# Presentation: 078926

## High Tech Heart of Europe: SWITZERLAND MATTERS!

**U.S. Embassy, Bern**
- Julie Snyder, Senior Commercial Officer
- Aschi Hegg, Commercial Specialist & E-Business Leader Europe
- Marianne von Kaenel,
- 	Commercial Assistant

** **

**Zurich America Center**
- Sandor Galambos,
- 	Senior Commercial Specialist
- Elisabeth Mbitha-Schmid, Commercial Assistant

## Appearances Can Be Deceptive

## Slide 3

## US-Swiss Bilateral Trade

- Switzerland is the 17th Largest Trading Partner for the U.S.
- U.S.-Swiss Bilateral Trade Grew by 20.6 % in 2006 to Reach USD 28.6 billion
- U.S. Exports to Switzerland Valued at USD 14.8 Billion in 2006
- The Fastest Growing Market in Europe and Fourth Fastest Growing Market in the World for U.S. Exports
- U.S.-Swiss Bilateral Trade Comparable to Bilateral Trade with Italy and with Spain and Four Times Larger than U.S.-Austrian Trade

## U.S. / Swiss Trade by Main Commodity Groups

## Swiss Economic Indicators

- Population of 7.5 million
- GDP in 2006 of about USD 378 Billion
- About 50% of Switzerland’s GDP is generated by exports.
- U.S. is second most important market after the EU.
- Estimated Economic Growth Was 2% in 2006
- Forecast Growth of 2.5% for 2007

## Bilateral Direct Investment

- After the EU, U.S. is second largest investor in Switzerland
- Switzerland is sixth largest investor in the U.S.
- Over 650 U.S. firms with a presence in Switzerland, employing 	about 70,000
- Growing number of U.S. firms with regional Europe/Middle
-  East/Africa 	sales/operations
- Advantageous multilingual/multicultural business environment
- Highly educated, skilled labor force – many commute from 	bordering countries of Germany, Italy, and France

## Examples of U.S. High Tech Companies in Switzerland 

- Google Switzerland—European R&D Center
- IBM—Major R&D Center in Switzerland
- Hewlett-Packard International
- eBay International HQ in Bern
- Medtronic—Manufacturing and Regional HQ
- GE—Manufacturing and Sales through 20 Operations in Switzerland

## Swiss Position in R & D

## Switzerland as a Research Hub

- Strong R&D in biotech, nanotech, pharmaceuticals, chemicals, electronics, metallurgy and machinery
- Public sector investment in R&D of USD 12 billion from 2004-7.
- Two-thirds of total R&D investment is funded by 1,000 companies predominantly in chemical, pharmaceutical, biotech, and food sectors
- R&D activities support growing demand for a wide range of high tech products and services

## Switzerland as a Research Hub 

- Switzerland ranks among the world’s top five countries for R&D, investing 2.6% of GDP.
- Thirty-five universities and institutes with leading R&D laboratories.
- Strong cooperation and networking between industry and universities to support innovation.
- Venture Capital funds are now the highest in Europe and growing rapidly, especially for biotech.

## Major Commercial Centers

## Greater Basel Area

**Greater Basel Area**

## Market Characteristics

- World-class infrastructure
- High concentration of computer and Internet usage per capita
- Business-friendly legal environment and few market impediments
- Few large companies; small high tech manufacturers throughout the country and dependent on trade for survival
- Producer of high quality, valued-added goods
- Highly automated manufacturing sector
- Demand for high quality products with competitive prices
- Strong competition from EU suppliers

## Market Characteristics

- Switzerland at epicenter of European competition
- Innovative products often introduced first in Switzerland
- Ideal test market—”Europe in Miniature”
- Follows EU regulations for standards, packaging, and labeling
- Additional standards for medications, cosmetics, and chemicals
- Switzerland as a “Gateway to Europe”—distribution channels to EU
- Multilingual and multicultural market—German, French, and Italian

## Market Strategies

- Express commitment to market
- Establish long-term relationships
- Work directly with a Swiss importer/distributor/end-user
- Meet customers’ needs; prepare to sell in small volumes
- Offer high quality and environmentally-friendly products
- Enter market early for competitive edge
- Consider regional and global potential of prospective Swiss customers

## Major Swiss High Tech Market Segments

- Aerospace and defense
- Biotech
- Factory automation
- Laboratory and scientific equipment
- Medical devices and technologies
- Nanotechnology
- Precision instrumentation
- Security and safety equipment

## Swiss Market for Laboratory Equipment and Scientific Instruments

- Total market demand valued at an estimated USD 804 billion.
- U.S. imports valued at an estimated USD 95 billion.
- U.S. market share of about 45%, valued at USD 580 million for relevant software, data acquisition and processing.
- Procurement at federal and cantonal levels covered by WTO GPA; Major tenders on CS EU and CS Switzerland websites
- Annual federal budgetary increase of 7 % for R&D and education leading to growing procurement of advanced scientific/lab equipment

## Best Prospects for Lab/Scientific Equipment 

- Spectrometers
- LC and gas chromatographic analyzers
- Ion selective analyzers
- Systems for titration, extraction, and supercritical extraction
- Robotized systems
- Automated analytical systems
- Measuring instruments for pH, redox, temperature, conductivity, etc.
- Precision flow metering instruments
- 3-D simulation software for laboratory applications

## ILMAC 200725 - 28 September 2007

-  Industry Exhibition for Research and Development,Environmental and Process Technologyin Pharmaceuticals, Chemicals and Biotechnology
- _Trade Promotion_:  Commerce-certified trade show covering the Greater Basel Area market for U.S. suppliers to the biotech, chemical, pharmaceutical and food industries from R&D through production

## Swiss Market for Safety and Security Equipment

- Total market demand of about USD 450 million, and U.S. market share of 42%.
- Government and private sector investment driving annual growth in demand of 5-7%
- Demand growing for wide range of equipment and solutions for access control, biometrics, forensics, detection, surveillance and law enforcement
- U.S. equipment has competitive edge--high quality, technologically advanced and sophisticated
- Switzerland--international financial turntable with growing security needs

## Best Prospects—Safety and Security Equipment

- Airport passenger and baggage screening equipment
- Biometric identification systems for public and private sector applications
- Forensic equipment
- Alarm and surveillance systems with advanced electronics
- IT security and encryption systems

## Swiss IT Market

- Market demand nearly USD 30 billion with estimated growth of 30% over next two years
- Among highest per capita spending in world for IT
- Ranked among top five in world for all aspects of IT
- Flexible market open to new developments
- About 70% of population has broadband Internet
- Switzerland—home to many U.S. regional HQs
- Finance, banking, pharmaceutical, chemical, food and trading sectors demand advanced IT solutions

## Best Prospects for IT

- Hardware—desktops, laptops, servers, security and storage hardware and related software
- Enterprise software and tools
- Mobile communication hardware and software
- IT consulting and outsourcing
- IT hardware and software for federal, state, and local government
- Advanced web applications and services

## Case Study:  NTM Exporter with Hardware-based Encryption Solution  

- _Product_:  Hardware-based solution to encrypt critical data in applications and databases.  Customer base includes banks and computer manufacturers.
- _Challenge_:  Needed a Swiss partner; getting an initial foot in the door with Swiss banks reluctant to use U.S. encryption technology in secure banking operations.
- _Solution_:  CS Switzerland found two partners in IT security and secured appointments with CIOs in top banks.  Company currently performing proof-of-concept trials (average 80% success) in Swiss and Liechtenstein banks.

## Case Study:  Security Equipment Exporter Needs  to Support European Sales    

- _Product_:  Medium-sized, experienced exporter of law enforcement and CIS and forensics equipment
- _Challenge_:  Needed CS assistance in establishing European sales HQ and warehouse operation in Switzerland by acquiring existing Swiss company.
- _Solution_:  To support the investment decision, CS helped to clarify complex issues on export  licensing and arranged company meetings with Swiss authorities to evaluate the impact of projected duties and local taxes on the operation.  Major in-roads in Swiss market, successful warehouse operation, re-evaluation of shipping in light of license delays.

## Case Study:  Internet-based e-Commerce Solution 

- _Product_:  Rapidly growing software company with 100 employees.  Proprietary software for a ready-to-use web-based, real-time solution to automate distributed order and transaction management
- _Challenge_:  Finding the right customers in a small market with little demand for CRM and DCM
- _Solution_:  Through Gold Key, targeted major Swiss exporters to the U.S. that needed a turnkey solution for e-commerce orders, shipping, and CRM.  Major customers:  Nespresso, Swatch Group, Tag Heuer, Swiss Tourism.  Now starting to support its Swiss customers in other European markets.

## Slide 28