‘Switzerland seems less “hungry” for competition’

Annette Luther, President of scienceindustries, in an interview with Dimitri Loringett from Corriere del Ticino

The Swiss chemical and pharmaceutical industry is under pressure from global competition, internal tensions and a shortage of skilled workers, explains Annette Luther, president of scienceindustries.

The chemical and pharmaceutical industry in Switzerland is under pressure from disruptive actions by the US government and fierce global competition, compounded by tensions in the domestic market, with exploding healthcare costs and persistent difficulties in finding skilled labour. We discussed these challenges for this key sector of the Swiss economy with Dr Annette Luther, who has been president of scienceindustries, the national association of the chemical and pharmaceutical industries, since last May.

Dr Luther, how do you assess Switzerland's current competitiveness in the global life sciences context?

For decades, Switzerland has been one of the most competitive locations in the world for innovative industries, particularly in the life sciences sector. Many structural elements remain strong: political stability, an excellent education system, privileged access to international markets and, above all, the free movement of people, which allows companies to quickly recruit qualified talent from across Europe with little bureaucracy. However, it cannot be ignored that Switzerland has dropped one place in the Global Industry Competitiveness Index compiled by BAK Economics. This reflects a more general impression: today, Switzerland seems less “hungry for competition” than other nations that are reacting very quickly to global changes. In particular, large markets such as the United States and China are adopting very aggressive strategies to attract research, production and investment. In contrast, investment momentum in Switzerland has cooled and uncertainty in relations with the EU is weighing on long-term predictability. The foundations remain solid, but renewed strategic impetus will be needed to remain competitive.

Let's talk about the bilateral agreements between Switzerland and the EU: what are the most critical elements of the ongoing negotiations for the chemical and pharmaceutical sector, and how do you see the political process ahead?

For our sector, three elements of the relationship between Switzerland and the EU are absolutely essential. The first is the free movement of people, which allows companies to quickly recruit highly qualified European specialists, a crucial aspect considering that over 50% of employees in large groups in Switzerland come from the EU. The second is the Mutual Recognition Agreement (MRA), thanks to which standards and conformity assessments are accepted by both parties, avoiding costly duplication and ensuring unhindered access to the European market, which accounts for around 50% of our exports. The third element concerns association with Horizon Europe and other research programmes: scientific cooperation with Europe is essential to attract top researchers and maintain a network of collaboration that contributes decisively to Switzerland's attractiveness. The political process will be long and will almost certainly lead to a popular vote, probably in 2027 or 2028. But for industry, it is essential to preserve these three pillars.

What do you think is needed to grow – and retain – high-potential companies and skilled labour?

Switzerland offers an exceptional environment for early-stage innovation: world-class universities, highly skilled talent and good availability of capital in the seed and early stages. The problem arises in the next phase, the growth phase, when companies need much more substantial funding to scale up, industrialise their technology or enter global markets. This “funding gap” is not unique to Switzerland, but affects Europe as a whole and is one of the reasons why many promising scale-ups end up moving to the United States, where access to capital for the growth phase is more widespread. To keep these companies in Switzerland, specific tools are needed: more capital for late stages, greater participation by institutional investors, targeted incentives and public-private initiatives to consolidate production and research capacities in the country. Switzerland already has the talent and scientific expertise to produce the next global leader in biotech or technology: the challenge is to create conditions that allow these companies to grow without having to emigrate.

Speaking of the United States, how do you interpret the Trump administration's new approach – between investment obligations and the international reference price model – and what consequences does it have for Swiss companies?

In the United States, we see two distinct but related dynamics. The first concerns the goal of bringing pharmaceutical and manufacturing activities back to the country, linking tariff threats to the obligation to invest in the US. The second dynamic concerns drug prices: the United States has historically paid much higher prices than other rich countries, contributing disproportionately to the financing of global innovation. The current administration no longer considers this model sustainable and is proposing an international reference system that would link US prices to those of other wealthy countries, including Switzerland. To avoid high tariffs on drugs, sixteen large pharmaceutical companies, including two Swiss ones, have signed agreements with the United States. It is likely that similar agreements will soon be required of medium-sized companies as well. This creates a complex dilemma for our country: increase domestic healthcare spending or put pressure on one of the most important sectors for the national economy. For this reason, on 12 January in Bern, Federal Councillors Guy Parmelin and Elisabeth Baume-Schneider set up a working group called “Life Sciences Economic Hub”, which will examine how to offer the best possible framework conditions for the life sciences and pharmaceutical industry in Switzerland. The aim is to ensure that Switzerland remains an attractive hub for research, production and skilled employment. This approach is similar to the strategies already adopted by countries such as Germany, Spain and the United Kingdom. The group is expected to present a report by the end of this year.

With the aim of retaining skills in the country, scienceindustries is also committed to promoting education. Tell us about it.

Switzerland's ability to remain competitive in the long term depends largely on training and attracting talent. For this reason, a few years ago, scienceindustries launched the “Talents in Science” initiative, aimed at motivating young people to choose studies and careers in the life sciences and technical disciplines. The demographic decline makes this commitment urgent: fewer and fewer young people are entering the education system, while the industry's needs are growing. To further strengthen this work, we have also created a new position dedicated to education, with the aim of enhancing vocational training and supporting the promotion of young talent.

This article was first published in Italian on January 24, 2026, in Corriere del Ticino / cdt.ch.