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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.
Climate change remains the greatest unresolved challenge, but the efforts made possible by new technologies can become game-changers. It is therefore no surprise that both digitalisation and climate have become the two decisive driving forces of our time. Using new technologies to protect the environment, reduce CO2 and achieve climate neutrality is crucial.
In the early hours of Wednesday morning, this very topic took centre stage at digitalswitzerland’s WEF Breakfast event, which was held on 22 January during the WEF 2020. We hosted a session on “Tech for Climate” in cooperation with UBS. Renowned experts shared how technology is leading us to new climate change solutions. Guests began arriving at the UBS branch in Davos well before 7 a.m. and the room quickly filled up.
The event was kicked-off with opening speeches by Sergio P. Ermotti, Group CEO of UBS Group AG and Marc Walder, founder of digitalswitzerland.
“Technological solutions and advances offer great opportunities to combat climate change. They also offer major investment opportunities”, Ermotti stated.
In the opening statement of Federal Councilor Ueli Maurer, he called for more facts, more innovations and a pragmatic legislator. He acknowledged that climate change will demand long-term efforts, the question is how the challenges of climate change can be tackled. In his view, Switzerland has everything it takes to be successful and to make a valuable contribution. “Ultimately, we must see ourselves as a team – as Team Switzerland”.
“Tech for climate” was discussed by a high-ranking panel consisting of a pioneer, a startup, corporates and an investor, who had a lot to share:
“Clean technologies exist to protect the environment. The good news is: they have become profitable. It is not science fiction. It is not the future – it is the present. If a company was run today the way the world is run, the CEO would be in prison. In the fields of water, energy, agriculture and industry we already have everything we need to halve CO2 emissions without any additional innovations”, the visionary and global pioneer Bertrand Piccard declared. Solutions must be pulled to the market and not just pushed forward. This requires the support of the government. Regulations are needed for the threats we face. His strong concluding remarks were: “Today, in most parts of the world and in most sectors, it is more profitable to protect the environment than to destroy it. The people who do not understand this are either ignorant, so we have to inform them, or selfish, and we have to oblige them.”
According to Sabine Keller-Busse from UBS, climate change is more than just a trend. Banks and financial institutions can play an important role. Where the money flows, innovation can be turned into reality. “At UBS, we are already actively using technology to positively impact climate action, and I expect exponential opportunities in the future for tech in this field“, Keller-Busse added.
“Science has concluded that even if we do everything we can to reduce emissions, there are still about 15 billion tonnes of C02 that we need to remove from the air every year by mid century if we want to be able to restore global warming to 2 degrees or even 1.5 degrees. We have already gone too far, so we need more than just mitigation and elimination”, Jan Wurzbacher, CEO and Founder of Climeworks stressed. Despite the alarming words of the entrepreneur, he concluded his address on a positive note: “I am fascinated to see how quickly the technology can be scaled and be part of the solution to this challenge we are facing”.
Gina Domanig has been investing in “Tech for Climate” for many years as Managing Partner of Emerald Technology Ventures. These technologies have been around for over 20 years. The problem is the market. “Today we are experiencing a shift that either regulations are being introduced or being threatened because many large companies are not quite so altruistic. They will not shift their core business to cleaner technologies to save the world – they have to be under economic pressure to do so.
Cedrik Neike, Member of the Managing Board of Siemens AG and CEO Smart Infrastructure summed up that the fight against climate change is essential, it is crucial: “We need to work together with startups, with investors and with financial institutions. In other words, we have to create an ecosystem to address the problem. No one can do it alone. Switzerland has a huge opportunity to contribute to this.”
At the end of the event, Ivo Furrer, President of digitalswitzerland, echoed the main message of the panel discussion and summarised that we must not only talk about these environmental issues, but also take action.
While WEF 2020 is still ongoing, we are already looking forward to the next edition of our WEF breakfast with inspirational contributors.
An event of collaboration
Jointly organised by IMD (Institute for Management Development in Lausanne), École polytechnique fédérale de Lausanne (EPFL) and digitalswitzerland, representatives from academia, politics and business, including guest speakers, economist Marina Mazzucato and venture capitalist Klaus Hommels, interpreted and evaluated the latest results of the IMD World Digital Competitiveness Ranking.
Understanding the ranking
The IMD World Digital Competitiveness Ranking is compiled annually based on indicators that focus on education, technology and the level of future-readiness. This year, The United States and Singapore came in first and second, respectively, with Denmark in third place and Sweden in fourth place.
Switzerland’s successes and weaknesses
Marc Walder, founder of digitalswitzerland drew attention to the importance of preparing Switzerland for the upcoming challenges of digitalisation. “Today’s published IMD ranking on digital competitiveness is a great indicator to show the progress we have made in Switzerland and at the same time, remind us how much work still lies ahead.” Switzerland’s strong position can be explained by its top results in several key areas.
In the technology category, Switzerland can benefit from legislation to promote scientific research and from its financial stability. According to the IMD ranking, the conditions for setting up companies and promoting startups in Switzerland need to be improved.
In the third main category “future-readiness,” Switzerland’s strength lies in knowledge transfer. In contrast, the study sees a backlog demand in eParticipation.
Rich opportunity for improvement
Participants agreed that this is not the time for Switzerland to get comfortable. Digitalisation is rapidly advancing as every nation continues to navigate its response and recovery to the Covid-19 pandemic. China for instance made advancements this year in future readiness, sitting 18 places higher than it did last year, while Denmark and Sweden bettered their knowledge building.
Investing to support innovation
Dr. Klaus Hommels, venture capitalist and founder of Lakestar, discussed the importance of investments to support innovation. Switzerland is an excellent place to invest from and has all the right ingredients to do so. Lakestar has invested in European payment systems to ensure digital sovereignty in Europe. However, Europe also needs to find some “European champions”, such as the worldwide known AliBaba for example.
Challenging traditional thinking
University College London Professor Mariana Mazzucato, special guest of the Summit stressed, “We should not obsess about technology but about problems that require different types of investments and innovative solutions across the economy. After all that is where the Internet came from. With such outcome-based thinking, the public sector is a key investor on both the supply side and the demand side.”
Looking to the future
All speakers agreed that this ranking list helps Switzerland critically assess its strengths, but also weaknesses and this is a powerful catalyst to learn and improve ahead of next year’s ranking.
Watch the live stream of the Digital Competitiveness Summit.
The Digital Competitiveness Summit 2021 will take place on 5 October at 18:00 – 19:30.
In partnership with Bilanz and Handelszeitung, digitialswitzerland is once again embarking on the exciting quest to identify and celebrate the 100 people advancing Switzerland on its journey to become a leading global digital hub of innovation. The new edition of 100 Digital Shapers 2020 will be published at the end of September.
Our Digital Shapers work in a spirit of resilience, adaptability and forward-thinking. This is so needed to face the challenges of Covid-19 as it continues to impact all our lives. We’re proud to shine a spotlight on the advances that push Switzerland forward as a leading global digital innovation hub.
We received a total of 550 nominations representing digital pioneers, data enthusiasts and digital visionaries, covering everything from support ecosystems for startups, innovative solutions in healthcare, to digital tools that advance education, manufacturing and technology. What unites these doers and thinkers? A shared motivation to make a positive impact, not only on Switzerland, but on the world. We are also excited that our Hall of Fame continues for the second year and is made up of exceptional shapers who have been elected for the third time.
We have also added four exciting new categories to attract a diverse range of applications. We sent out a public call on social media for those who identify themselves as “The Infrastructure-Builders”, “The FinTechers”, “The Sustainers” and “The Creatives”. Here is the list of all ten categories
It’s no mean feat whittling down 420 submissions to 100 finalists. Let us now introduce the diverse jury members with the experience and expert knowledge needed to appoint the next Digital Shapers!
Writing about new technologies for over 30 years, Mark Kowalsky is responsible for startups and digitalisation coverage at Bilanz magazine. With in-depth knowledge of the very latest developments in the Swiss economy, we value his sense for fresh ideas and the next big players in the future of digital.
Our Managing Director Nicolas Bürer brings his entrepreneurial and innovation spirit and experience to the decision-making process. With his extensive network in the Swiss startup ecosystem and the realm of digitalisation, as well as first-hand experience of founding a startup, Nicolas has an eye for the next big talent and digital transformation.
Sébastien Kulling is a sustainability champion and believes consumption habits should reflect and integrate the environmental cost of our natural resources. A certified business coach and entrepreneur, he shares his leadership skills to develop individuals, teams and startups.
Stéphane Benoit-Godet is editor-in-chief of the Swiss daily newspaper Le Temps. With a profound knowledge about the Suisse Romandie ecosystem, Stéphane is always at the edge of new trends and technologies He has previously held various positions in the French-speaking Swiss press, including editor-in-chief of the magazine Bilan.
Michael Hengartner is President of the ETH Board and Chairman of the Executive Committee of the ETH Domain. Michael founded and has also been a part of the board of a number of start-ups, including the biotech company Devgen and the scientific consultancy company Evaluescience.
Susanne Schumacher is committed to actively shaping our contemporary culture of digitality. She brings experience of digital information and media technologies in the arts, design and architecture. At the Zurich University of the Arts (ZHdK), she is chairman of the Digital Council of the ZHdK and heads the Digital Knowledge program.
Anja Wyden brings a wealth of diverse experience to our jury. Alongside her work at civicLab, she was State Chancellor for the State of Geneva for eight years. She teaches innovation and design thinking at University of Lausanne, University of Geneva and Applied University Geneva and is chairwoman and member of boards of corporate companies and foundations.
Previously shortlisted on our 2019 Digital Shapers 100 list, Cornelia knows what it takes to be a shaper. Owner of Gutvilla Consulting AG, Managing Director of the Startfeld Foundation and Co-Managing Director of the Startfeld Innovation Center Association, she also contributes learnings from her time in the banking industry and her role as a management consultant.
Melanie is a creative entrepreneur, business coach and podcast host of Joyful Learning. Named on the Forbes 30 Under 30 list 2018, she supports aspiring entrepreneurs to turn business ideas into profitable businesses. Melanie serves on the board of the Impact Hub Association and is a judge at the Swiss Economic Award.
With a passion for innovation, Nicoletta is a serial entrepreneur on the lookout for new challenges. As Founder, CEO and President of SMARTEC SA, Innovation Counsellor at the Swiss Innovation Agency Innosuisse and Chair of BRIDGE steering committee, her diverse skills greatly enrich our appointment process.
Tea brings invaluable knowledge of successful Swiss digital transformation. Added to this she has rich knowledge of marketing, communication and operations for startups, as well as medium-sized and large companies. A deep understanding of modern business practices combined with entrepreneurial thinking will bolster the jury panel.
Manuel is a Lucerne & Berlin-based entrepreneur and CEO at Belbo Business Solutions. Bringing experience of ICT and innovation-management, Manuel co-founded the innovation consultancy and coworking community Hirschengraben Coworking + Innovation. As a freelance consultant at 21-21, Manuel advises companies on how to master digital transformation.
Explore previous editions of the 100 Digital Shapers and take a look at the nominees of 2018 and the 2019 edition of Bilanz.
IMD recently published its World Competitiveness Yearbook 2020. First published in 1989, the study uses benchmarking, statistics and data on economic, political, social and cultural dimensions to analyse and rank countries’ abilities to achieve long-term value creation.
After years of consistent improvement, Switzerland has moved up the ranking to third place – particularly encouraging given that this study takes such a holistic view of competitiveness factors.
I believe that Switzerland has much to offer in our times of volatility and uncertainty. But even more important in my view is to consider what we can do to build on existing strengths and position Switzerland in an increasingly digital/hybrid future. Here, I explore how Switzerland is performing based on four competitiveness criteria.
Switzerland is a nation of engineers. Our winding roads, breath-taking bridges and dense rail network are the envy of many a larger country. So it’s no wonder that Switzerland once again has a podium position in IMD’s ranking for the criteria infrastructure. But what kind of infrastructure should we be building now in readiness for the future?
Already, we understand the importance of digital aspects like fast and reliable fibre-optic broadband and wireless hotspots in rural areas. If smart cities are to become a reality, digital infrastructure will need to keep pace. Switzerland is making a concerted effort to build a future-proof network with stakeholder buy-in from government, telecommunications companies, electricity providers, cable operators, landlords and the public.
For me, infrastructure also includes non-physical aspects like a robust legal framework for digital activities, and strategies to ensure data integrity, sovereignty and security. We need to take a proactive approach to ensure our legislation does not lag behind technological developments.
Switzerland’s health system enjoys a global reputation. As a country, we spend a higher percentage of our GDP on health than any of our bordering neighbours. And we’re the only ones to have increased spending significantly (by around 15%) over the past decade.
I believe that our excellent healthcare reflects other strengths in Switzerland: we’re the life sciences hub of Europe, meaning that cutting edge research and development is happening on our doorstep. We attract the brightest minds from around the world, and some of them naturally find their way into our healthcare system.
Looking forward, I would like to see greater digitalisation of patient data and records as a way to enhance communication between players in different healthcare settings.
The Swiss education system is much lauded for its dual focus on academic and vocational tracks. It’s a recipe that has worked for many years. The quality of Swiss education has been singled out in various studies as exceptional, including in various WEF Global Human Capital Reports.
I believe that we need to capitalise on this outstanding quality and maintain it as educational needs and learning formats shift. Here at digitalswitzerland, we’re vocal supporters of #LifelongLearning. Our children will work in new professions like Ethical Technology Advisor, Personal Content Curator or even Robot Liaison Officer. Some will have job titles we can’t yet even imagine.
Today’s workforce will also have to upskill and adapt to new digital tasks and novel ways of working. And SMEs and multinationals alike will have to embrace change and empower their people to move with it. New learning formats and an explosion in the number of online courses will revolutionise the breadth and depth of learning opportunities. Let’s ensure Switzerland leads this revolution.
Having said in my introduction that it doesn’t all boil down to GDP, I think it’s important to note the strength of Switzerland’s economy. We have fantastic global trade links – partly because we’re an attractive location for international organisations, but also because we cultivate innovative home-grown business.
Particularly impressive, however, is the way we manage public finances. Switzerland’s national debt pales in comparison to that of its peers in Europe and around the world at around a third of GDP. As public spending reached new heights due to COVID-19 bail-outs, Switzerland is one of the few countries that won’t be devastated by this unpredicted financial expense.
Going forward, I have confidence in our political system to make decisions that balance the needs of our economy, health and individual businesses. In our turbulent times, this is a key resilience factor.
At digitalswitzerland, our mission is to position Switzerland as a leading innovation hub. I’m consistently impressed by the agility and adaptability of stakeholders in Switzerland’s ecosystem – not least during the recent COVID-19 pandemic.
Switzerland has many of the strengths needed to build resilience in a digital/hybrid future but it’s important to continue our progress. In cooperation with Wissensfabrik, we recently developed a whitepaper outlining five ways of how digital transformation can be continued.
I believe the foundations are in place and it’s up to all of us to build a future that benefits all.
In May, the Swiss Parliament decided that a legal framework must be put in place. The Federal Council submitted the Botschaft for the urgent federal law on the corona tracing app on 20 May. This week, the Swiss Parliament finally gave green light to officially make the app available for the general public. The app will be published by the Federal Office of Public Health (FOPH). According to a survey, 70 percent of the Swiss population welcomes its introduction.
This blog takes a closer look at the App and what we can expect from it, the current status of the worldwide release of digital contact tracing apps and the critical questions that are still open.
The new proximity tracing app has raised high hopes to get back to normal. The SwissCovid-App is designed to alert users who have been in contact with a person who has tested positive for the coronavirus. It notifies the user if he or she has been less than two meters away from an infected person for more than fifteen minutes.
As great the potential benefits of such an application are, it is crucial to be also aware of potential risks. It is crucial that the data collected for contact tracing may never be used for other purposes – or linked to other data to identify and possibly further profile individuals.
Regarding the SwissCovid-App, the technical aspects are fulfilled. The App fulfills the criteria of “privacy by design”, does not track the user’s location, only the proximity between users of the app based on Bluetooth. In a first blog about proximity tracing apps, I summarized the formal criteria that must be met for a trustworthy app: voluntary, transparency, privacy by design, decentralized storage and processing of data, temporary, necessary, proportionate and scientifically validated. However, to be effective, the app must be used by as many people as possible. Trust in the app is therefore essential.
Within a very short amount of time, a team of developers and researchers has developed a complex distributed app that meets the highest technical, security and data protection standards. The SwissCovid App is based on the Apple-Google API. This makes Switzerland the first country in the world to use the Google and Apple interface for proximity tracing. By joining forces, Apple and Google are setting the global standard – which in turn was decisively shaped by the Swiss researchers from ETHZ and EPFL. They were able to win over the two tech giants for the decentralized approach, which offers maximum data and privacy protection.
To this date, at least 48 contact-tracing apps are available globally. Australia, South Korea, France and Singapore, for instance, have already implemented contact tracing apps. Many other governments are testing or considering them. This public list gives a good overview of the various contact tracing apps and digital tracking measures in use around the world. The approaches differ considerably from country to country. There are roughly two camps: the centralized and decentralized approach
For instance, France and the UK currently use a central protocol. Under this system, data is entered into centralized computer systems operated by the government. In Switzerland, the protocol and storage of data is decentralized. This offers users more privacy and control over their information by keeping it on their phone. Many countries in Europe, for example Germany, opt for the decentralized approach based on the Swiss model, which is also promoted by Apple and Google.
South Korea’s contact-tracing approach uses video surveillance, credit card data and geolocation information. This extensive collection of data and intrusive surveillance is problematic from a data protection perspective.
With only a quarter of the population having downloaded the app, Singapore is now even going a step further. The government is working on a contact tracing method using a portable, wearable device that could be distributed to everyone in the country.
The parliamentary decision to create a legal framework for the app has allowed a broad public debate on the potential benefits and risks of digital contact tracing, and the clarification of open questions about the process. It underlines the dimension of voluntariness by prohibiting companies and others to force people to use the app. After a test phase, which involved around 15’000 people, the testing of the security, as well as functionality of the app, we will have soon an app available that meets key privacy and security issues from a technical point of view, while at the same time being introduced in a clear and legal framework that protects the rights and freedoms of citizens. In addition, the Federal Council should be able to stop the app when it is no longer necessary or when the app proves to be insufficiently effective. These points are of crucial importance and, in combination with transparency and communication along the process, have helped to create trust. Thus, the Swiss App could potentially serve as a global role model for responsible digital contact tracing. As part of a broader strategy (test, trace, isolate), digital contact tracing could make a significant contribution to the common good and be an act of solidarity
However, the real test to prove its effectiveness starts with its public release, expected at the end of June. It is an experiment. No one knows today how many people will actually use the app, what long-term impact this will have on our society and our use of new technologies. The debate and development process of the app is so far seen positive, yet its release should be followed critically. Bluetooth technology is not flawless either. It cannot be completely ruled out that so-called “false positives” – i.e. false reports of a possible infection – will occur more frequently than in classical contact tracing. Whether the SwissCovid-App will be a success story will be seen in the next days and weeks.
As we embark upon the most digital decade to date, new education trends are sure to emerge. One of these is the ‘super-university’ – super because of high brand value, great rankings and, according to Dr David P. Baker of Penn State University, their ability to “produce unprecedented levels of science, technology, and knowledge about human society.”
The USA has taken the lead with high-performance super-universities, injecting generous private funding and adding tech transfer, patenting offices and publications to the mix. European nations such as Germany and Switzerland have followed suit.
Many universities today are internationalizing, creating campuses abroad. Lausanne’s prestigious school of hospitality, Ecole hôtelière de Lausanne (EHL), has a campus in Singapore, while Boston University has been sending students to Geneva for a semester for many years. The European Union has created the European Universities Initiative. Their mission is to accelerate the transformation of universities so “young people are prepared for the jobs of tomorrow in a fast-changing society, and future generations are empowered to find solutions to big societal challenges that Europe and the world are facing.”
The fundamental difference between the USA and Switzerland is that the latter’s leading public universities are publicly funded and controlled.
The Confederation:
The cantons in Switzerland:
So are Switzerland’s universities super universities – and if not, could they be in the future?
Considering the size of the country, Swiss universities fare extremely well in a national comparison. This is thanks in part to the high overall level of wealth. The UK’s Times Higher Education World Rankings places 1 of Switzerland’s 12 universities in 13th place – just behind Oxbridge and a host of Ivy League school. All of the Swiss candidates feature in the top 600. The Swiss Federal Institute of Technology in Zurich (ETH) does better on the female:male ratio than the Swiss Federal Institute of Technology in Lausanne, while the Università della Svizzera Italiana is nearly at parity. According to Thomson Reuters innovation rankings, which include patent filing as one criterion, Switzerland is highly regarded. Four Swiss universities have made it into the top 25, namely the EPFL, the University of Zurich, the ETH and the University of Basel. Extending the list to the top 100 sees the University of Geneva added to the list of Swiss names. The excellent performance reflects Switzerland’s culture of innovation. As a nation, the Swiss submit the most patent applications per capita.
If Switzerland wants to compete in the global market, it needs to develop the right talents and work continuously to remain attractive. Super-universities play a vital role in this. They will help the country fill its pipeline with more women, greater research and impressive innovation – across fields. While STEM is a priority, the ivory towers of this country must preserve their capacity to think deeply, inspire greatly and create vocations. This means continuing funding at all levels of education, prioritising learning and development, and testing new teaching and learning methods. The good news is that we already on this journey to the future.
Local and global connectedness is one of the success factors of a startup ecosystem. This is especially evident looking at a mature ecosystem like the Silicon Valley, which boasts a high level of interconnectivity on a local and global scale (Global Startup Ecosystem Report 2019, Startup Genome). The better connected and transparent the local ecosystem, through the support of investors, experts and founders-helping-founders, the more agile and mature it becomes. Naturally, global connectedness is crucial to scale solutions on an international level and stay at the forefront. These are the two main challenges the Swiss ecosystem needs to tackle: unite and grow its local connectedness and its global presence. Most of the leading ecosystems arise around big cities like San Francisco, Beijing and London. Most of them have a bigger population than Switzerland. We should not compete as individual cities like Lausanne, Basel and Zurich. We should compete as one nation! Already a well-established brand for quality, chocolate, and beautiful landscapes but not yet for its fast-evolving Swiss-made DeepTech startups. This is something that needs to change, and we need to change it together – as Switzerland.
Israel is a great example of what is possible when a country succeeds to connect locally. With a similar population size as Switzerland, it has managed to brand itself as a startup nation and combine its hubs of Tel Aviv, Haifa, Jerusalem and Beer-Sheva under one flag. Israel started this process over 30 years ago and has a 15-year head start on Switzerland. It is interesting to see how most people know and promote the story of the startup nation and its main success stories like Mobileye, Soda Stream, and Netafim. And it encompasses even technical B2B startups that are also rightfully promoted as success stories. In Switzerland, we are not there yet. According to a recent study, the best-known Swiss startups are Farmy, Amorana and Doppelleu (Startup Studie 2019, Rod). Unicorns and workhorses like Getyourguide, Mindmaze, Avaloq and Sensirion are hardly known. For the world to hear about amazing deep tech startups still to come, we need to expand the narrative beyond chocolate and mountains!
Part of digitalswitzerland’s role is as a national platform for the Swiss startup ecosystem. We help connect the various hubs within Switzerland and strengthen the connections both within and outside the country.
For example, almost three years ago, digitalswitzerland initiated Kickstart Accelerator – at a time when there were hardly any accelerator programmes. Fortunately, this has changed over the last years. Kickstart Accelerator now operates independently and digitalswitzerland founded the Swiss Accelerator Network last year. The goal is to bring together the best accelerator programmes in Switzerland. Today, over 11 accelerators work together, exchange knowledge and strengthen connections between the different hubs. In May, we jointly held the Swiss accelerator stand at the Startup Days event and also welcomed 41 scale-ups to the Market Entry Bootcamp.
The Swiss Accelerator Network is an excellent illustration of how we can work together on a national level and showcases the role digitalswitzerland plays in the Swiss startup ecosystem. We strengthen and expand ties in the Swiss ecosystem and foster its maturity. There is still a long way to go, and on this path, we must begin to speak more and more as one nation.
Digital transformation is here to stay. That is why we constantly need to foster dialogue to increase awareness for all that is and will be digital. To do so, Digital Day 2019 will have a strong focus on getting into conversations with Switzerland’s population – without fear of debating challenging topics. Digitalisation brings not only opportunities, but also risks that need to be addressed and taken seriously. In addition, I am also starting a new series of “Dialogue Interviews” with leaders of this country, representatives from member organisations, digital shapers and the brightest people in the area of innovation and digitalisation.
This time around, I talked to Alexander Denzler, Head of Blockchain Lab at the University of Applied Science in Lucerne and Director of the Crypto Valley Conference, about everything blockchain-related and Switzerland’s role in it.
Nicolas Bürer: The blockchain and its technology was pushed intensely by new start-ups and disruptors in the last few years; though lately, it seems like other actors joined the race and invested heavily in blockchain technology. Who is, in your opinion, here to stay and win the race?
Alexander Denzler: Correct, a lot of start-ups entered the scene and even big companies like Facebook, Amazon or Tesla are evaluating on how to harness the unique benefits provided by the technology. Academia is no different, as more and more Universities found labs and competence centers to research blockchain technology. Who of these actors are here to stay, you ask? All entities with a clear understanding of the capabilities and limitations provided by this technology, as the days of ICO’s trying to “blockchainify” anything and everything are fortunately over. Blockchain is not the solution to all the world’s problems, but it opens up a vast majority of possibilities that were not available in the past. New business models can and will arise, challenging old, cumbersome and monopolistic solutions in which few reap a majority of the profits. A good example is the latest decision by the Supreme Court, in which Apple faces a lawsuit due to its App store monopoly. Decentralized App stores, anyone?
Nicolas Bürer: Taking a look at Switzerland: after positioning itself as an epicenter for everything blockchain, mainly through the Crypto Valley, many other regions and countries worldwide, like Malta, Singapore, France, Gibraltar or Liechtenstein, followed lead and discovered the advantages of the blockchain. Considering these competitors, how well is Switzerland positioned today?
Alexander Denzler: If you take a look at the Silicon Valley for reference, two characteristics are crucial to its success: investors and talent. One without the other simply doesn’t work. Switzerland has both and therewith provides an ideal setting for start-ups and established companies alike to thrive. The active and positive endorsement by the Swiss government for this new industry completes a perfect set-up, resulting in Switzerland’s leading position in everything blockchain.
Nicolas Bürer: Last question, what should Switzerland undertake as two or three first priorities in order to maintain our leading position in the years ahead?
Alexander Denzler: In order to maintain its leading position, it is crucial for Switzerland to be able to continuously tap into an extensive talent pool. Especially highly skilled developers are always needed, as there is a big shortage of them. To date, a majority of education programs, focus solely on the business and legal aspects, which certainly is important, but most open positions require technical expertise. Furthermore, the Swiss government needs to ensure a stable environment for the blockchain ecosystem. Uncertainty and continuous changes in vision can and will have damaging effects. Last but not least, more widely used applications by Swiss companies have to be placed on the global market. This will ultimately act as a catalyst for further investments and cement the leading position of Switzerland.
Alexander Denzler: Nicolas, let me ask you a few questions: Digitalisation is omnipresent and has a big impact on how we live. Where do you see the biggest opportunities for blockchain in this process?
Alexander Denzler: Nicolas, let me ask you a few questions: Digitalisation is omnipresent and has a big impact on how we live. Where do you see the biggest opportunities for blockchain in this process?
Nicolas Bürer: Indeed, digitalisation will change a lot of products and services we will use in the years ahead. I believe blockchain will need a few more years and will then be widely used in various supply chain processes, international payment transactions and e-government processes. In any case, it will be crucial that it will be widely adopted among many stakeholders (incumbents, governments, etc.) and gain more trust in the population.
Alexander Denzler: digitalswitzerland plays a vital role in facilitating innovation. Could you share some details on what your plans are for the blockchain ecosystem in the future?
Nicolas Bürer: Among our Vertical FinTech & Crypto, we are pursuing two important goals: on the one hand, we drive the legal requirements for DLT (Distributed Ledger Technology) in Switzerland by coordinating and aligning with the broader Swiss FinTech ecosystem and legislative and executive bodies. On the other hand, we focus on selecting, developing and testing (prototypes) assets that can be tokenized. Being first-movers enables us to build a stable foundation for the ecosystem. The Vertical is helmed by SwissRe, MME and Mobiliar/SwissCaution and more than other 20 actors and experts are supporting their work. It is important to mention that our job is not to do business. That role should be occupied by corporates and start-ups. We put in place a fundament in order to enhance the ecosystem. We act as enabler and catalyst.
Alexander Denzler: Where do you see the Swiss blockchain ecosystem in five years?
Nicolas Bürer: I’m very positive about its perspectives. Start-ups and talent are here, but of course we could always profit of more from both. Swiss-based incumbents are increasingly investing in blockchain innovation and experiments. Different regions like Zug, Zurich, Geneva and Ticino are pushing the technology, which is good for internal competition. But we need some breakthroughs, for example in transaction energy consumption or transaction scalability. Why not reaching these breakthroughs in Switzerland? In five years, I am sure the amount of jobs in the blockchain space will have tripled or quadrupled in Switzerland and the country will be known as one of the top three hubs for the technology.
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