Switzerland as a business location: qualitative growth in depth
- Remo Daguati, CEO LOC AG
- 1 day ago
- 4 min read
More land, more companies, more production, more employees. Switzerland's extensive growth model is increasingly encountering growth fatigue and opposition. A growing segment of the population rejects the current course. Especially today, in a world of rapid technological change, global competition, and increasing resource scarcity, a form of intensive, qualitative growth is more crucial than ever.
This transformation demands a more sustainable, resilient economic model – growth that is rooted in depth. Switzerland, with its tradition of precision, innovation, and specialization, should consistently focus on intensive, qualitative growth and pursue targeted structural specialization – particularly in areas where it has a real chance of achieving global excellence: Life Sciences (Health, Food), Headquarters and Functional Hubs (Functions, Research & Development), Automation/Robotics (Lean Manufacturing, Humanoid Technologies), and Defense & Cybersecurity (Drones, AI Data Centers).
Less lateral growth
Why must Switzerland act instead of lamenting? Modern challenges – from aging societies and skills shortages to digitalization – reveal that successful economies no longer rely on mass growth, but rather on value creation, productivity, innovation, and specialization. Digital transformation, automation, and robotics have the potential to make work more efficient and of higher quality – and thus make the Swiss labor market less dependent on mass immigration or unchecked expansion.
More high-value sectors
A targeted focus on high-value sectors can help Switzerland establish itself globally as a center of excellence. Life sciences, for example – health, biotech, food innovation – are global growth markets with rapidly increasing demand. Switzerland already has a strong foundation in these areas. But it's not just about pharmaceutical production: Switzerland should also emphasize research- and development-intensive ecosystems, meaning high-value-added manufacturing, innovation, and connections to global markets.
Automation and humanoid technologies
The same applies to automation, robotics, and especially humanoid technologies: Switzerland, despite its relatively small size, certainly has potential. In areas such as AI, robotics, and automation, it plays a leading role among national economies, but the competition – especially in Asia and the USA – is fierce. Those who fail to expand and specialize risk falling behind. A consistent focus on robotics and automation could help Switzerland secure technological autonomy and competitiveness – particularly in sectors where precision, stability, and quality are crucial. Instead, however, in typical European fashion, there is a threat of over-regulation of all approaches. Robot deliveries are being halted due to a lack of the necessary permits. This cannot be the standard expected of a leading nation.
Hubs
Another focus area is headquarters and functional hubs – that is, central management, research, or development functions of international companies. Historically, Switzerland was an attractive location for many multinational corporations: good infrastructure, stable political and legal framework, high standard of living, and reliable tax and regulatory conditions. However, in recent years, Switzerland has lost considerable ground – many multinational companies have relocated functions abroad, such as shared services, but also centers of excellence. Here, too, there is a need to take proactive countermeasures: through active location policies, by promoting hubs in area developments, and through targeted incentives for companies to relocate or retain management, finance, and research units (especially within the framework of the OECD tax reform). With a clear commitment to qualitative depth – rather than sprawling breadth – Switzerland can regain its role as an international hub.
Security technologies
Last but not least, the topic of defense – cybersecurity and drone/robotics technologies – is gaining strategic importance in light of geopolitical risks and increasing threat levels. A strong ecosystem in the areas of cybersecurity, drones, robotics, and digital defense not only strengthens national security but also Switzerland's economic competitiveness: global demand – excellence in Switzerland. In an increasingly unstable geopolitical environment, specialized expertise in these areas can be crucial – for both government and industrial actors. Furthermore, the development of security technologies is often linked to numerous civilian applications. For such an approach to succeed, outdated export restrictions must be eased, and the federal government should send clear signals about how it aligns its procurement practices to benefit a national defense ecosystem.
More qualitative growth
A multi-layered mix of qualitative specialization in targeted, but strategically strong sectors is, in the long term, also the most sustainable model from an economic perspective. This entails a shift from extensive to intensive growth drivers: more value creation per capita, greater innovation density, and greater technological depth, instead of continuous expansion of land, capacity, and workforce. Switzerland must ask itself where it can and wants to be a leader. Accordingly, spatial and transport planning must also be radically reoriented. Their processes are currently characterized by a backward, one-sided ecological-social dogmatism that leads to protracted and virtually uncontestable procedures.
New framework conditions
A course towards qualitative growth requires a clear political and economic commitment: streamlined framework conditions for research and innovation, targeted support for clusters and ecosystems, attractive conditions for hubs and headquarters, education and hub systems for new technologies and automation, and an understanding that growth must be qualitative, not quantitative. Planning processes must be rigorously streamlined and accelerated. Especially in a time of dynamic global location factors—regulation, skills shortages, competitive pressure, geopolitical uncertainty—such a focus on quality and specialization is likely to be key to Switzerland's continued economic success and resilience.
Links to the blog:
Switzerland is tired of growth – and feels alienated from itself (Thomas Fuster, NZZ, 6.12.25)
City-Country Monitor 2025 (Sothomo)
Humanoid Switzerland: https://www.humanoid-switzerland.ch/
Relevant LOC blogs:
Humanoids
Intensive growth:
Defence Cluster Switzerland:
Spatial planning:
