The reasons for the blockade on the old continent are manifold, but they can be summed up in one word: lack of risk appetite. While the US develops, tests, and brings new technologies to market without hesitation, Europe—and with it Switzerland—keeps its foot on the brake. Endless debates revolve around whether innovations might be too risky and whether even more regulation is needed. The result? While the US transforms innovation into economic power, Europe is steadily losing ground.

The precautionary principle: from shield to brake on innovation

A prime example of this standstill in Switzerland is the precautionary principle. Originally designed to minimize risks, it has today degenerated into a dogma. New technologies are only approved once all potential risks can be excluded with absolute certainty—an impossibility. In plain terms: before innovations can even be tried, they must be dissected from every angle. The result? Stagnation.

This attitude is particularly damaging in future technologies such as genome editing and artificial intelligence. While other countries such as the US boldly break new ground, approve technologies, observe them, and regulate them later if necessary, Switzerland becomes entangled in a precautionary regulatory debate that paralyzes progress. Those who demand one hundred percent safety in innovation will end up with nothing at all.

From nation of innovation to museum?

With this overcautious attitude, Switzerland is steering into a dead end. While scientific breakthroughs are being put into practice elsewhere, Europe remains bogged down in bureaucracy. Urs Hölzle, one of Google’s first employees, summed it up precisely in an interview with NZZ:

“In Europe you spend 99 percent of the time discussing the dangers and regulations of new technologies and only 1 percent on the opportunities.”

His conclusion: Europe mistakenly believes that inaction is risk-free—a fallacy. The best example? The European car industry, which delayed innovation and was then overtaken by Tesla and others.

Switzerland has the potential—but fails to use it

Switzerland still has it: cutting-edge research at its universities, innovative companies, world-leading ideas. But far too often this spirit of research encounters politics and administration that prefer to play it safe rather than promote innovation. For a long time, the country has also suffered from the fact that venture capital for start-ups is not available to the same extent as in the US. This may have cultural reasons, but it is also a reflection of investors perceiving and shying away from regulatory risks. Yet: nothing ventured, nothing gained.

Politically, Switzerland would do well to orient itself more toward the US than toward the hesitant EU. This way, cutting-edge research would increasingly meet the necessary capital, enabling pioneering research to be turned into innovative products—made in Switzerland.