1. Switzerland
Innovation Leader but not Startup Leader
Dr. Peter Vogel / www.petervogel.org / info@petervogel.org / @pevogel
Swiss
Competitiveness
From Innovation to Entrepreneurship -
The Role of Entrepreneurial Ecosystems
Tweets: @pevogel #45sgs #proudlysmall

2. Proudly Small…
2Swiss Competitiveness – From Innovation to EntrepreneurshipMay 5th, 2015
India United States Switzerland
Area 3’287’263 km2 9’826’675 km2 41’277 km2
Population 1.2 billion 320 million 7.8 million
Capital City New Dehli:
11.1 million
Washington DC:
658’893
Bern: 125’000
Largest Cities Mumbai: 12.4 million
Bangalore: 8.4 million
NYC: 8.4 million
LA: 3.8 million
Zurich: 366’000
Geneva: 177’000
Subdivisions 28 states 50 states 26 cantons
Languages 22 scheduled
languages
1 4

3. What most people associate with Switzerland
3Swiss Competitiveness – From Innovation to EntrepreneurshipMay 5th, 2015

4. But Switzerland is also about Innovation…
4Swiss Competitiveness – From Innovation to EntrepreneurshipMay 5th, 2015

5. Global Innovation Index Ranking 2014
Source: REPORT Global Innovation Index (GII) 2014
5Swiss Competitiveness – From Innovation to EntrepreneurshipMay 5th, 2015

6. Drivers of Swiss Innovation
 Robust industry
 Culture of Innovation
 Highly skilled workforce
 Macroeconomic stability
 Good public infrastructure
 Excellent education system
 Favorable regulatory environment
 Highly attractive location for talents
 Internationally recognized research hubs
Source: SECA Yearbook, 2009: „Switzerland Scores High“
Source: Global Competitiveness Report 2015
6Swiss Competitiveness – From Innovation to EntrepreneurshipMay 5th, 2015

7. The Disconnect…
7Swiss Competitiveness – From Innovation to EntrepreneurshipMay 5th, 2015
• Not a single Swiss region among the top 20 startup ecosystems worldwide
• Study displays ICT focus! Swiss strenghts are elsewhere...
Source: Startup Ecosystem Report 2012

8. Swiss Startup Ecosystems
8Swiss Competitiveness – From Innovation to EntrepreneurshipMay 5th, 2015
www.startupmonitor.ch

9. High-Growth Ventures in Switzerland – by Region
Source: Swiss Start-up Monitor
11.9%
2.4%
10.7%
13.3%
38.6%
14.6%
32.1%
29.5%
6.8%
36.6%
3.6%
5.2%
9.8%
31.7%
10.7%
16.8%
10.8%
7.3%
17.9%
6.4%
Zurich Basel-Stadt Valais Vaud
Engineering ICT Biotech & Pharma Medtech & Diagnostics Consulting & Services
Insights from the Swiss Start-up Monitor
9Swiss Competitiveness – From Innovation to EntrepreneurshipMay 5th, 2015

10. The Swiss Entrepreneurial Ecosystem
10Swiss Competitiveness – From Innovation to EntrepreneurshipMay 5th, 2015
Source: Vogel, 2013: TEDx Lausanne talk

11. External Factors of the Ecosystem
11Swiss Competitiveness – From Innovation to EntrepreneurshipMay 5th, 2015
Source: Vogel, 2013: TEDx Lausanne talk
Startup
Output
Market
Infrastructur
e
Innovation
Government
& Regulation
Geographic
Location
• Market size & attractiveness: 4.6 / 7
• Infrastructure: 6.2 / 7
• Innovation: 5.7 / 7
• Government & Regulation: 5.6 / 7
• Geographic location:
 High attractiveness
 Great livability
 Expensive
 Little raw materials
 Strong financial power

12. Entrepreneurial Factors of the Ecosystem
12Swiss Competitiveness – From Innovation to EntrepreneurshipMay 5th, 2015
Source: Vogel, 2013: TEDx Lausanne talk
Startup
Output
Market
Infrastructur
e
Innovation
Government
& Regulation
Geographic
Location Training
Culture
Support
Visibility
Network
Funding
• Lots of entrepreneurial support
• Many awards & local visibility for startups
• Networking: local / national
• Funding is available but not targeted
 Lots in seed stage
 Little in growth phase
 Many growth startups leave country
• Training is readily available
 University entrepreneurship centers
 Government offers (CTI, etc)
 Private initiatives (venturelab, etc)
• Culture
 Great fear of failure
 Risk aversion
 Opportunity costs lead to regular career

13. How to Create an Entrepreneurial Ecosystem?
13Swiss Competitiveness – From Innovation to EntrepreneurshipMay 5th, 2015
Source: Vogel, 2013: TEDx Lausanne talk
The formation of an ecosystem is a positive, reinforcing loop:
Success Stories
Importance of the
location
Area attractive to
talents
Innovation

14. How to Create an Ecosystem? Swiss MedTech
14Swiss Competitiveness – From Innovation to EntrepreneurshipMay 5th, 2015
• Long tradition of watchmaking, machine industry and pharma
• Expert knowledge in:
 Micro- and nanotechnology
 Precision mechanics and electro-mechanics
 Material sciences and surface treatment
• Unique combination of biotechnology and medical engineering

15. How to Create an Ecosystem? Monterrey MedTech
15Swiss Competitiveness – From Innovation to EntrepreneurshipMay 5th, 2015
I worked with the government of Nuevo Leon on:
(1) Assessing the local USPs
(2) Benchmarking the region with other MedTech regions
(3) Derive strategic directions for a MedTech ecosystem

16. How to Create an Ecosystem? Monterrey MedTech
16Swiss Competitiveness – From Innovation to EntrepreneurshipMay 5th, 2015
King Abdullah Bin Abdulaziz Al Saud: “It is my desire that this new University becomes
one of the world's great institutions of research... The University shall have all the
resources that it needs to pursue these goals…” - 2009
10 bn USD initial endowment
I worked KAUST on:
(1) Building entrepreneurship training
(2) Forming an entrepreneurship center
(3) Creating some early success stories

17. When Creating Entrepreneurial Ecosystems, consider…
17Swiss Competitiveness – From Innovation to EntrepreneurshipMay 5th, 2015
• Each ecosystem is unique
• USPs / KPIs first
• Holistic implementation
• Multi-stakeholder approach
• Coordination and supervision
• Self-employment ≠ Entrepreneurship
• Bureaucracy blocks innovation  facilitate, don’t regulate!

18. A Call to Action
18Swiss Competitiveness – From Innovation to EntrepreneurshipMay 5th, 2015
• Governments
 Promote the power of entrepreneurship as engine of economic growth
 Remove the stigma of failure
 Create networking opportunities
 Create alternative funding opportunities and startup-friendly (1) taxation & (2)
labor laws
• Entrepreneurs
 Share stories (both success and failure)
 Help the next generation of entrepreneurs
• Incumbent Firms
 Sponsor incubators and accelerators, build corporate VC practices
 Collaborate with universities for long-term strategic M&A goals
 Recognize the contributions and success of entrepreneurs

19. Dr. Peter Vogel
Peter Vogel Strategy Consulting
Seuzach - Switzerland
Mail info@petervogel.org
Twitter: @pevogel
Web www.petervogel.org
Thank you for your attention.
@pevogel
#45sgs
#proudlysmall