For a successful future, the industry’s research activities must remain in the country in the long term. But on several fronts, things are not going as well for Switzerland as a research location as they once did.
According to current figures from the Federal Statistical Office and economiesuisse, research spending by the Swiss pharmaceutical industry fell significantly in 2023 for the first time since 2012 — a decline of around 12% compared to the last survey in 2021. At the same time, companies are increasingly relocating research activities abroad or outsourcing them to third parties. A key factor is the OECD minimum tax, which reduces Switzerland’s previous tax advantage and intensifies international competition. Countries such as France, the United Kingdom, and Ireland are attracting pharmaceutical companies with targeted research incentives. Switzerland is more reserved in this regard.
In addition, uncertainties such as the future of free movement, the now temporarily ended exclusion from the EU research program Horizon, and new initiatives against animal testing are putting pressure on the research environment. While international competition is growing, it remains unclear whether the decline in investment is merely a temporary dip or the beginning of a structural downward trend.
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(Image: Google DeepMind / Unsplash)
