High Tech Heart of Europe: SWITZERLAND MATTERS

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High Tech Heart of Europe SWITZERLAND MATTERS!

• U.S. Embassy, Bern
• Julie Snyder, Senior Commercial Officer
• Aschi Hegg, Commercial Specialist E-Business
  Leader Europe
  
• Marianne von Kaenel,
• Commercial Assistant

• Zurich America Center
• Sandor Galambos,
• Senior Commercial Specialist
• Elisabeth Mbitha-Schmid, Commercial Assistant

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Appearances Can Be Deceptive
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US-Swiss Bilateral Trade

• Switzerland is the 17th Largest Trading Partner
  for the U.S.
  
• U.S.-Swiss Bilateral Trade Grew by 20.6 in 2006
  to Reach USD 28.6 billion
  
• U.S. Exports to Switzerland Valued at USD 14.8
  Billion in 2006
  
• The Fastest Growing Market in Europe and Fourth
  Fastest Growing Market in the World for U.S.
  Exports
  
• U.S.-Swiss Bilateral Trade Comparable to
  Bilateral Trade with Italy and with Spain and
  Four Times Larger than U.S.-Austrian Trade
  

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U.S. / Swiss Trade by Main Commodity Groups
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Swiss Economic Indicators

• Population of 7.5 million
• GDP in 2006 of about USD 378 Billion
• About 50 of Switzerlands GDP is generated by
  exports.
  
• U.S. is second most important market after the
  EU.
  
• Estimated Economic Growth Was 2 in 2006
• Forecast Growth of 2.5 for 2007

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Bilateral Direct Investment

• After the EU, U.S. is second largest investor in
  Switzerland
  
• Switzerland is sixth largest investor in the
  U.S.
  
• Over 650 U.S. firms with a presence in
  Switzerland, employing about 70,000
  
• Growing number of U.S. firms with regional
  Europe/Middle
  
• East/Africa sales/operations
• Advantageous multilingual/multicultural business
  environment
  
• Highly educated, skilled labor force many
  commute from bordering countries of Germany,
  Italy, and France

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Examples of U.S. High Tech Companies in
Switzerland

• Google SwitzerlandEuropean RD Center
• IBMMajor RD Center in Switzerland
• Hewlett-Packard International
• eBay International HQ in Bern
• MedtronicManufacturing and Regional HQ
• GEManufacturing and Sales through 20 Operations
  in Switzerland
  

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Swiss Position in R D
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Switzerland as a Research Hub

• Strong RD in biotech, nanotech, pharmaceuticals,
  chemicals, electronics, metallurgy and machinery
  
• Public sector investment in RD of USD 12 billion
  from 2004-7.
  
• Two-thirds of total RD investment is funded by
  1,000 companies predominantly in chemical,
  pharmaceutical, biotech, and food sectors
  
• RD activities support growing demand for a wide
  range of high tech products and services
  

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Switzerland as a Research Hub

• Switzerland ranks among the worlds top five
  countries for RD, investing 2.6 of GDP.
  
• Thirty-five universities and institutes with
  leading RD laboratories.
  
• Strong cooperation and networking between
  industry and universities to support innovation.
  
• Venture Capital funds are now the highest in
  Europe and growing rapidly, especially for
  biotech.
  

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Major Commercial Centers
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Greater Basel Area
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Market Characteristics

• World-class infrastructure 
• High concentration of computer and Internet usage
  per capita  
  
• Business-friendly legal environment and few
  market impediments 
  
• Few large companies small high tech
  manufacturers throughout the country and
  dependent on trade for survival
  
• Producer of high quality, valued-added goods
• Highly automated manufacturing sector
• Demand for high quality products with competitive
  prices
  
• Strong competition from EU suppliers

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Market Characteristics

• Switzerland at epicenter of European competition
• Innovative products often introduced first in
  Switzerland
  
• Ideal test marketEurope in Miniature
• Follows EU regulations for standards, packaging,
  and labeling
  
• Additional standards for medications, cosmetics,
  and chemicals
  
• Switzerland as a Gateway to Europedistribution
  channels to EU
  
• Multilingual and multicultural marketGerman,
  French, and Italian
  

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Market Strategies

• Express commitment to market
• Establish long-term relationships
• Work directly with a Swiss importer/distributor/en
  d-user
  
• Meet customers needs prepare to sell in small
  volumes
  
• Offer high quality and environmentally-friendly
  products
  
• Enter market early for competitive edge
• Consider regional and global potential of
  prospective Swiss customers

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Major Swiss High Tech Market Segments

• Aerospace and defense
• Biotech
• Factory automation
• Laboratory and scientific equipment
• Medical devices and technologies
• Nanotechnology
• Precision instrumentation
• Security and safety equipment

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Swiss Market for Laboratory Equipment and
Scientific Instruments

• Total market demand valued at an estimated USD
  804 billion.
  
• U.S. imports valued at an estimated USD 95
  billion.
  
• U.S. market share of about 45, valued at USD 580
  million for relevant software, data acquisition
  and processing.
  
• Procurement at federal and cantonal levels
  covered by WTO GPA Major tenders on CS EU and CS
  Switzerland websites
  
• Annual federal budgetary increase of 7 for RD
  and education leading to growing procurement of
  advanced scientific/lab equipment
  

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Best Prospects for Lab/Scientific Equipment

• Spectrometers
• LC and gas chromatographic analyzers
• Ion selective analyzers
• Systems for titration, extraction, and
  supercritical extraction
  
• Robotized systems
• Automated analytical systems
• Measuring instruments for pH, redox, temperature,
  conductivity, etc.
  
• Precision flow metering instruments
• 3-D simulation software for laboratory
  applications

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ILMAC 200725 - 28 September 2007

• Industry Exhibition for Research and
  Development,Environmental and Process
  Technologyin Pharmaceuticals, Chemicals and
  Biotechnology
• Trade Promotion Commerce-certified trade show
  covering the Greater Basel Area market for U.S.
  suppliers to the biotech, chemical,
  pharmaceutical and food industries from RD
  through production

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Swiss Market for Safety and Security Equipment

• Total market demand of about USD 450 million, and
  U.S. market share of 42.
  
• Government and private sector investment driving
  annual growth in demand of 5-7
  
• Demand growing for wide range of equipment and
  solutions for access control, biometrics,
  forensics, detection, surveillance and law
  enforcement
• U.S. equipment has competitive edge--high
  quality, technologically advanced and
  sophisticated
  
• Switzerland--international financial turntable
  with growing security needs

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Best ProspectsSafety and Security Equipment

• Airport passenger and baggage screening
  equipment
  
• Biometric identification systems for public and
  private sector applications
  
• Forensic equipment
• Alarm and surveillance systems with advanced
  electronics
  
• IT security and encryption systems

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Swiss IT Market

• Market demand nearly USD 30 billion with
  estimated growth of 30 over next two years
  
• Among highest per capita spending in world for
  IT
  
• Ranked among top five in world for all aspects of
  IT
  
• Flexible market open to new developments
• About 70 of population has broadband Internet
• Switzerlandhome to many U.S. regional HQs
• Finance, banking, pharmaceutical, chemical, food
  and trading sectors demand advanced IT solutions
  

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Best Prospects for IT

• Hardwaredesktops, laptops, servers, security and
  storage hardware and related software
  
• Enterprise software and tools
• Mobile communication hardware and software
• IT consulting and outsourcing
• IT hardware and software for federal, state, and
  local government
  
• Advanced web applications and services

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Case Study NTM Exporter with Hardware-based
Encryption Solution

• Product Hardware-based solution to encrypt
  critical data in applications and databases.
  Customer base includes banks and computer
  manufacturers.
• Challenge Needed a Swiss partner getting an
  initial foot in the door with Swiss banks
  reluctant to use U.S. encryption technology in
  secure banking operations.
• Solution CS Switzerland found two partners in
  IT security and secured appointments with CIOs in
  top banks. Company currently performing
  proof-of-concept trials (average 80 success) in
  Swiss and Liechtenstein banks.

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Case Study Security Equipment Exporter Needs
to Support European Sales

• Product Medium-sized, experienced exporter of
  law enforcement and CIS and forensics equipment
  
• Challenge Needed CS assistance in establishing
  European sales HQ and warehouse operation in
  Switzerland by acquiring existing Swiss company.
  
• Solution To support the investment decision, CS
  helped to clarify complex issues on export
  licensing and arranged company meetings with
  Swiss authorities to evaluate the impact of
  projected duties and local taxes on the
  operation. Major in-roads in Swiss market,
  successful warehouse operation, re-evaluation of
  shipping in light of license delays.

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Case Study Internet-based e-Commerce Solution

• Product Rapidly growing software company with
  100 employees. Proprietary software for a
  ready-to-use web-based, real-time solution to
  automate distributed order and transaction
  management
• Challenge Finding the right customers in a
  small market with little demand for CRM and DCM
  
• Solution Through Gold Key, targeted major Swiss
  exporters to the U.S. that needed a turnkey
  solution for e-commerce orders, shipping, and
  CRM. Major customers Nespresso, Swatch Group,
  Tag Heuer, Swiss Tourism. Now starting to
  support its Swiss customers in other European
  markets.

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