Switzerland seeks to bolster appeal as startup location through number of globally competitive measures

New Delhi/Bern: A large number of Indian entrepreneurs are looking to tap Switzerland's startup ecosystem to set up their new enterprises there with the Alpine nation planning to bolster its appeal as a preferred location for startups through a number of globally competitive measures.

According to a statement from the Swiss government, the European nation's top-decision making body, the Federal Council, had asked the Federal Department of Economic Affairs, Education and Research (EAER) to examine Switzerland's startup ecosystem, following which it has found that while this ecosystem is generally in good shape, there is room for improvement in a number of areas, namely technology transfer, internationalisation, access to skilled labour and financing.

The Federal Council has now tasked the EAER and the Federal Department of Justice and Police FDJP to examine further measures in these areas in greater detail and the findings are expected to be presented in June 2022. Noting that startups play an increasingly important role in a country's innovative strength, the Swiss government said the startups make a significant contribution to harnessing the innovation potential resulting from research and also play an important role in the development and application of new technological innovations.

With India becoming a major global hub of entrepreneurs seeking to tap the startup route, industry experts said Switzerland can emerge as a major destination for Indians looking to set up their new enterprises in a global financial centre. Several investment bankers and international law firms also said they are being approached by potential startup initiators from India to examine Switzerland's potential as a startup location, following the recent measures announced by the Swiss government.

Himanshu, Founder and CEO of IDDI Investments' parent firm Switzerland For You SA, which is looking to attract entrepreneurs and investors

from across the world including India to Switzerland, said the Swiss government's decision can go a long way in promoting the Swiss economy on a sustainable way.

"Given the dynamics of the rapidly changing business environment, it is essential to

constantly update the ecosystem with a view to attracting young talents and budding entrepreneurs from not only other parts of Europe but across the globe," said the Indian-origin businessman who is settled in Geneva and goes only by his first name.

"Once the review is completed by the EAER and the report is out, it is expected that the Swiss authorities will act with double the speed to make the country's startup ecosystem internationally competitive and also the best in the world," he added.

Himanshu said, "Swiss Federal Council's decision to authorise the EAER to review the country's startup ecosystem is a well thought out move which will go a long way in promoting the economic interest of Switzerland on a sustained basis."

The Swiss Federal Council had first commissioned the EAER in December 2020 to investigate which factors

are crucial for the performance of the startup ecosystem

and how knowledge and technology transfer can be accelerated.

The latest report from the EAER shows that the startup ecosystem in Switzerland is generally in good shape, but there is still room for improvement in a number of areas.