Switzerland, a discreet but powerful land of innovation

When the implementation of artificial intelligence rhymes with Switzerland.

Long regarded as a pillar of stability in Europe, Switzerland also enjoys a reputation as a home of innovation. It has been able to capitalise on this aura, notably thanks to its precision watchmaking, its industrial excellence and the quality of its pharmaceutical industry. Switzerland now establishes itself as a discreet but influential player in the field of technology, and notably in the implementation and use of artificial intelligence (AI). Innovation is part of the DNA of Switzerland and of its companies, which methodically allocate, year after year, substantial sums to research and development (R&D). On average, nearly CHF 25 billion is invested each year, of which around CHF 17 billion by private companies, equivalent to more than 3% of GDP(1). While the country is not regarded as a "Silicon Valley", several of its companies are important players in innovation. ABB, VAT Group and Belimo perfectly illustrate the way in which AI is now at the heart of Swiss companies' innovation investments, consolidating their role in the value chain of this disruptive technology.

ABB, the industrial giant, has been innovating for more than 140 years, thereby becoming the world leader in automation, robotic systems and electrification. The company integrates AI into its solutions to optimise predictive maintenance, energy management and the autonomy of industrial systems. Its ABB Ability platform is the spearhead: by combining AI and cloud, it makes it possible to analyse in real time massive volumes of industrial data in order to anticipate breakdowns, reduce energy consumption and improve operational efficiency. Another example: data centres, indispensable to AI, represented 15% of the Electrification division's new orders in 2024, or around CHF 2 billion. AI here becomes a concrete lever of productivity, growth and profitability. But this innovation obviously requires substantial investment. Since 2020, ABB has increased its R&D spending by 40%, reaching 4.5% of sales, or CHF 1.2 billion, in 2024(2). VAT Group, a strategic link in semiconductor manufacturing, is less known to the general public but just as essential.

VAT Group is the world leader in vacuum valves used in semiconductor manufacturing. This highly technical field demands precision and purity of the environment. AI is used here to simulate and accelerate the development cycles of new vacuum solutions. Holding 76% market share in its segment, VAT Group is a key player in the semiconductor value chain, semiconductors themselves being indispensable to AI. The company devotes a significant share of its revenue to R&D (6% of sales or 12% of employees)(3), which allows it to remain at the cutting edge of innovation.

Belimo, a key player for the energy efficiency of data centres, a specialist in actuators, valves and sensors for the management of air and water flows in buildings, embodies the emergence of smart buildings. The company has integrated AI into its connected sensors to automatically improve thermal and energy comfort. Thanks to its predictive models, Belimo enables a significant reduction of energy consumption. 12% of its revenue now comes from data centres, a strategic segment with the explosion of cooling needs linked to the new AI chips. Belimo shows an average annual growth of 10% in its revenue over 20 years and invests nearly 8% of its sales in R&D, proof of a robust and durable technological strategy(4).

ABB, VAT Group and Belimo perfectly illustrate a "Swiss-style" model of innovation: pragmatic, industrial and geared towards efficiency and performance. These companies thereby anchor AI in concrete applications, which transform industry, energy, buildings and the global digital economy alike. The implementation of AI becomes essential for innovation, which in turn makes it possible to obtain increasingly productive R&D reinvestments. Switzerland, faithful to its heritage of precision, is progressively transforming this historical capital into a long-term competitive advantage.

(1) https://www.aboutswitzerland.eda.admin.ch/fr/recherche-et-developpement

(2) https://global.abb/group/en/investors

(3) https://www.vatgroup.com/investor-relations

(4) https://www.belimo.com/ch/en_GB/about/investor-relations

Anton Berthot is co-manager of Swiss equities conviction funds at BCGE. Previously, he worked as co-manager of funds on Swiss equities, Swiss real estate and multi-assets at RESCAD SA for 8 years. He also counts a few years as an analyst at HSBC and JP Morgan. He holds a Master in Finance from the University of Neuchâtel, a Bachelor from HEC Lausanne and is a CFA charterholder.