Swiss companies could be denied access to EU innovation procurement funds
Keystone / Peter Schneider
The European Commission intends to reform the European Union’s public procurement market. This could prevent innovative Swiss firms from bidding for funds.
The EU aims to promote innovation within member states. Public funds are also to be channelled into these initiatives. New rules may soon be introduced that govern how these funds are allocated.
This is an important decision for Switzerland, a centre for research and development that is closely intertwined with Europe. However, according to the EC’s proposal, Swiss companies will, in principle, not be allowed to bid for the public procurement funds.
The funding is aimed at new experimental technologies – solutions that local authorities or public enterprises want to procure but which are not yet available on the market.
Examples include robots for hospitals or artificial intelligence (AI) software for rubbish collection.
The EC wants to simplify this area of public procurement. This is because, out of every €100 (CHF94) spent on public procurement in Europe, only 60 cents is currently invested in innovative projects. The equivalent figure in the United States is 50 cents for every €7, according to the EC.
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The EU wants to catch up and thereby strengthen innovative sectors in Europe. According to EU Commissioner Ekaterina Zareva, this should be done on a cross-border basis.
Key technologies
Very often, key technologies are too expensive to develop within a single member state. Like other procurement regulations, the new law provides for a European preference.
Some 50% of the funding is to remain within the EU or in countries with relevant agreements. These include the European Economic Area (EEA) states and countries in the Balkans. Switzerland does not have such an agreement.
As a non-member, it cannot benefit from its status as a major centre for research and innovation. The exclusion, however, is not directed against Switzerland, the EU Commissioner said.
Once Switzerland ratifies the Bilateral III accords, which would clarify its relationship with the EU, Swiss companies could also benefit, according to sources in Brussels.
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Swiss concerns
The fact that the EU gives preference to its own market is not entirely new. But representatives of the Swiss business community are concerned.
Stefan Brubacher, director of Swissmem, the association representing the mechanical engineering, electrical and metalworking industries, expressed disappointment. “This naturally harms Switzerland, but above all it harms the EU,” he said.
“Swiss companies and universities are among the best and most important partners, including our research infrastructure. Our companies have a great deal to contribute in this area,” said Brubacher.
This leaves Switzerland in the position of having to convince the EU to include it in the new rules governing innovation procurement.
Translated from German, sub-edited by Matthew Allen/gw
