Aspects - A nation of inventors Amazing innovators Renovations Extending the useful life of your property - Credit Suisse
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Aspects
February 2020
Amazing innovators
A nation of inventors
Oliver Adler Renovations
An interview about Extending the useful life
Swiss innovation of your property Severin Guérig from Baden
invented the “Schweizer
Taschengrill” – a practical,
portable grill.
Contents Editorial
10 Innovation and
Three people,
three ideas Economy column
tradition
18 The Swiss spirit of invention
Oliver Adler, Chief Economist at Credit Suisse,
on Switzerland’s impressive flair for innovation.
Social engagement
Gnanli Landrou’s ETH 20 Queen of the Engadine
spin-off, Oxara, is a
The winners of the spectacular skikjöring races
cement-free concrete
made from clay-based at the White Turf event in St. Moritz are awarded
excavation material. the Credit Suisse King’s Cup – although the
Landrou is one of three “king” has actually been a “queen” twice now!
04
inventors who have
shared their brilliant Bircher muesli, invented Living
ideas with Aspects. in 1900 by doctor
Max Bircher from Aargau, 24 Good maintenance is half the battle
is just one of many Careful planning of renovations is vital when
Who Swiss inventions that it comes to preserving the value of a property in
Dear readers
showcase the country’s
invented flair for innovation.
the long term.
Switzerland is a heartland of innovation: No other country
that? Pension provision in the world files as many patents per head as the Swiss.
The Focus section of this issue of Aspects explores the
26 “The third pillar is becoming increasingly
reasons why we are so inventive. We’ve spoken to an
important.”
expert at the Swiss Federal Institute of Intellectual Property
In its new study, Credit Suisse uses a pension
in Bern, for example, about how the Swiss mindset has
Focus comparison across four generations to illustrate
made us global leaders in innovation.
that the pensions of future generations are likely
04 Who invented that? It’s less the ability to innovate than the age-old synergy
to be significantly lower. Jan Schüpbach, Senior
What makes Switzerland the most innovative coun- between rider and horse that makes White Turf in St. Moritz
Economist at Credit Suisse, explains what steps
try in the world? Aspects asks an expert. such compulsive viewing. A very special highlight on the
to take now to guarantee your pension provision.
racing calendar there is the spectacular skikjöring event,
10 Three people, three ideas which has been held every year for over a century and sees
Good to know
Swiss inventors showcase their innovations and brave skiers pulled across the piste by thoroughbred
31 A sustainable future horses at speeds of over 50 kilometers an hour. As a long-
Cover photo/contents page: Roth & Schmid; photos: Valeriano Di Domenico, Christina Baeriswyl
explain how they turned their concepts into reality.
A new fund to promote responsible consumption, standing partner of White Turf, Credit Suisse is once again
as well as up-to-date information on our banking presenting the overall winner of the skikjöring competition
11 “I believe we are all inventors.” products. with the Credit Suisse King’s Cup – the name of which is
Gnanli Landrou’s work at ETH Zurich is focused
now outdated, since Valeria Holinger was crowned the
on developing a new type of concrete that Bonviva rewards
very first “queen” in 2017 and was then able to repeat her
20
can be made without cement and will facilitate 34 For your personal listening pleasure success in 2018. Read all about the two-time winner
sustainable housebuilding. Take your music with you wherever you are, inside and gain new insights into this fascinating sport.
with our Bonviva rewards.
14
“My aim is to redefine what it
I hope you enjoy reading this issue of Aspects.
means to travel.” 39 “Five questions for …”
Queen of the Engadine With the launch of her new website, fairvoyage. Credit Suisse employee Simon Rölli is
Valeria Holinger is the two-time winner of the com, Alexandra Pastollnigg hopes to combat mass developing innovative investment solutions.
skikjöring races in St. Moritz, for which she tourism and provide sustainable travel in Africa.
was awarded the Credit Suisse King’s Cup.
16 “Persistence is more important than Serge Fehr
the initial brilliant idea.” Head of Wealth Management Clients
Severin Guérig invented the “Schweizer
Taschengrill” – a portable grill that taps perfectly
into the zeitgeist.
2 Aspects February 2020 3
Focus Focus
Who invented that?
Switzerland is the world champion of innovation.
In terms of the percentage of the population,
1905 1997
no other country in the world has made so many
Aluminum foil Micro scooter
patent applications. But what is it that makes Schaffhausen resident Heinrich Wim Ouboter was too far
away on foot from his favorite
Alfred Gautschi filed a patent
us so innovative? Let’s try to explain it. in 1905 for a method of rolling sausage stand, but not 2003
2019 aluminum. Since then, foil –
complete with its classic rustling
quite far enough to justify taking
his bike, so, in 1997, he Doodle
Text: Robert Wildi Illustrations: Christina Baeriswyl
Cheops space telescope sound – has been used as invented the micro scooter. Originally, Michael Näf and
Bern-based astrophysics professor airtight packaging. Küsnacht, Zurich Paul E. Sevinc simply wanted
Willy Benz had the idea for Gontenschwil, Aargau to arrange a meal with friends,
Cheops back in 2008. By 2019, and they set up an online platform
the telescope was ready to be to do it. Since 2003, Doodle
launched into space so that it could has been simplifying scheduling
research planets outside our for everyone.
solar system. City of Zurich
City of Bern
1936 2009
Nescafé
CO2 vacuum cleaner
What can we do to halt
1891
In 1936, chemist Max Morgen climate change? Mechanical Pocket knife
thaler discovered the secret engineers Jan Wurzbacher In January 1891, a folding
to preserving the aroma of coffee and Christoph Gebald had knife was developed for the
1900 and developed the now world-
famous soluble coffee to which
a very simple idea, and in Swiss army that could be
2009 developed a machine used to dismantle a rifle and
Bircher muesli hot water can be added at any time. that sucks CO2 from the air. also to eat. This famous
In 1900, Aargau-based doctor Max Bircher Vevey, Vaud
City of Zurich multi-tool was developed by
invented what he called an Apfeldiätspeise Karl Elsener from Ibach.
(apple diet dish) for his patients; it would later Ibach, Schwyz
become Bircher muesli, going on to enjoy
global popularity and becoming an integral
part of breakfast culture.
City of Aarau
1947
Rex vegetable peeler
Alfred Neweczerzal invented
1951 the Rex peeler in his basement
and patented it in 1947. It is
Velcro produced from aluminum in just
1934
Following an outing one day,
Georges de Mestral returned
1902 a few steps and is ingenious
in its simplicity. Kaba key system
home to find burdock seeds on Asphalt Affoltern am Albis, Zurich Every time you lock your
his trousers. Inspired by the On March 13, 1902, Swiss lung front door, you’re using
plant’s sticky burrs, he went on specialist Ernest Guglielminetti had a Swiss invention: the Kaba
to develop the hook and loop a road covered with hot tar to key. The invention of this
fastener and filed a patent in 1951. fight dust – and so the precursor turning key in 1934 turned
Aubonne, Vaud of today’s asphalt was born. Kaba into a global business.
Brig, Valais Wetzikon, Zurich
4 Aspects February 2020 5
Focus Focus
European champion
of innovation
Switzerland was once again European leader for
patent applications in 2018. According to a European
P
Patent Office (EPO) survey, no other European
lastic wrap? Invented in Switzerland in country has filed more patents relative to the number
1912. The zipper? Invented in Switzerland in of residents. Switzerland tops the list of the ten
1925. The public World Wide Web? Yes, most innovative countries, boasting 956 patent applica-
also invented in Switzerland, in Geneva tions per one million residents. In second place –
some way behind – is the Netherlands with 416,
in 1989. Gyro Gearloose must have Helvetian roots.
while the Danes are ranked third with 411 patents.
Switzerland is the most innovative country in the At the forefront of Swiss submissions are companies
world – it’s been definitively proven. No fewer than such as ABB, Roche, and Novartis, as well as
nine times in a row, the country has occupied an educational institutions ETH Zurich, EPFL Lausanne,
undisputed first place in the Global Innovation Index, and the University of Zurich.
1
compiled each year by the World Intellectual
Property Organization. Switzerland is clearly a step
ahead when it comes to patents, too. According
to a survey by the European Patent Office (EPO)
for 2018, the country’s 7,927 new patents were
2 3
only topped, in terms of total figures, by the “super
powers” – the US, Germany, Japan, France, and
China. If you consider the number of patent applications
per million residents, however, Switzerland is the
undisputed leader with 956.
This impressive dominance also gives rise to a few
questions. It isn’t exactly surprising that Switzerland Switzerland
is the undisputed world leader in Swiss wrestling, for
example, because our national sport is neither well-
Denmark
known nor actively practiced beyond the country’s bor Netherlands
ders. But the fact that our Alpine state is able to
maintain such emphatic dominance when it comes to “Without sufficient financial
generating ideas – undeniably a global sport – prompts
us to think about potential reasons and explanations. resources, a country cannot
International melting pot increases
fund a research infrastructure
innovation potential that fosters innovations, ideas,
If you look at the Global Innovation Index and the There was a time when this issue was also relevant to promoting innovation, including a liberal social system,
patent rankings a little more closely, it’s immediately Switzerland. During the industrial revolution of the political stability, legal certainty, and an attractive and inventions.”
apparent that the top spots are occupied almost 19th century, the formerly agricultural nation had to tax system.
exclusively by wealthy countries. Alban Fischer, Vice decide whether it should jump on the bandwagon and Alban Fischer believes that it is this perfect balance
Director General and Head of the Patent Division open itself up to technological developments. “As a of ingredients that has seen Switzerland become
at the Swiss Federal Institute of Intellectual Property country with no raw materials to draw on, the decision increasingly attractive over the decades to foreign
in Bern, believes that the connection is obvious. to invest in actively shaping industrial progress was students, entrepreneurs, pioneers, and inventors – a
“Without sufficient financial resources, a country cannot key, forming a central pillar for the creation of wealth situation that is clearly reflected in the patents
fund a research infrastructure that fosters innovations, and prosperity,” says Alban Fischer. Switzerland com filed. “When you compare international patents at a
ideas, and inventions.” As a result, countries that are mitted early on to establishing a first-rate education percentage level, it is striking that a clear majority of
mainly dependent on agriculture have little chance of system and also prioritized other achievements designed patents originating from Swiss companies involve foreign
competing in this arena. to create the ideal environment for developing and inventors.” Fischer believes that innovation is at its
6 Aspects February 2020 7
Focus Focus
“Building an actual invention strongest in teams that are mixed in terms of
both gender and nationality/ethnicity – something that
very much in the spirit of the great Thomas Edison,
inventor of the light bulb, who once coined the phrase:
with real added value based is directly reflected in the quality of the patents. “Innovation is 1% imagination and 99% perspiration.”
He quotes the watchmaking industry as an excellent The very Swiss trait of continuing to plug away at a
on an innovative idea requires example of such diverse international influences. challenge or problem until a solution has been found
“Today hailed across the world as a Swiss innovation, also goes some way to explaining the country’s
blood, sweat, and tears.” watchmaking was brought to French-speaking innovative spirit and love of invention.
Switzerland by the French Huguenots, while the Equally, the broad spectrum of industries and
Hayek family, founders of Swatch, originally came sectors in Switzerland is highly conducive to the devel
from Lebanon.” opment of inventive, innovative ideas. As well as an
outstanding pharmaceuticals and machinery industry,
Tenacity and versatility Switzerland also boasts world-leading automotive
Everything else aside, there must also be some sort of suppliers, medtech, biotechnology, watchmaking, and
Swiss sensibility that makes us the most industrious microtechnology industries, to name but a few. “A
inventors and innovation world leaders. Alban Fischer significant proportion of domestic patents come from
believes that the Swiss mentality – often characterized companies in these sectors, where research is carried
by stubbornness, thoroughness, and tenacity – is out at the highest level,” explains Alban Fischer.
Alban Fischer studied physics at ETH
extremely beneficial in the “inventor business.” This is In addition, the rapid technological development Zurich and earned his doctorate in
seen in recent years and decades, given an additional solid-state physics at the University of
boost by digitalization, has gradually altered the Fribourg. He supplemented his academic
nature and scope of inventions. “High-tech inventions work by completing an Executive MBA
at the University of Zurich. Since 1998,
now make up the biggest slice of a pie that amounts
he has been employed at the Swiss
to between 7,000 and 8,000 patents each year,” Federal Institute of Intellectual Property
says Alban Fischer. Despite this trend, there is still a (IPI), where he was promoted to Vice
place for simple inventions, which ultimately continue Director General and where he now heads
to make their presence felt. For example, a team up the Patent Division.
of young Swiss innovators has recently developed the
world’s first adhesive patch that extracts tattoo pigment
from the skin, making tattoo removal far easier. For
Alban Fischer, there is no denying the fact that the
development potential of “simple innovations,” such as are investors who provide capital to promising start-up
the Swiss-invented vegetable peeler, is more limited companies in the hope of making a lot of money when
Fully protected than that of high-tech innovations. “You can’t reinvent
the wheel – you can only improve it.”
they come to sell their stake further down the line.
But quite aside from the financial aspect, Alban
Intellectual property can be protected. To obtain property Fischer is utterly convinced that “being an inventor
rights for a trademark, patent, or design, companies There’s no escaping the blood, sweat, and tears means being an entrepreneur first and foremost.” He
need to complete a registration process. Artistic works For inventions to ultimately benefit society, capital maintains that having an innovative idea and building
are automatically protected by copyright as soon as is always required – to fund production, marketing, an actual invention with real added value based on an
they are created, meaning registration is not necessary.
The Swiss Federal Institute for Intellectual Property
and distribution. When it comes to the willingness image in your head is one thing, but actually embarking
(IPI) is the central point of contact for all issues relating of private investors to support these projects, however, on this lengthy process and doggedly pursuing your
to intellectual property, patents, trademarks, design, the Swiss mentality generally errs more on the side entrepreneurial vision with blood, sweat, and tears – all
copyright, designations of geographical origin, etc. It of caution and restraint. “We are worlds away from an without any guarantee of success – is something quite
checks, grants, and manages industrial property rights environment like Silicon Valley, where countless im different.
and monitors copyright collecting societies. For more
information about intellectual property and the IPI, please
mensely wealthy investors outbid each other to finance
visit: ige.ch/en innovative start-ups,” explains Alban Fischer. This
Photo: private archive
aside, Fischer does acknowledge that there is certainly
no shortage of funds in Switzerland, with the sheer
volume of innovations attracting increasing numbers of
venture capitalists from all corners. Venture capitalists
8 Aspects February 2020 9
Focus
Three
people, Switzerland is a heartland of
innovation, powered by people
“I believe
we are
who experiment and think all inventors.”
outside the box. Aspects spoke Gnanli Landrou, who grew up in
with three of these innovation Togo (West Africa), is working at
ETH Zurich to develop a cement-free
three
leaders. In the interview, they tell concrete made from clay-based
excavation material. He hopes to use
us what sparked their initial this material to facilitate affordable
and sustainable housebuilding,
ideas and how they made their in Africa and across the world.
inventions a reality.
ideas
Text: Robert Wildi Photos: Roth & Schmid
10 Aspects February 2020 11
Focus Focus
And is it sustainable? substandard accommodation, and by
Yes, using our new process we can extension to help the world. Oxara, the
transform clay-based excavation name of the ETH spin-off we founded,
material into an alternative concrete means “commune” or “community”
that is suitable for floors and non- in the Togolese language Kabiye. Our
load-bearing walls, without adding goal is in the name.
cement. The cement used in current
concrete construction accounts for Do you feel that you were born
7 percent of global CO2 emissions. Our an inventor?
technology gives clay-based material To me, an inventor is anyone who cre
all the processing advantages of con ates something personal for them
crete but using 100 percent natural selves every day – even in small ways,
waste products, making it both cheaper be it the way they dress or what they
and an impressive 90 percent more cook. I am fortunate enough to have
environmentally sound. been able to share my idea with a host
of accomplished people who can
How far has your research help me to create something with the
progressed? potential to help humanity and future
We are constantly improving our pro generations.
duction technology and are in negotia
tions with various companies about So you want to pay forward some
pilot projects in an industry setting. We of your own good fortune?
have already successfully tested the You could say that. I certainly don’t
properties of the new concrete in our take it for granted that I was able
labs. Now we need to test it in real to study such exciting subjects, and as a
housing. We’re also looking for industrial result am able to work on such
partners to help us with this stage. a wonderful project here in Zurich.
An initial pilot project will take us to As such, I am also working to make
Portugal. opportunities like these available to
Tur Nectia voluptu reicab ipsam, offic tesenihita quistiaspic tem entur ant.
other students from Africa and, along
How much of a part has ETH with some of our colleagues, in
Gnanli Landrou and his business
partner, Thibault Demoulin, at Zurich played in your success? 2015 we founded the African Students
work – they collect their raw material I have been here since 2014 and have Association of Zurich. I am certain
from the construction site next to received excellent support from pro that, as a result, we will see many
ETH and examine it for consistency, fessors and other colleagues alongside more great projects and inventions.
color, and odor.
my close partnership with Thibault.
M
r. Landrou, what does the At ETH Zurich, you are currently ETH professor Guillaume Habert has oxara.ch
word “home” mean to you? researching and developing a new been an inspiring mentor and provided
It means having a safe haven type of concrete that doesn’t require us with close supervision and support
where you feel comfortable cement. How did this come about? throughout the development of the
and are protected from external factors I grew up in Togo and lived with my family process. We owe him a great deal. The finished product – the
such as climate and weather conditions. in a clay-walled building. Even as a child, And I am very happy that our ideas and fired clay bricks are ready to use.
I believe that everyone is entitled to decent, I quickly realized how labor-intensive goals were well received right from the
affordable housing. and time-consuming it was to build tradi start, from both research and financial
tional clay-walled houses using bricks. perspectives.
And that’s a dream you are personally Everywhere you look in my home country,
working to deliver? there is a lack of adequate accommo Are you motivated by wealth
Working with my research and business dation. At the age of 16, I traveled to and fame?
partner, Thibault Demoulin, I am at France to attend school and studied Absolutely not. Money has never
least trying to play my part in improving materials science. I had the idea to made me happy and was definitely not
the current situation. There are research new solutions for the global con the motivation behind my in-depth
currently two billion people on this planet struction industry that would give even research. It might sound trite, but my
without adequate housing, and who poor populations around the world only motivation is to find the most
wouldn’t be able to afford it even if it access to high-quality, affordable, and effective way to help the two billion
were available. sustainable accommodation. citizens globally who are living in
12 Aspects February 2020 13
Focus
“My aim is to
M
s. Pastollnigg, the market and the help it provided was instrumental. opportunity to expand their businesses
redefine what it is already crowded
with travel websites. What
motivated you to create
The Impact Academy helped me to
establish a network of like-minded social
entrepreneurs. It also put me in contact
and employ more staff on a decent
wage, driving social sustainability in
their own country. We also help by
means to travel.” your own website for trips to Africa?
Three experiences were pivotal for me:
with voluntary mentors from Credit Suisse
who really helped me to frame the concept
siting our accommodation and other
offerings in the lower-footfall tourist
Some years ago, I wanted to book a of fairvoyage.com in the right way. regions within the various countries,
Through her new website fairvoyage.com, trip to Africa online and it was made almost which means we don’t contribute to
Alexandra Pastollnigg offers sustainable impossible by extremely complicated And also to think about financing? “overtourism.”
travel in Africa, with the aim of fundamentally booking processes. Then, when I actually I come from a banking background myself
changing people's travel habits – and took my trip, I was shocked by the ex and I was really happy to be able to dis Do you want to stop mass
Credit Suisse volunteers are helping to get ploitation of people that I saw there as a cuss ideas with experienced CS financial tourism altogether?
the start-up off the ground. result of mass tourism. Thirdly, it annoyed specialists in the Impact Academy That’s not going to be possible over
me that before I left I was inundated environment. Ultimately, we decided to night, but it is a long-term goal of ours.
with people sharing their negative precon finance fairvoyage.com via fundraising. We hope to continually expand our
ceptions of disease, war, and crime. My less intense, more sustainable ap
experience of Africa was very different. What other challenges did you proach to tourism and encourage the
The continent has countless beautiful and encounter when you were setting whole travel industry to rethink its
interesting features to offer. So I decided up the business? strategy. My vision for the future is to
to make it possible for more people to There were numerous challenges, from reinvent and redefine travel.
see this side of Africa. Two years ago, technical implementation of the travel
I founded the travel portal fairvoyage.com. website itself to the careful selection of fairvoyage.com
certified local service providers. Getting
Is founding a travel website focused it all over the line required immense
on sustainability not a contradiction commitment.
in itself?
I have thought a lot about that in the And to what extent do your destinations
context of the climate debate. But I don’t in Africa also benefit?
think that travel is fundamentally bad – it We bring meaningful money into each
makes a significant contribution to inter country – fairvoyage.com gives sustainable
cultural understanding. The issue is how local service providers and producers the
we travel. We want to encourage people to
travel in a less intense, more sustainable
way. That’s why our local suppliers all have
verifiable sustainability accreditation from
independent, internationally renowned
bodies – from accommodation right through
to all the other services we offer.
Professional
But the tourists are still traveling coaching program
there by plane.
That’s true, but our aim isn’t to encourage The social entrepreneurship sector in Switzerland has been enjoying
new customer groups to fly to Africa; something of a boom, but young companies do need external
support and skills, particularly during the start-up and growth phases.
we want to promote our proven sustainable Enter SEIF – an organization founded in 2010 to promote social
approach among people who would be entrepreneurship and social innovation. Through its Impact Academy,
traveling to Africa anyway. SEIF offers a professionally supervised coaching program that
draws on the skills of experts from various companies. Credit Suisse
Where did you find help during is one of SEIF’s partners and supports the coaching program as
part of its Corporate Citizenship commitment. Credit Suisse employees
the early stages? volunteer for the program, sharing their expert knowledge with
I approached the SEIF Impact Academy the budding entrepreneurs during the start-up phase.
a year after the company was founded, Find out more: seif.org
Aspects February 2020 15
Fokus
Focus
M
r. Guérig, were you curious
about how things worked,
even as a child?
I was never what you’d consider
a typical inventor. I have always been
quite practical – more of a creative crafts
man than an inventor. I always had a
particular flair for simple, practical things.
Severin Guérig founded Mehrweg GmbH and has sold
Simple and practical like a portable around 1,500 of his portable grills since they were
grill. What led you to develop your launched in spring 2018, most of them via the online shop.
invention?
I was amazed that there didn’t seem to
be any small, handy grills out there.
Something easy to pack that you can take
anywhere and with the charcoal already
included. I am passionate about river
swimming and always take just my duffel So inventors don’t necessarily I can only spend around ten percent of
bag with me. I wanted to cook after have better ideas, they are just more my time on product development as a result
swimming, so I needed a grill that I could persistent? of the sheer amount of admin I have to do.
carry in my duffel bag. That’s why I That certainly sums up my experience. But hopefully this will end up being what
developed the Swiss portable grill. I know a lot of people who have an makes us successful in the future.
invention or business idea in their heads,
So it’s that easy to become but very few of them actually try to make Have you ever considered giving up?
an inventor? the idea a reality. No, but there are moments when I tire of
I believe that everyone has the drive to it all. Especially when I have to deal
overcome a challenge and improve a What problems did you encounter with administrative issues that don’t do
situation. I’ve found it easier because trying to execute your idea? anything to advance the product.
developing the grill has become almost The main problem was the time factor.
“Persistence is like a game for me.
How many attempts did it take
When you’re developing a product,
you incur costs before your first income
starts coming in. So I was working on
All the same, you have found some
investors and secured financing
for production of your portable grill.
more important to arrive at your portable grill in its
current form?
I developed a first prototype very quickly,
my idea in my spare time, day and night.
Another sticking point was the fact that,
as an individual, I didn’t have the scope
Was that just luck?
I am confident that my portable grill taps
perfectly into the zeitgeist. The media
than the initial but I went through several more prototypes
before the grill was developed enough
that I could sell it as a product. When it
to market a grill. Even as a sole proprietor
it was too risky.
is currently focused on sustainability. I
don’t know if grilling can be considered
sustainable, but my portable grill, com
brilliant idea.” comes to inventing, it’s not just about
that “eureka” moment. In my experience,
Why was that?
What if someone were to get hurt using
bined with the Swiss charcoal we burn, is
about as close as it gets. You rarely find
persistence is more important than the the grill? I set up a limited liability company ordinary charcoal that comes from Switzer
Severin Guérig (left) from Baden in the initial brilliant idea because you have to so that I wouldn’t be personally liable. land. Having said that, I personally feel
canton of Aargau, inventor of the keep honing your idea and put in hard and There were legal questions to be answered: that the issue of sustainable barbecuing
“Schweizer Taschengrill” (Swiss portable often laborious work to develop a product Is it possible simply to bring a grill to is not a matter of the grill itself, but what’s
grill), shown here with charcoal burner that might eventually be marketable. market? What is the situation with regard on the grill.
Markus Wicki during the manufacturing of You have to keep telling yourself, “If at first to product liability? There are definitive
Swiss charcoal. you don’t succeed, try, try, and try again.” standards. The sad fact is that nowadays taschengrill.ch
Aspects February
Lorem Ipsum
2020 17
Economy column Economy column
4 Is innovation in Switzerland
The Swiss spirit
the domain of the state,
or a private enterprise?
The private sector is the driving force behind innovation,
providing some 70 percent of the approximately
of invention 2
CHF 22 billion annual expenditure on R&D. The big
corporations lead the charge here. Roche, ABB, Nestlé,
and Novartis each registered between 300 and
What drives this flair 650 patents in 2018, putting them among the world’s
for innovation? top 50 generators of patent applications according
to data from the European Patent Office. Switzerland’s
With no natural resources to draw on, Switzerland small and medium-sized businesses, too, are international
has always prioritized innovation. Given Switzerland’s leaders in taking advantage of the latest knowledge
Switzerland is a nation of inventors, boasting small and highly fragmented internal market, early for their own innovation processes and manufacturing
on Swiss companies also had to look for foreign markets high-quality, specialized products for international
more patent applications per resident than for their goods, and they had to be productive enough niche markets. In a 2014 survey of industrial SMEs
any other country. Global competition, immigration, to compete internationally. Since the country was largely
spared the ravages of the Second World War, it was
by Credit Suisse, around 10 percent of respondents
stated that they were a global market leader for at least
and a strong education system are the fuel in an excellent position – with intact, export-oriented one core product, and 30 percent stated that they
production facilities – to benefit from Europe’s post-war were a market leader for at least one core product in
that powers this flair for innovation. reconstruction. Also helpful were Switzerland’s liberal, one or more countries.
stability-oriented economic policy and traditionally keen
Text: Oliver Adler emphasis on hard work, dedication, and education.
3 What are the
5 How can Switzerland
maintain its
key building blocks top position?
1 How are things
looking for the Swiss
for innovation?
Immigration has always been central to progress, and
Switzerland has consistently attracted highly skilled work
ers over a period of several centuries. There were early
If Switzerland is to maintain its top position internationally,
it must ensure that the necessary conditions for innovation
remain in place. These include, for example, business-
friendly regulations and a moderate level of domestic
taxation, as well as free access to foreign markets wher
spirit of invention? waves of immigration from the 16th to 18th centuries as
Protestant Huguenots from France sought refuge in
ever possible. In addition, it should be made as easy
as possible for Swiss companies as well as Swiss univer
Patent data is generally used to gage the level of success Switzerland. The Huguenots were skilled craftspeople sities to recruit skilled workers from abroad. Finally,
achieved with innovation, i.e. the spirit of innovation. and were instrumental in the rise of the watchmaking and Switzerland must ensure that its education system remains
In 2018, Switzerland ranked sixth in the list of countries precision-engineering industries. After Switzerland was strong. If these basic conditions worsen, it will have
making the most applications to the internationally established as a liberal federal state in 1848, political a hard time competing in the international marketplace.
renowned European Patent Office. Around 5 percent refugees fleeing the authoritarian monarchies of Europe The nation must avoid resting on its laurels.
of all registered inventions worldwide, a total of 7,927 arrived in the country. Among them were professors
applications, originated in Switzerland. Based on popu from Germany, who helped to build up the new Swiss
Oliver Adler
Oliver Adler has worked at Credit Suisse in lation, Switzerland actually tops the list with 956 patent universities. To this day, Swiss universities still make
Zurich since 2009, in Economic Research, applications per one million residents. By comparison, the a key contribution to Switzerland’s innovative strength,
average within the EU is 139 registrations per one million with faculties at ETH Zurich and EPFL in Lausanne
Photo: Thomas Buchwalder
Credit Suisse Wealth Management. He holds
both a Master’s degree in international residents. Switzerland also leads the way when it comes to ranking among the top 20 in the world. It is also worth Find out more!
relations and a PhD in economics from
spending on research and development (R&D). Viewed noting that the dual-track education system, too, provides You can find regular information on the
Columbia University, New York. As the Chief
Economist for Switzerland at Credit Suisse, in the context of gross domestic product (GDP), spending a good foundation for the spirit of invention, promoting Swiss economy and the financial markets
he applies his knowledge to the analysis on R&D in Switzerland is well above the international access to both research and its application as well as a in our online guide at:
of economic and financial developments. average. high level of education across the board. credit-suisse.com/investbetter
18 Aspects February 2020 19Social engagement
The spectacular skikjöring races
are the highlight of the White Turf
event in St. Moritz. As part of its
role as a longstanding partner of this
“Swiss Top Event,” Credit Suisse
awards the Credit Suisse King’s
Cup to the overall winner of the
grand prize – although the “king” has
actually been a “queen” twice now!
Text: Irene M. Wrabel
E
ach year, on three consecutive Sundays in
February, St. Moritz becomes even more
exclusive than usual. This is when the rich and
the beautiful flock to the White Turf event
at the frozen Lake St. Moritz to cheer on the riders –
with champagne and canapés, of course. But anyone
who thinks it’s only about the glamour is very much
mistaken – despite all the VIPs and a host of sophisti
cated fringe events, sport is very much at the heart
of the event.
On the three event days, races are held every
30 minutes on the sparkling, snow-covered frozen
Queen of the
lake. As well as classic flat races and trotting races,
the event features amazing skikjöring races set
against a backdrop of breathtaking mountain scenery.
Considered the highlight of the White Turf event,
skikjöring involves a skier being pulled by a riderless
thoroughbred horse across the pistes, racing at speeds
of more than 50 kilometers per hour. Credit Suisse,
a White Turf partner since 1976, introduced yet another
Engadine
Photo: Swiss-image / Andy Mettler
highlight at the 2016 event to mark the 40th anniver
sary of the partnership. Since then, the overall winner
of the Credit Suisse skikjöring grand prize, the King
or Queen of the Engadine, has been awarded the
Credit Suisse King’s Cup as well as the official prize
money. The three winners of each day’s race also
receive a smaller version of the trophy.
Aspects February 2020 21Social engagement Rubrik
“Skikjöring is dangerous for both
the riders and the horses, so
you need to watch out for yourself
and for others during the race.”
Valeria Holinger, “Queen of the Engadine” 2017 and 2018
King or queen? need to watch out for yourself and for others during
The sport attracts adrenaline junkies, and for many the race,” says the 29-year-old. This includes wearing
years was practiced exclusively by men. But then appropriate protective clothing: “I wear a motocross
along came Valeria Holinger. “I was the first woman to helmet with full visor and motocross body armor that
take part in a skikjöring race,” this ambitious young protects the chest and back. Football pants protect
woman informs me. She also wanted to be the first my upper legs from the snow and balls of ice that the
woman to win the title – “and I did it!” Back in 2017, the horses’ hooves throw up behind them. I also use
second year of the Credit Suisse King’s Cup, she slalom shin guards to protect my lower legs.” And for
Valeria Holinger proudly displays her trophy.
became the first “Queen of the Engadine.” A feat she good reason – accidents can occur at any time.
was able to repeat in 2018, silencing all the naysay “I had a crash a few years ago. Just after the start of
ers: “When I started skikjöring, there was also a lot of the race, another competitor rode in front of my
negative talk along the lines of ‘a woman can’t do horse because he wanted to ride along the inside rails.
that.’ But with two titles in a row, I think I’ve definitely That’s when we collided.” Valeria Holinger was unin
put this negativity on ice,” she says with confidence. jured, but the incident ended the racing career of she visited the stable of a friend during White Turf. During January, Usbekia will be reacquainted with the
There is no doubt that a great deal of courage and her horse. “He’s currently enjoying his retirement in She quickly took a shine to the racehorses and as skikjöring harness again. “She gets excited when she
skill is needed to succeed on the snow. “Skikjöring a paddock,” she tells me. soon as she sat on a thoroughbred for the first time, sees the harness; she wants to get out there again!”
is dangerous for both the riders and the horses, so you she was smitten. “It’s like an addiction in the most
Passion ignited early positive way – you don’t want to do anything else,” Objective: Recapture the crown!
So how did this young woman land upon such an un she gushes. All of this takes considerable effort, especially since
usual passion? It was her father who gave her the Valeria Holinger also has a day job. Here, too, her
skikjöring bug. “As a little girl, I was always attending Love at first sight passion comes into play: “I work as a marketing assis
events and very quickly wanted to have a go myself.” She won her first royal title at White Turf with Usbekia, tant at a ski company and am also responsible for
Credit Suisse – main sponsor However, skikjöring is only permitted from the age of the horse she had been riding since early 2017. She young skiing talent. I look after the athletes’ require
18, so Valeria had to wait patiently for her time to thinks back: “I first met Usbekia in the summer of ments for materials, and search for young talent at
of White Turf come. “The moment I turned 18 I got my skikjöring 2016. I immediately thought she could be a skikjöring various youth races.” She enjoys her work and wants
White Turf celebrates winter sports in a special way: Tradition
license, and first started taking part in the sport horse, but her owner at the time wasn’t thrilled by to go further in the profession. But at the moment,
meets innovation, as horse racing takes place over an icy in February 2009.” To really succeed at skikjöring the idea.” Just a few months later, Usbekia was put up Valeria Holinger is thinking only of one thing: “It goes
course and enthusiastic spectators witness a truly impressive requires a lot of skill and experience. For one thing, you for sale, and Valeria didn’t hesitate. “We had to act without saying that I want to win the grand prize
spectacle. It is because this combination is as fascinating need to be able to stand securely on skis – but this very quickly. Just 24 hours later, Usbekia was ours. again, hopefully with Usbekia. But the most important
as it is unique that Credit Suisse has been involved with White wasn’t a problem for Valeria Holinger, as a former ski Today she is much more than just a racehorse to thing is that we all finish the race in one piece and
Turf for more than 40 years. Since 2016, it has been awarding
the Credit Suisse King’s Cup, created by the Swiss artist duo
racer. Her father, Nicolò Holinger, is a former manager me; she’s a member of the family!” The young athlete’s that the races are fun and fair.”
Aubry/Broquard, as part of the contest for the Credit Suisse of the Suvretta ski school and he put his daughter on success is the result of various distinct elements.
Photo: Valeriano Di Domenico
Skikjöring Trophy. This individually designed trophy is awarded skis as soon as she could walk. But that on its own is As well as having the good luck to find the ideal horse
to all the daily winners and to the overall winner of the grand not enough. As well as the skiing components, the for the sport, Holinger also needs to be extremely
prize, who is deemed the “King of the Engadine.” Further infor- skikjöring exam also includes horse handling, but Valeria disciplined while training: “I train two to three times a
mation about Credit Suisse’s sponsorship commitments can
be found at:
scored well on this part, too. “I started riding at the week and try to develop the strength and endurance
credit-suisse.com/sponsoring age of seven and first did dressage, then showjumping needed for the races. I also ride at least once a week.
whiteturf.ch and endurance riding.” When she was 14 years old, The closer we get to a race, the more sport I do.”
22 Aspects February 2020 23Living
Rubrik Rubrik
Living
Good
maintenance
is half
cleaning costs with a neighbor. It’s also glazing if the exterior walls aren’t insulated. energy and therefore money, as well as
recommended that you descale the boiler As a rule, it is more cost-effective to do benefitting from tax deductions. Secondly,
every five years, as otherwise the water a complete renovation as this means each the Swiss government as well as some
will not be heated efficiently and this will element of the work can be coordinated. cantons and municipalities will grant funding
waste electricity. Finally, to keep your The rule of thumb is that if the estimated for energy-related renovations. To benefit
the battle
property in the best possible condition you cost of renovation exceeds 70 percent from these grants, you will usually need
should check the facade for cracks, have of the property’s value, you should consider to submit a GEAK® Plus certificate
the heating system serviced annually, rebuilding. Unforeseen issues that drive (see box).
and change the filters in the ventilation up costs are a common feature during Having the funds available for mainte
systems. If you’re not confident in assess renovations. nance work is just as important as good
ing the condition of a particular feature Investments in energy-efficient planning. Sometimes it is even possible to
of the property, you can take out a service systems are particularly worthwhile, for a finance maintenance work by increasing
contract with an appropriate specialist. number of reasons. Firstly, you can save your mortgage.
The sort of maintenance work described
above is usually considered value-main
T
Renovation keeps properties in good he mantra “better safe than
sorry” also applies to building
taining. In principle, value-maintaining work
seeks to preserve the condition of the
condition, and careful planning of maintenance. Identifying property, while value-enhancing work seeks
problems at an early stage and to increase its value. The distinction
the work is vital when it comes to saving keeping the property in good condition can between value-maintaining and value-en
prevent more serious damage. Renova hancing work is important when it comes
time and money and preserving the tions and maintenance work are therefore to assessing firstly whether costs can Imputed rental value
value of the property in the long term. crucial in the long run – they prolong the
useful life of various features and generate
be deducted from taxable income, and by
extension the imputed rental value (see in a nutshell
Text: Corinne Brönnimann money savings in the long term. What’s box). In principle, only value-maintaining The imputed rental value is a notional taxable income and corre-
more, value-maintaining work on a proper work can be deducted from the imputed sponds to the income a property owner could earn by renting
ty can be deducted from the imputed rental value; value-enhancing work is not or leasing out the property. The imputed rental value is around
rental value and therefore from taxable deductible. Property owners themselves 60 to 70 percent of what a tenant would have to pay to rent the
property. This notional income is subject to income tax. There
income. But what exactly needs doing decide whether to deduct the cost of main
has been talk of abolishing imputed rental value for many years
to keep a property in good condition? tenance work from their taxable income now, and discussions continue to this day. If imputed rental
There’s no universal checklist on an ongoing basis or as a lump sum of value were to be abolished in line with the current proposal,
for property maintenance because the 10 to 20 percent of the imputed rental property owners would no longer be able to deduct the costs
construction type, building structure, value. One exception to this rule is value- of maintenance work from taxable income. However, given the
numerous uncertainties and objections, the Council of State’s
and use of the property can vary greatly. enhancing investment that increases
Economic Affairs & Taxation Committee has decided to post-
Nevertheless, the roof, drains, and energy efficiency or makes use of renew pone any final decision until further notice. The reform proposal
sanitation facilities in particular should able energy sources such as solar panels.
GEAK® Plus at a glance be maintained on a regular basis. Bricks The cost of this type of work can be
is not expected to come before Parliament any earlier than
spring 2020.
and guttering can cause issues with the deducted from the imputed rental value
GEAK® is the official cantonal energy certificate for buildings.
It indicates the extent to which a property needs modernizing to roof. Broken bricks should be repaired or just like value-maintaining work.
increase energy efficiency. After a thorough analysis, a GEAK® replaced, and leaves and dirt should be
expert draws up a detailed report with recommendations – the cleared from guttering and downpipes on Renovate or rebuild?
Photo: Getty Images
GEAK® Plus. The building envelope, heating, hot water system,
and other electrical devices are taken into account and a set
an annual basis. You should have the
drains and sewage systems cleaned every
Several factors influence whether or not
maintenance work is worthwhile, but good
Do you have questions?
of measures is proposed. It is the ideal basis for starting a build-
ing’s energy renovation. For a list of all certified GEAK® experts,
five to ten years by an expert. To save planning is always key. For example, it Make an appointment with one of our mortgage
see: geak.ch money, you could arrange to share the probably isn’t worthwhile installing insulated experts by phoning 0844 100 114.
24 Aspects February 2020 251 23
Pension provision Pension provision
“The third
pillar Pillar Pillar Pillar
is becoming
increasingly important.”
Employee benefits
insurance – Voluntary private
State pension – maintaining the pension – individual
securing a basic accustomed supplementary
The sustainability of the three-pillar
M
r. Schüpbach, the Swiss people
are growing increasingly concerned standard of living standard of living provision
pension system is currently being about their pensions. How has
employee benefits insurance evolved?
called into question, as highlighted The Worry Barometer and the Youth Barometer have
actually repeatedly highlighted retirement provision as the
by the latest Credit Suisse study, biggest concern among the Swiss people. The second
The first pillar, or the state pension,
is made up of the Federal Old Age
The pension fund is an element
of employee benefits insurance
The third pillar, or private pension,
is used to close gaps in the
“Second pillar: a growing gap pillar of the Swiss pension system, employee benefits
insurance, has not developed in line with demographic
and Survivors’ Insurance (AHV)
and the Federal Disability Insurance
and within the three-pillar system it
belongs to the second pillar. In
first- and second-pillar provision,
particularly if the targeted figure
between generations.” Talking to changes in our society. As a result, the imbalance between
generations has grown over the years. Employee benefits
(IV), as well as any supplementary
payments (EL). It is compulsory
general, when employees turn 25 a
portion of their income is deducted
of 60 percent of the final salary is
not sufficient to maintain the
Aspects, the study’s co-author, insurance is in need of urgent reform.
for everyone and secures a basic
standard of living in retirement,
each month to help them build their
retirement assets. After retirement,
accustomed standard of living. It
consists of Pillar 3a (tied pension
Jan Schüpbach, explains who will What are the challenges currently facing the
or in the event of disability or death.
The first pillar is financed on the
employees may take their retirement
assets as a monthly pension, as
provision offering tax benefits)
and Pillar 3b (flexible pension
a lump sum, or as a combination of provision). The third pillar is voluntary
be most affected and what steps can employee benefits insurance system?
There are two major challenges making things particularly
principle of solidarity: in general,
employees pay contributions from
the two. The second pillar also and helps employees to close
covers mandatory accident insurance their individual pension gaps after
be taken now to mitigate the effects. difficult with employee benefits insurance. Firstly, life
expectancy has increased significantly in Switzerland in
the age of 17, while people who
are not gainfully employed pay
(UVG) and death and disability retirement.
benefits.
when they turn 21; in both cases The reason the private pension is
Text: Katherine Lee recent decades. Men are now expected to live for five
until they reach the regular retirement Together AHV and employee so important is that pension
years longer than they were in 1985, with the figure for age. The employer deducts the benefits insurance are intended to benefits for future generations of
women increasing by 3.7 years. Consequently, pension contributions directly from the salary cover approx. 60 percent of the pensioners are expected to be
funds are having to pay out pensions for longer than and transfers them to the compen- final salary. significantly lower.
anticipated. Secondly, the capital markets have been sation office. Persons who are not
gainfully employed and self-employed
problematic for employee benefits insurance for some years
persons are required to report to
now. Up until the turn of the millennium, on average the compensation office themselves.
46 percent of retirement pension assets were generated
from returns, with employee and employer contributions
accounting for the remaining 54 percent. This meant
that almost half of pension assets was generated from
good capital market investment. This proportion has
now dropped to 26 percent.
26Pension provision
6.74%
5.36%
5.09%
4.70%
In the Credit Suisse study, projections through to insurance together would deliver just 45 percent of the
conversion rate
2065 indicate that expected demographic trends teacher’s final salary. The initial target of achieving
Assumed
will see the risk capacity of pension funds reduced. around 60 percent of the final salary from the AHV and
How can pension funds mitigate these effects? employee benefits insurance is no longer a given, especially
As a result of the Baby Boomer effect, a significant for those in middle- and higher-income brackets.
proportion of retirement capital is shifting from the active
insured to pension recipients. Pension funds are having Can you explain why, for higher-income brackets
to invest the assets of pension recipients over a shorter in particular, the pension gap is growing?
time horizon. By contrast, the assets of the young insured For higher-income brackets, employee benefits insurance
can be invested over the long term, generating more makes up the bulk of income during retirement. As a rule
attractive returns. This shift weakens the risk capacity of of thumb, financial planning often assumes that 80 per
pension funds. Despite this declining risk capacity, however, 100% cent of a person’s final salary is needed during retirement.
projected developments across the market still indicate Even at today’s conversion rates, there is a gap between
Dr. Jan Schüpbach, Senior Economist at
sufficient scope to benefit from high-yield asset classes. the person’s financial needs and the first- and second- Credit Suisse, is co-author of the new study
This does mean, however, that regular asset-liability pillar pensions. Gaps of 45 percent can be expected for on retirement pensions.
analysis, i.e. tailoring investment strategies to the liabilities future generations in the high-income bracket.
of a pension fund, will become increasingly important.
There are various measures available to help future
How exactly are current trends affecting pensions pension recipients improve their financial situation
across generations? during retirement. What are these measures?
80%
Let’s use a teacher in the middle-income bracket as an One obvious and effective approach to reducing the What approach does the Credit Suisse study
example. At the start of the teacher’s career, earnings will financing gap is to raise the retirement age. A longer savings consider most effective when it comes
be around CHF 70,000. We can assume that the salary period allows retirement assets to accrue and a shorter to increasing the sustainability of retirement
will increase to around CHF 100,000 by the point of benefits period enables pension funds to provide a higher provision? Are there trends in other countries?
retirement. Our calculations show that if this person had conversion rate. Voluntary contributions to the second From an international perspective, Switzerland’s
retired in 2010, the AHV and employee benefits insur and third pillars can also reduce pension gaps. When it pension system has lost ground. In the 2019 Melbourne
ance would provide a pension of around 57 percent of the comes to the third pillar, people are encouraged to look Mercer Global Pension Index, for example, Switzer
final salary. Firstly, there would have been a benefit from into securities solutions with better yields. land is ranked 12th. In 2017 it was 8th. Switzerland is
the high yields of past decades; secondly, there is the 60% one of the few countries that has not yet increased
conversion rate of around 6.74 percent. If we compare What early precautions can be taken to prevent state retirement age. There is a trend toward working
this situation to retirement in 2040, wealth accumulation pension gaps? for longer and in some instances even abolishing
57%
will be significantly slower due to lower interest rates. Paying into a private pension early on is key. Making regular a fixed retirement age. Pension benefits are linked to
In addition, the conversion rate is likely to fall to around contributions to the third pillar at the maximum level will life expectancy, thus providing a sustainable pension
5.09 percent. As a result, the AHV and employee benefits have a significant impact. What’s more, the insured can scenario.
48% deduct annual payments into a Pillar 3a pension solution
45% 45% from their taxable income, thus saving tax each year. The
40% current thresholds are CHF 6,826 for salaried employees
and CHF 34,128 for the self-employed. There is also
a good amount of freedom when it comes to choosing an
Pensions will Generational comparison of investment strategy that will achieve the best yields. The
decrease signifi- first- and second-pillar pensions third pillar is becoming increasingly important. If the insured
cantly if measures
are not taken to
in relation to final salaries:
The example of a teacher
is hoping to achieve 80 percent of the final salary as Employee benefits
a retirement pension, investing in a private pension is
address this issue. in the middle-income bracket
shows that, despite higher
crucial. Private pensions enable the insured to actively insurance under the
nominal wages, retirement 20%
manage their retirement provision. microscope
assets will grow significantly
more slowly today due to In its new study “Second pillar: a growing gap between
low yields. Furthermore, generations,” Credit Suisse uses a pension comparison
conversion rates are falling. across four generations of workers to illustrate that the
pensions of future generations are likely to be significantly
lower than those of current pension recipients. In order
Previous income
to maintain the current level of benefits, the pension
Find out more!
Photo: private archive
AHV pension system needs urgent reform and its sustainability must
Employee benefits insurance be ensured for the long term. The study experts discuss
pension For more information about the study “Second pillar: in detail which reform measures would be effective
0% a growing gap between generations,” visit:
Voluntary private provision – and explain how today’s workers can take action now
pension gap 1970–2010 1985–2025 2000–2040 2021–2061 credit-suisse.com/pensionfundstudy to improve their pension situation.
28 Aspects February 2020 29You can also read
