Europe, including Switzerland, is lagging behind in terms of global economic growth, partly due to increasing bureaucratisation, which is slowing down innovation. Yu points out that technology giants based in the USA and China in particular, such as Google and Nvidia, contribute significantly to the economic growth of their regions. In contrast, Europe tends to lag behind in the digital transformation, which leads to a dangerous dependence on traditional industries.
Although Switzerland has successful global market leaders in the pharmaceutical, banking and food industries, the increasing focus on compliance and regulations has fostered a risk-averse culture that prevents innovation, according to Yu. To counteract this, Swiss companies need to align themselves more closely with innovation centres such as Silicon Valley or the Chinese technology market.
One concrete example of such an orientation is Novartis, which is expanding its research centre in the USA. Yu argues that although Switzerland is geographically located in Europe, its companies should think and act globally in order to remain competitive.
For Swiss economic policy, this means making Switzerland a more attractive location for investment in start-ups and technology, reducing bureaucracy and not repeating the same mistakes as other countries. By diversifying and controlling risk in all markets, Swiss companies can strengthen their position and prevent a loss of prosperity.
