How Switzerland Stays an Innovation Leader: Inside Its Universities, Apprenticeships and International Talent

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Overview

This video report from PIVOT follows reporter Mariko Sato through a series of visits in Switzerland, asking one central question: how does a small country with no major bloc membership keep ranking at the top of global innovation tables? The interviewees include a university space center head, a representative of the federal innovation agency Innosuisse, a vocational education expert, a robotics startup, a pharmaceutical plant that trains apprentices, a speaker at the UN's European headquarters in Geneva, and a tourism association using climate data. Their answers overlap: strong public education, tight links between research and industry, a vocational system that underpins the labor market, and a high degree of international openness.

16 min read

A space center at ETH and the case for "doing even better"

The first stop is a space center at ETH Zurich, where the head of the center shows an exhibition. He says that across most dimensions of innovation, such as research output and patents, Switzerland "is really doing well." Asked exactly where it ranks, he admits he doesn't know the precise figures, but says that compared with international players it is "very much in the top third or the top quarter."

His reason for building the center, though, is that he believes Switzerland can do even better. He wants to take Swiss research and put it into space, whether in quantum technology, artificial intelligence, or novel small devices. He also points to a non-technical asset. Switzerland is neutral, not part of any big bloc and not even part of the European Union. Because of that, he argues, many discussions that matter to the world can be held in Switzerland, and the country can convene them.

Asked why he came back to Switzerland, he says he believes in the power of public education, noting that ETH is a public university. He also believes in Switzerland's ability to educate top innovative people who benefit both the country and the world. He describes feeling he had an "open bill": Switzerland paid for his entire education, but he never worked in the country afterward. Returning was a way to "pay forward" and open doors for others.

He describes the students as drawn by the excitement of space and by the chance to play a role in a sector that, in his words, grows much faster than the economy overall. By his estimate, a little over 50%, perhaps around 60%, of the students are Swiss. The rest come from all over the world, including the United States. He considers the presence of the best students, and the experience of working alongside classmates from many places, one of the key strengths of a university like ETH.

Innosuisse: competitive funding as a bridge between academia and industry

A representative of Innosuisse explains that the agency's purpose is to promote innovation for the benefit of Swiss society and the economy. Its main instrument is a collaborative one. It funds innovation projects run jointly by an academic partner and a company. Innosuisse pays for the research portion, but the results have to be brought to market by the company, and the company is the one that applies for the funding.

When the reporter suggests this covers the last stages of research before industrial application, the representative agrees, then adds a nuance. Innosuisse can also support deep-tech ideas before all the research has been fine-tuned. What matters is that the idea is very promising and the expected outcomes are clear. The agency evaluates the level of innovation, the quality of the submitted project, and the value it would add on the market.

Competition is central to the model. Funding goes only to the best applications, so everyone has to compete. In the representative's view, this competitive funding raises the quality of innovation across the whole Swiss landscape. Projects are also collaborative by default. A company and a research organization must work together and apply jointly if they want Innosuisse money.

Why Switzerland ranks first: research, "hidden champions" and necessity

Asked whether this mechanism explains Switzerland's strength, the representative says many factors contribute. She notes that Switzerland has been ranked number one by the Global Innovation Index for 15 years in a row. She attributes this first to research quality. This comes from the two federal technical universities, EPFL and ETH, and from a wider network of successful research organizations that attract top talent.

The second factor she names is a strong economic base. Switzerland has high-tech large companies and also many small and medium-sized enterprises that are often called "hidden champions." They are hidden in the sense that they are not well known globally, she explains, yet they play an essential part in global value chains. She frames this as a matter of necessity. Switzerland is a small country with "no choice" but to be competitive, so its companies constantly try to stay at the top of innovation. The third factor is bringing these actors together and transferring knowledge from research organizations to companies. Organizations like Innosuisse create those links.

Openness, migration background and foreign founders

The reporter asks whether this is also why talented people come to live in Switzerland. The representative says the reputation of the research organizations plays a part, but so does openness to collaboration, both nationally and internationally. She says Switzerland likes to collaborate "with the best." These collaborations lead to regular exchanges, and professors, researchers and students are also open to studying abroad. She believes this increases the likelihood that people will choose to settle in the country.

She cites her own background. She is originally Canadian and has been a "proud Swiss" for 15 or perhaps 20 years. She says she recently looked at the makeup of the population and found that roughly 40% of people in Switzerland have a migration background, whether first- or second-generation immigrants or dual citizens. She sees this as a source of international openness and says she is "convinced that diversity helps innovation." Different backgrounds, she argues, make people think more outside the box, and she notes this applies beyond gender diversity. She adds that more than 50% of startup founders supported by Innosuisse come from abroad, and that they help the economy progress. From the agency's perspective, attracting talent clearly benefits the country.

The vocational system: from medieval guilds to a 1930 law

The report then visits a vocational school, starting at a mechanics department where programs last between two and four years depending on the profession. A vocational education expert explains the history of Switzerland's VET (vocational education and training) system. It is the oldest part of the Swiss education system and dates back to the Middle Ages, when the guilds ran it rather than the government. In 1930 the first federal law on vocational education was passed. This brought the old system into the formal education system, while the economy and firms kept a strong say.

She believes the strength of the whole Swiss economy partly comes from this system, because the majority of people in Switzerland go through apprenticeships. She calls it the foundation of the labor market. It is where the economy gets its skilled workers. She also stresses that the economy itself is responsible for keeping the system running, by offering apprenticeship places.

Choosing a path at 15

The reporter asks whether it is a heavy burden to decide on an occupation at 15. The expert answers "yes and no." In her canton, and she notes this differs by canton, students choose among roughly 250 occupations or the Gymnasium (the academic track) or another kind of school. It is both an education choice and an occupation choice, made at 15, which means students have to start thinking about it well before that. She calls the process "very intensive" but says schools run many career orientation classes to prepare students.

On what keeps Switzerland competitive, she argues the apprenticeship system must be maintained because it trains the labor force and does not close off other paths. Apprentices can go on to become masters in their trade. With extra courses, they can earn bachelor's degrees at universities of applied sciences, or even go to a university.

She also connects the system directly to innovation. When an engineer talks to the people carrying out his plans or assembling the machine he designed, it makes a difference whether he knows the trade himself. If he has only learned it theoretically, practitioners may conclude that his plans "don't add up" and can't be used. For her, the mix of practitioners, people with applied education from universities of applied sciences, and university graduates is "very, very important" for the innovation system.

A robotics startup: English in the office, immigrants on the team

At the robotics startup MESH, a team member says the company is "quite international." The working language is English rather than German, and more than half the team is international. Many are immigrants, some of whom have lived in Switzerland for years without yet having a Swiss passport.

Asked whether Switzerland welcomes highly skilled people, he says this is nothing new and has been happening for decades, though he acknowledges it is "always a political discussion." He describes a long history of immigration. In earlier times many people came for construction work. Today many highly qualified people work in tech companies and hospitals. People come from abroad, he says, because there is strong demand for them.

On why Swiss industry is so strong, he offers what he calls a partly personal view. First, the universities and education system are excellent. Tuition fees are "negligible," though living expenses are not small. Anyone with a Matura (the Swiss upper-secondary leaving certificate) is allowed to start studying at ETH, with no entrance exam, which he thinks is "really great." Second, he points to an entrepreneurial spirit and a tradition of invention. He adds that he is "not sure that's true," but believes Switzerland may be a record holder in patents. Third, he names immigration. Switzerland has always attracted great talent from abroad, and those people pushed things forward, developed new things and brought a lot of value to the country.

Takeda's Neuchâtel plant: apprentices inside the production teams

At Takeda's plant in Neuchâtel, a site representative says 14 apprentices are currently in training. The site has hosted apprentices since 2003. At first they were mainly quality control technicians. In 2019 the site began expanding the number of apprentices and the range of fields, adding manufacturing, supply chain, and digital and technology roles.

The apprenticeship lasts two years, and apprentices are roughly 15 to 19 years old. Training alternates between school and the workplace. Apprentices spend one or two days a week at school learning the theory, such as how equipment works, and then apply it on site in the following days. The representative stresses that they are fully part of the teams. They are onboarded and trained on the job by experienced staff.

An apprentice's view: "When we are too young, you don't know exactly what you want to do"

An apprentice at the plant offers a more personal account of the choice at 15. They started at 17, not 15, after spending an extra year deciding. They admit that before that they didn't know what they wanted to do. At first they wanted to become a fitness trainer and did several internships in that field. In the end they decided they weren't sure they wanted it as a job, changed course, and consider themselves lucky to have found this apprenticeship as a technologist.

They say most of their friends went to the Gymnasium precisely because they didn't know what they wanted to do in the future, so they chose to continue studying. A few friends are doing apprenticeships, for example as electricians. The apprentice says they could have gone to the Gymnasium too, but chose to discover the professional world, and describes the system as "very flexible."

Geneva: a broader hub than New York

At the UN's European headquarters in Geneva, a speaker explains how Geneva differs from the UN headquarters in New York. Geneva covers a much wider range of topics, the speaker says, because it hosts many international organizations, not only the UN. As an illustration, the speaker notes that the largest number of international staff in Geneva work at CERN, in particle physics. The speaker also says Geneva hosts more international conferences than New York. These draw specialists, diplomats, ministers, prime ministers and heads of state, making Geneva "a global hub for governance on many different topics."

The conversation then turns to an AI-related summit. The speaker sees two benefits for Switzerland. Internationally, it shows the world Swiss expertise in AI and the research Swiss universities can offer. Nationally, it brings all the relevant actors together to reflect on the subject and its possible developments. The speaker says Switzerland would like to "anchor" something in Geneva after the summit, so that the discussion stays in Geneva over the longer term and reinforces its role in multilateral governance.

On regulation, the speaker describes the Swiss approach as "as much regulation as necessary but as little as possible." The aim is to let companies develop, innovate and move forward while ensuring AI is trustworthy, because, in the speaker's words, "it all starts with trust." Regulation is the state's role in building that trust. The Swiss way, the speaker explains, is to review the different fields and existing laws to see what must change to enable trustworthy use of AI, including transparency and data protection among other aspects.

Snow Compass: open climate data for ski resorts

The final segment features Snow Compass, presented by a representative of a tourism association. It is a web-based tool built on a database, developed with scientists and a marketing organization, and funded by the government. Users can look up projected conditions for natural snow cover and for artificial snowmaking in a given region, such as the area where the interview took place. The data is open, so anyone can use it.

The representative calls the tool the association's response to climate change: bringing science into tourism marketing and giving destinations some orientation, since "nobody can deny that climate change is happening." Asked how climate change affects winter resorts, the representative says it clearly has an impact but no single message applies to all of Switzerland, because it differs by region. In general, the winter season is getting shorter. Resorts have to invest more in snowmaking or other installations, or shift toward other seasons such as summer. Each destination chooses its own strategy, and Snow Compass helps answer questions such as how quickly a resort needs to shift toward summer, or how successful it can still be in winter.

The projections cover the next 25 years. The representative emphasizes that they are based on scientific data. The tool is "not inventing anything" but extrapolating from what the database shows today. It goes no further than 25 years "because further than that nobody knows." Asked why the project was needed, the representative says the sector has faced climate change for decades and wanted a reliable, data-based foundation for talking about the future, not just predictions. The goal is for everyone to look at the same scientifically grounded data, so that people are not arguing about the data itself and instead have shared orientation about what the future may hold.