Engagement
Digital technologies and new business models are constantly impacting and changing the economy – and the business location of Basel is no exception. In addition, transformation areas are facilitating the rise of new economic fields. The Canton of Basel-Stadt supports the positive dynamics of digital change in the economy and its businesses.
Economic Areas and Area Development
Basel’s market for economic areas has experienced a period of normalisation following the end of the Covid-19 pandemic. As a consequence, the market moved at higher intensity. Basel was the site of large office space leases and saw rental rotations of big corporations. New industrial and commercial real estate opportunities like the «Werkarena» business park have expanded the property range on offer. The diversity of available real estate might even further increase in the future, given the potential availability and use of several transformation areas that will enter the market. A case in point are laboratory spaces that currently enjoy high demand. The annual Economic Areas Report, compiled and published by the Office of Economy and Labour, provides a useful overview on the latest trends and developments.
Of particular interest are the markets for office and laboratory spaces. The inauguration and occupation of Roche Tower 2 («Bau 2») has reduced pressure on the market for office spaces in the inner city and around the main train station. The increased demand for office spaces was not entirely able to keep up with the growth of inventory resulting in a slightly higher supply rate. Office availability, however, continues to remain in a healthy range. The opposite is true for laboratory spaces where demand outpaces low levels of supply. A number of real estate investors have taken note of this opportunity and will bring a diverse range of offerings in development areas like «Klybeckplus» and the «Stücki Park» to market in the coming years. These areas offer a unique opportunity for investors to diversify and move from the highly competitive market for office space towards an offering of more specialised real estate solutions mainly for biotech companies.
Economic Policy
The Economic Development of the Canton of Basel-Stadt is committed to initiatives that maintain the high attractiveness of the location for existing companies and new arrivals alike. This includes, for example, the design of measures in the context of the OECD minimum tax rate, the primary goal of which is to secure the attractive location benefits and maintain value added, jobs and tax revenues. Furthermore, joint efforts and additional instruments from the Federal Government and the Cantons are needed to ensure the continued appeal of Basel-Stadt in a competitive global marketplace. Among those are contributions to research and innovation, funds to strengthen universities and cutting-edge medical science/technology, and to provide a highly attractive professional environment and quality of living for highly skilled talent.
In the past year, the Office of Economy and Labour supported the Head of the Department of Economic, Social and Environmental Affairs and Cantonal Government in the following areas:
Federal Level
- Revision of the Federal Law on Patents for Inventions;
- Impact of Switzerland's non-association with Horizon Europe;
- Non-updating of the Agreement on the Removal of Technical Barriers to Trade (MRA);
- Erosion of further bilateral agreements between Switzerland and the EU (erosion monitoring);
- New implementation plan for the Regional Innovation System Basel-Jura in compliance with the New Regional Policy (NRP) of the Swiss Federal Government
Cantonal Level
- Cooperation in the planning of measures in the context of the OECD minimum tax;
- Economic Areas on Transformation Sites;
- Logistics Cluster Basel Region;
- Life Sciences Cluster;
- Sector Programme Finance;
- Data-based health economy;
- Congress City Basel;
- State Initiative Digitalisation in the Health Sector;
- SME Strategy;
- Sustainable Food/Nutrition Strategy
and many more.
The Economic Development teams work closely with their colleagues in the Office of Economy and Labour on economic policy. Together they support the management board, the Head of the Department of Economic, Social and Environmental Affairs, and the Government of Basel-Stadt.
2023: The Year of Insurance Companies
On 30 June 2023, Basel’s St.Jakob-Park transformed into the venue for the «Tag der Versicherer 2023», the annual event of the Swiss Insurers’ Association (SIA/SVV). The crucial role of the insurance industry particularly for the stability and security of the economy was front and centre. A plethora of diverse keynotes, speeches and a panel discussion were united in emphasizing the pivotal contributions of the insurance industry to the wealth and allure of Switzerland as an international centre of finance, and to an empowering framework as a precondition for any successful economy. More than 2'000 leaders from Switzerland’s businesses, policy-making, science and government participated in the annual landmark event of the Swiss Insurers’ Association.
A similar signalling effect is the new «Helvetia Campus Basel», a headquarters expansion and renovation project by Helvetia Insurance Group. In the fall of 2023, Helvetia was able to announce and celebrate the successful completion of the first stage of construction.
In addition to the new auditorium conjoining the campus’ imposing, multi-story twin towers, the project includes the creation of even more office space and areas for social encounters and exchange that will open to the public by 2027. The «Helvetia Campus Basel» is not only an architectural and cultural enrichment of the cityscape, it also embodies Helvetia’s clear and unwavering commitment to Basel as a preferred location of the insurance industry. In his celebratory address, Kaspar Sutter, Head of the Department of Economic, Social and Environmental Affairs of the Canton of Basel-Stadt, emphatically accentuated the importance of the insurance industry as a pillar of Basel-Stadt’s economy. In recent years, Helvetia’s Basel location has grown to become the company’s largest footprint in Switzerland. Once completed, around 1'600 people will be working on Helvetia’s future campus on the premises of the St.Alban-Anlage.
«The new campus is Helvetia's commitment to Basel as a tri-national city and the center of an important economic region that is characterized by good framework conditions and a high level of innovation power.»
Infrastructure for Tech Start-ups
No innovation promotion without infrastructure. True to that vision, the Canton of Basel-Stadt is offering technology start-ups the perfect working environment.
For Tech Park Basel (TPB) and its tenants, the year 2023 was one of business growth, an expanding community and continuing innovation. Several tenants were able to secure important additional funding – which further strengthens their active contributions to the vitality and innovative power of the Tech Park. A series of professional and expert events solidified its status as a nodal point of Basel’s innovation network in order to intensify the exchange of information and knowledge in the tech community.
Following several company moves throughout the year, TPB managed to achieve an occupancy rate of 94%, which is close to capacity. By the end of 2023, TPB was a supportive landlord to a total of 24 companies, employing more than 360 professionals from more than 45 nations. TPB clearly represents and mirrors the international diversity of the business ecosystem Basel.
85 more companies are operating in the Switzerland Innovation Park Basel Area (SIP) in Allschwil, Basel and in Courroux, in the Canton of Jura (the SIP also enjoys support from the Canton of Basel-Stadt). Among those, 30 technology start-ups and their 141 employees, mostly active in the Digital Health sector and thus without the need of lab space, managed to find 1092 square meters of suitable office space on the Novartis Campus. Similar to Tech Park Basel, SIP in 2023 also managed to reach a high occupancy rate of 83% capacity on the Novartis Campus, where its footprint was expanded to three floors.
The SIP Main Campus in Allschwil was able to announce a projected growth in stages from 50’000 square meters today to 115’000 square meters by 2028. This would make it Switzerland’s largest innovation park area focusing on Life Sciences.
«Thanks to the proper infrastructure at Tech Park Basel, we were able to establish ourselves here and grow as a company. To found a company, you first need an excellent idea and access to capital. Then you also need capable employees and a good infrastructure. The Tech Park enabled us to grow, from the idea to the IPO.»