A RISING POWERHOUSE OF THE FRIBOURG ECONOMY
ETUDE DE BAK | 04.09.2024

The canton of Fribourg has a booming life sciences sector. But how important is it for the cantonal economy? This was the question that the Fribourg Economic Development Agency (FDA) and GRIP, the trade association for the pharmaceutical industry in French-speaking Switzerland, commissioned BAK Economics, an independent research institute, to answer.

The study, which surveyed the major players in the industry, was co-funded by GRIP, the FDA, CSL Vifor, Medion Grifols Diagnostics, OM Pharma Switzerland, UCB Farchim and Verfora. What follows are the main takeaways from the report, which was made possible thanks to a partnership between public and private actors.

High value added and productivity

Several sectors of the Fribourg economy – construction, food and real estate – generate impressive value added. But none can beat the one and a half billion Swiss francs generated by the life sciences industry. Behind this accomplishment are 3,200 full-time equivalent (FTE) posts, which makes the sector 3.2 times more productive than the cantonal average and puts it at the top of the canton’s productivity rankings.

The rate of employment and value-added growth in the life sciences sector has outpaced that of the cantonal economy. In the last 10 years, the industry has recorded a value-added growth rate that is 2.8 times higher than the cantonal average.

This exceptional performance is down to the industry’s high value-added activities, which include production, research and development (R&D) – one in every 12 jobs is in R&D – and the sale of its goods and services. Fribourg’s life sciences industry relies on a highly qualified workforce to perform this work. A total of 60% of its employees have a higher education qualification compared to 38% in the cantonal economy as a whole.

Indirect effects and multiplier effects

The production, R&D and commercial activities of life science companies indirectly generate close to CHF 2 billion in turnover, which amounts to 10% of the Fribourg economy. Many regional companies benefit from the purchases and investments that life science companies make, and from their employees’ consumer spending. In 2023, these indirect effects totaled 420 million francs in value added, 3,379 FTE jobs and 301 million francs in wages.

For every 100 francs of value added directly generated by the life sciences industry, an additional 27 francs are generated in other industries. In terms of employment, for every job created in the life sciences sector, one additional full-time post is created in the cantonal economy.

Content and illustrations sourced from the BAK Economics report, ‘The importance of the Life Sciences sector for the economy of the canton of Fribourg’ (September 2024)