Sino-Swiss Business Awards 2015

Dear Vice-Minister,
Dear Ambassador
Dear President of Swisscham Beijing
Ladies and gentlemen

It is a pleasure for me to stand in front of you today at the occasion of the second edition of the Sino-Swiss business Awards.

We know far more about how the world works today than we did only a few hundred years ago.

We know why the apple falls from the tree. Thanks to Isaac Newton.

We know that the earth rotates around the sun – and not the other way round. Thanks to Copernicus.

And we’ve known since only recently how dung beetles find their way back home.
They use the Milky Way to navigate.
Thanks to an international team of researchers.

But – thankfully – there are still many mysteries left.

I’m not alluding to love in the time of online dating.
Or the Football World Cup bids.

What I mean is innovation.
We are still not sure how, exactly, innovation is achieved.

If we knew, we would probably not be handing out any special awards – like the Sino-Swiss Business Awards.

Ladies and gentlemen,

Innovation is not always easy to recognise.
Take the internet, for instance.
In the late nineties, Bill Gates said, “not interested.”

In 1943, the head of IBM, Thomas Watson, said, “I think there is a world market for maybe five computers.”

So: What is real innovation?

Real innovation leads to real added value and is appreciated around the globe. Instant coffee, for example.
Or the Swiss vocational education and training system.

All of this may seem obvious. But only recently the world had to deal with the damage caused by pseudo innovation.
The financial crisis showed us what unrestricted creativity can lead to.

By the way, those complicated, structured products: we should have known.
A famous swiss official – Albert Einstein – once said: “Since the mathematicians have invaded the theory of relativity, I do not understand it myself anymore.”

Therefore, let us focus on real innovation. On innovation that makes our lives easier – not more difficult.

The European Commission states that “Switzerland is the overall innovation leader in Europe, outperforming all EU Member States.”

And why?
First of all because of Switzerland’s open, excellent and attractive research system.

Our universities are innovation hotspots.

We produce the most scientific publications per capita in the world.
And an exceptionally high number of Nobel laureates.

Companies set up locations near universities because they do not want to miss the next leap in technology.

And an average of 40 spinoffs of universities are launched every year – half of which are still active after five years.

In fact, the spinoffs of the Swiss Federal Institute of Technology in Zurich have a ‘survival rate‘ of over 90 per cent.

Furthermore, the private sector has a long tradition of investing in research.
In Switzerland, 70 per cent of reseach and development expenditures are made by private businesses.

And – very important – cooperation between private businesses and public universitites is excellent.

In this regard, Switzerland cleverly makes the most of its size.
It is not too small and not too large.
It is diverse and yet manageable.
Everyone knows someone who is currently working on an interesting project – either for a university or a company.

Another of Switzerland’s strengths:
Large companies are not the only innovation leaders.
Numerous small and medium-sized enterprises (SMEs) contribute a great deal too.
These SMEs are often top notch.

It is therefore fitting that the most innovative SMEs now receive an award.

Ladies and gentlemen,

Innovation cannot be mapped out in advance on the drawing board.

We can only provide a favourable framework.

Soft criteria are a part of that.

One thing I find especially important for Switzerland is our history of openness.

For a long time, Switzerland has shown openness towards immigrants. An openness towards:
the Nestlés and the Hayeks of this world;
the people who helped us build our tunnels;
the people without whom our healthcare system could not function;
the people who conduct research within our universities.

Switzerland has one of the highest proportions of foreign nationals in the world – and their integration has been comparatively successful.

Our cultural openness is in part due to our own, native diversity as a multilingual country.

Accepting different cultures, languages and religions comes naturally to us.
And we must continue to take good care of our diversity.

However: Openness is only possible when citizens feel that immigration benefits them as well.

For this reason, a feeling of security is important.
Social security in the broadest sense.

Social security is not an obstacle for innovation or competitiveness.
On the contrary. It is part of a market economy.
The market alone cannot satisfy people’s need for security. Without a feeling of security, people cannot focus on their jobs and be creative.

Social security is important for innovation. Because innovation means also that some people will lose out as a result.
Innovation can make jobs obsolete. Innovation can lead to fear.

Soft location factors such as trust and security – factors that take decades to establish – lead to a competitive advantage that will not be shown in any ranking.
But this advantage is still absolutely crucial.

Ladies and gentlemen,

Switzerland’s openness can also be seen in its relations with China.

Switzerland was one of the first western countries to recognise the People’s Republic and establish bilateral relations.
In fact, two weeks ago, we celebrated the 65th anniversary of our two countries’ bilateral relations.

As China began to open up its market, Switzerland was one of the first countries to enter into commercial agreements with the People’s Republic in 1974.

The foundation of our bilateral relations is strong.
I have witnessed this myself on several occasions.
The last time was a week ago in Bern, where I met Bi Jingquan, the director of the China Food and Drug Administration (CFDA).
And also at the beginning of the year, when I met Premier Li Kequiang, and when I visited China two years ago.

Our good relations and trust have been proven several times in recent history:
With the bilateral Free Trade Agreement,
With the renminbi hub in Switzerland, which will soon be established,
and with Switzerland’s commitment to the Asia Infrastructure Investment Bank (AIIB) as one of the founding nations.

Ladies and gentlemen,

China has a long tradition of innovation.
Not only gunpowder and compass, paper and printing.
But also innovation in medicine and industrial art.

Today, China is making big efforts to carry forward this tradition.
It has started an initiative for « mass innovation and entrepreneurship ».

Switzerland and China collaborate in numerous projects with mutual benefit to bilateral cooperation:
The design school in Shenzhen with the Zurich University of the Arts as partner.
The program of Sino Swiss Science and Technology Cooperation. A cornerstone of bilateral exchange.
Or the “Tech in Suisse” event at the Swiss Federal Institute of Technology in Lausanne. Which brings together Swiss startups and Chinese venture capital.

These are only few examples.
I am convinced that there is much potential for more collaboration.
Switzerland is dedicated to intensifying the already strong relationship it has with China.

The awards that are about to be presented are a symbol of this cooperation and friendship.

I would like to thank the Swiss Chamber of Commerce for organising and hosting this wonderful event.

And, on behalf of the Swiss Federal Council, I would like to congratulate all of the finalists on their achievements.

You are the best publicity for China, for Switzerland – and for a strong cooperation between both countries.
Thank you.