Is less more? Why direct investment in Switzerland is declining

Switzerland has always been considered an attractive location for foreign direct investment (FDI). Its political stability, highly qualified workforce, innovation-friendly environment, and access to European markets make it a preferred destination for international companies.

However, in recent years a change has become apparent: the number of new companies settling in the country by foreign investors has declined – as have the associated new jobs created.

Systematic decline

This decline is initially worrying. In the international competition for locations, many countries are under pressure to attract as many investors as possible. However, Switzerland's quantitative loss of ground here cannot be explained solely by economic restraint or international crises. Rather, there is a conscious strategy behind it. Location promotion – whether at the federal, cantonal, or regional level – is increasingly focusing on quality over quantity. This means that the barriers to entry for new investment projects are rising, particularly with regard to their technological depth and long-term economic benefits.

Technological focus instead of mass settlement

The focus is on more selective selection. Projects with a high level of technological maturity, innovative strength, and value creation potential will be given priority – not just any call center or sales unit. Sectors such as life sciences, cleantech, ICT, and robotics are in particular focus. The decline in the number of new company start-ups does not necessarily indicate a weakness for the location, but rather a strategic realignment. The goal: fewer, but higher-quality investments that create long-term jobs, promote knowledge transfer, and strengthen Switzerland's competitiveness.

The perspective: sustainably attractive

Despite declining numbers, Switzerland remains a highly attractive destination for FDI – especially for companies focused on research, development, and technology. The country continues to benefit from a stable economy, an excellent education system, and a high level of innovation. One thing is clear for the future: Switzerland will not be a destination for mass investments – but rather a premium location for sophisticated, sustainable, and technology-intensive projects. This may lead to lower numbers in the short term, but promises stable value creation and global competitiveness in the long term. However, this also obliges the country to be among the top locations in terms of framework conditions in the future.