Zurich as a business location – fit for the future?

Zurich is one of the most innovative economic regions in Europe. But how can the location remain competitive? Dr. Fabian Streiff, Head of the Office of Economic Affairs since January 2024, talks in an interview about innovative strength, skilled workers, tax conditions and untapped potential in artificial intelligence and digital health.

You head the Office of Economic Affairs of the Canton of Zurich. What are your responsibilities in this role and how can you influence economic development?
The Canton of Zurich is a leading business location with international appeal. As the Office of Economic Affairs, we help to ensure that it remains competitive in the future, promotes innovation and generates sustainable added value.

Thanks to a strong team with wide-ranging expertise in various areas and in-depth specialist knowledge, we strengthen the business location and support companies in various phases. We use our knowledge and experience in a targeted manner to analyze and develop the economic framework conditions and respond to new challenges. In close cooperation with the business and scientific communities, we analyze location factors and provide impetus to position Zurich as an attractive location for companies. At the same time, we take on central enforcement tasks: We ensure smooth approval procedures and thus create planning security for companies and employees. By ensuring compliance with working conditions and legal requirements, we contribute to an attractive and responsible labor market. Another focus is the promotion of affordable housing – a decisive factor for the attractiveness of a location. We therefore have numerous effective levers at our disposal to actively shape change.

A pronounced service orientation is particularly important to me. A good understanding of our stakeholder groups and their needs forms the basis of our work. Because only if we know the challenges and concerns of companies can we provide targeted support and strengthen Zurich as a business location in the long term.

In short: we create attractive framework conditions for an economic environment that benefits companies and the population alike.

How do you assess the economic situation in the canton of Zurich?
Overall, the canton of Zurich is in a very solid economic position and is one of the most innovative economic regions in Europe. Moderate economic growth of 1.1% is forecast for the current year. A high level of innovation, first-class universities and close cooperation between business and science make the location particularly attractive. Companies benefit from well-trained specialists, an excellent infrastructure and a strong international network.

At the same time, we are facing important challenges: In the short and medium term, the latest geopolitical tensions could have an impact on Zurich as a business location. Closely linked to this is the question of how we position ourselves strategically vis-à-vis our European neighbors, particularly with regard to our relationship with the EU.

In the long term, demographic change will play a key role. The ageing of society, rising retirement figures and the availability of skilled workers will be decisive for how competitive the business location remains. Measures must be taken in good time to secure the pool of skilled workers.

However, thanks to its economic stability, innovative strength and quality of life, I believe that the canton of Zurich is well positioned to remain successful in the long term.

In which areas does the canton of Zurich still have untapped economic potential?
The canton of Zurich has a strong capacity for innovation. Nevertheless, there are areas with untapped potential: in the field of artificial intelligence, the canton of Zurich has taken an important step towards strengthening the dynamic AI ecosystem with the “Innovation Sandbox for Artificial Intelligence”. However, from a macroeconomic perspective, there are still great opportunities to anchor AI even more broadly in various sectors. SMEs in particular could increase their productivity and open up new business areas through the targeted use of AI. Practical support is needed here to provide SMEs with access to and knowledge of AI technology.

There is further economic potential in the scaling of start-ups. Zurich offers an excellent environment for start-ups. However, many start-ups face the challenge of expanding their business beyond the initial phase. There is a need for additional financing options and targeted support structures to help start-ups grow and accompany them on their way to the international market.

We are also not yet exploiting the existing potential in the area of digital health. Increasing cost pressure in the healthcare system, an ageing society and the growing shortage of specialists make a transformation more urgent than ever. Zurich as a business location has all the ingredients to be successful here: leading universities, strong players in the healthcare sector and innovative companies. With the “digital health center Bülach”, we have created an innovation hub that makes an important contribution by promoting innovation and building bridges between science and business.

What economic policy framework conditions are crucial for the success of the Greater Zurich Area as a business location from the perspective of the Canton of Zurich?
A key success factor is access to highly qualified specialists. The canton of Zurich has excellent universities and research institutes that attract talent from all over the world. To ensure that this remains the case in the future, the universities must also remain attractive to foreign students – both through first-class educational conditions and easier access to the job market after graduation.

Tax conditions also play a decisive role. A competitive tax environment is essential if the canton of Zurich is to remain attractive. Currently, however, the tax environment is increasingly perceived by companies as a negative location factor. In a cantonal comparison, the canton of Zurich ranks second to last in terms of the tax burden on companies – a risk for long-term competitiveness.

Our relationship with Europe is another key factor for economic success. Access to the European market is crucial for many companies, especially for export-oriented sectors. At the same time, companies in Zurich as a business location benefit from Switzerland’s lean and pragmatic regulations.

How attractive is the Greater Zurich Area for investors in an international comparison with other European metropolitan regions?
The Greater Zurich Area is one of the most attractive business locations in Europe and is asserting itself internationally as a leading location for companies and investors. It offers a unique combination of economic potential, innovative strength and business-friendly conditions. At the same time, the region offers a stable, transparent and reliable economic environment with attractive tax and regulatory conditions.

Companies benefit from a first-class environment for research and development – characterized by close cooperation between universities, start-ups and globally active companies.

Another key advantage for investors is the mix of industries in the region. Zurich is no longer just the most important financial center in Switzerland, but also a dynamic and diverse location for innovation. The strong presence of ICT, high-tech, space and robotics, life sciences, food and cleantech ensures a high density of innovation and minimizes the risk of dependencies. For investors, this means not only stability, but also attractive diversification opportunities.

Switzerland is neither an EU member nor a cost-effective location. Why should an international company still choose the Greater Zurich Area?
The Greater Zurich Area offers companies a unique overall package that goes far beyond cost factors. It combines a business-friendly and politically stable environment with first-class talent, leading research and a high quality of life – factors that are crucial for sustainable business success.

Switzerland ranks first in the world when it comes to innovative strength as well as attracting and retaining talent. Thanks to an excellent education system, internationally recognized universities and a high quality of life, the country is able to attract specialists from all over the world. Companies benefit from a highly qualified labor market, which makes a decisive contribution to competitiveness.

However, there is still untapped potential in one area: the availability of attractive and sustainable space for companies to successfully secure relocations and expansions.

What strategic advantages does Switzerland offer as a hub for European or global business activities?
As a business location, Switzerland offers a unique combination of stability, innovative strength and international networking. Thanks to its central location in the heart of Europe, it is an ideal starting point for companies with a global or European focus.

One decisive advantage is its excellent accessibility: Zurich Airport offers direct connections to major economic centers worldwide and makes the Greater Zurich Area a strategic hub for international business activities.

The fact that the canton of Zurich is already a sought-after location for globally active companies is demonstrated by the most recent relocations. International tech companies such as “OpenAI”, “Anthropic” and “Boston Dynamics” have opened offices in Zurich – proof of the attractiveness of the location and its potential as a hub for forward-looking industries. The high density of leading companies creates a dynamic ecosystem that also opens up new opportunities for local SMEs.

How important are modern infrastructure and digital networking for internationally active companies?
The Greater Zurich Area offers internationally active companies first-class infrastructure and seamless digital networking – key factors for competitiveness and sustainable growth.

Thanks to Zurich Airport’s international reputation, a state-of-the-art rail and road network and direct connections to Europe’s most important economic centers, companies benefit from maximum mobility and accessibility. Switzerland is ranked first in the current IMD ranking for its infrastructure, which underlines the high quality and reliability of the location conditions.

The region also impresses with its advanced digital infrastructure. High-performance networks and state-of-the-art technologies create optimal conditions for innovation, data-driven business models and the use of pioneering technologies such as artificial intelligence and cloud computing.

With this combination of physical and digital excellence, the Greater Zurich Area offers companies the ideal framework conditions to successfully position themselves globally.

Redaktion: Jessica Bill, Bild: zVg.