Most Swiss companies view technological progress as a means by which to actively influence their own future. Indeed, according to a recent study conducted by Credit Suisse, 94% of the 1,800 small- and medium-sized Swiss firms (SMEs) surveyed even consider innovation to be vital to the very survival of the company.

Credit Suisse’s survey revealed that over one third of the income of almost 30% of the companies questioned is derived from products that have been on the market for less than three years. Innovation is reflected not only in the marketable products themselves, but also in the manufacturing processes and the marketing strategies, as well as in the organizational aspect, the study pointed out.

According to the findings of the survey, company employees are considered to be the principal engine of progress. Indeed, 74% of those companies polled attributed the generation of new ideas to experienced staff, while only 6% thought that apprentices and young graduates provided the greatest potential in terms of innovation. Clients and suppliers were also cited in the survey as having given rise to innovations and developments.

Credit Suisse found that Swiss SMEs in general focus on a small number of projects, therefore undertaking greater risks when innovating compared to large companies. Almost half of the companies surveyed (45%) conceded that they have been forced to abandon projects, predominantly – and crucially – during the development stage.

Citing high costs (35%) as well as financing problems (33%) as the main barriers to implementation of innovation projects, 15% of companies also viewed a lack of staff training as an obstacle to success in this area.

Given the central role of innovation for SMEs, and in view of the clear and highly frustrating problems currently facing these companies in their battle to innovate, as highlighted by the Credit Suisse survey, the Swiss Federal Council’s timely decision to introduce new measures specifically designed to encourage research and innovation and to mitigate the effects of the strong franc, will undoubtedly provide welcome relief to businesses throughout the Confederation.

According to a recent release issued by the Swiss administration, the Federal Council has unveiled details of two significant changes to the existing order pertaining to the encouragement of research and innovation (l’ordonnance sur l’encouragement de la recherche et de l’innovation – O-LERI) in Switzerland, which fall within the jurisdiction of the commission responsible for technology and innovation (la Commission pour la technologie et l’innovation – CTI).

Firstly, the commission will, the administration explained, be able in individual cases to either reduce the amount of the cash contribution paid out by companies participating in research and development projects, or to waive this contribution in its entirety.

Secondly, a new instrument to guarantee support costs has been introduced in a bid to facilitate partnerships with research institutions, the administration added, noting that these measures have been put in place for a limited duration of one and two years respectively.

Both changes form part of a series of measures adopted by the Federal Council in order to alleviate the ongoing negative effects of the strong franc and to benefit the export-orientated Swiss economy.