The Data Economy in Switzerland

Data is an intangible good. It can be sold, licensed or made available free of charge for further use. Unlike oil or water, data does not run out, although it can become outdated.

Data and the knowledge gained from it are of central importance to Switzerland’s economy and competitiveness. As part of its work on companies’ handling of data, the Swiss Federal Institute of Intellectual Property (IPI) has commissioned a research and consulting company to compile data on the Swiss data economy.

An unprecedented development with enormous potential

Art: ISTOCK/SCHARFSINN86

Not long ago, crude oil was considered the world’s most important raw material. Oil companies topped the list of the most valuable companies. Within a few years, however, there has been an impressive changing of the guard. Big internet and technology companies now lead the list. There is no doubt that collecting and analysing data is an important part of their business model. But data is also being diligently collected and analysed in other supposedly less data-savvy areas, such as on the good old farm.

Source: www.forbes.com

Source: www.forbes.com

The increase in the amount of data and the ability to actually utilise it is one of the most significant changes taking place worldwide. Two factors in particular have favoured this development. Firstly, falling costs of data collection/storage have contributed to a growing amount of data. Secondly, sophisticated methods of data evaluation such as machine learning have allowed for more targeted analysis in order to derive greater benefit from the data.

Data can help companies to provide better services and manufacture better products, increase the efficiency of processes and make more effective decisions.

Statistics on the data economy

The IPI has commissioned IDC, a research and consulting company, to compile statistics on the development of the data economy in Switzerland and prepare them graphically. This information is intended as a knowledge base for anyone interested in the data economy and as an aid for decision-making by experts from academia, business and administration.

The data economy deals with the generation, collection, processing, analysis and use of data as an intangible good. It encompasses various aspects including data management, data analysis and data-based innovation.

The estimated total value of the Swiss data economy for 2025 is around 45 billion euro, which corresponds to 6.3% of gross domestic product. This share is significantly higher than the EU average of around 4.9% and underlines the already advanced use of data in the Swiss economy. The Swiss data economy has been growing for years, increasing by almost 50% since 2020, and forecasts up to 2030 predict further strong growth.

The following indicators show where Switzerland stands in comparison to the EU member states in terms of the size of the data economy, employment of data specialists and the development of data companies.

Source: European Data Monitoring Tool, IDC 2022

Analysis of the data economy: an overview

Analysis of the data economy: value and impact on GDP

The data economy measures the direct and indirect impacts of data on the economy as a whole. It involves the generation, collection, storage, processing, distribution, analysis, preparation, delivery, and exploitation of data enabled by digital technologies. Therefore, on the one hand, the data economy includes the data market, where digital products and data-enabled services are exchanged, generating innovation, improving production processes, and allowing for an enhanced customer experience and understanding. On the other hand, the data economy captures a wider reality as it incorporates the value and wealth generated in the economy as a whole (not just across businesses) through the exploitation of data.

Analysis of the data economy: number and employment share of data professionals

Data professionals are workers who collect, store, manage, and/or analyse, interpret, and visualise data as their primary or as a relevant part of their activity. Data professionals must be proficient in the use of structured and unstructured data, be able to work with huge volumes of data and be familiar with emerging database technologies. They prepare and visualise structured and unstructured data to support analysis and decision-making processes.

Analysis of the data economy: number and share of data companies

Data companies are organisations that are directly involved in the production, delivery and/or usage of data in the form of digital products, services and technologies. They can be both data provider and data user organisations.