The canton is continuing its strategy of integrating foreign companies and strengthening the existing business community 

Despite a year that promises to be challenging due to the impact of COVID-19, the canton continues to work toward diversifying and strengthening its economic base through a partnership-based, tailored approach that brings together high-value-added foreign companies and local businesses. The lines between endogenous and exogenous economic development are continuing to blur. The Department of Economic Affairs is taking advantage of the annual publication of the Greater Geneva Bern Area (GGBa) results to compile and publish its 2018–2019 biennial report.

In 2019, 79 companies set up operations in Western Switzerland (GGBa figures), including 10 in the canton of Neuchâtel. This figure, which has remained stable over the past several years, represents only a small portion of the resources the government has allocated to promote and strengthen the regional economy.

In 2019, among other initiatives, we supported collaborative projects with an international scope, made possible by the unique expertise of the canton’s companies in producing small, complex, reliable, and high-value-added products. The partnerships formed around these projects help to firmly establish foreign project leaders in the region for the long term.

notes Jean-Kley Tulli, head of the Economics Department (NECO).

A favorable ratio for the canton

While the canton of Neuchâtel accounts for 5.6% of Western Switzerland’s population, it was home to 12.6% of the companies based in that region in 2019. The companies based in Neuchâtel are primarily from France and operate in the information and communication technology (ICT) sector. Jean-Nat Karakash, head of the Department of Economy and Social Action (DEAS), adds:

Our appeal is clearly growing, thanks to tax reform, land-use planning, the stabilization of unemployment rates, and major transportation infrastructure projects supported by the federal government. These structural improvements will stimulate the canton’s development while adhering to the principles of sustainability.

A catalyst for innovative projects

For every franc granted by the Department of Economic Affairs to innovative projects, the supported companies invested 11.7 francs during the 2018–2019 period. This represents an increase of 6.1 francs compared to the 2014–2017 period.

The Canton of Neuchâtel has expanded its capacity to support innovation through the creation, on January¹, 2019, of Microcity SA and its support programs tailored to startups, SMEs, and international companies. Furthermore, the emergence of a center of expertise dedicated to the space industry in the canton has bolstered efforts to diversify the economic fabric and strengthened its resilience—which is essential in a rapidly changing international environment. At the same time, the canton is positioning itself as the quiet capital of blockchain technology, primarily for industrial applications—a unique area of expertise in Switzerland that can be exported internationally. Finally, new support tools have been created to benefit the local economy, as well as to support industrial SMEs that invest in their production facilities.

Contacts:

Jean-Nathanaël Karakash, State Councilor, Head of the Department of Economy and Social Action (DEAS), tel. 032 889 68 00;
Jean-Kley Tullii, Head of the Economic Services Division (NECO), tel. 032 889 68 00

Neuchâtel, March 10, 2020