Innovation -- Swiss Thinking

Innovation -- Swiss thinking (1)

Ren Dingqiu, deputy director of the Institute of foreign studies, Beijing Academy of Social Sciences

Contemporary managers: Why are Swiss companies innovative?

In the first place, Switzerland's domestic market is small and its space is limited, and its export space is limited. The European market determines that its export products must be high quality. Secondly, Switzerland has a special geographical position and is surrounded by countries such as France, Germany and Italy. The national people themselves have linguistic advantages and multi lingual abilities, so the Swiss have strong communication and communication ability, and have the innate conditions to deal with foreign markets. Third, the domestic legal system is sound, the protection of intellectual property rights is great, and the ability of innovation can be protected. Fourth, Switzerland's education is developed, especially its vocational education is developed, which can provide high-quality professional talents, and from another angle, high-quality personnel can also reduce the hidden cost of human consumption. Ren Ding Qiu: from a macro perspective

Switzerland has every three years to investigate the innovation situation of domestic enterprises. The survey has a complete investigation system, and the investigation items are very detailed. From 1993 to recent years, a number of surveys show that 82% of enterprises believe that they carry out innovative activities, and Swiss R & D investment accounts for 2.7 to 3% of GDP each year, of which 2/3 is invested by enterprises, and enterprises are the main force of R & D innovation.

Contemporary managers: what are the characteristics of Swiss enterprises?

Rapidly occupy a large market share in this narrow field and accumulate market thresholds. Second, most of the Swiss enterprises choose high-end products, even the manufacturing industry is also an advanced manufacturing industry. Swiss enterprises are good at small scale high value-added products, even though they are limited in output, but they can make good use of excellent workmanship to become the pronoun of this industry. The profits are quite high; third, the service industry is developed, and Swiss enterprises insist on high-end positioning even in finance, insurance and other fields, such as private banking business; fourth, Swiss enterprises have strong coordination and matching capabilities, and small and medium-sized enterprises have the core technological advantages or tied up with large enterprises, which will make a supporting product best and rely on big trees. Ren Ding Qiu: first, Swiss companies choose to enter the market in a highly fragmented market.

Contemporary managers: what are the reasons for these characteristics of Swiss enterprises?

Ren Ding Qiu: first of all, the executives of Swiss enterprises are mostly technical backgrounds. They know very well about the technology in their respective fields. They can grasp the quality of products well. Second, Switzerland is an international market, with German, French and Italian people. The domestic consumption level is high. The domestic market has already accepted the examination of consumers from different cultural backgrounds. Third, the Swiss are relatively cautious. Therefore, the Swiss enterprises do very careful and thorough research on the previous market research, which not only avoids the blindness of entry, but also enables them to have a full understanding of a new market.

Contemporary Manager: what are the successful experiences of Swiss enterprises in international development?

Ren Ding Qiu: there are several main points. First, the prudence of the Swiss enterprises, which has been fully investigated in the early stage, and some Swiss enterprises have conducted seven or eight years' research into China. Secondly, the Swiss have a strong sense of communication and cooperation. The multi-ethnic and multi lingual environment in China enables them to quickly adapt to different cultures, and has strong cross-cultural communication ability. Many Swiss people are all Chinese; third, they have the long-term development consciousness and planning, localization consciousness and sustainable development ability.

Contemporary Manager: what is the development trend of R & D centers of Swiss SMEs in China?

Ren Ding Qiu: most of the Swiss enterprises in China are located in the mainland and coastal cities such as Shanghai, Beijing, Guangzhou and Shenyang. The R & D centers of the enterprises are mainly concentrated in Shanghai and Beijing.

According to the data of 2007, there are about more than 200 R & D institutions, so the competition for talents is fierce and the R & D cost is high.

Now, more and more new enterprises are located in two tier cities such as Chengdu, Chongqing and Dalian, and their R & D institutions are also shunting to two tier cities.

Innovation -- Swiss thinking (two)

Thomas Holenstein, special commissioner for Chinese Affairs, Swiss Economic Promotion Agency

Wen / reporter Wang Xijun

Contemporary managers: Swiss SMEs are called the most competitive enterprises in the world. Would you like to talk about what policies Switzerland has made for the development of small and medium-sized enterprises (big enterprises)?

Holenstein: Switzerland is a small country, which means that enterprises in Switzerland can only develop to a certain scale.

Compared with Chinese enterprises, Swiss enterprises have to open up international markets earlier.

This may also be a key factor for global success of large Swiss enterprises (such as Nestle, ABB, Holcim, Roche, Novartis, Xian Zhengda, Swatch group, Credit Suisse, etc.), which are larger than Switzerland's size, and Switzerland's SMEs are also internationally successful for the same reasons.

The Swiss government is fully aware of this. It provides a very lenient law for small and medium enterprises, no currency exchange restrictions, and a mature and globally avoided double taxation agreement.

The Swiss Council for trade and investment promotion (OSEC) and Swiss export promotion agencies are providing first-hand information for all Swiss enterprises interested in exporting, which is free to a certain extent.

In addition, Swiss export risk guarantee can help enterprises circumvent certain overseas financial risks.

Contemporary Manager: what influence does Swiss culture and environment play in creating competitive SMEs?

Holenstein: Switzerland is one of the highest per capita GDP in the world. At present, the figure is far more than sixty thousand US dollars. This is the result of high efficient labor in Switzerland and the foundation of high wages for Swiss labor force. The beautiful environment, pure rivers and lakes, and air pollution are decreasing, which improves the quality of life in Switzerland. The quality of life is the foundation of people's health. In international companies, Swiss people feel very happy in their work, so the annual rate of retirement is one of the lowest in the world.

All above are the foundation of Switzerland's high productivity and global competitiveness.

Contemporary managers: what are the main differences between Chinese SMEs and Swiss SMEs?

Holenstein: in Switzerland, enterprises with less than 250 employees are called small and medium-sized enterprises, while in China, enterprises with thousands of employees are still in the category of small and medium-sized enterprises.

There are, of course, many cultural differences. Swiss companies are more concerned with strategic formulation and organizational functions than their Chinese counterparts.

Contemporary managers: what are the experiences and advantages of SMEs in China?

Holenstein: whenever they want to go abroad, they should fully realize that the legal, cultural and social structure of other countries is very different from that of China.

Just as foreign companies have had to work hard to learn how to succeed in China in the past few decades, Chinese enterprises must do so when they go out.

Especially in Europe, Chinese enterprises must recognize the great differences between European countries.

It is suggested that Chinese enterprises should not be limited to the first choice. They should carefully examine the business environment of different countries, such as labor law, management, taxation, exit barriers, etc.

Generally speaking, the world competitiveness report issued by Lausanne International Management College of Switzerland will be of great help.

Contemporary managers: what are the advantages of Chinese SMEs in their own characteristics?

What about big enterprises in China?

Holenstein: the advantages of Chinese enterprises are manifold.

They know how to operate in China, and benefit from lower labor costs and rapidly expanding local markets.

Chinese enterprises do not need cross-border operations, and can only develop for decades in China.

Contemporary Manager: what kind of Chinese enterprises are suitable to go abroad and invest and develop in Switzerland?

Holenstein: basically, the three types of Chinese enterprises are more suitable: trading companies, companies that develop overseas markets and manufacturing companies overseas.

Switzerland is particularly attractive when Chinese companies start to set up European headquarters or trading companies.

They do not need to invest a lot of money, as long as an organization structure is established for managing and supervising European affairs for fewer employees.

Switzerland's exclusive location in the CBD, the use of multiple languages, well-educated labour resources and numerous tax saving opportunities are all the reasons why Switzerland is so attractive.

All enterprises, no matter which industry, can carry out such operations.

In recent years, more than 1000 foreign companies have established their European or even global headquarters in Switzerland.

"Contemporary manager": the Swiss Economic Promotion Agency will introduce the situation in Switzerland to the provinces of China every year, and organize the Chinese economic circles to take a field trip in Switzerland.

What's the reaction of the Chinese investigation team?

What is the assessment of the Swiss team by the Chinese investigation team?

Holenstein: at the beginning of the survey, they did not think that Switzerland was a very competitive commercial station. They knew more about Swiss watches, banking and beautiful natural scenery.

But once they reach Switzerland, they find Switzerland is the world's top 500 largest company with per capita ownership, and their ideas are beginning to change.

They note that the output of 1 employees in Swiss enterprises can be equated to the output of 3-4 workers in China.

Contemporary managers: there are executives who say that the competitiveness of SMEs in Switzerland is mainly manifested in the following aspects: 1, to achieve the ultimate goal of products; 2, to win credibility by quality; 3, to segment the market; 4, to cooperate and support; 5, to attack four sides; 6, to reduce costs.

Is this the case with the observation and study of the Swiss Economic Promotion Agency?

Do you think there are other advantages to be complemented?

Holenstein: basically, I agree with the points mentioned above, but once Swiss enterprises find that they can not continue to maintain competitive products in Switzerland, they will also develop abroad.

This process has been going on, and the Swiss economy has changed a lot in the past 60 years.

Only high-end products such as life sciences, machinery, watches and so on are still being manufactured in Switzerland and supplied to the international market.

In addition, the fashion industry, which was once one of the pillar industries in Switzerland before first Century, has almost disappeared.

Contemporary Manager: what do you think is the most important growth breakthroughs in the development of small and medium-sized enterprises to large enterprises?

Holenstein: first of all, an enterprise should have a unique product and be protected by good intellectual property rights, such as having a patent or trademark; the product must satisfy human needs (such as solving a problem) or generate new needs; after that, enterprises should pay attention to marketing and distribution.

A well developed business model should be: create a new brand, realize a completely barrier free sales network, and provide products to consumers while ensuring profits.

Contemporary Manager: has Swiss history suffered from the deterioration of the economic environment?

How did we face and solve this problem in order to survive the "cold winter"?

Holenstein: Yes.

Switzerland suffered an economic recession in 90s. Real estate prices declined sharply and industrial structure changed, resulting in an increase in unemployment rate.

Thanks to the export industry, the financial centre of Switzerland, and hundreds of foreign companies choosing Switzerland as their European trade center or European headquarters, Switzerland finally returned to economic growth.

Foreign companies chose to settle in Switzerland because there is a better business environment than other European countries, and this situation is continuing.

Now many American and European enterprises, as well as more and more enterprises in Russia and India, have begun to base themselves on Switzerland.

Contemporary Manager: do you think the average size of China's small and medium enterprises?