed is therefore =75 km/h, or us- calculates which observation value or which ing the harmonic mean =75 km/h. characteristic appears most often in the survey. It may also be used if qualitative criteria such as The classic mean values marital status are examined. According to the The three classic mean values were used in math- population and households statistics (STATPOP) ematics as early as in ancient times. The inequality from 31.12.2011, 3,495,023 married persons are between the harmonic, geometric and arithmetic permanently resident in Switzerland, making up mean that proves is the biggest sub-population based on the criterion a well-known mathematical theorem and was al- of marital status. ready proven by Euclid for equals 2. Initial proof for any value was published by Scottish math- Mean values in public statistics ematician Colin Maclaurin in 1729. In addition Mean values are a key component of today’s to many other mathematical findings, Pappus of public statistics. The wealth of data and infor- Alexandria had already found ten different mean mation that is collected must be rendered tan- values in ancient times. gible. Measures of central tendency are suitable for making statements about the «average» The median when we are faced with huge amounts of data. Another commonly used measure of central When these measures are regularly determined, tendency is the median or central value. In the they produce time series which can be used to case of the median wage, data are classified ac- illustrate developments. These are often used cording to increasing wage level and are divided as the basis for decision-making in politics and into two equal sized groups: for half of wage- economics. earners (50%), the standardised wage is above Measures of central tendency and other key this value, for the other half below it. In 2010, indicators are determined for all topics of public the median wage in Switzerland was CHF 5979. statistics, whether it be for mobility, education or In mathematic notation, the median of a number the national economy. Calculating a key indicator of observed values , to is defined as fol- can be fairly simple, such as working out the av- lows: are the classified erage age of mothers after the birth of their first observed values. If is an uneven number, then child. Or it can be the result of complex calcula- the median of the observation value is in the mid- tions that are recorded in methodology reports dle: . In the case of an even number and made accessible to the public – such as the , the median is in the middle between the two calculation of the gross domestic product (GDP), intermediate observations: . for instance. Compared to the arithmetic mean, the median has the advantage that it is not influenced by ex- The Statistical Methods Section is the FSO’s competence centre treme values. In the case of a strong asymmetric for statistical methods. distribution, the median and the arithmetic mean Cornelia Neubacher is a research associate in the Communica coincide. However, in the case of an asymmetric tion Section, FSO

FSO ValueS 23 “Whoever decides to found a spin-off is prepared to take risks.”

It’s hard to imagine Switzerland without its small and medium-sized enterprises (SMEs). It is less well-known that very small enterprises are also encouraged by the ETH Zurich with its Spin-off Programme. Silvio Bonaccio, Head of ETH-Transfer on business ideas that are anything but average. Dr Silvio Bonaccio interviewed by Esther Güdel

Mr Bonaccio, what are the responsibilities that the technology and the business idea have of ETH-Transfer? a real chance of success on the market? Do the The main responsibilities of universities such as actual product or the proposed service provide the ETH Zurich are research as well as the teach- customer value? Is the business plan sustainable ing and transfer of knowledge and technology. and does it withstand a reality check? And most Of course, there has always been a transfer of importantly: Do the future entrepreneurs meet knowledge from the universities to society or the market demands? Do we see a chance for them economy. ETH-Transfer was founded in the mid- to evolve and prove themselves on the market? 1990s to strengthen that transfer and to tap into They are after all researchers and not business otherwise wasted potential. In 2005 it was es- managers! tablished as an independent organisation. As an interface to the economy, we cover three areas: What other requirements have to be fulfilled research cooperation with the economy. Here by the founders of an ETH spin-off? Wouldn’t we can advise our researchers for example on it be easier to look for a well-paid job in the how to negotiate and draw up contracts. We are economy or industry...? also responsible for handling intellectual property Whoever decides to found a spin-off is prepared issues. And lastly, the research findings made at to take risks and is not looking for an easy ride. If the ETH belong to the university itself and often you want to run a spin-off successfully, you need have a certain economic value. We also super- a wide range of qualifications in addition to your vise the spin-off companies. If an ETH researcher technical expertise. Fighting and pioneering spirit with some interesting ETH technology, a shrewd amongst others. Your belief in the product must business idea and the necessary entrepreneurial be able to withstand difficulties. We shouldn’t acumen wishes to establish a company, we will forget that many spin-offs are founded out of encourage and accompany the business project necessity, because the product finds no takers on for two to three years. the free market. A certain amount of tenacity is necessary too, for it can take some time to find What can you offer spin-off companies? the “killer app” that will make the breakthrough. The business founders can rent offices and labo- My only other advice to all emerging entrepre- ratories at the ETH and, for a fee, make use of the neurs: Just have a go! In the worst case some existing infrastructure. We also put them in touch money will be lost, but the experiences gained with our network of contacts, particularly in the are invaluable and probably worth just as much world of finance. Incidentally, “ETH Spin-off” is as an expensive MBA. And sitting at home wait- a protected trademark that is only awarded when ing for an important phone call won’t get any certain conditions are met. business done.

What are these conditions? What trends can be seen among the new The basis for the spin-off must be technology or spin-offs? a concept developed at the ETH. In addition, at At the end of the 1990s most spin-offs were least one of the founders must have studied at web-based whereas nowadays the basis is much the ETH. If these two basic conditions are met, wider. Today committed researchers with ideas the following points are examined: Do we think for a project emerge from almost all of the ETH’s

24 FSO ValueS 16 departments. That’s certainly due to the fact How long does it take for an idea to become a that in the whole institute a lot of effort is put into product ready to be launched on the market? stimulating the fledgling scientists. Of course there Frequent reports have been made recently about are spin-offs based on an application. But in princi- Dacuda, the computer mouse that can scan too. ple an ETH Spin-off must have a sustainable busi- This idea came into being at the ETH and with ness idea and no one is likely to make business for simple means was put on the market within under the next twenty years with only one application. two years. The developers were looking for a distribution partner in Switzerland but unfortunately According to a study from the London Business did not find one. Today Dacuda is produced by LG 1 School 88% of ETH-Spin-offs survive the first in South Korea. In the area of biotechnology it five years of business. That is a good percent- takes at least five to ten years to perfect a product age in comparison with other SMEs. and the process is very cost-intensive. Glycart, an Yes, this is most likely due to our positive selec- ETH spin-off specialised in therapeutic antibody tion. But life carries on after these first five years. research was sold after only five years for CHF The first one to two years are rather easy for new 234 million to Roche. But that is a rare exception. businesses. After this, capital has to be invested and this is not always easy to find. A market has Does the ETH benefit ultimately from such a to be found too. It would be interesting to repeat success? these surveys after ten years. As the ETH Zurich is owner of all in-house discov- eries and can grant the relevant usage rights on With a good twenty newly born enterprises protected technologies, we definitely benefit also each year, the ETH Spin-offs constitute a tiny monetarily from such usage or from such a sale. part of the Swiss SMEs. Are they at all relevant Such revenue has no influence on the ETH’s total in the national economy? budget. But when a Professor unexpectedly receives Even Nestlé started as a small business. With CHF 100,000 in royalties, that’s great of course. that I mean that spin-offs can become important Because the money can be used, for example, for 1 employers in Switzerland. A good example is the new and also “high risk” research which would oth- Ingvi Oskarsson and Alexander Schläpfer: The performance Sensor manufacturer, Sensiron AG in Stäfa, an erwise be difficult to fund. Of course, in individual of spin-off companies at the ETH Spin-off that was founded in 2000 and today units money can be an incentive. But not the only Swiss Federal Institute of Tech employs more than 450 highly-skilled workers. one. Because the success of a discovery reflects on nology Zurich. Thesis for the Masters in Finance Program Both CEOs were involved in the spin-off from the the researchers and brings reputation and publicity. (MSc Finance) at London Busi start and still hold their functions today. This is well-earned balm for the researcher’s soul. ness School. ETH, Zurich 2008.

Newly born enterprises and bankruptcies in equal measure in 2010 The FSO’s latest statistical surveys from 2010 show that founding one’s own company is as popular as ever in Switzerland. In 2010 the record number of 12,600 newly born enterprises was reached – 9.8% more than in the previous year. Almost 23,500 new jobs were created through these new businesses. Most newly born enterprises are in the tertiary sector – but the greatest increase of 180 (+14.6%) was registered in the construction industry in the secondary sector. This can probably be explained by the extremely low mortgage rates. With 40% of all new businesses, the cantons of Zurich, Geneva and Valais are front-runners among the newly born enterprises; at the bottom of the ranking are the cantons of Appenzell Innerrhoden, Glarus and Uri. The surveys of 2011 show a slightly downward trend of 1.3% to 11,073 new bankruptcies. The total amount lost from these bankruptcies was around CHF 2.1 billion. Half of all businesses that went bankrupt were in the cantons of Zurich, Vaud, Bern and Geneva. Sources: Bankruptcy statistics 2011 and the Initial Survey of Business Start-Ups (ERST) 2010. The latest figures on newly born enterprises and bankruptcies can be found on the internet in Ger- man and French: www.statistik.ch > Themen > 06 - Industrie, Dienstleistungen > Unternehmen > Indikatoren > Unternehmensdemografie > Neugründungen respektive > Betreibungen und Konkurse

FSO ValueS 25 Let’s talk about money. Even the smallest With the spin-offs the situation is different. company needs start-up capital. Where do The more “grown-up” the company becomes, your spin-off founders get it? the more money it devours. For the legal form Someone who has just completed their Master’s of business a public limited company is often degree or PhD doesn’t usually have any savings to chosen, hopefully with the grounders as principal fall back on. The only solution is to get out the beg- shareholders, at least at the beginning. But in the ging bowl and ask the various Fs - family, friends, event of a capital increase, the balance and the fools, fans, foundations etc. As mentioned, the correspondent influence may shift. We shouldn’t first two years are usually not too hard for the forget, however, that a spin-off’s declared objec- spin-off founders and business encouragement tive must be economic success and that it cannot has progressed in Switzerland in recent years and therefore research, develop or produce without there are quite a few possibilities for obtaining regard to the economy. funding. Glycart, mentioned above, carried out research with funding from the Novartis Venture Funds and with Roche as a strategic partner at Dr Silvio Bonaccio studied Chemistry at the ETH and since 2003 is Head of the ETH-Tranfser Unit its side. Esther Gudel is an independent journalist Is there a danger of the capital providers dictating what is researched? Well, as a public research institute, we are of course not allowed to be dictated to by private sponsors and do not wish to nor will be told what can or must be researched at the ETH. Naturally we talk to one another. But free, independent research is a key item and one of the main pillars of Switzerland’s success as a place of research. Besides, the greatest motivation for researchers at the ETH is the fact that they can carry out their own research and put into practice their own ideas. And they are world-class at it.

26 FSO ValueS Imprint

Published by: Federal Statistical Office (FSO) Neuchâtel, www.statistics.admin.ch

Editors: Verena Hirsch, Cornelia Neubacher and Ulrich Sieber, Communication and Dissemination Division, FSO Enquiries: Communication section, Tel. 032 713 60 13, Email: [email protected]

Authors: François Baumgartner, Viktor Goebel, Esther Güdel, Barbara Jeanneret, Caterina Modetta, Cornelia Neubacher, Ueli Oetliker, Fabienne Rausa, Christian Schmidt, Madeleine Schneider and Werner Seitz

Layout concept: Netthoevel & Gaberthuel, Biel Layout: Nicole Frischknecht and Murielle Zufferey, DIAM section, Prepress/Print, FSO Graphic: Daniel von Burg, DIAM section, FSO Photography: Jules Spinatsch Translation: FSO Language Services

Order number: 1215-1301 (free of charge) ISBN: 978-3-303-00500-2 Distribution: Federal Statistical Office, CH-2010 Neuchâtel, Tel. 032 713 60 60, Fax 032 713 60 61, Email: [email protected]

Copyright: FSO, Neuchâtel 2013 Copying of text and graphics permitted – except for commercial purposes – provided source reference is given

FSO ValueS 27