Federal Research: How R&D Spending is Changing
A new FSO time series covers up to 2025. The Confederation's internal R&D activities are minor compared to the private sector and universities, but concentrated in a few state institutions.
What is Research and Development?
Research and development involves systematic work to gain new knowledge or apply existing findings for new uses. This includes basic research, applied research, and the development of new products or processes.
Basic research primarily aims to gain new scientific knowledge, without needing a specific application in mind. Applied research, however, pursues a specific purpose. Experimental development uses existing knowledge to develop new products, processes, or production methods.
The FSO time series considers so-called intramural expenditures. These refer to research and development activities conducted by an organization itself. For the Confederation, this includes federal offices and legally independent federal institutions that carry out their own research.
The Confederation: A Minor Research Actor
In 2023, the Confederation's own expenditure on research and development amounted to 239 million Swiss francs. This placed the Confederation significantly behind Switzerland's two major research sectors.
The private sector spent 17.958 billion Swiss francs on its own research and development activities in the same year. Universities accounted for 7.359 billion Swiss francs. The Confederation's share was less than one percent of Switzerland's total intramural expenditure.
SectorInternal R&D 2023Private Sector17.958 billion Swiss francsUniversities7.359 billion Swiss francsConfederation239 million Swiss francs
This comparison highlights the distinct functions of each sector within the Swiss research system, rather than competition. Companies primarily invest in R&D with economic applications, while universities allocate a significant portion of their resources to scientific basic research. The Confederation, in turn, focuses its own research activities on specific government tasks.
Federal Spending Has Increased Long-Term
The FSO time series extends back to 2000, allowing for a longer-term perspective. Available survey data indicates that the Confederation's internal R&D expenditures have significantly increased over time.
In 2000, these expenditures were around 139 million Swiss francs. By 2019, it was 214 million, and in 2021, already 231 million Swiss francs. Between 2019 and 2021, this represented an average annual increase of about four percent.
However, for context, it is important to note: The amounts are reported at current prices and are therefore not adjusted for inflation. An increase in nominal spending does not automatically mean that real research output has increased to the same extent.
WBF Accounts for a Large Share
Federal research is highly concentrated. As early as 2021, 77 percent of the Confederation's internal R&D expenditure was attributed to the Federal Department of Economic Affairs, Education and Research (WBF).
This corresponds to 178 million Swiss francs. Following were the Federal Department of Home Affairs (EDI) and the Federal Department of Defence, Civil Protection and Sport (VBS), each with about seven percent. The remaining federal agencies combined accounted for eight percent.
The WBF's high share is particularly linked to Agroscope. The Confederation's competence center for agricultural research is one of the most important research institutions within the federal administration.
The Confederation Conducts Almost Exclusively Applied Research
The difference from universities is particularly evident in the type of research. In 2021, approximately 99 percent of the Confederation's internal R&D expenditures were allocated to applied research.
Only about one percent was spent on basic research, and also about one percent on experimental development. For universities, the ratio was almost reversed: approximately 77 percent of their R&D expenditures in 2021 were for basic research.
This is not a coincidence. Federal research is often directly linked to specific government tasks – such as agriculture, health, environment, defense, or social and economic issues.
What the Time Series Does Not Show
The figures should not be equated with the Confederation's total research expenditures. The FSO time series measures research and development that the Confederation conducts itself.
This is distinct from, for example, research funds that the Confederation grants to universities, companies, or other institutions. Such externally funded research activities may be recorded in other statistical categories.
Therefore, those who only look at the 239 million Swiss francs for 2023 underestimate the Confederation's importance to the Swiss research system. The figure primarily indicates the size of the research apparatus within the federal government – not all research made possible by federal funds.
Swiss Research is Primarily Driven by Companies and Universities
The overall picture of the Swiss research landscape is clear. In 2023, approximately 17.96 billion Swiss francs of intramural R&D expenditure were attributed to the private sector. Universities accounted for 7.36 billion Swiss francs. The Confederation followed far behind with 239 million Swiss francs.
The pharmaceutical industry plays a particularly strong role within the private sector. In 2021, it accounted for about 6.2 billion Swiss francs in research and development. Information and communication technologies, along with other technology-intensive sectors, also contribute significantly to Swiss research output.
Switzerland thus has a research system heavily distributed between companies and universities. The Confederation plays a smaller, yet targeted role within this system.
Why This Development Is Still Relevant
The comparatively small sum should not obscure the fact that federal research holds particular significance for certain areas. Where research is directly linked to government tasks, the Confederation may require its own knowledge that is not solely provided by companies or universities.
This is precisely where the value of the new FSO time series lies: It does not simply show how much Switzerland as a whole spends on research. It reveals how the Confederation's own research output develops over a long period and where these activities are located within the federal administration.
A Small Sum with a Clear Function
The figures thus present a nuanced picture. The Confederation's own R&D expenditures are small compared to Switzerland's overall research output. At the same time, they are heavily concentrated on applied research and a few institutions.
The new time series extending to 2025 allows for the first long-term view of this development. However, when evaluating a single year, one must distinguish between nominal expenditure growth, actual research output, and the Confederation's total research funding.
The central finding is therefore not that the Confederation spends little on research. What is crucial is rather what research the Confederation conducts itself – and what research it funds through other institutions. Only together do both areas provide a complete picture of the state's role in the Swiss research system.
Sources
- Federal Statistical Office (FSO), Time series "Intramural Research and Development of the Confederation – 2000–2025".
- Federal Statistical Office, "Research and Development in Switzerland", Data on Intramural Expenditures.
- Federal Statistical Office, Switzerland Synthesis, 2023/2025 Edition.
