Patrick Barbey (Innovaud): "Lausanne is an European Hub for Deep Tech"

Patrick, can you briefly describe Innovaud's current mission and the points of contact between the various adjoining industries and Switzerland's overall ambition as a leader in the space industry?

We do this with a focus on various sectors. We have, of course, life sciences, which are quite strong in the region, food technology like Nestlé, and so on. Of course, one of the main sectors is space technology and robotics…

…because these niches drive the internal market in terms of technology…

PB: Yes, deep tech really is a strategic Swiss value, especially in the region, not just with EPFL, but with the Swiss Center for Electronics and Microtechnology - CSEM, the University of Lausanne, etc. There's a lot of research going on here that goes very deep into our space quest.

Around 20 years ago, several spin-off start-ups were created and this created a culture in this ecosystem of supporting advanced technology start-ups by funding the initial phases. We apply non-dilutive funding and then venture capital funds take the funding to the next level: series A, B and so on. What we're doing today is connecting this wealth of knowledge with foreign visitors, but also supporting local innovators.

You've seen several companies exhibiting here, for example. One example would be PAVE Space which is a new and fast-growing company, providing engineering services in guidance, navigation and control and simulation solutions for Space mobility and logistics.

What role Innovaud plays within these ecosystems?

PB: We try to foster these ecosystems by leveraging Switzerland's strength in research and deep technology, but also rely on the fact that we are a hub in the heart of Europe and founding members of ESA. The country is a great place to operate a business and thrive research centres, because it's easy to connect with neighbouring countries. We also have many free trade agreements with China, India and the United Arab Emirates, for example. What's more, we have a very good labour framework, combining access to talent, access to research and a very favourable venture capital environment.

Last year, we saw an increase in venture capital investment in this region, with just over half a billion Swiss francs invested in deep tech start-ups in all categories. As a result, we were also detected by Startup Genome, one of the world-leading innovation ecosystem development organisations, which ranks innovation ecosystems around the world. Last year we were ranked 11th among emerging ecosystems, and this year we are expected to enter the top 10. Western Switzerland is an ecosystem in itself, and within the whole of Switzerland, we are a benchmark for deep tech.

I've already seen, from being here, that these areas are all interconnected in a great collaborative ecosystem. As you just mentioned, you have start-ups, scale-ups and investors who are very keen to witness this upward phase in the country. How is the economic landscape here in Switzerland changing as a result?

PB: Overall, the Swiss economy has always been very creative, because the country doesn't have many raw materials or natural resources like oil. So we needed to forge a creative society right from the start. That's probably why Nestlé started here back in the 19th century. It is therefore essential for our companies to adopt an innovative stance in their business.

Today we see in Switzerland, and especially here in Western Switzerland, a great diversity of up-and-coming companies, many SMEs - more than 99% of the companies are actually SMEs. At their base, they are quite sophisticated within their supply chain - I'm talking about the watchmaking industry, but also medtech and fintech which have a similar level of quality. The space industry is not far behind. That level of quality needs to be employed on a very regular basis. So, there is a very diverse set of expertise. That's why our ecosystem of companies is quite resilient.

And if we talk about some kind of resistance in building this creative economy. What kind of challenges have you faced?

PB: In terms of the global economy, there have been some crises in recent years, with COVID-19 leading the way. However, the Swiss national economy has been very resilient, able to adjust production capacity, reduce margins and innovate in development. If you take the example of Nespresso capsules, even today 100% of them are produced in Switzerland for the whole world. This means that production is very efficient and highly automated.

So there is this demand for innovation for all types of industry, getting infusions from research institutions. There are many mechanisms to capitalise on this research. One of the main ones is the support of Innosuisse, our federal agency which, among its many activities, finances collaborative projects between laboratories and industry. These could be start-ups, SMEs or multinationals. This transfer of technology to current products in markets with real customers is financed and supported by Innosuisse. A fundamental mechanism for capturing the real value found in universities and transforming it into economic value.

Tell me how the conference sector can expand or broaden your economic footprint, both for investors, producers, stakeholders and also as a showcase for these innovations.

PB: It's very important because Switzerland is, first of all, a small country and a geographical heartland in the centre of Europe. We have all these types of industries I mentioned, but we still fall short in our marketing and visibility strategies. While some countries have a great marketing heritage to build on in areas that are still very early in their evolution, Switzerland is still associated with the textbook idea of yesteryear.

Then there's the challenge of making innovation public and known to the world. Congresses and events like this highlight what is happening in Switzerland – and when investors come, they are surprised. Often, it's more a question of motivating them for a first visit and revealing what's here than getting them to invest or settle in the country. Curiously, they have a great image of Switzerland – the mountains, the cows, the chocolate, the watches –  but innovation isn't exactly on their minds. Although we've been leaders in innovation for 15 years, there's a kind of dissonance in the investor community. So, our great resource is to bring people here through big congresses and exhibitions.
 

Note: This interview was produced in collaboration with the Space Cities Network as part of HQ’s editorial partnership. 

Don't miss our special report on Space Community Days in the upcoming summer issue of HQ #120
 

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