DIAS meets IPZ: Collaboration is the trump card

The joint development of future-proof solutions succeeds particularly well at the Innovation Park Zurich (IPZ). This was evident at the "DIAS meets IPZ" event. There, representatives of the drone industry (Drone Industry Association Switzerland, DIAS), together with investors, universities and authorities, discussed the pain points of unmanned aviation from different perspectives. The focus was on regulation, capital search and social acceptance.

Close cooperation at the legislative level

When it comes to regulation, the Swiss drone industry must think European. After all, the "mother of all regulations is the European Aviation Safety Agency EASA," said keynote speaker Amanda Boekholt, Deputy Head of Section - Strategy and Innovationat the Federal Office of Civil Aviation (FOCA). EASA regulates how drones may be constructed and used and what evidence must be provided for approval. And it does so more strictly than it already does, Boekholt said.

Since January 1, 2023, the European drone regulation also applies in Switzerland. By actively participating in various committees, however, the Swiss drone industry can still influence legislation, Boekholt said - in adjustments or regulatory issues surrounding completely new types of drones, for example. For example, if a design is not covered by EASA standards, manufacturers or operators can initiate their own verification processes. Boekholt: "Finally, regulations should respect and incorporate the needs of the industry."

Less venture capital in Switzerland

Not only regulatory, but also financial, the drone industry is operating in a challenging environment. This was demonstrated by Thomas Heimann, who heads the Seed Money & Venture Capital division at the Swiss Association for Corporate Finance (Seca). "Financing is not as available as it has been in the last year or two," he explained. In the first half of 2023, around CHF 1.2 billion was invested in startups in Switzerland, he said. In the first half of 2022, the figure was still more than 2.5 billion.

"The drone technology is ready. Now we have to succeed in casting this technology into products and services. Events like this help with this transformation."

Nathanael Apter, Board Member, Drone Industry Association Switzerland (DIAS)

In addition, the drone industry is also feeling the structural problems of the Swiss venture capital landscape: While startups can still count on ample financial support from within Switzerland in the early phases of their company's development, in later phases and for larger amounts of money it is often unavoidable to go abroad in search of investors. Says Heimann: "This poses the risk of know-how and growth flowing out of Switzerland."

Concrete tips for the successful pitch

Stephan Bergamin, Owner and Managing Partner of Be Forward, elaborated on what drone startups can do very specifically to find investors under such challenging conditions. Of course, you have to show how you want to make money, he says: "But in addition to a good business case, investors want personalities above all," says the startup and financing consultant. The pitch is correspondingly important: "Keep it short. Emphasize your team's skills and versatility. And demonstrate how you are different from the competition."

Behind a good presentation there must also be a company that is actually ready for an investor. "This requires first a vision, second a strategy to achieve the vision, and third processes to implement the strategy," Bergamin said. That's not a static undertaking, he says: "Even a young company has to transform itself on an ongoing basis." What do financiers want? What are the new technologies? How do customer needs change? Startups need to have answers to these questions if they want to keep their finger on the pulse.

Industry should sensitize society

For the drone industry to grow, it needs social acceptance as well as funders. Ethicist Ning Wang is researching this topic at the University of Zurich. She presented initial results of her research and showed that, in addition to socio-demographic factors such as age and gender, aspects such as privacy, security and regulation are particularly important for drone applications to be widely accepted.

"The fact that the event is open not only to DIAS members but also to other related industries is a good idea. It makes it easier to approach each other and exchange ideas."

Giulia Biffi, Sunflower Labs, Member Drone Industry Association Switzerland (DIAS)

For Wang, it is clear that transparency is essential if acceptance is to increase further. Among other things, it advises the drone industry to invest in communications and awareness to better inform the public about the benefits of its products and services. And she appeals for accountability: "Industry needs to be aware of negative impacts of drones on the environment and the public and mitigate them as much as possible."

Technological progress – despite uncertainties

To enable innovation without neglecting ethical and legal aspects, the Office of Economic and Labor Affairs of the Canton of Zurich, together with partners, has launched the Innovation Sandbox. Project manager Raphael von Thiessen explained, "This is a test environment where companies and research institutes can implement their projects in the field of artificial intelligence." They gain access to regulatory know-how and novel data sources. In turn, all findings and results are shared publicly.

"The Triple Helix is the symbol of collaboration between industry, academia and the public sector denotes one. Occasions like this show how profitable this collaboration is."

Markus Müller, Project Manager Hightech, Location Promotion, Office of Economics and Labor, Department of Economic Affairs, Canton of Zurich

Von Thiessen used a project to show why this is also of interest to the drone industry: The project partners – the Canton of Zurich, IBM and Pixmap - used an automated drone to inspect parts of the tarmac at the Dübendorf airfield for cracks. "Now it is possible to scale these findings and apply them to entire airfield areas. Or to transfer the know-how to other infrastructure facilities such as bridges, buildings or dams. In short, new projects are being initiated."

DIAS meets IPZ

The event was jointly organized by the Drone Industriy Association Switzerland (DIAS), the Canton of Zurich with the Innovation.Zurich networking platform and the University of Zurich and held at the Innovationspark Zürich in Dübendorf. In addition to presentations on regulatory, financial and social challenges, the 50 or so participants from the drone industry and related sectors were also given an insight into current projects at the Zurich Innovation Park – and learned what developments are planned for the site in the future. Bettina Bhend/Maurus Held