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The new report presents the findings of the «Innovation Sandbox for Artificial Intelligence (AI)». Launched in 2021, the programme brings together various stakeholders from public administration, the private sector and the research community, with the aim of establishing the Zurich Metropolitan Area as a leading hub for AI.

Important objectives of the "Innovation Sandbox for Artificial Intelligence" are the development of regulatory expertise, the promotion of AI innovation, the strengthening of knowledge transfer and the generation of impetus for future AI regulation. The sandbox serves as a new type of environment for testing and developing AI technologies.

Between 2022 and 2024, the project team successfully implemented five projects in the areas of smart parking, autonomous systems, automated infrastructure maintenance, machine translation and AI in education. The sandbox has had a positive impact on the AI ecosystem during this period. One of its key elements is interdisciplinary cooperation between partners from administration, business, science and politics.

All players in the AI location should benefit from the knowledge gained and use it for their own AI activities. Based on the positive results and experiences, new sandbox projects will be carried out in a second implementation phase between 2024 and 2026.

The first regional study showing the economic effects of the audiovisual industry in the Canton of Zurich has been published.

We are very pleased with the result and the economic importance of the canton of Zurich.
The study was conducted by BAK economic intelligence on behalf of the Film Commission Zurich.

The Swiss Drone Industry Report 2024 is now available! DIAS, the Drone Industry Association Switzerland, in collaboration with Drone Industry Insights UG, releases today its complete 2024 report on the Swiss drone industry. The study reveals substantial growth and global leadership, the result of cutting-edge technology and expanding market development.

In 2024, the Swiss drone market achieved a significant milestone with a turnover of CHF 425 million, solidifying the country's status as a frontrunner in the industry. The export of Swiss products and services has seen a notable increase, rising to 55% from 45% in 2021. Swiss companies specializing in hardware (91%) and software (87%) derive the majority of their revenue from international markets. In order to cater to the demands of the local drone market, Switzerland relies heavily on imports, especially in the hardware sector.

This year, Switzerland continues to uphold its status as the global leader in the drone market per capita. A comprehensive analysis of data from more than 180 countries has enabled the ranking of the largest commercial drone markets in both Europe and worldwide, revealing that the top three countries collectively contribute to over half of the total commercial market. In terms of absolute figures, Switzerland ranks as the fifth largest commercial market in Europe and the twelfth largest in the world.

Economic growth in the canton of Zurich – increasing prosperity and quality of life while reducing environmental pollution. This is the conclusion of the latest economic monitoring by the Office of Economic Affairs. Economic growth in the canton of Zurich in recent years has not only increased disposable income, but also enabled a better quality of life, such as leisure, education and health. In addition, environmental pollution has decreased in many areas. A thought experiment also shows that zero growth would lead to many problems.

The economic development of the Canton of Zurich is remarkable: the gross domestic product (GDP) has more than doubled in the last 40 years after adjusting for inflation. - from CHF 74 billion to CHF 159 billion. On a per capita basis, economic output rose from CHF 65,000 to CHF 101,000 - and the majority of this increase in value added was paid out to the people of Zurich in the form of higher wages. However, they not only achieved higher incomes, but also more free time: the number of hours worked per capita has fallen by almost half an afternoon per week since 1991. As a result, the prosperity of the people of Zurich has steadily increased. The driving force behind this development was and is technological progress and innovation.

Rising quality of life - but not everywhere

However, economic growth entails more than just rising monetary income and more leisure time. Tax revenues have also risen in the canton of Zurich - as has the quality of life in many areas. The factors that influence the quality of life can be perceived very differently from person to person. With the "Regional Well-Being Indicators" and the "Better Life Index", the OECD has established a system for measuring quality of life. Various indicators are shown on the basis of eleven categories, providing a comprehensive picture of quality of life and its components.

Improvements in the canton of Zurich can be seen in particular in the areas of education (increase in the level of education and the rate of further education), employment (fall in unemployment and increase in the employment rate), work-life balance (increase in the part-time rate and reduction in hours worked per capita), health (increase in life expectancy and expansion of healthcare) and technology (internet access). The results are mixed in the area of safety (decrease in the number of violent crimes per capita, but slight increase in traffic accidents per capita) and in the area of housing (decrease in the average housing cost burden, but stagnating satisfaction with the housing situation). Finally, the subjective life satisfaction of the people of Zurich has remained largely the same but at a very high level.

Environmental pollution decreasing

It is undisputed that economic growth in the past was often associated with an increasing demand for resources and that a high level of prosperity in almost all countries goes hand in hand with a significantly larger ecological footprint. However, this is not a law of nature, as a look at the statistics shows: Over the last thirty years, economic growth, resource consumption and environmental pollution have been decoupled, especially in richer countries. This also applies to the canton of Zurich: while real GDP has risen by 69% since 1990, the quality of the environment has improved in most cases. This applies, for example, to material consumption, the recycling rate, air and water quality and the overall environmental footprint. No absolute, but at least a relative decoupling has so far been observed in the quantities of waste, soil sealing and certain biodiversity indicators.

The decoupling is also clearly visible in the currently most important indicator, greenhouse gas emissions. While the economic growth achieved on Zurich soil has risen steadily, the GHG emissions generated here have fallen by around 17% since 1990. However, this consideration only includes the so-called "white" emissions - i.e. those that are emitted in the country itself. If emissions caused by the production and transportation of goods imported from abroad are also included, greenhouse gas emissions have fallen less sharply over the last 30 years, but they have also decreased. Either way, achieving the Paris climate target remains a major challenge despite decoupling.

The canton of Zurich with zero growth?

But what would be the impact on prosperity, society and the environment if the Zurich economy were to stop growing? To this end, the INFRAS research office has modeled a thought experiment in economic monitoring up to the year 2050 - not in the sense of a forecast, but as an illustrative scenario. This shows that zero growth would lead to significantly lower incomes and an increased risk of poverty. At the same time, the financial challenges would become greater: there would be much less tax revenue and money available for social security than in a growing economy, which would lead to distribution conflicts. Environmental quality would improve in some areas, but at a high price. In addition, fewer financial resources would be available for environmental protection.

The Zurich economy is feeling the effects of the international economic downturn. Nevertheless, the business outlook and GDP growth for 2024 remain positive. The economic slowdown is also leaving its first traces on the labor market: unemployment is rising, but remains low. You can find out more in the current economic monitoring.

Zurich's Economy Remains on Course

Following an economic slowdown at the end of 2023, companies in Zurich are assessing the business situation and business expectations as slightly better again. The Zurich economy is therefore likely to record low but positive GDP growth in the current year. Momentum on the labor market has slowed in recent months: unemployment is rising, but remains low at 2.1%.

This briefing report series are targeted at policy makers and industry members in the field of technology management and innovation. Our goal is to raise awareness of the importance of societal acceptance, and to shed light on how to improve it based on our own research findings.

This briefing focuses on experts in areas such as robotics, aerospace, mobility and smart cities to provide insights that will guide the development of strategies and measures for the implementation of drones.

The Autonomous Systems (AS) industry has the potential to revolutionize various sectors such as transportation, healthcare, finance, and logistics, and has gained significant attention in recent years. However, despite the obvious successes of the technology, most developments remain within the confines of laboratories and test fields. Autonomous Systems are of great interest to the national economy. Along the entire value chain, AS create highly qualified jobs, open new markets, and provide solutions for social challenges in mobility, digitization, for shortage in skilled workers, resource conservation and energy generation.

To explore and understand the challenges of autonomous systems development, adoption, and commercialization, I am looking at the problem from an ecosystem perspective. A Silicon Valley innovation ecosystem has proven that a successful ecosystem can inspire entrepreneurs and industry to collaboratively develop cutting-edge technologies and create new value for consumers. Unfortunately, since ecosystems are unique structures with many influencing factors and own dynamics, there is no universal approach that would fit to all ecosystems. Literature does not provide with comprehensive, multi-stakeholder study that would examine a regional innovation ecosystem development in the context of autonomous systems.

The core of the thesis is the analysis of the innovation ecosystem in the Canton of Zürich with the focus on autonomous systems (drones, self-driving cars, robotic platforms). The analysis showed that Canton of Zurich has a strong heritage in engineering and technology. Its universities, research institutions have world-renowned expertise in robotics, artificial intelligence, and autonomous systems. However, there are some challenges that should be addressed to foster the ecosystem growth. A qualitative analysis of 25 interviews conducted with key ecosystem stakeholders applying extended Six Helix model identified the drivers of the ecosystem as well as potential barriers and weak linkages impeding its rapid development. The analysis contributes to the insights on how to leverage the strengths of the ecosystem and what strategies can navigate to the innovation ecosystem sustainable growth.

This briefing report series are targeted at policy makers and industry members in the field of technology management and innovation. Our goal is to raise awareness of the importance of societal acceptance, and to shed light on how to improve it based on our own research findings.

Societal acceptance of the use of drones in urban areas is crucial for their successful integration into society. This literature study aims to identify the current knowledge gap and the interconnection between existing knowledge and popula rpublic discourses.

The Swiss consulting firm Orbit Management Services has published its first annual Advanced Air Mobility (AAM) Risk Report based on input from almost 150 industry insiders and independent observers.

This report will provide an outlook into the AAM industry’s future, considering its immense potential and the risks it must address and manage. We will dive deeper into the risk environment of the AAM industry, shedding light on the perceived risks from a technological, economic, social, political, regulatory and environmental point of view. By understanding the multifaceted nature of these risks, stakeholders can better navigate the complex terrains of the AAM industry, ensuring its growth is not just rapid but also sustainable.

We analyze the risks, discuss the roles of different stakeholder groups in effective risk management and present avenues through which they can seize the burgeoning opportunities in the AAM industry.

Switzerland is recognized as one of the most innovative countries in the world. Digitization has gained momentum in Swiss industries, such as the banking sector, which is now almost completely digitized. One sector is still lagging far behind: healthcare.

This issue has been the focus of numerous stakeholders from the public and private sectors for many years. So far, the digital transformation has not succeeded. We are still years behind European countries like Denmark or Estonia, which have fully digital healthcare systems.

A great deal of time and effort has been spent by the various players in the healthcare system to develop the best technologies to support this change. Today, there are many solutions and initiatives around this issue. The electronic patient dossier (EPD) has been developed. Recently, collaborative consortia have created new digital health platforms.

For digital tools to be effective, they are developed and tested with end users to ensure they work as efficiently as possible. If they do not meet the needs, they will not be accepted by the end users. Therefore, a platform/solution for a digital healthcare system should be developed together with the end users, the citizens of Switzerland.

This publication was designed to give the Swiss population the opportunity to express their wishes and concerns regarding the digitization of healthcare. This was done by means of a survey conducted at the end of summer 2022.

This survey can be used to more accurately capture citizens' perspectives on the topic. The willingness of the Swiss population to use a digital healthcare system is clearly evident - provided it offers clear added value such as better user-friendliness, better diagnoses and treatments, and lower healthcare costs.

The European Food Trends Report “Feeding the Future: Opportunities for a Sustainable Food System” explains the role of female consumers in the transformation to a more sustainable food system and the opportunities – based on knowledge, values and barriers of female consumers – for agriculture, industry, trade and gastronomy.

Opportunities for a sustainable food system

Based on the results of a consumer survey and interviews with experts, this report focuses on three sides of the food system and answers the following questions:

• Frontend: How aware are female consumers of the link between their diet and climate change? What aspects are important to them when choosing food? What new needs are emerging? What role do retail and gastronomy play?
• Backend: What opportunities are opening up for agriculture, industry, logistics and distribution? What technologies are available to them today and in the near future to make the food system more sustainable?
• Politics & Economics: What is the shape of the food system's policy framework? What large-scale economic and demographic trends are emerging?

From production to processing and distribution to retail - new solution ideas for more sustainable nutrition are emerging everywhere. Those who recognize these developments first and move forward courageously today will be among the winners tomorrow.

Blockchain is much more than Bitcoins and offers advantages for many industries. Since the introduction of blockchain in 2009, the technology has continued to develop. Nevertheless, discussions about the possible uses of blockchain continue to be heavily influenced by cryptocurrencies, and since 2021 also by so-called non-fungible tokens (NFT). The result: confusion around blockchain and its potential are equally great.

• Self-managed (electronic) identities for the secure identification of persons, organisations and objects in the digital space
• Product tracking to increase product safety and transparency along supply chains
• Consolidation of sensitive (health) data for higher quality of diagnosis and treatment without compromising data security

Blockchain technology offers a suitable technical basis for securely digitising and automating business processes, collaborating efficiently and creating more robust digital infrastructures. This can also open up new business areas. In order to exploit this potential, leaders need to move away from hype, but also from blanket criticism. This study aims to be a starting point for this.

We all deal with food on a daily basis. Nutrition has always been a key issue, but in recent years it has become even more important as the food system with its traditional methods reaches its limits. Not only a growing population, but also global warming, dwindling land resources and changing consumer needs are contributing to future challenges.

Within the food industry and along the entire agro-food value chain, there is a diverse mix of traditional and young, large and small companies in the canton of Zurich. Agricultural businesses, locally producing companies and a lively gastronomic scene contribute to the strong mix, as does a dense network of retailers and innovative small businesses. Also worthy of note are the many young spinoffs that have emerged from universities in recent years, contributing to a dynamic, fast-growing ecosystem around universities. Universities are thus important drivers of innovation and make a significant contribution to the talent pool.

With a focus on the Zurich agro-foodtech scene, Swiss Food Research was commissioned to conduct an analysis. The three-part study aims to gain a better understanding of what strengths, weaknesses and challenges exist in the food sector in the canton of Zurich. In particular, topics such as location attractiveness and other relevant factors, such as networking and innovation opportunities, were addressed.

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On March 30, the new topic #Foodtech will launch at the event "Optimizing Resources in Agrifoodtech". Register your company or organization on Innovation Zurich and benefit from more visibility!

In the current energy discussion, electric vehicles are also increasingly becoming the focus of public attention. But what about the knowledge of the Swiss people about this topic? What is clear is that the demand for plug-in vehicles continues to grow. But a study by the ZHAW School of Management and Law shows that despite this demand, there is still a great need for education on the subject of electromobility.

Electromobility is currently one of the central pacesetters in the automotive industry. All the relevant brands are working flat out to electrify their product ranges, and by the end of 2035 a large proportion of them want to dispense entirely with vehicles powered by internal combustion engines. On the customer side, electromobility is also steadily gaining momentum: At the end of October 2022, plug-in vehicles (electric vehicles and plug-in vehicles) already accounted for 24.4 percent of all new registrations.

One of the central challenges in the field of electromobility is the (still) insufficient know-how on the part of consumers. This is a challenge not only for importers and garages, but also for consumers who need to build up the necessary knowledge. In order to gain a clear picture from the consumer's perspective of their knowledge regarding electromobility and the relevant purchase decision criteria, the Institute of Information Systems at the School of Management and Law conducted a survey in Switzerland. Under the direction of Dr. Andreas Block in cooperation with AGVS, a total of 383 people were surveyed in writing in July 2022.

Expandable consumer:inside knowledge

The respondents began by assessing their own level of knowledge of electromobility: 26.6 percent rated their knowledge as "high" or "rather high," another 39.7 percent as "average" and 33.7 percent as "rather low" or "low. It is interesting to note that men rated their knowledge significantly higher than women: 37.8 percent rate their knowledge as "high" or "rather high," while the corresponding figure for women is 16.2 percent.

Rationality before emotionality

The study also looks at what the decisive criteria are for buying an electric vehicle. Dr. Andreas Block says: "What is striking here is that the rational aspects tend to be weighted higher. The three most important decision criteria are the life expectancy of the battery, the service life of the vehicle and the vehicle quality. The emotional criteria such as, brand characteristics and prestige contribute far less than thought to the purchase decision of an electric vehicle.

Clarification demanded

Car manufacturers are called upon to anchor the actual price level of the vehicle range in the minds of consumers through targeted communication. In addition to the pure product information, clear example calculations on charging costs and times help. For comprehensive advice in the garage, the sales staff necessarily need the necessary knowledge themselves first. The AGVS can provide support in building up knowledge, e.g. by offering additional courses on electromobility for employees of garages or related service providers. "The state should also proactively provide more consistent information about the public charging infrastructure and its utilization rates through a wide variety of communication channels," concludes Dr. Andreas Block.

The Covid 19 pandemic demonstrated the importance of access to and use of data to enable authorities to make informed decisions in a crisis.

This is often not the case today. Relevant data is certainly available, but it can hardly be used. Today, technical, legal and social obstacles stand in the way of meaningful and rapid use. The "Call for Action" by researchers from the Universities of Zurich and Geneva shows ways to overcome the existing obstacles and proposes new governance mechanisms that enable access to and use of data in health crises.

The Swiss AI Report is the first to systematically analyze the use and development of artificial intelligence in Swiss companies.

The report provides an objective and differentiated insight into the practice - far away from speculations and hypes. This shows that there is a high level of strategic awareness in Swiss companies when it comes to AI. Networking between research institutions and the private sector is intensive. Companies want to use AI to optimize their core business. However, they still pay little attention to ethical issues or the growing demand for energy.

The Swiss AI Report was commissioned by the Canton of Schwyz and created by the think tank W.I.R.E and the Mindfire Foundation.

This report by the NHS AI Lab and Health Education England explores the factors influencing healthcare workers’ confidence in AI-driven technologies.

The research follows the Topol Review (2019) recommendation to develop a healthcare workforce able and willing to use AI and robotics, and is part of Health Education England’s Digital, AI and Robotics Technologies in Education (DART-Ed) programme to understand the impact of advances of these technologies on education and training requirements. Supporting healthcare workers to feel confident in identifying when and how to use AI is a main objective of the NHS AI Lab, and a key component of its vision for the safe, effective, and ethical adoption of AI technologies across health and care.

The role and significance of self-driving cars in Switzerland will be determined in the future by the politically set guard rails. Society and politics must define the role of the state and clarify how the public sector and private companies should share the new tasks. In addition to technological issues, numerous questions also arise regarding economics, law, politics, society and ethics.

Digital Documentation. Maturity model in long-term care using the example of selected Swiss care facilities. Potentials of administrative relief, quality assurance and cost reduction.

Background: Digital nursing documentation, as an essential part of the

electronic patient dossier, especially the planning and documentation of

Measures for the care of persons in need of care as well as their accounting, but also the organization of work processes and rostering of caregivers. The occupational exit rate is 21.9% (Merçay et al., 2021). Often the

administrative effort and time pressure were cited as reasons for leaving. Target: Carers

should be sustainably relieved by further digitization steps. A

Maturity determination enables further development steps. Method: The study was conducted in a cross-sectional design and targeted medium and large long-term care institutions in German-speaking Switzerland. Data were collected via online questionnaire at the end of 2021 with a pre-determined sample size, for validity and reliability. It was possible to evaluate 53 responses. Results: In addition to the quality assurance aspects of maturity assessment, impacts on the core care process were evident. After digitization, the administrative effort of nursing documentation could be quantified as 65 minutes less per eight-hour shift. Conclusion: By expanding the relief opportunities that present themselves, the workload for the workforce can be significantly reduced. In the context of corporate and cultural change, the results led to promising recommendations for action in everyday care.

SATW compiled a research overview on the topic of “Autonomous Systems” on behalf of the Division of Business and Economic Development. This impressively shows how diverse the research in the field of “autonomous systems” is in the Canton of Zurich.

The SWISS DIGITAL HEALTH Startup Map provides a unique and comprehensive overview on digital health startups in Switzerland. Currently, Health-Trends has identified 194 Swiss-based digital health startups.

This is the second edition of the SWISS DIGITAL HEALTH STARTUP MAP status report, following the first publication in October 2021. In this report, Health Trends provides an update on the latest changes on the map. You will learn which digital health startups have been added, including detailed information about them. In addition, we inform you which digital health companies are no longer part of the map. And, you will also find a lot of background information on Health Trends in the report.

In The Future of Digital Health, a report by BCG Digital Ventures, we delve into what industry leaders must know in order to navigate the changing means and modes of health care delivery.

The COVID-19 pandemic continues to greatly accelerate the transition to digital health year over year.
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As patients, many of us are no longer sitting in a doctor’s office or waiting in line to collect prescription medications at a brick-and-mortar drugstore. It is starting to feel like the norm to find services and solutions on our own time and location - leading to a “care anywhere model”.
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As providers, technology has pushed us to innovate and disrupt health care services as we learn to embrace the ‘new normal’ to better serve patients through digital companion solutions, telemedicine, or leveraging AI-solution for more informed clinical decision making.

Machine translation offers considerable potential for public administration.The Commercial Register of the Canton of Schwyz and the Integration Unit of the Canton of Zurich implemented two case studies within the scope of the «Innovation Sandbox for Artificial Intelligence».

As the analysis of these case studies conducted by the «Innovation Sandbox for Artificial Intelligence» has shown, has shown, human translators remain indispensable for translation of official documents. However, training translation models specifically for public administration and integrating public administration terminology into existing solutions can offer clear added value. Specialised Swiss providers of machine translation can increase the quality of translations and improve data security. Use of specific models for public administration that can be adapted to the needs of individual public offices or units is a promising approach in the long term.

The «smart parking» project launched in Frauenfeld (TG) constitutes an example of innovative use of artificial intelligence (AI) to optimise car park management in Swiss cities and municipalities.

Through use of image recognition developed by the ETH spin-off Parquery AG, this project enables parking occupancy to be detected and analysed efficiently as part of the Innovation Sandbox for AI. The technology, which is based on anonymised camera images, not only improves urban traffic planning, but also contributes to residents’ quality of life by reducing traffic caused by searching for parking.

Particular attention is afforded to data protection: privacy-by-design measures, such as use of low-resolution images, ensure that facial and number plate recognition is avoided and the protection of personal data thus guaranteed. This project demonstrates how modern technologies can contribute to overcoming urban challenges, offering valuable best practice recommendations for other Swiss cities and municipalities as well.

The infrastructure maintenance of roads, bridges and dams offers great potential for the use of artificial intelligence (AI). AI-based image recognition can systematically and automatically detect the smallest cracks or damage. Infrastructure operators currently still carry out most inspections manually.

As part of the InnovationSandbox for AI, IBM Research and pixmap gmbh have implemented a pilot project at the military airfield in Dübendorf to assess the potential of AI-based inspections. A drone created high-quality images of the runway in order to automatically detect damage with the help of AI models.

The findings will be used to drive forward the use of AI in the inspection and maintenance of other infrastructure elements. The image material is made available to other innovation players. With this project, the cooperation between the administration, the military, research and the private sector is contributing to the further development of the international AI location in the Zurich metropolitan area.

Artificial Intelligence (AI) offers great potential within education. AI applications enable individualised learning and can provide support to teachers by reducing the burden of repetitive tasks such as correction work. However, there are also various regulatory and ethical challenges. While AI-supported tools are already in use in schools, the legal framework is often insufficiently clear to AI solution providers, teachers and school officials.

The present guidelines provide an overview of legal aspects such as data protection and copyright, for when implementing AI applications. This document was drawn up based on a specific use case during which school pupils used a smartphone scan to automatically correct their handwritten math work and spelling exercises. Whereas these guidelines are based on the legal framework of a state school in the Canton of Zurich, the legal situation is similar in other cantons. The relevant regulations are, however, applied differently from canton to canton. While primarily directed at AI solution providers, these guidelines may also offer helpful insights to school officials as well.

The regulation and standardisation of autonomous systems are currently not keeping pace with technological developments. As a result, the legal framework in this domain is insufficiently clear to many manufacturers. As part of the “Innovation Sandbox for Artificial Intelligence”, a guideline was developed which provides an overview of the most important questions.

The goal of the present guidelines is to clarify legal questions in relation to autonomous systems. The focus is on autonomous ground vehicles and systems for commercial purposes, potentially in operation in public spaces.

The guidelines are primarily designed for manufacturers with a strong focus on product development. These manufacturers often have limited know-how and resources available to dedicate to clarifying regulatory aspects, or to have these aspects clarified for them. With that in mind, the purpose of these guidelines is to provide an overview of the most important questions, and to serve as an entry point for a more in-depth and manufacture-specific exploration of the topic. The present guidelines are exclusively for manufacturers in Switzerland.

With a gross value added of CHF 29.9 billion and 97,300 full-time jobs, the Zurich financial center is a major pillar of the Zurich economy and the largest financial center in Switzerland. Sustainable business practices are becoming increasingly important for companies in all sectors. Drivers for this are international sustainability goals, but also changing customer needs. Due to its importance for the Swiss financial center, the Zurich financial center has a key role to play in this development. Every second financial company also sees sustainable finance as an opportunity to strengthen its reputation and to win and retain customers. This is shown in the new study “Financial Center Zurich 2023/2024” by the Cantonal Division of Business and Economic Development and Zurich Urban Development.

The financial sector, which includes banks, insurance companies and other financial services, is one of the most important industry aggregates in the Zurich region. One in ten jobs and one in six value-added francs would be attributable to the financial sector in 2021. The real gross value added of the financial sector developed more dynamically overall than that of the economy as a whole between 2011 and 2021, especially also in the pandemic years 2020 and 2021. This is shown in the new study "Financial Center Zurich 2023/2024" by the Division of Business and Economic Development of the Canton Zurich and the Urban Development Department of the City of Zurich. Despite the currently very challenging geopolitical and economic environment, the overall growth outlook for the financial sector is positive.

Key role for the Zurich financial center

Sustainable management is increasingly becoming the focus of companies. Drivers of this development include the Paris climate targets, the UN sustainability goals, legal framework conditions, but also changing customer needs. Sustainable financial products and services are increasingly in demand. The Federal Council has recognized the importance and potential of sustainable finance and in December defined several measures with the aim of further expanding the position of the Swiss financial center as one of the world's leading locations for sustainable financial services. The Zurich financial center plays a key role due to its importance for the Swiss financial center. This study examined how progressive the Zurich financial center is in terms of sustainability. The results of the survey show that numerous companies already offer products and services with innovative sustainable approaches. These include investment products with specific sustainability objectives, ESG-compliant activities, sustainable bonds or sustainable loans, insurance or services.

However, companies also face challenges, according to the survey. This includes the increasingly complex political and regulatory framework imposed by the federal government and the EU. The increasingly required transparency of climate risks and sustainability measures is also seen as challenging by 40 percent of companies. The survey participants see the greatest potential for improvement in networking with science and other companies, as well as in legal and regulatory issues.

Consistently pursuing the topic of sustainability

The consistent focus on sustainability is an opportunity for the Zurich financial center and the entire Zurich business location. This is also in the interest of the companies surveyed: Every second company sees sustainable finance as an opportunity to strengthen its reputation and win and retain customers. However, the great development potential of sustainable finance must be exploited to an even greater extent. This includes, for example, the systematic disclosure of relevant and comparable climate information from companies and for investments in such companies.

The Canton and City of Zurich are committed to promoting Sustainable Finance in the Zurich financial center, anchoring it more firmly and enabling an attractive environment. The Canton of Zurich and the City of Zurich will continue to pursue this topic with the aim of deepening the dialog between the financial industry, business and academia. This is done, for example, by networking and making visible the players from the financial industry and the cleantech industry on the Innovation Zurich platform of the cantonal location promotion, but also through a regular exchange within the framework of workshops and conferences as well as further data collection.

Greater Zurich Area: Driving the AI revolution

Excellence in Innovation & Research

Switzerland has been the global innovation leader for over a decade. Home to top universities and AI research institutes, the Greater Zurich Area in particular is a leading hub for AI research and development across a variety of fields and use cases.

Thriving AI Ecosystem

The Greater Zurich Area boasts a vibrant tech landscape with top-notch infrastructure and exceptional talent, which has attracted tech giants like Google, Meta, Microsoft, IBM, NVIDIA, and Apple to establish AI labs in the region.

Launchpad for Success

The collaborative environment in Greater Zurich enables dynamic partnerships and high levels of innovative output. The robust network of peer companies and AI-friendly regulation provide the perfect conditions for advancing AI initiatives.

The Zurich Centre for Creative Economies (ZCCE) has published the Swiss Creative Tech Startups Report 2024 in collaboration with Fuelarts, USA. A joint initiative that sheds light on the emerging creative tech sector in Switzerland.

The carefully crafted 100-page report provides a comprehensive insight into the creative tech ecosystem and highlights educational initiatives, venture support and various partnership opportunities, that promote growth in this dynamic sector. In addition to its academic contribution, the report provides an important basis for creative tech start-ups looking to establish and expand their activities in the various cantons of Switzerland.

The Swiss Creative Tech Startup Report 2024 fills a significant gap: Although the intersections of technology with sectors such as finance, health and biology have been extensively researched and strategically developed, the links with the creative industries have been overlooked until now.
This joint report highlights significant potential for Switzerland, which should be further developed in the coming years.

Data on Artificial Intelligence startups and venture capital. How Europe is navigating its charge during the AI arms race. Report in partnership with Roosh.

Key takeaways.

AI now accounts for a record share (18%) of VC funding in Europe.

• AI funding in 2024 is on track to vastly surpass last year but fall slightly short of 2021 peak in absolute dollar terms. Zooming out, AI funding in Europe grew 10x in a decade.
• Europe lags US AI leadership, with 4x less VC funding, much fewer publications and patents. But has a high concentration of AI engineering talent.

The UK, France and Germany are dominating AI investing in Europe, led by London, Oxford, Paris, Munich & Berlin.

• The UK is the top geography in 2024, so far, with $2.1B, followed by France and Germany. France has the highest share of funding going to AI. AI funding is also much more concentrated. UK, France and Germany attracted 77% of all AI funding in Europe in 2023-2024, compared to 59% for rest of tech. The Nordics and Southern Europe are lagging behind.

Generative AI funding in Europe in 2024 already surpassed any previous year after less than six months.

• Most Generative AI funding is going to model makers and applications with proprietary models.
• AI is increasingly being adopted in gaming, from in-game intelligence to game development. AIʼs increasing data needs are also bringing increasing importance to privacy-enhancing technologies (PETs), such as homomorphic encryption and synthetic data.

The question of whether and, if so, how artificial intelligence (AI) should be regulated is currently preoccupying many countries. The EU has created a comprehensive set of rules with the AI Regulation and the Council of Europe’s AI Convention is now also the first international treaty. But how should Swiss law respond to the challenges associated with the increasing use of AI in the state and in companies?

This whitepaper will deep-dive into the availability of talent in Europe, how to recruit for Web3 and AI, pitfalls to avoid when recruiting in Europe, lessons learned growing tech teams in Switzerland, and labor law considerations for hiring.

Seasoned DeepTech recruiters, talent experts, and Swiss Government officials from the Canton of Zurich, Google Cloud, Rockstar Recruiting, and DFINITY co-hosted a virtual roundtable for tech leaders interested in accessing European DeepTech talent. The panel covered the critical questions and guiding principles necessary to successfully navigate the European talent market, as well as insider tips for optimizing recruitment strategies to ensure a successful expansion into the European tech landscape.

In January 2021, we predicted a pivotal year for European Deep Tech. Was it?

In our 2021 report, we highlighted the huge potential for Deep Tech in Europe. Indeed, European Deep Tech had its best year with over $22B in funding, and billion dollar exits.

Since then we also saw huge breakthroughs in key segments like quantum computing (with the first 100+ qubit processor and near error-free quantum computing in silicon-based devices being proven), nuclear fusion (almost tripling the record for the amount of energy produced), space tech (Starlink providing internet coverage to Ukraine, James Webb Space Telescope, new missions to the moon), generative AI (Dall-E moving to commercial uses, Stable Diffusion text to image generative AI launch, ChatGPT reaching 1M users in 5 days) and much more.

We are still only scratching the surface

In 2021, we also pointed out the still largely unlocked potential in Europeʼs leading academic institutions and the need for closer collaboration between the different actors in the ecosystem to support Europeʼs most promising Deep Tech startups.

A number of key questions which remain open form the centre of this year report:
- How is Deep Tech evolving? What is the state of European Deep Tech?
- Which are the emerging areas in Deep Tech?
- How can we accelerate European Deep Tech further?
- Can we unlock the potential in academia & scientific research?

Zurich ranked as one of the best global hubs on the Science Clusters rank! Zurich ranks as the 9th Science Cluster globally, and 5th in Europe in Dealroom.co’s startup ecosystem benchmarking.

The coming years will be dominated by radical innovation and a need for tech ecosystems that can bring together entrepreneurship, patient capital, deep R&D, and science. A new report has uncovered the next generation of startup cities in the world, according to startup intelligence platform Dealroom.co. “The next generation of tech ecosystems” report is a data-driven analysis using novel methodology for ecosystem benchmarking. Rather than measuring a status quo, this set of actionable benchmarks is meant as a tool to help ecosystems understand and measure their maturity and preparedness for the future.

201 tech hubs identified and analysed

There are now 168 cities worldwide that have produced at least one unicorn - a startup valued at over $1 billion. In 2010 this number was just 12. In addition to the 168, the analysis also includes 33 cities that have had at least $100M in funding and a minimum 50 startup investment rounds since 2017, creating a full picture of both historically leading, and newly emerging tech ecosystems.

A unique framework: three lenses to benchmark ecosystems

The report is the conclusion of a data-driven analysis with a one of a kind transparent framework to benchmark and measure ecosystems globally. Each of the hubs are benchmarked against three lenses: Trailblazers, Science Hubs, Rising Stars. The benchmarking of 201 global cities incorporates factors such as prior startup success rates, venture capital investment raised by a city’s startups at different stages of their growth journey, the entrepreneurial output of universities, and patent filings - the first time these datasets have been combined.

The Regional Innovation Scoreboard provides a comparative assessment of the research and innovation performance across 239 regions in 22 EU Member States, Norway, Serbia, Switzerland, and the United Kingdom.

Switzerland is an Innovation Leader with performance at 139.6% of the EU average. Performance is above the average of the Innovation Leaders. Performance is decreasing and is lower than the rate of increase of the EU (8.5%-points). The country’s performance lead over the EU is becoming smaller.

Innosuisse participates in the survey to learn more about the innovation behavior of its own funding clientele. The results of the current study from 2021 show that innovation activities at companies supported by Innosuisse have increased in the last two years. The share of market novelties in sales in 2020 is significantly higher than for companies that have not applied for subsidies. The Covid 19 pandemic has had a significant impact on corporate innovation behavior. Digitization has received a boost. Around half of the funding clients make a potentially high contribution to at least one of the global sustainability goals through their innovations.

As part of the Swiss Innovation Survey, the Business Cycle Research Center at ETH Zurich surveys Swiss companies every two years on their innovation behavior. In addition, KOF conducts in-depth surveys and evaluations of its own funding clients on behalf of Innosuisse.

The 2019 survey focused on comparing innovative companies that received funding from Innosuisse with companies that did not submit an application or did not receive funding.

The present Innovation Survey 2021 focuses on the innovation behavior of companies. A total of over 3,500 companies that submitted applications for innovation projects and/or innovation checks to Innosuisse between 2016 and 2020 were surveyed. 1056 companies participated in the survey, which corresponds to a response rate of around 30%. The results do not focus directly on the impact of funding. However, they do provide information about the nature of innovation activities.

A study by the University of St.Gallen has comprehensively examined the framework conditions for startups in Switzerland from a legal and economic perspective. While the higher education landscape and the financing conditions for start-ups are considered satisfactory, there are clear deficits with regard to administrative requirements. In particular, the start-up process in Switzerland is too complex, lengthy and costly by international standards.

Switzerland offers good conditions for startups and has, for example, produced some so-called "unicorns" with On, Mindmaze or Wefox, i.e. fast-growing companies valued at over one billion US dollars. As a country that regularly leads rankings such as the "Global Innovation Index" and has an excellent higher education landscape and a strong financial center, the framework conditions here are very good. Nevertheless, it must be asked how even more success stories can be written.

Researchers at the University of St.Gallen (HSG), under the scientific leadership of Prof. Dr. Dietmar Grichnik and Prof. Dr. Markus Müller-Chen, have investigated this question and, in addition to the positive aspects, have also identified a number of obstacles: the experts surveyed in the Swiss startup ecosystem perceive the bureaucratic process of founding a company as very complex. From the preparation of the necessary documents to the public notarization as well as the registration with the commercial register, time-consuming physical processes are necessary instead of being able to incorporate online in a one-stop store and by means of digital notarial services. Here, Switzerland lags behind other countries in terms of digital solutions. There are also warning signals regarding venture capital activities. Switzerland is increasingly falling behind other European countries. Prof. Dietmar Grichnik emphasizes: "Switzerland has a great opportunity to establish itself as a unicorn hotbed for startups. However, only if we don't lose out internationally on the location factors of digital startups, attractiveness for investors, taxes and regulation."

Specific challenges

Especially in the MedTech and FoodTech sectors, startups have a high structural relevance in Switzerland. However, this is precisely where a high degree of regulatory uncertainty and rigidity cause problems. Prof. Markus Müller-Chen explains: "Innovations in these key industries are hindered by slow, insufficiently digitized and partly non-transparent approval or authorization procedures." MedTech startups have also suffered since 2021 from the suspension of Mutual Recognition Agreements (MRAs) with the EU due to the lack of an institutional agreement. Another problem that affects startups in all industries equally is the possible classification of venture capitalists (so-called "business angels") as professional securities traders. Here, a statutory adjustment could create more legal certainty.

Basis for political initiatives

The study was conducted by the HSG on behalf of the Swiss Entrepreneurs & Startup Association SWESA. The association is committed to improving the economic policy framework for startups and innovative SMEs in Switzerland and runs the secretariat of the parliamentary group Startups and Entrepreneurship. Andri Silberschmidt, for example, is one of them: "The results of this study will help us to derive political initiatives and take concrete measures to offer startups in Switzerland optimal conditions," says the FDP National Councilor. The Swiss Mobiliar Cooperative supported the study as a benefactor.

Image: University of St.Gallen (HSG)

The SICTIC Investment Report 2023 sheds light on its activities in the year 2022, and highlights the significant impact SICTIC has on the Swiss startup ecosystem.

Based on a survey of more than 300 investors and founders, the report offers insights into the latest trends in early-stage investing in Switzerland.

Investment in technology-based start-ups increased by 30% last year. This is indicated by the current Swiss Venture Capital Report published by the news portal startupticker.ch and the investor association SECA, in cooperation with startup.ch.

The Swiss Venture Capital Report is the reference publication for investment in Swiss start-ups. The annual report provides an analysis of the financing rounds, a list of the investments and an overview of the most important exits. In addition to the annual report, we provide an update for the first half year in July. During the year you can find all our news about financing (investments, exits, new funds of investors etc) in our category "Financing". 

New: Swiss Venture Capital Report 2023

The new Swiss Venture Capital Report provides an analysis and a list of venture capital investments in Swiss start-ups in 2022. It also includes the results of a survey of more than 250 investors and data on exits. See the highlights in our slide deck from the launch event. The report was again published by the news portal startupticker.ch and the investor association SECA, in cooperation with startup.ch.

Detailed rankings, causal factors, and forecasts concerning the locational quality of Switzerland’s regions and cantons.

The Locational Quality Indicator (LQI) compiled by Credit Suisse measures the attractiveness of Swiss cantons and regions to business compared to Switzerland's average. The LQI is based on the following seven quantitative sub-indicators: tax burden on private individuals and legal entities, availability of highly qualified personnel and specialist labor, population accessibility, employee accessibility, and access to airports.

Swissparks.ch has initiated an impact analysis on the role of business and technology parks. The four participating centers Bio-Technopark Schlieren-Zurich, Business Parc Reinach, EPFL Innovation Park and Startfeld are characterized by resilient and dynamic companies.

Swissparks.ch has commissioned an impact analysis on the role of business and technology parks in Switzerland's innovation ecosystem, the association of Swiss technology parks and incubators informs in a statement. The centers Bio-Technopark Schlieren-Zurich, Business Parc Reinach, EPFL Innovation Park and Startfeld participated in the benchmarking conducted by BAK Economics and EvalueScience.

The results show that the centers are characterized by resilient and dynamic companies. Overall, only 5 percent of the companies located in the centers in 2015 were no longer active five years later. In this context, the development of the companies still located in the centers in 2020 is comparable to that of the companies that have since left, writes Swissparks.ch.

All centers show a very high percentage of private funding for operating costs, ranging from 67 to 99 percent. According to the release, this indicates "a sustainable business model for the centers and the important role of the private sector." Swisspark.ch also emphasizes the role of the centers as an interface between business and science. 

"The results demonstrate the unique role that technology parks and business parks play in the innovation ecosystem," association president René Hausammann is quoted as saying in the release. "A key value is the unprecedented networking that hosted companies experience, both internally and with external sector players such as investors, business development, universities and other technology transfer partners, coaching and support organizations." hs/Cafe Europe

Zurich’s innovative power is strong, as a comparison with 249 other regions shows. Nevertheless, there is room for improvement. You can read more in the current issue of the “Zürcher Wirtschaftsmonitoring” (German only).

In recent years, Swiss exporters have focused heavily on China as a growth market. However, in view of current geopolitical developments, it is necessary to look at alternative markets. One promising option is the Gulf region, which is reinventing itself beyond oil and gas and offers exciting opportunities for international companies.

This book shows how companies from Germany, Austria and Switzerland can do business successfully in the Arab Gulf States. The region, especially Saudi Arabia, is currently reinventing itself beyond oil and gas - and offers lucrative opportunities for many industries. The authors explain objectively and pragmatically how export companies can make use of this. As profound experts on the Gulf states, they analyze their observations and provide indispensable recommendations for action as well as insider tips from over 30 interviews with predominantly Arab managers. Ethical questions that arise in this difficult region are not ignored, but addressed from various perspectives. Often invisible hurdles for European managers are made visible.  

A guide for anyone who is looking for dealers in the Gulf region, wants to find customers or set up branches - and not only wants to know things, but also understand them.