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The 4T-DLT initiative published a whitepaper which is broken down into the so-called ‘4 Trusts’. The authors provide fundamental information on the technical and legal framework to establish and operate a secure, interoperable, reliable and trusted digital infrastructure. The whitepaper is both a navigation guide and a source of knowledge for users, advisors and authorities. Read the 4T-DLT whitepaper here.
Are you interested in becoming part of the community? (i.e. to stay up to date, to contribute to the discussion or to participate in the creation of a secure, interoperable and reliable Swiss Distributed Ledger Technology (DLT) infrastructure). Join the community here.
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We want to help citizens leverage the potential of distributed ledger technology (DLT), facilitating the independent storage of digital information, values and rights, and the straightforward and efficient transfer of these.
To this end, we want to work together to develop the technical and legal framework/requirements/standards necessary to establish a secure, interoperable and reliable digital infrastructure (a ‘DLT infrastructure’).
T1 – Trust Element of Configuration
How may the authenticity, integrity, confidentiality and availability of information associated with digital assets be ensured?
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T2 – Trust Element of Consensus
What are the requirements for DLT protocols to allow for a seamless execution of transactions?
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T3 – Trust Element of Custody
How may both companies and private individuals (themselves) be enabled to store digital assets in a reliable and easy manner?
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T4 – Trust Element of Transaction
How may the liability (value deposit), allocation and transfer of digital assets be ensured in an efficient, legally secure and simple manner?
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As first deliverables, the collaborators have produced four explanatory videos for each element of trust as well as an initial whitepaper outlining the technical and legal framework to establish a secure, interoperable and reliable digital infrastructure.
Outlook: The team is already working on “season 2”: Building up a community with members interested in being part of the 4T-DLT journey to discuss and participate in the creation of a secure, interoperable and reliable Swiss Distributed Ledger Technology (DLT) infrastructure.
We are not an association. We are experts who want to build the foundations for a DLT infrastructure from different perspectives. To achieve this, we are looking for thought leaders, movers and shakers from start-ups, SMEs, major corporations, financial intermediaries and industry associations to help us to define and flesh out the key issues.
Delimitation from other initiatives: The primary aim is to support all initiatives, whether by analysing information or the participation of our exponents in various other initiatives.
We will work together as a team to prepare the information and basic requirements for the use of a DLT infrastructure in a functioning ecosystem. Training and information are part and parcel of this. We will be pursuing a community approach. Results are open source.
The project was kicked off by the coordinators Luka Müller and Johs Höhener, who are also responsible for ensuring an efficient implementation. We are being supported (organisation, administration, communication) by digitalswitzerland.
The stakers will contribute to developing the 4T-DLT initiative and nominate a representative for the shapers. Full visibility in all activities, cooperation with decision-makers from business and politics
Estimated effort: 5 person days per year
Annual contribution: CHF 8,000
Current Partners
Visibility in all activities, liaison with leading experts from business and politics, development and co-determination of the infrastructure of tomorrow.
The shapers will work on the implementation and coordinate the activities in their organisations and the respective working group. Persons with special knowledge in the field of DLT, who are interested in working on the ecosystem, are very welcome. Already involved are:
The contributors will work with the shapers on the development of background and information material for the infrastructure of tomorrow.
They will have an opportunity to actively develop the initiative alongside leading experts; visibility will depend on the contribution made.
Estimated effort: 5-10 person days per year
Let’s work together to consolidate the 4 Ts and define the standardisations to lay the foundation for a trustworthy, ecosystem-ready DLT infrastructure. To achieve this, we need passionate individuals with an interest in pushing the agenda forward with drive and enthusiasm.
Would you like to…
digitalswitzerland’s aim is strengthen Switzerland’s position as a leading innovation hub. This includes supporting a world-class start-up ecosystem that creates an environment where entrepreneurs grow and scale. In second part of this blog series, Jan Friedli, Project Manager at digitalswitzerland dives deeper into the trend of Superclusters.
In the first blog post, we discussed the growing trend towards hyper concentration of innovation activity, which has fuelled the rise of so-called ‘Superclusters’.
Analysing emerging research into STATION F in France, this helped to understand what exactly brought 1,000 startups into one building in less than two years. The economic impact that followed has been unprecedented, and has gained worldwide praise. Many governments are now looking to replicate this success, but they share a difficulty.
The term ‘Supercluster’ remains a very abstract concept. The question is how can we conceptualise a Supercluster? And, what exactly makes them so effective compared to traditional ecosystems?
The term itself may suggest that Superclusters are a radically new and unlike anything we have previously encountered. According to research, that is not quite accurate.
Superclusters are not new but rather an extreme form of regional clusters, which have been around for quite some time. Recall the ‘Silicon Roundabout’ in London, ‘Silicon Valley’ in San Francisco, or ‘Silicon Wadi’ in Tel Aviv.
At its core, these regional clusters have two things in common: (1) they operate in the same general area of geographical proximity and (2) they have an established social network across firms.
Superclusters, in contrast, take a leap forward on these two dimensions. They bet on (1) an extreme concentration of innovation in a single location and on (2) a closely-knit community of entrepreneurs, investors, and corporates. If STATION F is any indication, the bet is paying off.
Despite the successes, we have yet to conceptualise Superclusters in any meaningful way. Such a conceptualisation of Superclusters is essential if we hope to build them elsewhere. I argue that Superclusters need to be understood as a system of several interconnected parts that they provide to their startups, which are called ‘Capitals’.
As depicted in the below framework, I propose an analytical distinction between six different types of Capitals including human, financial, political, built, cultural and social capital – all of which are desirable for startups to have.
In summary, Superclusters are an extreme form of regional clusters, focusing on an extreme concentration of innovation in a single location and a closely-knit community of entrepreneurs, investors, and corporates. They are best understood as a system of six interconnected ‘Capitals’, each distinctly valuable to startups.
All other things assumed equal – a startup becomes more successful when it accumulates Capitals. For example, if a startup gains credibility through the Supercluster, it accumulates Political Capital. Similarly, if a startup learns from co-located peers, it accumulates Human Capital.
The idea that accumulating Capitals is beneficial is hardly groundbreaking. However, what is astonishing is the way in which the Capitals are absorbed by startups.
The empirical evidence suggests that when certain Capitals are gained, it increases the likelihood that others will also follow. For example, once a startup has Social Capital, it can more easily access Financial Capital, which makes it easier to access Human Capital, and so forth. Consequently, startups undergo a process of ‘success building on success’ – a virtuous cycle that accelerates growth.
To illustrate such a virtuous cycle, consider the following experience from the Co-Founder of a Mobility Startup:
Critics may contend that it is quite possible to attain these Capitals outside of Superclusters, and thereby trigger a process of ‘success building on success’. They are correct. This happens all the time in traditional innovation ecosystems that we have all become accustomed to.
But virtuous cycles are all about intensity – and that is the ace that Superclusters have up their sleeve.
Recall that Superclusters bet on an extreme concentration of innovation in a single location and on a closely-knit community of entrepreneurs, investors, and corporates. This makes Capitals both highly-centralized and highly-accessible.
This high-level of integration across Capitals is their defining characteristic.
Because of this integration, the virtuous cycles that startups experience are much more intense in Superclusters than anywhere else. In other words: startups grow much faster because they can accumulate more Capitals in a shorter time.
In summary, Superclusters are tremendously effective because they offer the prospect of intense virtuous cycles that cannot be rivalled by an innovation ecosystem.
As emphasised, the emergence of Superclusters indicate a new trend towards hyper-concentration of innovation activity. Given their continued success, governments are beginning to respond.
For the deeptech nation of Switzerland, this has two practical implications.
First, we must strengthen our existing sector-specific clusters. We are privileged to have a range of vibrant tech hotspots from MedTech in Neuchâtel to BioTech in Basel to FinTech in Zug. The research indicates that social capital plays the most important role in starting or accelerating virtuous growth cycles for startups. In the short-term, our limited resources are best invested in the social infrastructure of the respective clusters to create more connections between regional entrepreneurs, experts and venture capitalists.
Second, we must start building our own version of a Supercluster. Even in the digital age, the physical location continues to matter a great deal. The fact that 1,000 startups have moved to a single building in Paris in less than two years shows us this beyond any doubt. If we want to attract the next 1,000 of the most promising entrepreneurs, we must give them a reason to come.
To accomplish this, we must first learn how other Superclusters got started, namely by talking to lots of startups about their needs and defining clearly what the new community stands for. But far more importantly, we need to shed our Swiss mentality of modesty, and instead gather our courage to think big.
Of course, there are promising projects underway. For instance, the Switzerland Innovation Parks (including the EPFL Innovation Park or Biopôle) or the Impact Hub’s new Hub in Zurich (planned for 2024). These are all pioneering efforts in their own regard. With such projects, we are undoubtedly moving in the right direction – but can we afford to be bolder and faster? After all, the shift from Ecosystems to Supercluster is an imperative for the digital age, and it’s happening right now. As the most innovative country in the world, we have the ideal conditions to build Superclusters – so long as we find our courage.
The aim of these two blogs is to highlight this new trend and start a conversation. Because it concerns many stakeholders, different perspectives are needed to paint the whole picture.
We want to provide you with the opportunity to share your thoughts. So the third blog of this series belongs to you. It will crowd-source perspectives on this topic and serve as an open forum to showcase yours.
Navigate here to take this chance to shape the conversation around Superclusters!
Missed part one – read more here and stay tuned for part three!
In the meantime, please feel free reach out to our Collaborative Innovation team who are busy working to empower organisations to create impactful ecosystems for innovation or find out more about our work in Startup Ecosystem.
Are you battling challenges in your industry? Have you tried to solve them but couldn’t find the solution on your own? You’re not the only one and that’s why the Leap platform offers free support to tackle underlying transversal challenges.
Together, we explore opportunities, unmet needs, plus areas to innovate for you, along with your organisation, so you feel empowered to create collaborative and impactful ecosystems for innovation. We work together to create win-win situations for all parties. Moreover, because this collaborative work is worth celebrating, Leap hosts the annual Leap Digital Demo Day on 20 April 2021.
The mission of digitalswitzerland is to strengthen Switzerland’s position as a leading innovation hub. This includes fostering a world-class start-up ecosystem that helps our entrepreneurs grow and scale. In this three-part blog series, Jan Friedli, Project Manager at digitalswitzerland takes a closer look at the contemporary phenomenon of Superclusters.
The trend of spatial concentration of economic activity, which characterised the industrial era, is continuing well into the digital age. This is particularly astonishing for digital startups, who deliver value digitally and whose teams can work from anywhere.
Intuitively, one would expect that the new online tools – to distribute digital innovations and to facilitate communications – would end the spatial concentration we’ve seen during the industrial era. All digital startups from Switzerland to Singapore should be able to compete seamlessly in a single global marketplace.
Paradoxically, reality contradicts this expectation. The digital future is being built regionally. Digital startups, in their thousands, are flocking to clusters. They go to places like the ‘Silicon Roundabout’ in London, ‘Silicon Valley’ in San Francisco, or ‘Silicon Wadi’ in Tel Aviv – all of which have been expanding rapidly since the turn of the millennium.
But that’s just the tip of the iceberg. Simply congregating in broader regional ecosystems is not enough anymore. Startups are increasingly looking to come together under the very same roof.
This desire for hyper concentration of innovation activity has fuelled the rise of so-called ‘Superclusters’. While their designs vary widely, most Superclusters allow entrepreneurs to work in co-working spaces and provide an abundance of in-house resources and funding opportunities – often in the same building. Consequently, they are commonly referred to as ‘schools’ or ‘factories’ for startups.
To illustrate, let’s take a look at STATION F – arguably the most important Supercluster in Europe. When in 2016, an abandoned train depot in East Paris was remodelled, the world’s largest startup facility was born, stretching 51,000m2 across a ‘share’, ‘create’ and ‘chill’ zone.
Under one roof, the self-proclaimed ‘startup campus’ hosts over 3,000 desk spaces, 100 venture capital funds alongside 30 industry-specific accelerators from large corporates including Facebook, Microsoft, L’Oréal, and adidas. The campus admits startups into a fixed-term programme, which features mentorship and educational components, with a single goal: produce world-class startups. STATION F officially opened its doors in June of 2017, after being unveiled by French President Emmanuel Macron.
In less than two years, over 1,000 startups have joined from all over the world.
Seen as a symbol of Europe’s tech renaissance, the unparalleled growth of STATION F has earned it global praise. It has established itself as the heart of the French tech-innovation scene – all with an impressive economic impact: French startups raised $4.8bn in VC funding in 2019, up nearly threefold since 2015.
As this example shows, the innovation capabilities of Superclusters and the investment appetite from VCs are too astonishing to ignore. Policy makers, academia and practitioners have started to pay attention.
There is no doubt that something extraordinary happens in Superclusters, yet what exactly goes on has long remained mysterious.
In 2020, I committed myself to shed light on this contemporary phenomenon. Via the London School of Economics (LSE), I conducted a comprehensive study about the world’s biggest startup campus – France’s STATION F.
Over multiple months, I gathered empirical data by interviewing numerous startup founders – in industries ranging from Agriculture to Advertising to Aerospace – with the aim of understanding these ‘Superclusters’ from the ground up.
In light of the practical relevance, the research was chosen as the Best Dissertation of my graduating class at LSE, and is currently under consideration for publishing.
While the Full Study is academic in nature, it provides an initial answer to some of the most pressing questions on Superclusters, such as: Why are startups so eager to join? How can we conceptualise a Supercluster? And, what exactly makes them so effective?
The first question will be discussed in the first blog post, while the latter two questions will be picked up in the second post, where I will also conclude with practical implications for Switzerland.
Let’s first understand the appeal of Superclusters. When over 1,000 startups come together under one roof in less than two years, we can be sure something astonishing is happening. But, what exactly drove all these startups to undertake the considerable effort to relocate to Superclusters?
Primarily, startups join Superclusters to amplify their growth. According to the study, 91% of entrepreneurs value the centralised nature of Superclusters, which allows for an equally concentrated selection of resources and co-located stakeholders (e.g. VCs). Startups thus have better access to funding, talent, and resources that they would elsewhere.
Additionally, startups benefit from peer-to-peer assistance for tackling ‘common challenges’ (e.g. setting up a legal entity, tracking customers). At STATION F, 83% of entrepreneurs contend that mature startups are willing, and even feel obliged, to help less experienced startups with such problems. Being in the same building – and within walking distance from other entrepreneurs – enables this knowledge exchange to flourish.
«The idea of STATION F is to have everything in one place. Everything that a startup needs. […] Your lawyer, your VC, your mentor – everybody’s here!» – Aerospace Startup
«It goes back to the principle of, you know, 90% of your problems have been solved by other entrepreneurs.» – Smart City Startup
«We thrive because we help one another and because we are one desk away. […] When my CTO has questions, he walks over to the other CTOs.» – Talent & Recruiting Startup
Secondly, startups join Superclusters to attain corporate legitimacy. According to the research, 75% of entrepreneurs feel that the association alone validates and legitimises their companies, which opens doors to potential customers and venture funding. In fact, 41% of entrepreneurs claim that clients and investors actively seek them out precisely because they are part of a Supercluster.
«For your investors, you need to be able to grow quickly. And for customers, you need to appear as a credible partner. And being here is important for both because you appear serious.» – Agriculture Startup
«In the past, we spent our days in the tube to go meet clients in their offices. Here at STATION F, we managed to have a lot of them coming to us. […] The clients were not so interested in us, but they came because of STATION F.» – Talent & Recruiting Startup
«When you’re here, you have the STATION F label and it simply opens doors. […] It’s easier to get in touch with VCs. It’s a quality label.» – Mobility Startup
Thirdly, startups join Superclusters to tap into the collective momentum. 66% of entrepreneurs believe that the working atmosphere has an energising effect. Specifically, the success of other entrepreneurs (e.g. completing a funding round) helps entrepreneurs envision their own success and creates an implicit expectation that they are eager to fulfil. It’s widely held that this ‘momentum’ can only be experienced in Superclusters where startups work side-by-side. Additionally, 42% of entrepreneurs value the emotional support from the community because building a startup is a lonesome journey full of uncertainty and stress.
«I felt that energy in the room just by virtue of being physically next to these startups. […] This feeling of innovation and of hustling.» – Supply Chain Startup
«One startup – just right across me – raised some six million euros. Just right next to me! […] I think that really helps because you can foresee yourself. Like, in one or two years, I might be like that.» – Travel Startup
«Startups are lonely. And when you’re in communities, you remove this element of it. You feel like you are part of one big team, even though you’re a group of many small teams.» – Smart City Startup
In summary, startups join Superclusters to amplify their growth, to attain corporate legitimacy, and to tap into the collective momentum. For these reasons, 1,000 startups have come together under one roof in less than two years. This, alongside the economic impact that followed, is unprecedented.
It would be wrong to assume that Superclusters – such as STATION F – are isolated exceptions. On the contrary, they indicate a new trend towards hyper-concentration of innovation activity. A new imperative for the digital age. Their continued success simply underscores this fact. Places everywhere – from Helsinki to Lisbon to Hamburg – have recognised this new imperative and have begun building their Superclusters.
Before discussing the ramification for Switzerland, we need to first sharpen our understanding by asking ourselves: How can we conceptualise a Supercluster? And, what exactly makes them so effective?
In the second part of this three-part series, I will outline my perspective on these two questions, and conclude with practical implications for Switzerland.
The Swiss Federal Council has set the 2050 climate strategy for Switzerland as part of the Paris Agreement. To achieve the common goal of limiting global warming to well below 2°C, economy, technology, and science experts must work together. However, such multi-stakeholder collaboration also requires data transparency for the green transition of whole value chains on the way to a net-zero economy in Switzerland. Leap by digitalswitzerland aims to lay the foundation for co-creating sustainable innovation projects on how digital technologies can contribute to decarbonisation.
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