Life sciences generate CHF 28.3 billion in direct value in Western Switzerland

A new study by BAK Economics shows that the life sciences sector generates CHF 20.6 billion in direct value added in Western Switzerland, and CHF 28.3 billion once its ripple effects across the regional economy are taken into account.

Commissioned by the Groupement Romand de l’Industrie Pharmaceutique (GRIP), the study is the first to systematically measure the economic weight of life sciences across Western Switzerland. It was co-financed by Bristol Myers Squibb, CSL, Debiopharm, Eli Lilly, Haleon, iQone, OM Pharma, Sanofi and UCB Farchim, with the support of GGBa.

The findings were unveiled on 6 October 2026 at a press conference on the Biopôle campus in Lausanne, followed by a panel discussion with Isabelle Moret, Vaud State Councilor and head of the Department of Economy, Innovation, Employment and Heritage, alongside representatives of GRIP and Haya Therapeutics.

The sector generates around 7% of the regional economy’s value added and employs 38,155 full-time equivalents (FTEs), just over 2% of regional jobs. At CHF 539,000 per job, its productivity is the highest of any industry in Western Switzerland: more than three times the regional average of CHF 178,000 and almost double that of the financial sector (CHF 288,000). Nearly one in two employees holds a university degree.

Between 2015 and 2025, the sector’s real value added more than quadrupled, compared with a factor of 2.4 for life sciences in the rest of Switzerland. Employment grew by 55%, against 13% for the rest of the regional economy. Over the decade, life sciences accounted for around 42% of Western Switzerland’s total real value-added growth, and the region now generates 29% of Swiss life sciences value added.

A ripple effect across the regional economy

The impact extends well beyond the sector itself. Every CHF 100 of direct value added generates around CHF 40 more in other branches of the regional economy. Including suppliers and employee spending, 83,136 FTEs, or more than 98,000 people, depend directly or indirectly on life sciences, while the total income effect doubles from CHF 4.5 billion to CHF 9.0 billion. Retail, hospitality and culture benefit most (CHF 1.8 billion), followed by business services and the industrial and energy sector.

Western Switzerland also stands out as an innovation hub. It accounts for 36% of all Swiss life sciences patents, 41% of medtech patents and 51% of world-class Swiss medtech patents. Between 2020 and 2024, 36% of Swiss life sciences start-ups were founded in the region, which attracted CHF 10.5 billion in venture capital. EPFL ranks 12th worldwide in chemistry, 15th in data science and AI and 37th in biology, while the University of Geneva (UNIGE) ranks 71st in pharmacy. With 124 authorized pharmaceutical production sites, more than any other Swiss region, Western Switzerland exported CHF 17.1 billion worth of life sciences goods in 2025, roughly CHF 5,000 per inhabitant.

The report also gives a voice to players in the ecosystem. Simon Rothen, CEO of the translational research center sitem-insel in Bern, sees in the Lake Geneva region “something akin to a complete translational value chain,” a “considerable competitive advantage that is very difficult for another region to simply reproduce.” Carmen Jungo Rhême, Director of the Biofactory Competence Center at the School of Engineering and Architecture of Fribourg (HEIA-FR), stresses the need to preserve the quality of university education while strengthening ties between academia and industry.

A survey of 26 leading life sciences companies identifies political and macroeconomic stability as the region’s strongest assets, followed by access to sector-specific specialists. Proximity to universities and research institutes is the only location factor where the region’s perceived positioning exceeds the importance companies attach to it. The study also points to areas for action: sector-specific regulation on approvals, pricing and clinical trials, defending tax competitiveness under the OECD minimum tax, and improving access to high-quality health data for AI applications. Among global trends, companies rate US reference pricing models as the most relevant to their business.