When digitalisation becomes invisible: What the Technology Outlook reveals about the future of the Swiss economy

Fewer digital technologies in the Technology Outlook do not mean less digitalisation, but more. The latest trends show a radical shift in the Swiss innovation landscape and reveal four critical areas of action that will determine success or failure.

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A paradoxical observation characterises the Technology Outlook 2025 of the Swiss Academy of Engineering Sciences SATW. The number of purely digital technologies listed in the study has fallen drastically, while manufacturing processes, materials and energy technologies are on the rise. Does this mean the end of digitalisation? On the contrary. It is a sign of its complete penetration of our economy, which is why it is a less prominent topic in the Outlook. After all, it evaluates the technology fields that will gain in importance over the next three to five years.

Digital technologies are not disappearing, they are becoming invisible. What used to be considered an independent field of research is now integrated into almost every innovation. From CO2-based plastics to battery technologies and the circular economy, software plays a central role without explicitly appearing as a digital technology.

The analysis of 31 technologies by 158 experts reveals three defining developments. Firstly, the digital transformation is progressing to such an extent that it is becoming the basis for all other innovations. Secondly, materials are moving to the centre of attention, driven by disrupted supply chains, raw material shortages and sustainability pressures. Thirdly, a CO2 economy is emerging in which the greenhouse gas is turning from a problem into a valuable raw material.

A closer look at digital technologies in the Technology Outlook 20205 reveals three directions that will shape the future of digitalisation.

Data processing in new dimensions

The first dimension encompasses the traditional core business of IT, but today on a completely different level. Photonic integrated circuits use light instead of electrons for data transmission and promise dramatic gains in speed and efficiency. Quantum computers will open up completely new areas of computing power in the future. And large language models will make it possible to process unstructured data on a large scale for the first time.

A double movement is taking place. Horizontally, more and more areas are being digitised, from smart ovens to AI-supported word processing. Vertically, the depth of penetration is increasing. Systems are not just collecting data, they are actively intervening to control it. Traffic data flows back into the transport system and regulates it dynamically.

Seamless integration instead of isolated systems

The second dimension shifts the focus from technology to people. What used to be the task of UX designers at the end of product development is now at the centre of innovation. IT is increasingly being seamlessly integrated into work processes instead of people having to adapt to rigid systems. Human-machine interaction is moving from a peripheral topic to a core competence.

Efficiency as a driver of innovation

The third dimension is driven by a shortage of resources. Data centres are desperately looking for potential savings in power consumption. Photonic integrated circuits could make a significant contribution here. At the same time, there is growing pressure to recycle electronic waste and recover valuable raw materials. Second-life applications for batteries and other components are turning from a niche topic into a business model.

Four critical fields of action

The discussions with 160 experts revealed four problem areas that will determine the success or failure of the Swiss innovation landscape.

The commercialisation gap

There is a gap between research excellence and commercial success. In an international comparison, few attempts are made in Switzerland to transfer research results into start-ups and spin-offs. The few start-ups are often confronted with a lack of venture capital. 86 per cent of the venture capital invested in Switzerland comes from abroad. Despite Switzerland's locational advantages, this figure is significant.

Shortage of skilled labour intensifies

Companies are increasingly struggling to find qualified personnel. Whether there is an actual shortage or a lack of applicants, the level of suffering is high. Paradoxically, companies are also offering fewer internships and junior positions, which is likely to exacerbate the trend in the long term. A vicious circle with foreseeable consequences.

Networking as a location factor

Industry representatives would like to have easier contact with academic research. There is also a need for ecosystems in which similar or complementary companies can share premises and infrastructure. Expensive infrastructure in particular, which individual companies cannot afford, is thus becoming a location factor beyond low taxes and beautiful landscapes.

SMEs and the digital transformation

Despite top marks in international rankings, Swiss SMEs are lagging far behind when it comes to digitalisation. Many are downright failing at digital transformation or are at least severely overstretched. This is particularly explosive, as digital expertise is no longer optional, but is becoming a matter of survival.

Recommendations for politics, business and education

The findings of the Technology Outlook result in clear recommendations for action. The commercialisation gap requires better framework conditions for spin-offs and targeted venture capital from domestic sources. The shortage of skilled labour calls for more apprenticeships and a rethink of entry-level positions. Networking requires physical and institutional infrastructure that facilitates cooperation. And the digital transformation of SMEs requires low-threshold support services and practical guidance.

The Technology Outlook 2025 makes it clear that Switzerland is at a crossroads. The scientific excellence is there, the technological possibilities are there. Whether this will lead to economic success depends on whether the identified fields of action are tackled consistently. Time is pressing, because international competition is not sleeping.

The Technology Outlook 2025 is published by the Swiss Academy of Engineering Sciences SATW on behalf of the Swiss Confederation. Claudia Schärer and Stefan Scheidegger from the Foresight team compiled the Technology Outlook 2025. The study analyses forward-looking technologies and their significance for the Swiss economy and society every two years.