Swiss medtech industry created 20,000 jobs in ten years
The study published by Swiss Medtech and the Helbling Group is based on a survey of over 470 medtech companies operating in Switzerland. The results and figures highlight the economic importance of the medtech industry for the country. In the last ten years, the medtech industry has created around 20,000 new jobs in Switzerland – 4,200 in the last two years alone. In 2023, the industry employed around 71,700 people domestically, 40% of whom were women. More than 1 in every 100 workers in our country is engaged in the field of medical technology. Apart from Ireland, no other country in Europe currently employs a larger medtech workforce per capita than Switzerland.
The medtech sector is predominantly made up of small and medium sized enterprises (SMEs). Of the approximately 1,400 medtech companies based in Switzerland, 95% employ fewer than 250 people. In contrast, 5% of the largest companies employ roughly half of all individuals working in the Swiss medtech sector. Industry turnover grew from CHF 20.8 billion in 2021 to CHF 23.4 billion in 2023, twice as fast as Switzerland’s nominal gross domestic product of the same period. The Swiss medtech industry generated a trade surplus of CHF 5.8 billion in 2023, contributing an impressive 11.9% to Switzerland’s positive trade balance. The industry reinvests approximately 12% of its turnover in research and development (R&D).
«Switzerland features a unique ecosystem that is the envy of many countries – encompassing large corporations, numerous SMEs, world renowned universities, and innovative spin-offs. Despite this, the success of the Swiss medtech sector is not guaranteed. To secure its position as one of the world’s leading medtech locations in the long term, Switzerland must continue to develop its strengths, eliminate weaknesses, and learn from its international competitors,» says Adrian Hunn, Director of Swiss Medtech.
EU remains most significant trading partner & new global markets are creating opportunities
The European Union (EU) remains Switzerland’s most important trading partner. Some 50% of Swiss medtech exports head to the EU and around half of imports are in turn sourced from the rest of Europe. Of the EU member states, Germany is by far the most crucial trading partner for the domestic medtech industry. The USA remains the most significant single export country and has now also become the largest import country for Switzerland. China and other Asian growth markets are gaining in importance as purchasers of Swiss medical products. This is not fully reflected in the rising export figures as production is often located on site in these countries, as the companies report.
«As a trade association representing an export-oriented industry, we are committed to ensuring that market access remains as barrier-free as possible. It is crucial that Switzerland and the EU restore their solid relationship base through the Bilaterals III. It is also important that Switzerland enter into new free trade agreements so our companies can realize their full potential in global markets. The focus is on the USA and Mercosur,» says Damian Müller, President of Swiss Medtech. «New market opportunities will create jobs along the entire supply chain of the Swiss export industry. The domestic market is far too small to achieve this alone,» says the President.
Biggest challenges: Regulatory requirements and cost pressures
The European Medical Device Regulation (MDR) has not been received well by the industry. It is bureaucratic, costly, and hinders innovation. This assessment is not new; but has become clearer over the past two years. To cope with the MDR, 80% of companies have hired additional staff and 60% have had to reassign human resources from R&D. Half of the companies have reduced their product portfolio by an average of 20%. At the same time, development costs rose by approximately 28%, production goods by 13% and end product prices by 8%. These increases, however, are not exclusively linked to the MDR. Higher costs for raw materials, energy, transportation and logistics have also had an impact.
FDA-certified medical devices: Benefitting patient care and innovation
Europe is falling behind the USA as a result of the bureaucratic MDR. Already today, over 20% of Swiss companies no longer apply for initial approval for their newest products in Europe, and elect to do so in the USA first. Over 30% certify their products in both Europe and the USA although the process in Europe is much more complicated. This means that innovations may become available to the Swiss population years later than necessary. «Fortunately, Switzerland is not simply standing on the sidelines,» says Damian Müller, President of Swiss Medtech, referring to the fact that – based on his Motion 20.3211 – Parliament instructed the Federal Council to allow FDA-certified medical devices in Switzerland already in November 2022. National law must now be revised accordingly. «This would ensure patient care and guarantee rapid access to innovations. In addition, Switzerland would become even more attractive as a medtech business location in the heart of Europe for internationally active companies,» Damian Müller is convinced and advocates rapid and practical implementation. «Under no circumstances should the authorities create hurdles that prevent the small Swiss market from being supplied with FDA products, otherwise the bill will become a paper tiger,» warns the Swiss Medtech President.
Greatest opportunities: Digitalisation and artificial intelligence (AI)
The medtech industry views the digital transformation as an opportunity. Digitalisation is changing the way companies innovate, produce, manage, and market. This comes as no surprise to Adrian Hunn: «Optimising processes to increase efficiency is one of the core competencies of the Swiss medtech industry. We must play a pioneering role in the digitalisation and application of AI in order to ensure the competitiveness of medtech production in Switzerland, a high-price country.» However, the opportunities created by digitalisation are not without challenges. Companies must invest in security systems and data protection measures – as well as address legal issues.
Sustainability becoming highly relevant for market access
In addition to the industry’s digital transformation, a move towards enhanced sustainability is also underway. Sustainability has become a highly relevant market access criterion for the medtech industry. Besides the current regulations, customers and investors are also driving the trend. They are increasingly demanding data on sustainability, especially regarding climate protection. This applies to the entire supply chain. Two years ago, 68% of companies were active in the area of sustainability; today the figure has risen to 74%. The trend is moving in the right direction. «We are in the process of developing an industry roadmap for decarbonisation and supporting our members with professional training opportunities. The focus is on strengthening their competitiveness,» says Swiss Medtech Director Adrian Hunn. This study and other surveys conducted by Swiss Medtech also indicate that sustainability is becoming increasingly important for the recruitment of young talent.
Swiss Medtech represents around 800 members in its role as industry association for Swiss medical technology. With 71,700 employees and a contribution of 11.9% to the positive trade balance, medical technology is an economically significant sector in Switzerland. Swiss Medtech advocates for conditions that enable the medtech industry to perform at peak capacity and provide first-class medical care.