Switzerland’s Performance and Trajectory in Dual-Use Technologies (2025)

Executive Summary

Switzerland maintains a robust position in the global landscape of dual-use technologies, leveraging its tradition of scientific excellence, political neutrality, and innovation-friendly ecosystem. This report assesses Switzerland’s current performance and trajectory in seven critical dual-use technology domains—3d-printing, cloud-computing, composite-materials, edge-computing, facial-recognition, smart-materials, and sustainable-materials—through the lens of six leading organisations: 9T Labs, Bcomp, Bloom Biorenewables, DePoly, Hivenet, and Idiap Research Institute.

Switzerland’s strengths are most pronounced in composite-materials, sustainable-materials, and smart-materials, with notable advances in 3d-printing and facial-recognition. The country’s innovation ecosystem, supported by a collaborative public-private-academic framework, has fostered several globally competitive firms and research initiatives. However, Switzerland faces challenges in scaling cloud and edge-computing solutions, and in the global competitiveness of its AI and facial-recognition offerings.

Looking ahead, Switzerland is well-positioned to expand its influence in sustainable and advanced materials, while opportunities remain to strengthen its digital infrastructure and export capabilities. Strategic collaboration, continued investment, and proactive risk management will be essential to maintain and enhance Switzerland’s dual-use technology leadership over the next five years.

Strengths

Advanced Materials Innovation

Switzerland is recognized as a global leader in advanced materials, particularly through the activities of Bcomp, Bloom Biorenewables, and DePoly. These organisations exemplify Switzerland’s ability to commercialize cutting-edge research in composite-materials, smart-materials, and sustainable-materials. Bcomp has pioneered natural fiber composites with applications in automotive, aerospace, and sports, balancing high performance with sustainability. Bloom Biorenewables has developed bio-based alternatives to fossil-derived chemicals, supporting the shift to sustainable-materials in multiple industries. DePoly’s chemical recycling technology addresses the pressing issue of plastic waste, enabling circular economy models.

3D-Printing Capabilities

9T Labs is at the forefront of 3d-printing, especially in the domain of continuous fiber-reinforced composites. Their integrated hardware-software solutions enable the production of lightweight, high-strength components, with direct applications in aerospace, automotive, and defense. Switzerland’s strong engineering base, coupled with a skilled workforce and supportive regulatory environment, has enabled rapid prototyping and small-batch production for dual-use applications.

Research Excellence in AI and Edge Technologies

The Idiap Research Institute is internationally renowned for its work in artificial intelligence, machine learning, and signal processing, including facial-recognition and edge-computing. The Institute’s collaborations with both government and industry have resulted in robust facial-recognition algorithms and edge-computing solutions that are privacy-aware and energy-efficient. Switzerland’s decentralized data protection laws and high public trust have facilitated the responsible development of these technologies.

Sustainable and Smart Materials Ecosystem

Switzerland’s commitment to sustainability is evident in its support for sustainable-materials and smart-materials. The convergence of environmental policy, industrial demand, and consumer awareness has driven innovation in this sector. Companies like Bcomp, Bloom Biorenewables, and DePoly benefit from strong public and private funding, as well as access to world-class research infrastructure.

Collaborative Innovation Environment

Switzerland’s innovation ecosystem is characterized by strong collaboration between universities, research institutes, startups, and established industry players. The Swiss government’s support for dual-use technology development, through agencies such as Innosuisse and the Swiss Innovation Park, has accelerated the commercialization of research outputs. Cross-border partnerships, especially with EU and NATO countries, enhance Switzerland’s access to markets and knowledge networks.

Weaknesses

Limited Scale in Cloud and Edge Computing

While Switzerland has a vibrant ICT sector, its global presence in cloud-computing and edge-computing is limited compared to US, Chinese, and even some European competitors. The domestic market is small, and Swiss cloud providers face challenges in achieving the scale, interoperability, and price competitiveness of hyperscalers like AWS, Microsoft Azure, or Alibaba Cloud. Hivenet has made notable progress in decentralized cloud solutions, but widespread adoption and international expansion remain limited.

Geopolitical Constraints and Export Controls

Switzerland’s tradition of neutrality and strict export controls can limit the international deployment of dual-use technologies, particularly in sensitive areas such as facial-recognition and advanced composites. Regulatory uncertainty and the need to comply with both Swiss and international frameworks can slow time-to-market and complicate cross-border collaboration.

Talent Competition and Retention

Although Switzerland attracts top-tier talent, the high cost of living and competition from larger tech hubs (e.g., Silicon Valley, Berlin, London) can make recruitment and retention challenging, especially for scale-ups in competitive fields like AI, cloud, and edge-computing.

Fragmentation and Siloed Innovation

Despite a collaborative culture, there are instances of fragmentation, with innovation efforts sometimes siloed within specific cantons, universities, or industry clusters. This can hinder the formation of critical mass in emerging technology domains and limit the transfer of knowledge between sectors.

Limited Domestic Defense Market

Switzerland’s relatively small defense sector and cautious procurement policies can limit the domestic uptake of dual-use technologies, especially those requiring significant capital investment or long-term government contracts. This may impede the scaling of promising innovations for defense applications.

Notable Programmes & Investments

9T Labs

9T Labs has secured significant venture capital funding (Series B in 2024) and public grants to expand its 3d-printing platform for continuous fiber composites. The company collaborates with ETH Zurich and several European aerospace and automotive OEMs, positioning its technology for both civil and defense applications.

Bcomp

Bcomp has partnered with Airbus, BMW, and the European Space Agency to deploy its natural fiber composite solutions. In 2023, Bcomp received a CHF 25 million investment round to scale its production facilities and R&D. The company is also part of EU-funded Horizon Europe projects focused on sustainable mobility and lightweighting.

Bloom Biorenewables

Bloom Biorenewables leads a consortium of Swiss and EU partners developing lignin-based chemicals and polymers as sustainable-materials. The company has received Innosuisse and EU Green Deal funding, and is piloting industrial-scale production with major chemical and packaging firms.

DePoly

DePoly has developed a proprietary chemical recycling process for PET plastics, with pilot plants operating in Switzerland and Germany. The company’s technology has attracted investment from both climate-tech funds and strategic industry partners, including a recent partnership with a global defense contractor to explore closed-loop materials for military supply chains.

Hivenet

Hivenet focuses on decentralized, secure cloud-computing and edge-computing solutions. The company has received Swiss National Science Foundation grants and is piloting its technology with Swiss financial institutions and public sector agencies. Hivenet’s platform is designed to meet stringent Swiss data privacy requirements, with potential applications in secure government and defense communications.

Idiap Research Institute

The Idiap Research Institute leads multiple national and EU-funded projects in facial-recognition, edge-computing, and AI for security applications. Idiap’s facial-recognition algorithms are recognized for their accuracy and bias mitigation. The Institute collaborates with Swiss law enforcement, border control agencies, and international partners on biometric security solutions.

Competitive Comparison

3D-Printing

Switzerland, through 9T Labs, is a recognized innovator in 3d-printing of advanced composites, though it competes with US (e.g., Markforged, Carbon), German (EOS), and Israeli (Stratasys) firms. Swiss solutions are differentiated by their integration of hardware and software, and their focus on continuous fiber reinforcement, but face challenges in scaling production and reducing costs.

Cloud and Edge Computing

Swiss firms like Hivenet offer privacy-centric cloud-computing and edge-computing platforms, but lack the global scale and ecosystem integration of US and Chinese hyperscalers. Switzerland’s strengths lie in niche, high-security applications, but broader market penetration is limited by scale and interoperability constraints.

Composite, Smart, and Sustainable Materials

Switzerland is a global leader in composite-materials, smart-materials, and sustainable-materials, with Bcomp, Bloom Biorenewables, and DePoly at the forefront. Swiss companies are highly competitive in terms of sustainability, performance, and regulatory compliance, often setting industry benchmarks. However, they face increasing competition from Scandinavian, German, and Japanese firms, particularly in scaling production and accessing Asian markets.

Facial Recognition and AI

The Idiap Research Institute is internationally respected for its research in facial-recognition and AI, but the commercial deployment of Swiss solutions is less widespread than US (Clearview AI, Microsoft) or Chinese (SenseTime, Megvii) competitors. Swiss offerings are distinguished by their focus on privacy, accuracy, and ethical AI, which appeals to European and select global markets.

Opportunities for Collaboration / Export

EU and NATO Partnerships

Switzerland’s association with EU research frameworks (Horizon Europe) and its observer status with NATO provide opportunities for collaborative R&D and technology export, particularly in sustainable-materials, smart-materials, and secure communications. Joint projects in defense mobility, energy-efficient infrastructure, and biometric security are areas of mutual interest.

Export of Sustainable and Smart Materials

Swiss innovations in composite-materials and sustainable-materials are in high demand among international automotive, aerospace, and defense firms seeking to meet stringent emissions and circular economy targets. Bcomp and DePoly are well positioned to expand exports to EU, US, and Asian markets, leveraging Switzerland’s reputation for quality and regulatory compliance.

Secure Cloud and Edge Solutions

With growing concerns over data sovereignty and cybersecurity, Swiss cloud-computing and edge-computing solutions (e.g., Hivenet) can appeal to governments, critical infrastructure operators, and defense agencies requiring high-assurance data protection. Opportunities exist for niche exports to the EU, Middle East, and Asia-Pacific.

AI and Biometric Security

Swiss expertise in privacy-preserving facial-recognition and AI (e.g., Idiap Research Institute) can be leveraged in international collaborations on border security, critical infrastructure protection, and humanitarian applications, especially where ethical and regulatory considerations are paramount.

Technology Transfer and Licensing

Swiss organisations can pursue technology transfer and licensing agreements with international partners, particularly in sustainable-materials and advanced manufacturing. The country’s strong IP protection regime and neutral stance make it an attractive partner for joint ventures and cross-border R&D.

Risks & Mitigation

Export Control and Regulatory Risks

The dual-use nature of these technologies exposes Swiss firms to complex export control regimes (Swiss, EU, Wassenaar Arrangement). Failure to comply can result in legal penalties and reputational damage. Mitigation includes proactive compliance programs, engagement with regulatory authorities, and regular staff training.

Geopolitical and Market Access Risks

Switzerland’s neutrality can both facilitate and hinder market access, especially as geopolitical tensions rise. Restrictions on exports to certain countries or regions may limit growth. Diversification of markets and the establishment of local partnerships can mitigate these risks.

Cybersecurity and Data Privacy

As Swiss cloud-computing, edge-computing, and facial-recognition solutions gain international traction, they become targets for cyberattacks and data breaches. Investment in cybersecurity, regular third-party audits, and adherence to international data protection standards (GDPR, Swiss FADP) are essential.

Talent and Skills Shortages

Competition for skilled personnel in AI, materials science, and cybersecurity is intense. Swiss firms must invest in talent development, international recruitment, and partnerships with universities to maintain a competitive edge.

Supply Chain and Scaling Challenges

Scaling production of advanced materials and 3d-printing components can be hampered by supply chain disruptions, regulatory hurdles, and capital constraints. Building resilient supply chains, securing strategic raw materials, and forming manufacturing alliances are key mitigation strategies.

Outlook (5-year)

Continued Leadership in Materials Innovation

Over the next five years, Switzerland is expected to consolidate its leadership in composite-materials, smart-materials, and sustainable-materials. Bcomp, Bloom Biorenewables, and DePoly are well positioned to scale their innovations, supported by increasing demand for sustainable solutions in mobility, defense, and infrastructure. The country’s regulatory environment and reputation for quality will underpin export growth.

Expansion in 3D-Printing for Dual-Use

9T Labs and other Swiss firms are likely to expand their 3d-printing capabilities, moving from prototyping to small-batch and eventually medium-scale production. Advances in continuous fiber-reinforced composites will open new applications in defense, aerospace, and high-performance engineering.

Niche Growth in Secure Cloud and Edge Solutions

While Switzerland is unlikely to challenge hyperscalers in mainstream cloud-computing, it will carve out a niche in high-security, privacy-centric cloud and edge-computing applications. Hivenet and similar firms will benefit from increasing regulatory scrutiny of data sovereignty and the need for trusted infrastructure in critical sectors.

Ethical AI and Biometric Security

The Idiap Research Institute and its partners will continue to set benchmarks in ethical, privacy-preserving facial-recognition and AI. Swiss solutions will find growing markets in Europe and select global regions where regulatory compliance and trust are paramount.

Strategic Collaboration and Export

Switzerland will deepen its collaboration with EU and NATO partners, leveraging its innovation ecosystem for joint R&D, standard-setting, and technology export. The country’s ability to navigate complex regulatory and geopolitical environments will be tested, but its agility and reputation for neutrality will remain assets.

Challenges Ahead

Key challenges will include scaling production, maintaining talent pipelines, and navigating evolving export controls. The risk of technological leapfrogging by larger players remains, particularly in AI and cloud. Proactive investment in R&D, international partnerships, and regulatory engagement will be required to sustain Switzerland’s competitive position.

Conclusion:
Switzerland’s performance in dual-use technologies is underpinned by strengths in advanced materials, 3d-printing, and ethical AI, with a trajectory that favors sustainable, high-value, and secure solutions. While challenges in scale, market access, and talent remain, the country’s innovation ecosystem and strategic orientation provide a solid foundation for continued leadership and export growth in the coming five years.