Innosuisse ventured into new dimensions of innovation promotion in 2023. The entry into force of the partial revision of the Federal Act on the Promotion of Research and Innovation (RIPA) on 1 January 2023 made it possible to introduce the new funding instrument called start-up innovation projects and paved the way for direct project contributions to be paid to companies participating in bilateral international innovation projects. Both of these constitute a paradigm shift in Innosuisse’s innovation funding and place additional demands on its project evaluation and project supervision.

Innovation is a recipe for Switzerland’s success. There is no magic formula. The factors are well known: our world-renowned universities, stability, the dual education system and a strong entrepreneurial tradition featuring SMEs and companies whose performance is matched by their innovation. The upheavals that continued into 2022 are conducive to innovation because in an ever-evolving world you cannot rest on your laurels. You need to respond to the new expectations and needs of society and a changing economy.

Innovation helps companies and especially SMEs stay competitive, in particular if they are active at the international level. However, investments in innovation are costly and entail risks. It is important that companies do not forgo promising projects because they are unable to bear the risks on their own. With that in mind, Innosuisse supported numerous innovations by traditional SMEs, by world-leading “hidden champions” or by start-ups in 2022 by covering a portion of these risks. Thanks to this funding approach, Innosuisse has been able to induce positive innovation momentum.

In particular, the assessment of the financial viability and sustainability of a funded project places entirely different demands on the funding agency than is the case for innovation projects where funding contributions are allocated exclusively to eligible research institutions. With that in mind, Innosuisse worked quickly to set up a professional financial due diligence process to continue to ensure the responsible allocation of public funding, even under changed framework conditions. Of course, even the most careful approach cannot guarantee that all the projects supported will be successful and thus generate added value for the economy and/or society. Innovation activity is by definition associated with risks, and Innosuisse’s support is intended to help ensure that projects with above-average innovation potential are still pursued despite the inherent risks involved. Even if success cannot therefore be guaranteed, a review and supervision process in compliance with high quality standards can ensure that companies that prove to be not only competent with respect to innovation but also trustworthy and responsible benefit from the funding.

The year was marked by the Multi-Year Programme 2025–2028, in which we set ourselves the goal of developing our funding activities at the strategic level and contributing to future technological and societal changes by promoting Swiss innovation. The Innosuisse team prepared the changes to implement the partial revision of the Federal Act on the Promotion of Research and Innovation (RIPA). These include greater flexibility with regard to contributions for Swiss innovation projects, the revised funding rules for international innovation projects or the new start-up innovation projects. These changes took effect at the beginning of 2023, while one RIPA provision was enacted early in urgent response to Switzerland’s non-association with Horizon Europe. This meant that Innosuisse was able to launch the Swiss Accelerator as early as April 2022. The transitional measure heralds a real paradigm shift for Innosuisse. For the first time, we are able to provide direct financial support to SMEs and start-ups for highly innovative projects. With 752 applications, the interest was overwhelming.

In 2023, Innosuisse’s funding approvals doubled compared with 2022 to CHF 491 million, reaching an all-time high. This extraordinary result is attributable, on the one hand, to the calls for proposals for the Flagship Initiative and the Innovation Boosters, which usually take place every two years. In both cases, eight proposals were approved in 2023. The eight flagship projects on the topic of «disruptive solutions for the transition to a net-zero world» are being funded with a total funding amount of just over CHF 35 million (excluding overheads of CHF 5.3 million). The projects focus in particular on the areas of energy storage, circular economy and sustainable construction and renovation. The eight new Innovation Boosters cover a wide range of innovation topics – from artificial intelligence and fashion to agriculture and ageing. On the other hand, the Swiss Accelerator also made a very significant contribution to the high funding amount. Innosuisse designed and launched this transitional measure for the very first time in 2022, on behalf of the federal government and within a very short space of time. It approved the first 53 projects with funding totalling CHF 112 million in the first half of 2023. Innosuisse is thus making a significant contribution towards mitigating the disadvantages faced by Swiss companies – in this specific case SMEs and start-ups – as a result of being excluded from the EU’s Horizon Europe research programme.

Innosuisse was able to demonstrate its flexibility and capacity for innovation in 2023 with the successful implementation of the Swiss Accelerator and the start-up innovation projects. The additional work involved has seriously challenged its performance limits and, in particular, those of its militia-based system. It is thanks to the great commitment of all the people and committees involved that both the new and established instruments were processed on time and to a high standard.

Innovation projects remain the core focus of Innosuisse’s funding. The demand for Swiss innovation projects in 2022 was high, with Innosuisse receiving 896 project applications. The impulse programme “Swiss Innovation Power”, launched in 2021, entered its second year. Compared to the 376 impulse applications received in 2021, 395 applications were submitted for such innovation projects in 2022 with an application volume of CHF 186.5 million. These applications for impulse projects thus account for 44 percent of all applications for Swiss innovation projects in terms of number, and 48 percent in terms of requested funding amount.

Innosuisse experienced strong demand in the other funding areas as well. While the Start-up Coaching was down versus 2021, the decline is likely akin to normalisation following the spike in demand in previous years due to pent-up demand. For their part, the internationalisation camps for start-ups experienced strong and encouraging demand. In the international domain, and irrespective of Switzerland’s status as a third country, projects submitted under Horizon Europe partnerships also gained in importance, particularly in the area of “Key Digital Technologies”.

Thanks to the new funding conditions, international cooperation – especially bilateral international cooperation – has seen particularly encouraging development. For example, the first joint call for projects between Innosuisse and its British partner organisation Innovate UK resulted in an unexpectedly high number of joint project applications, totalling over 100. The two partner organisations were ultimately able to finance 28 bilateral projects, with more than CHF 9 million in funding each.

The start-up sector was also particularly dynamic in 2023. After years of rather stagnant demand, the coaching offer experienced an above-average level of interest, recording 519 applications – an all-time high. At the end of the year, a total of 598 start-ups were receiving coaching from Innosuisse. This shows that despite the more difficult environment recently, the Swiss start-up scene is still dynamic and exhibits great promise, even if it remains reliant on continuous support. Based on a new concept, Innosuisse also launched a WTO call for proposals in 2023 to engage suitable new service providers for the entrepreneurship training modules it funds. Over the coming years, young people – in particular students at Swiss universities – will also be offered an attractive training programme that opens up the world of entrepreneurship to them, shows this path as a serious alternative and offers initial tools to help them along the way.

At the end of 2022, Innosuisse was able to announce a call for proposals under the Flagship Initiative thanks to additional funds from the budget envelope for transitional measures for Horizon Europe. This call for proposals aims to support disruptive solutions for the transition to a net-zero world through systemic and transdisciplinary innovation.

Institutional collaboration with the Swiss National Science Foundation (SNSF) once again played an important role. On the one hand, work has been initiated to further optimise the joint BRIDGE programme with a view to the 2025–2028 funding period. On the other, a working group has been set up based on past experiences to look into how the two organisations can work together even more closely in future within the framework of the National Research Programmes (NRP) to maximise their potential for implementation. At an international level, the attribution of the 2025/2026 Eureka presidency to Switzerland was a success. Careful preparations also had to be made for the Taftie presidency, which began on 1 January 2024. The two presidencies will give Innosuisse the opportunity to present itself, Swiss innovation promotion and Switzerland’s innovative strength in the best possible light and to further strengthen international networking.

Not only did Innosuisse work closely with the Swiss National Science Foundation (SNSF), it also continued to intensify cooperation with the partners within the regional innovation systems (RIS) and to expand bilateral partnerships, particularly with South Korea and Canada.

Innosuisse sustained its efforts in 2022 to promote research and development in all sectors so that many Swiss companies continue to rely on innovation. Because we are convinced that it is in our country’s interest if companies can harness innovative solutions to improve their competitiveness, while at the same time making a contribution to addressing the challenges of today and tomorrow at the global level.

2023 is likely to go down in Innosuisse’s history as an extraordinary business year for many different reasons. On the one hand, even if the association with Horizon Europe is unsuccessful in 2024 and further transitional measures are adopted, it will probably not be possible to surpass the number of funded grants so quickly, irrespective of the current demand and reported need. Unfortunately, the austerity measures expected at the federal level over the coming years also suggest this to be the case. On the other hand, the novelties introduced in 2023 as part of innovation project promotion are likely to have finally opened a new door to a more contemporary, internationally competitive Swiss innovation funding programme. Innosuisse is taking on the responsibility associated with this with real conviction and drive.