Geneva's Innovation Strategy Criticized for Lack of Specificity and Sectoral Focus

Geneva has introduced a three-year innovation master plan for 2025, featuring the creation of a cantonal innovation fund. This initiative marks a departure from traditional Swiss practices, where private funding typically supports innovation and startups.

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I think that this cantonal innovation fund is a good thing, even if it is not in the Swiss tradition.

Dominique Foray, an expert in innovation, views the cantonal fund positively, acknowledging the difficulties private financing faces in Switzerland. He notes that despite a 2006 federal law allowing pension funds to invest up to 15% in private equity and venture capital for startups, actual investment has barely reached 1.5%. This underinvestment is surprising given the sector's higher-than-average returns.

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I find the cantonal authorities give too much credit to the Campus Biotech, barely mentioning or not mentioning at all other innovation strengths such as the University of Geneva, the universities of applied sciences like Hepia and HEAD, or even CERN.

However, Foray criticizes the cantonal strategy as uninspired, describing it as a collection of generic ideas lacking connection to Geneva's specific regional characteristics. He points out an overemphasis on the Campus Biotech, while other significant innovation hubs like the University of Geneva, HEPia, HEAD, and CERN are barely mentioned. While acknowledging the importance of life sciences at Campus Biotech, Foray argues for greater diversification beyond this single sector.

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In fact, Geneva would need five innovation strategies, not one.

He advocates for a more nuanced approach, suggesting Geneva requires at least five distinct innovation strategies, one for each key sector: banking and finance, luxury goods, trade, information technology, and life sciences. Foray emphasizes the concept of "smart specialization," tailoring innovation strategies to the unique constraints and opportunities of each sector, rather than applying a general strategy that "floats above the issues."

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It’s the idea of recognizing that we have local specializations and that they will be transformed by innovation according to their specific constraints and opportunities.