GREATER GENEVA BERNE area: Newsletter # 2 – June 2011

On first glance, just looking at salaries, labor costs in our region appear to be 10-20% higher than in neighboring countries.

But it is the total cost associated with the labor force that really counts for companies; in other words, rather than just looking at salaries, it’s important to take into account the number of hours worked (40-44 hours a week, as well as a negligible level of absenteeism or strikes), social security costs (only 15-20%), the flexibility of labor law, and overall productivity. If all these elements are taken into account, we arrive at the irrefutable conclusion that the labor force in our region – whether Swiss or foreign – is very competitive. But the most important factor for guaranteeing a good return on investment is the motivation and quality of the work done; for customers, that’s priceless!

The Greater Geneva Bern area continues to attract many foreign companies every year, both large and small, from both developed and developing countries. And the heads of these companies maintain without hesitation that they chose our region “for its workforce” and not “despite the cost of its workforce.”

Philippe D. Monnier
Executive Director

Solar Impulse reaches Paris successfully

The Swiss solar airplane traveled from Brussels to the Paris-Le Bourget airport without a hitch in a flight of more than 16 hours. The visionary project based in the Greater Geneva Berne area is aiming to circumnavigate the globe in 2014, without using any fuel and without emitting any pollutants. This airplane, a beacon of hope for the aviation industry, is a special guest at the Paris Air Show, which is taking place at the Paris-Le Bourget Airport June 20-26, 2011.
www.solarimpulse.com

An end to nuclear power by 2034

In May 2011, the Swiss government made the momentous decision to abandon nuclear power by the year 2034. It recommended to parliament that the five Swiss nuclear power plants not be replaced when they reach the end of their operational lives. This new orientation could have a considerable impact on the development of alternative forms of energy production, such as hydropower and new forms of renewable energy. Nuclear energy currently accounts for 39% of the electricity consumed in Switzerland.
http://www.swissinfo.ch/eng/politics/internal_affairs/Swiss_to_phase_out_nuclear_power_by_2034.html?cid=30315730

Switzerland: a model in the struggle against corruption

In its 2011 annual report, Transparency International ranked Switzerland among the seven countries in the world that actively enforce the OECD’s Anti-Bribery convention. At a global level, the report shows that there was no improvement in the enforcement of the convention in 2011, and warns that this could represent a dangerous loss of momentum in the fight against corruption.
http://www.transparency.org/news_room/latest_news/press_releases/2011/2011_05_24_oecd_progress_report

EPFL clears the first hurdle in a competition for billions in EU funding

Two projects coordinated by EPFL (Ecole Polytechnique Fédérale de Lausanne) are among the six finalists selected by the European Commission to revolutionize information technologies. In 2012, two winning projects will be chosen to receive 1 billion euros in funding over a ten-year period. The two EPFL projects are the “Human Brain Project,” an effort to simulate the human brain on a computer, and the “Guardian Angels” project, to develop battery-free intelligent devices that can be integrated into everyday life.
www.humanbrainproject.eu and www.ga-project.eu

Swiss product quality boosts exports

The high quality of Swiss products is largely responsible for the sustained level of Swiss exports. A study published jointly by Credit Suisse and Osec emphasizes that the quality factor makes goods and services exported less sensitive to the strength of the Swiss franc, and shelters Swiss companies from competition, particularly from developing countries. Business conducted beyond its borders plays a crucial role in Switzerland’s economic prosperity; more than one out of two Swiss francs is earned outside the country. Without exports, the GDP would have fallen by an average of 0.3% per year between 1990 and 2010; instead, it has experienced an average annual increase of 1.5%.
https://infocus.credit-suisse.com/data/_product_documents/_shop/304187/060411_exportindustrie_fr.pdf

BERNE

Berne medical cluster gains strength

The US medical technology company Exactech has set up an office in Berne. The company, which exports its products worldwide, has been operating in this region of Switzerland since January 2011. Its orthopedic prostheses are used to restore bones and joints in patients suffering from conditions such as arthritis.
www.exac.com

A telecom giant sets up shop in Berne

The Chinese group ZTE has opened a Swiss subsidiary in the Bümpliz neighborhood of Berne. Market leader in telecommunication equipment, the company was founded in 1985 in Shenzhen, China. It now has more than 85,000 employees. Its customers include more than 500 network operators in 140 countries. Its marketing, sales, administration, service and operations agency in Berne employs thirty people.
www.zte.com.cn/en

FRIBOURG

A scratched coating heals itself

A scratch on the body of a car that disappears in less than a minute – this miracle could one day be a reality. Together with partners in the US, scientists from the Adolphe Merkle Institute in the University of Fribourg have developed a polymer-based material that can heal itself when placed under ultraviolet light for less than a minute. Their findings were published in the April 21st issue of the scientific journal Nature. The scientists envision that healable materials like theirs could be used in automotive paints, varnishes for floors and furniture, and many other useful applications.
www.am-institute.ch/en/research/polymer-chemistry-and-materials/a-scratched-coating-heals-itself

Liebherr joins forces with Fribourg’s College of Engineering and Architecture

The College of Engineering and Architecture of Fribourg, the Office of Economic Affairs and Labor of the Canton of Fribourg and the company Liebherr Machines Bulle signed a public-private partnership in May 2011 to create a new option in the Mechanical Engineering department. This one-semester option, “Motorization and Entrainment techniques” will be offered in the third year of the Bachelor program, starting in February 2012. It will give students training in the areas of motorization, pumps and hydraulic motors, machine design and industrial automation. Liebherr Machines Bulle will cover the costs incurred by the new option. The College of Engineering will preserve complete academic freedom for both the course content and the choice of teaching staff. The partnership was established for a five-year period.
http://webapp.eia-fr.ch/epublisher/upload/Liebherr.pdf

VAUD

Credit Suisse opens an IT Development Center at EPFL

In May 2011, Credit Suisse inaugurated its new IT Development Center in EPFL’s Innovation Square. Numerous scientific cooperation projects are planned with experts on campus to develop innovative IT solutions that will meet the needs of the bank’s many clients and commercial partners. It will also become a major IT training platform. By locating its development center on the EPFL campus, Credit Suisse is clearly displaying its ambition to become a standout in IT innovation.
https://www.credit-suisse.com/news/en/media_release.jsp?ns=41541

Economic development: an increase in the number of companies

After the loss of tax advantages following the 2007 Bonny decree and the worldwide economic uncertainties of 2008 and 2009, economic development was once again renewed in the canton of Vaud in 2010, with the trend towards increasing numbers of companies that had been observed before the crisis. Last year, 47 companies were established in the canton of Vaud, an increase of 40% over 2008 or 2009. The canton is now working on balancing out activities, and will preferentially target production and R&D activities. In order to reach a better geographical distribution, it will encourage companies to set up in areas outside the immediate Lake Geneva area.
www.bicweb.vd.ch/communique.aspx?pObjectID=363166

NEUCHATEL

New business tax system approved

On June 19, 2011, the citizens of Neuchâtel approved, by a large margin, the revision of the corporate tax system that was proposed by cantonal authorities. It’s an important step for the future of the canton of Neuchâtel, described as “a new social contract with companies.” The new law will offer attractive conditions for companies in order to maintain and encourage job creation. In practical terms, this revision of the corporate tax system puts all companies on an equal footing, whereas at present only half of them are paying taxes.  In addition, the effective tax rate on profits will decrease gradually from 22.2% to 15.6% over the period from 2011-2016. The tax on capital of holding companies will be divided by 100 – from 0.1% to 0.001%. And finally, the new tax code will allow taxes on profits to be deducted from taxes on capital.

Multicultural cohesion service wins an award

The Federal Commission for Migration Issues has awarded the Swiss Integration Prize to the Service for Multicultural Cohesion in the Department of Economic Affairs in the canton of Neuchâtel.  The prize was awarded specifically for a project entitled “Vivre ici en venant d’ailleurs” (“Live here by coming from elsewhere”), launched in fall 2002, in collaboration with an independent journalist and various media in the Neuchâtel area. With this award the FCM’s jury acknowledges the relevance of the canton’s integration and multicultural cohesion policies.
http://www.ne.ch/neat/documents/info_archives/TousCP_5983/jan11_juin11_11920/CommDECPrixCOSMJuin2011.pdf?utm_source=twitterfeed&utm_medium=twitter

GENEVA

New support for Geneva-area watchmaking expertise

A foundation has been created to guarantee the development of the Geneva Watchmaking Grand Prix, an event that has already established itself as one of the highlights on the international watchmaking calendar. The Foundation of the Grand Prix d’Horlogerie de Genève will be fully operational by the end of the year. Its launch is another important element spotlighting the value of Swiss and Geneva-based watchmaking. The 2011 Grand Prize will be held Saturday, November 19 in the Grand Théatre in Geneva.
www.gphg.org 

Heads! comes to Geneva

Heads!, a headhunting firm that specializes in recruiting executives in Europe, has opened an office in Geneva. “The Swiss and European anchorage of Heads! is an undisputable and distinct advantage,” explains Cornelia Tänzler, Managing Partner at Heads!. The recruiting firm, whose expertise is based on a thorough knowledge of the market and the various careers, focuses primarily on big companies, particularly in the luxury, retail, service and consumer product sectors.
www.heads.eu

VALAIS

Business Valais posts excellent results for 2010

In 2010, the economic development agency Business Valais provided support for 500 companies and accompanied nearly 120 others in their steps towards innovation. It supported, both financially and actively, more than 1,400 projects and 150 start-up companies.
www.vs.ch/NavigData/DS_346/M26014/fr/Rapport_Business_Valais_2010.pdf