Why Geneva is your best business location in Europe
Geneva and Switzerland:
International comparisons
www.whygeneva.ch
2013 | 2014
Impressum
Editor: Geneva Economic Development Office
Rue des Battoirs 7
P.O. Box 740 • CH-1211 Geneva 4 • Switzerland
Phone: + 41 22 388 34 34
Fax: + 41 22 388 31 99
E-mail: promotion@etat.ge.ch
Project manager: Elisabeth Tripod-Fatio
Content manager: Lauranne Peman
Design: www.colegram.ch
Photography: Geneva Tourism • Fotolia
Copyright: © Geneva Economic Developement Office
introduction
Dear Madam, Dear Sir,
Please find herewith the 21st edition of International Comparisons, recently published by the Economic Development Office
of the Canton and Republic of Geneva.
All the data published in the 2013-2014 edition of International Comparisons is of excellent quality and originates from
­independent and highly reputated sources. It highlights Switzerland’s thriving economy, which has maintained its rank among
leading states in terms of competitiveness and innovation for the fifth consecutive year (The Global Competitiveness Report
2013-2014, World Economic Forum). Furthermore, it emerges from the 2013-2014 edition of International Comparisons that
Switzerland invests more in education, talent and health than any other country in the world (The Human Capital Report 2013,
World Economic Forum).
During these challenging economic times, the International Comparisons 2013-2014 edition underlines the extraordinary resilience of Geneva’s economy. The new presentation of chapter 1 provides a comprehensive overview of the density and diversity of Geneva’s companies. Besides its competitive framework conditions (taxation, labor law, social security system), Geneva
has made research and development (R&D), as well as innovation, its number one priority, namely through the establishment
of the Biotech Campus, a combined initiative involving the University of Geneva, the Swiss Federal Institute of Technology in
Lausanne (EPFL), private investors and life sciences start-ups. The Biotech Campus will give new impetus to innovation and
biotech in the Lake Geneva region. These are some of the reasons why our region can be considered a highly suitable venue
for companies seeking to make the best of the most favorable location.
The Economic Development Office of the Canton and Republic of Geneva is keen to assist you in your investment projects
or in setting up business here. To find out more about the activities and services of our office, please check out our website
www.whygeneva.ch for details.
On behalf of the State Council, I hope to have the pleasure of welcoming you in our region.
Pierre-François Unger
State Councilor
in charge of the Departement of regional
affairs, economy and health
Republic and State of Geneva
introduction
International comparisons
3
4
Contents
1. FACTS & FIGURES
1.1
1.2
1.3
1.4
Geneva in figures
Geneva’s leading business sectors
Economic environment
Geneva’s location
8
10
12
13
2. Business environment
2.1 Competitiveness and efficiency
2.2 Economic data
2.3 Infrastructure
16
20
23
3. Leading business sectors
3.1
3.2
3.3
3.4
3.5
3.6
3.7
General information
Banking and finance
Commodity trading
Biotechnologies
Cleantech
Watch industry
Information and communication technologies (ICT)
28
29
31
32
33
34
35
4. R&D and innovation
4.1
4.2
4.3
4.4
Innovation performance
Innovation factors
Scientific research
Intellectual property
38
40
41
45
5. Education, Human resources & Remuneration
5.1
5.2
5.3
5.4
Education
Labor market
Human resources
Average remuneration
6.TAXES AND SOCIAL CONTRIBUTIONS
6.1 Taxes
6.2 Compulsory social contributions
6.3 Cost of capital
48
52
55
58
64
68
70
7. REAL ESTATE
7.1 Commercial real estate
7.2 Residential real estate
72
73
8. QUALITY OF LIFE
8.1 Quality of life
8.2 Sustainable development
8.3 Health and security
76
78
79
9. Appendix
9.1 Exchange rates
9.2 Sources
84
84
Contents
International comparisons
5
6
Facts and figures
1.1
1.2
1.3
1.4
Geneva in figures
Geneva’s leading business sectors
Economic environment
Geneva’s location
1
7
1.1
GENEVA IN FIGURES
Business and international affairs
931
CHF 48.9
billion
Multinational
companies
Canton of Geneva GDP
(US$ 50.707 billion)
-0.4 %
Annual average
change of
the Consumer
Price Index
172
Countries represented
by a permanent mission
250
NGOs
83
CHF 18.270
billion
Canton of Geneva total exports
(US$ 19.823 billion)
1,282
Foreign
companies
CHF 12.599
billion
Canton of Geneva total imports
(US$ 13.667 billion)
2,700
International meetings
per year
Education
69
470,512
Total population of the
Canton of Geneva
Employees in
the R&D sector*
29%
Geneva’s population
speaking English at work
1,200,483
Total population in the
Lake Geneva region
8
VAT (Value added tax)
International organizations
including the UN, WTO,
WHO, WIPO and CERN
Demographics
50,368
8%
40%
Geneva’s population
originating from outside
Switzerland
190
Different nationalities
represented in Geneva
30%
Geneva’s population
speaking more than
2 languages at home
facts & figures
International comparisons
University of Geneva
rank in the Shanghai
Ranking (2012) out of
500 top universities
21,835
315
16
44
Students in
University
Geneva
Nobel Prizes
12,000
Pupils in private
schools
PhDs delivered
per year
Private
schools
42
University centers,
institutes and faculties*
Infrastructure
124
Flight destinations from
Geneva International Airport
5 km
7 minutes
Commuting time
from central
railway station
to airport
Distance from Geneva International
Airport to city center
13 Free WIFI
Hospitals
and clinics
Available across the city
of Geneva and at the airport
Culture
423 km
Geneva public transportation
network (trams and buses)
10.1 Mbits/s
The fastest internet
connexion in Europe
13.9
Million passengers
at Geneva International
Airport per year
2
Free ports
providing 140,000 m2
for storage
5,000 km
Tourism
23°C / 73°F
Summer average
temperature
Restaurants
116
Auditoriums, theatres
and cinemas
Libraries
Technological parks and
innovation platforms*
National and regional
rail network
1,524
77
17
81
Museums and
art galleries
310 ha
Parks
10°C / 50°F
Winter average
temperature
26
15
35 km
130
4 star hotels
Nearest ski
resort
5 star
hotels
Hotels
25,000
Capacity of conference
facilities
Source: Agep, CAGI Geneva Welcome Center, CFF, City of Geneva, Geneva International Airport, Geneva Tourism, Greater Geneva Berne area, OCSTAT, Switzerland Tourism,
Geneva Public Transportation, UBM Future Cities, University of Geneva
*Note: in the Greater Geneva Area
facts & figures
International comparisons
9
1.2
Geneva’s leading business sectors
Information and
communication technologies
9,289
1,038
Employees
Watch Industry
Companies
in the ICT sector
69
9,358
Companies in
the watchmaking
industry
CHF 7.419 billion
Banking and finance
8th
Rank in the
Global Financial
Centers Index
3,198
Financial
intermediaries
People employed
in the sector
Value of watch exports
of the Canton of Geneva
123
56
Banks
Foreign-owned
banks (employing
8,631 people)
854
Independent
asset
managers
36,340
People directly
employed in the
financial sector
Commodity trading
500
International
trading and
shipping companies
1st
Rank in Europe
in cotton trading
33%
of traded
world sugar*
10
1st
Rank worldwide
in the finance
of commodity trading
1st
Rank worldwide
in inspection
and certification
35%
of traded world
cereals, rice
and oil seeds*
facts & figures
International comparisons
700
8,000
Employees in
the trading and
shipping sector
million tons
of oil traded
in Geneva
22%
1st
Rank worldwide
in grains and
oil seeds trading
33%
of world crude oil
and oil products
of dry products
(iron ore, coal, grains…)
shipping movements
10%
75%
of Russian
oil exports
of world steel exports
1st
Rank in Europe
in sugar trading
50%
of traded
world
coffee*
Flavors and fragrances industry
1st
World rank for the production
of flavors and fragrances
70%
Share of flavors and
fragrances global market
CHF 2.2 billion
Value of exports in the field of flavors
and fragrances of the Canton of Geneva
Life sciences, biotechnologies
and medtechnologies*
1st
Cluster for life sciences
research in mainland Europe,
according to the world-famous
scientific journal Science
750
Companies
20,000
500
Research
laboratories
20
Employees working
in these industries
World-famous research
institutes, universities
and university hospitals
International organizations
83
International
organizations
Geneva is home to key international
organizations such as
WHO, WIPO, UN, UNCTAD, WTO, WMO,
ILO, ITU, ISO, GAVI Alliance, The Global
Fund, CERN, IATA, World Economic Forum,
UNICEF, UNESCO**
Source: AlpICT, BCGE, BioAlps, OCSTAT, Genève Place Financière, Geneva Trading and Shipping Association, Geneva International Cooperation, The Global
Financial Centers Index 2014, Swiss Watch making Industry Employers Federation
*Note: in the Lake Geneva Region
**Note: WHO - World Health Organization, WIPO - World Intellectual Property Organization, , UN - United Nations, UNCTAD - United Nations Conference on
Trade and Development, WTO - World Trade Organization, WMO - World Meteorological Organization, ILO - International Labour Organization, ITU - International
Telecommunication Union, ISO - International Organization for Standardization, CERN - European Organization for Nuclear Research, IATA - International Air
Transport Association, UNICEF – United Nations Children’s Fund, UNESCO – United Nations Educational, Scientific and Cultural Organization
facts & figures
International comparisons
11
1.3
ECONOMIC environment
1.3.1 Economic sectors, number of businesses and employment
Main sectors
Primary sector (agriculture, mining industries, etc.)
Secondary sector (manufacturing and construction)
Tertiary sector (service sector)
Businesses
440
3,404
18,265
Employment number
1,765
42,871
182,800
Employment (%)
1%
19%
80%
Source: Office fédéral de la statistique and Office cantonal de la statistique • Recensement fédéral des entreprises 2008, Genève • www.geneve.ch/statistique
1.3.2 Employment in the tertiary sector, by type of activity
Main sectors
Accommodation and food
Administrative and support activities
Financial and insurance activities
Health and social activities
Information and communication
Real estate activities
Scientific and technical activities
Trade, repair
Transport and storage
Arts, entertainment and leisure
Other activities
Total
Businesses
1,633
1,134
1,308
1,526
1,038
320
3,716
4,536
631
283
1,438
18,265
Employment number
16,076
17,658
27,875
19,480
9,289
2,733
20,927
42,194
9,960
2,309
972
182,800
Employment (%)
9%
10%
15%
11%
5%
1%
11%
23%
5%
1%
9%
100%
Source: Office fédéral de la statistique and Office cantonal de la statistique • Recensement fédéral des entreprises 2008, Genève • www.geneve.ch/statistique
1.3.3 Geneva’s export destinations
European
Union 45.9%
Europe 45.9%
Africa
Afrique1.1%
1.1%
Asia
Asie 39.4%
39.4%
Americas
Amériques13.0%
13.0%
Oceania
Océanie 0.5%
0.5%
Source: Administration fédérale des douanes - Statistiques du commerce extérieur / OCTSTAT 2012
1.2.4 Businesses and jobs in the private sector, by size of enterprise (in %)
Big companies
Grandes
entreprises
(>250
jobs)
(>250
emplois)
Medium companies
Moyennes
entreprises
to 249
jobs)
(50(50
à 249
emplois)
Small companies
Petites
entreprises
to emplois)
49 jobs)
(10(10
à 49
Micro-enterprises
Micro-entreprises
(19toemplois)
9 jobs)
(1 à
1.4%
35.3%
2.9%
20.1%
Businesses
Jobs
11.0%
21.1%
84.7%
23.5%
Source: Office fédéral de la statistique and Office cantonal de la statistique • Recensement fédéral des entreprises 2008, Genève • www.geneve.ch/statistique
12
facts & figures
International comparisons
1.4
geneva’s location
1.4.1 Time difference
- 9 h.
- 6 h.
- 4 h.
- 1 h.
+2 h.
+3 h.
+4.5 h.
+7 h.
Los Angeles
New York
Sao Paulo
London
Moscow
Dubai
New Delhi
Beijing
European Union
Other Countries
1.4.2 Flight time to major European cities
Milan
Paris
Frankfort
Munich
Brussels
Rome
Barcelone
London
Amsterdam
Moscow
Dubaï
1h00
1h10
1h15
1h15
1h15
1h20
1h20
1h30
1h40
3h30
6h15
facts & figures
International comparisons
13
14
Business environment
2.1
2.2
2.3
Competitiveness and efficiency
Economic data
Infrastructure
2
15
2.1
COMPETITIVENESS AND EFFICIENCY
2.1.1 Competitiveness ranking
Set of institutions, policies, and factors that determine the level of productivity of a country.
(on a scale from 0 to 7, the higher the better)
Rank
Score
Switzerland
1
5.67
Singapore
2
5.61
Germany
4
5.51
United States
5
5.48
Netherlands
8
5.42
United Kingdom
10
5.37
Austria
16
5.15
Belgium
17
5.13
United Arab Emirates
19
5.11
France
23
5.05
Ireland
28
4.92
China
29
4.84
Spain
35
4.57
Poland
42
4.46
Italy
49
4.41
Brazil
56
4.33
India
60
4.28
Russian Federation
64
4.25
Source: World Economic Forum • The Global Competitiveness Report • 2013 - 2014
Note: Productivity is measured by an aggregate of 12 categories: institutions, infrastructure, macro economy, health and primary education, higher education
and training, goods market efficiency, labor market efficiency, financial market sophistication, technological readiness, market size, business sophistication and
innovation.
2.1.2 Resilience of the economy
Ability of the economy to recover from economic cycles
(on a scale from 0 to 10, the higher the better)
Poland
Switzerland
United Arab Emirates
7.74
7.30
7.20
Germany
Austria
6.91
6.84
United States
India
6.31
6.26
China
Singapore
6.21
6.05
Brazil
6.00
Belgium
5.46
Netherlands
5.44
France
4.77
United Kingdom
Italy
4.39
3.90
Ireland
3.65
Russian Federation
3.51
Spain
3.07
Source: IMD • World Competitiveness Yearbook Online • 2013
16
Business environment
International comparisons
2.1.3 Ease of doing business
Impact of regulatory environment on the starting and operation of a local firm
(on a scale from 0 to 10, the higher the better)
Singapore
8.19
United Arab Emirates
7.86
Switzerland
6.81
Ireland
6.12
Netherlands
5.76
United Kingdom
5.70
United States
5.31
China
5.30
5.08
Germany
4.55
Poland
4.55
Austria
4.14
France
3.80
Belgium
3.41
India
3.18
Spain
2.97
Italy
Brazil
2.60
Russian Federation
2.54
Source: IMD • World Competitiveness Yearbook Online • 2013
2.1.4 Country Brand Index
The index measures public impression of a country, based on 7 variables:
awareness, familiarity, associations, preference, consideration, visitation/decision, advocacy.
Rank
Switzerland
1
Germany
7
United States
8
United Kingdom
11
France
13
Singapore
14
Italy
15
Austria
17
Netherlands
18
Spain
19
Ireland
21
United Arab Emirates
23
Brazil
28
Belgium
31
India
42
China
66
Poland
75
Russian Federation
83
Source: FutureBrand • Country Brand Index • 2012 - 2013
Business environment
International comparisons
17
2.1
COMPETITIVENESS AND EFFICIENCY
2.1.5 Index of economic freedom
The index of economic freedom is composed of 10 variables: property rights, freedom of corruption, fiscal freedom,
government spending, business freedom, labor freedom, monetary freedom, trade freedom, investment freedom
and financial freedom (on a scale from 0 to 100, the higher the better).
Singapore
88.0
Switzerland
81.0
United States
76.0
Ireland
75.7
United Kingdom
74.8
73.5
Netherlands
72.8
Germany
71.8
Austria
69.2
Belgium
68.0
Spain
66.0
Poland
64.1
France
60.6
Italy
57.7
Brazil
55.2
India
51.9
China
51.1
Russian Federation
Source: The Heritage Foundation • Index of Economic Freedom • 2013
2.1.6 Institutional Effectiveness Index
The index shows governments’ autonomy and efficiency, stability of regulations, predictability
and fairness of political processes and effectiveness of the system.
Geneva
96.0
Singapore
87.8
New York
85.8
London
83.8
80.6
Brussels
77.4
Amsterdam
76.2
Berlin
74.7
Vienna
72.7
Paris
72.7
Dubai
69.2
Barcelona
67.0
Dublin
Warsaw
63.6
Milan
63.3
Source: Hotspots, Benchmarking global city competitiveness • The Economist Intelligence Unit • 2012
Note: Data for Brazilian, Chinese, Indian and Russian cities are not available.
18
Business environment
International comparisons
2.1.7 Corruption Perception Index
The index measures experts’ perception of public services corruption.
(on a scale from 0, highly corrupted, to 100, very clean)
87
Singapore
86
Switzerland
84
Netherlands
79
Germany
75
Belgium
74
United Kingdom
73
United States
71
France
69
Ireland
69
Austria
68
United Arab Emirates
65
Spain
58
Poland
42
Italy
39
China
36
India
Russian Federation
28
Source: Transparency International • Corruption Perceptions Index • 2012
Business environment
International comparisons
19
2.2
ECONOMIC DATA
2.2.1 Foreign Direct Investment (FDI) inward stock (as % of GDP)
Singapore
252.3
Belgium
208.8
Ireland
142.2
Switzerland
104.3
Netherlands
74.2
United Kingdom
54.3
Poland
47.3
Spain
47.0
41.9
France
Austria
39.7
Brazil
31.2
United Arab Emirates
26.9
Russian Federation
25.7
United States
Germany
Italy
India
China
25.1
21.1
17.7
12.2
10.3
Source: UNCTAD database • 2012
2.2.2 Inward FDI performance index
The index ranks countries by the FDI received relative to their economy.
Netherlands
141
Switzerland
140
126
Italy
105
France
104
Germany
103
United Arab Emirates
97
India
96
United States
89
Spain
87
Austria
86
China
76
United Kingdom
75
Poland
69
Brazil
60
Russian Federation
14
Ireland
13
Belgium
Singapore
9
Source: UNCTAD • World Investment Report • 2012
20
Business environment
International comparisons
2.2.3 FDI by economic sectors
Business services
Software
Financial intermediation
Switzerland
26%
11%
9%
Machinery and equipment
5%
United Kingdom
24%
22%
5%
6%
Belgium
21%
8%
NA
NA
Netherlands
20%
6%
6%
NA
6%
Spain
19%
10%
NA
France
16%
11%
NA
9%
Germany
15%
11%
NA
11%
Ireland
14%
22%
8%
NA
Russian Federation
9%
NA
NA
11%
Poland
9%
NA
NA
9%
Source: Ernst & Young’s European Investment Monitor • 2012
Note: Data for Austria, Brazil, China, India, Italy, Singapore, the United Arab Emirates and the United States are not available.
2.2.4 GDP per capita (US$)
GDP per capita (US$)
Switzerland
79,139
Netherlands
52,051
Singapore
50,123
Austria
47,077
Ireland
45,814
United States
49,902
Belgium
43,603
Germany
41,477
France
47,213
United Arab Emirates
44,095
United Kingdom
38,703
Italy
33,248
Spain
28,576
Poland
12,811
Russian Federation
14,353
Brazil
11,615
China
6,076
India
1,506
Source: IMD • World Competitiveness Yearbook Online • 2013
Business environment
International comparisons
21
2.2
ECONOMIC DATA
2.2.5 Trends in inflation rates (in %)
Percentage of change over previous period
Switzerland -0.7
Ireland
1.7
Germany
2.0
France
2.0
United States
2.1
Spain
2.4
Austria
2.5
Netherlands
2.5
2.6
China
Belgium
2.8
United Kingdom
2.8
3.0
Italy
3.6
Poland
5.1
Russian Federation
5.4
Brazil
9.3
India
Source: OECD • 2013
Note: Previous period is 2011
22
Business environment
International comparisons
2.3
INFRASTRUCTURE
2.3.1 Quality of infrastructure
General infrastructure of the country
(on a scale from 1 to 7, the higher the better)
6.6
Switzerland
6.4
Singapore
6.4
United Arab Emirates
France
6.3
Austria
6.2
Germany
6.2
Netherlands
6.2
Spain
6.0
Belgium
5.8
United States
5.7
United Kingdom
5.4
Ireland
5.2
Italy
4.8
China
4.3
Poland
4.0
Russian Federation
3.8
India
3.6
Brazil
3.4
Source: World Economic Forum • The Global Competitiveness Report • 2013 - 2014
2.3.2 Availability of latest technologies
Use and availability of latest technologies
(on a scale from 1 to 7, the higher the better)
Switzerland
6.4
Netherlands
6.4
United Kingdom
6.4
United States
6.4
United Arab Emirates
6.4
6.3
Belgium
6.3
Germany
6.2
Singapore
6.1
Austria
6.1
France
5.9
Ireland
5.8
Spain
5.2
India
5.1
Brazil
5.0
Italy
4.4
Poland
4.4
China
Russian Federation
4.0
Source: World Economic Forum • The Global Competitiveness Report • 2013 - 2014
Business environment
International comparisons
23
2.3
INFRASTRUCTURE
2.3.3 Transport infrastructure
(on a scale from 1 to 7, the higher the better)
United Arab Emirates
Quality
of overall infrastructure
(railroad, air, roads)
6.7
Quality
of railroad
infrastructure
-
Quality
of air transport
infrastructure
6.7
Switzerland
6.3
6.6
6.2
Quality
of roads
6.6
6.2
France
6.3
6.3
6.1
6.4
Singapore
6.2
5.6
6.8
6.2
Netherlands
6.0
5.5
6.5
6.0
Spain
6.0
5.9
6.0
6.0
Germany
5.9
5.7
6.1
6.0
Austria
5.6
5.2
5.4
6.2
United States
5.5
4.9
5.9
5.7
Belgium
5.5
5.0
6.0
5.4
United Kingdom
5.3
5.0
5.6
5.3
Ireland
5.0
4.1
5.6
5.3
China
4.5
4.7
4.5
4.4
India
4.4
4.8
4.8
3.6
Italy
4.3
4.2
4.4
4.4
Russian Federation
3.5
4.2
3.9
2.5
Poland
3.2
2.6
3.9
3.0
Brazil
2.6
1.8
3.3
2.8
Source: World Economic Forum • The Global Competitiveness Report • 2013 - 2014
2.3.4 Communication infrastructure
Broadband internet
per 100 inhabitants
Telephone lines
per 100 inhabitants
Switzerland
39.96
59.89
Netherlands
38.74
43.53
France
36.04
63.18
Belgium
32.95
43.06
United Kingdom
32.74
53.27
32.5
63.05
United States
27.35
46.59
Austria
25.42
40.27
Singapore
25.63
38.9
Spain
23.78
42.77
Germany
Italy
22.08
36.38
Ireland
21.96
45.22
17.89
Poland
14.68
Russian Federation
13.14
30.91
China
11.61
21.16
United Arab Emirates
10.99
23.13
Brazil
8.59
21.88
India
1.08
2.63
Source: World Bank • 2013
24
Business environment
International comparisons
2.3.5 Hotel rooms per 100 inhabitants
3.5
Austria
2.0
Spain
1.8
Switzerland
1.8
Italy
1.6
Ireland
1.6
United States
1.2
Germany
1.0
United Arab Emirates
1.0
United Kingdom
0.9
France
0.9
Singapore
0.7
Belgium
0.6
Netherlands
0.5
Brazil
0.3
Poland
Russian Federation
China
0.2
0.1
Source: World Economic Forum • The Travel and Tourism Competitiveness Report • 2013
Note: Data for the United Arab Emirates are not available.
Business environment
International comparisons
25
2.3.6 Commuting time and cost of traveling from the airport to downtown
By taxi
Minutes
Taxi fares
US$
By train
Minutes
Train fares
US$
15
27 - 32
6
0 - 2.70
Barcelona Airport
25 - 35
26 - 39
15
NA
Frankfurt Airport
20 - 30
32 - 39
11
4.90
Vienna Intl Airport
(Schwechat)
20 - 25
45
16
12.80
CAT (city airport train)
Dublin Airport
20 - 30
17 - 20
NA
NA
No direct train service
Singapore Changi Airport
20 - 30
17 - 25
30
1.30
Amsterdam Schiphol
Airport
20 - 30
52 - 65
15 - 20
4.80
50
50
40 - 50
10
Brussels Airport
20 - 30
50 - 57
20
7.25
Warsaw Chopin Airport
25 - 35
14
NA
NA
Paris Charles de Gaulle
Airport
40 - 50
71
50
11.90
RER B
London Heathrow Airport
45 - 60
71 - 126
15 - 21
28.40
Heathrow Express to Paddington
Milan Malpensa Intl
Airport
50 - 60
91 - 117
40
14.30
New York Kennedy Intl
Airport (JFK)
40 - 90
45
35/65
7.50 - 13
10
~30
15
1.40
Geneva International
Airport
Moscow Domodedovo
Airport
Dubai International Airport
Remarks
Free bus and train ticket
to city centre *
Aeroexpress train
No direct train service
Long Island railroad or New York
subway A train. Taxi fare does not
include tolls.
Dubai metro to city centre
Source: The Airwise Airport Guide • 2012
* The ticket allows you to travel freely with any public transportation for 80 minutes in Geneva (offered to passengers at baggage reclaim).
Note: Data for Delhi, Bombay, Beijing, Sao Paulo and Shanghai are not available.
26
Business environment
International comparisons
Leading business sectors
3.1
3.2
3.3
3.4
3.5
3.6
3.7
General information
Banking and finance
Commodity trading
Biotechnologies
Cleantech
Watch industry
Information and communication
technologies (ICT)
3
27
3.1
GENERAL INFORMATION
3.1.1 State of cluster development
Well-developed clusters participate in a high-quality business environment.
(on a scale from 1 to 7, the higher the better)
Italy
5.5
United Arab Emirates
5.5
Germany
5.4
Switzerland
5.3
Singapore
5.2
United States
5.2
Netherlands
5.2
United Kingdom
5.1
India
4.9
Belgium
4.8
Ireland
4.8
Austria
4.8
China
4.6
Brazil
4.5
France
4.4
Spain
4.2
Poland
3.4
Russian Federation
3.1
Source: World Economic Forum • The Global Competitiveness Report • 2013 - 2014
Note: Clusters are geographic agglomerations of companies, suppliers, service providers and associated institutions in a particular field,
linked by externalities. Being within a cluster allows companies to become more specialised, productive and innovating.
28
LEADING BUSINESS SECTORS
International comparisons
3.2
BANKING AND FINANCE
3.2.1 Rating of financial centers
The Global Financial Centres Index gauges the attractiveness of financial centers.
City
Score
Rank
London
794
1
New York
779
2
Singapore
751
4
Geneva
710
8
Frankfurt
702
9
Shanghai
690
16
Vienna
685
20
Dubai
671
25
Paris
656
29
Sao Paulo
643
38
Amsterdam
629
45
Milan
618
51
Madrid
607
54
Dublin
605
56
Beijing
598
59
Brussels
597
60
Moscow
580
69
Warsaw
571
71
Mumbai
570
72
Source: The Global Financial Centres Index • 2014
Note: The study is based on the following key aspects: people, business environment, market access,
infrastructure and general competitiveness. Data for Barcelona and Delhi are not available.
3.2.2 Availability of finance skills
Availability of staff qualified in the field of finance
(on a scale from 1 to 10, the higher the better)
Poland
8.18
Switzerland
8.13
Netherlands
7.94
United States
7.90
Belgium
7.71
Ireland
7.61
United Kingdom
7.57
India
7.37
Singapore
7.36
Germany
7.35
United Arab Emirates
7.32
France
6.99
Russian Federation
6.61
Austria
6.33
Spain
5.83
Italy
5.43
China
5.30
Brazil
4.92
Source: IMD • World Competitiveness Yearbook Online • 2013
LEADING BUSINESS SECTORS
International comparisons
29
3.2
BANKING AND FINANCE
3.2.3 Quality of banking and financial services
Efficiency of business support provided by banking and financial services
(on a scale from 1 to 10, the higher the better)
Singapore
7.62
Poland
7.56
Switzerland
7.21
United Arab Emirates
7.19
7.03
United States
6.63
India
6.20
Germany
Belgium
5.84
Netherlands
5.78
5.77
Brazil
5.15
France
5.12
China
5.00
Austria
4.92
United Kingdom
4.16
Ireland
3.97
Russian Federation
3.27
Italy
2.34
Spain
Source: IMD • World Competitiveness Yearbook Online • 2013
30
LEADING BUSINESS SECTORS
International comparisons
3.3
COMMODITY TRADING
3.3.1 Percentage of international commodity trade taking place in Geneva
60%
50%
50%
35%
35%
33%
22%
Pétrole
brut,
Coffee
produits pétroliers
Affrètement
Cereals,
oil-producing
products, rice
Céréales,
Crude oil
oléagineux,
riz
and products
Coton
Cotton
Café
Shipping
Sucre
Sugar
Metals
Source: Swiss Confederation • Background Report: Commodities • 2013
3.3.2 Main crude oil trading centers
Estimate of crude oil trade volumes, by location (in %)
Singapore 15%
New York and Houston 20%
London 25%
Geneva 35%
Source: Live Trading News • 2013
LEADING BUSINESS SECTORS
International comparisons
31
3.4
BIOTECHNOLOGIES
3.4.1 Index of Overall Biotechnology Innovation
The index shows the effort made by countries to innovate in the field of biotechnologies in 6 categories: intellectual property, intensity,
enterprise support, education/workforce, foundations and policy and stability (on a scale from 0 to 10, the higher the better).
United States
37.64
Switzerland
31.09
Singapore
30.37
United Kingdom
28.78
Ireland
27.81
Netherlands
27.7
France
27.53
Germany
26.93
Belgium
26.56
Austria
26.14
Spain
24.19
Poland
19.72
Italy
19.28
Brazil
17.16
China
15.98
United Arab Emirates
15.7
Russian Federation
15.59
India
12.76
Source: Scientific American • World View Scorecard • 2013
3.4.2 Market capitalization of life science companies (in US$ million)
418,298
232,780
156,406
116,899
51,210
10,359
SIX Swiss
Exchange
LSE Group
Source: STOXX • 2013
32
LEADING BUSINESS SECTORS
International comparisons
NYSE
Euronext
NASDAQ OMX
Deutsche
Börse
SIBE
3.5
CLEANTECH
3.5.1 Environmental Performance Index
The index ranks countries according to their environmental performance
in 2 broad categories: environmental health and ecosystem vitality.
76.7
Switzerland
France
69.0
Austria
68.9
Italy
68.9
United Kingdom
68.8
Germany
66.9
Netherlands
65.7
Poland
63.5
Belgium
63.0
Brazil
60.9
Spain
60.3
Ireland
58.7
United States
56.6
Singapore
56.4
United Arab Emirates
50.9
Russian Federation
45.4
China
42.2
India
36.2
Source: Yale Environmental Performance Index • 2012
LEADING BUSINESS SECTORS
International comparisons
33
3.6
WATCH INDUSTRY
3.6.1 Value of watch exports by country (in US$ billion)
22.8
10
5.1
Switzerland
Suisse
Hong
Hong Kong
China
Chine
2.2
2.1
France
Allemagne
Germany
France
Source: Federation of the Swiss Watch Industry FH • 2013
3.6.2 Companies in the Swiss watch industry
and micro technical sector according to business area
N° of companies in 2012
Companies in %
Manufacturing of watch components
Business area
199
23.90%
Watch assembling
160
19.20%
Watch business
135
16.20%
Electrotyping, polishing and other surface processing, incl. patterns
80
9.60%
Non-watch making microtechnics
59
7.10%
Manufacturing of rough shapes and of mechanical and quartz movements
62
7.50%
Machines manufacturing
21
2.50%
Other
116
13.90%
Total
832
100%
Source: Employers Federation of the Swiss Watch Industry • Census • 2012
34
LEADING BUSINESS SECTORS
International comparisons
3.7
INFORMATION AND COMMUNICATION TECHNOLOGIES (ICT)
3.7.1 Technological cooperation
Development of technological cooperation between companies enhances innovation.
(on a scale from 1 to 10, the higher the better)
7.35
United Arab Emirates
7.19
Switzerland
Germany
6.95
United States
6.92
6.88
Netherlands
6.71
Ireland
6.67
Singapore
6.19
Austria
5.93
United Kingdom
5.77
France
5.43
China
5.20
Belgium
5.04
India
4.73
Russian Federation
Spain
4.66
Italy
4.63
4.36
Brazil
3.96
Poland
Source: IMD • World Competitiveness Yearbook Online • 2013
3.7.2 Employment of ICT specialists in the economy (in %)
5.0
Switzerland
4.0
Netherlands
4.0
United States
3.5
Germany
3.3
United Kingdom
Austria
3.2
Belgium
3.1
France
3.1
Spain
3.1
Italy
Ireland
3.1
2.8
Source: OECD • 2013
Note: Data for Brazil, China, India, Poland, Singapore, the Russian Federation and the United Arab Emirates are not available
LEADING BUSINESS SECTORS
International comparisons
35
36
R&D and innovation
4.1
4.2
4.3
4.4
Innovation performance
Innovation factors
scientific research
intellectual property
4
37
4.1
INNOVATION PERFORMANCE
4.1.1 Global Innovation Index
The index gauges elements of the national economy that enable innovative activities: institutions,
human capital, research, infrastructure, market sophistication, business sophistication, scientific outputs
and creative outputs (on a scale from 0 to 100, the higher the better).
Country
Score
Rank
Switzerland
66.6
1
United Kingdom
61.2
3
Netherlands
61.1
4
United States
60.3
5
Singapore
59.4
8
Ireland
57.9
10
Germany
55.8
15
France
52.8
20
Belgium
52.5
21
Austria
51.9
23
Spain
49.4
26
Italy
47.8
29
China
44.7
35
United Arab Emirates
41.9
38
Poland
40.1
49
Russian Federation
37.2
62
Brazil
36.3
64
India
36.2
66
Source: Cornell University, INSEAD and WIPO • The Global Innovation Index • 2013
4.1.2 European Innovation Index
The index measures the innovation and research capacities of countries through 3 main indicators: innovation performance
enablers, innovation efforts and effects of innovation. (on a scale from 0 to 1, the higher the better)
0.84
Switzerland
0.72
Germany
0.65
Netherlands
Belgium
0.62
United Kingdom
0.62
Austria
0.60
Ireland
0.60
France
0.57
Italy
0.45
Spain
0.41
Poland
0.27
Source: European Commission • Innovation Union Scoreboard • 2013
Notes: Figures are normalised scores (from 0 to 1). Data for Brazil, China, India, Singapore, the Russian Federation,
the United Arab Emirates and the United States are not available.
38
R&D AND INNOVATION
International comparisons
4.1.3 Capacity for innovation
Capacity of countries to innovate
(on a scale from 0 to 7, the higher the better)
5.80
Switzerland
Germany
5.60
United States
5.60
United Kingdom
5.20
Netherlands
5.10
Belgium
5.10
Austria
5.00
France
4.80
Singapore
4.80
Ireland
4.60
China
4.20
Italy
4.20
United Arab Emirates
4.00
Brazil
4.00
India
Spain
Poland
Russian Federation
4.00
3.70
3.60
3.50
Source: World Economic Forum • The Global Competitiveness Report • 2013 - 2014
R&D AND INNOVATION
International comparisons
39
4.2
INNOVATION FACTORS
4.2.1 R&D expenditure
Private and public sector expenditures for research and development to increase knowledge
Country
Switzerland **
Total expenditure on R&D
(% GDP)
2.99
Total expenditure on R&D per capita
(US $)
1,954.23
Business expenditure on R&D
(% GDP)
2.20
Germany
2.84
1,260.29
1.90
United States
2.75
1,330.98
1.88
Austria
2.75
1,364.13
1.87
France
2.25
988.12
1.43
Singapore
2.23
1,142.30
1.39
Belgium
2.04
951.82
1.37
Netherlands
2.04
1,023.55
0.86
China
1.84
99.78
1.30
United Kingdom
1.77
690.43
1.07
Ireland
1.72
849.83
1.17
Spain
1.33
417.84
0.70
Italy
1.25
455.22
0.68
Brazil *
1.16
130.50
0.55
Russian Federation
1.09
121.11
0.67
India
0.90
11.77
0.30
Poland
0.77
103.26
0.23
United Arab Emirates
0.50
203.06
0.13
Source: IMD • World Competitiveness Yearbook Online • 2013
Note:
** Data from 2008
* Data from 2010
4.2.2Companies’ spending on R&D
Level of companies’ spending on R&D
(on a scale from 1 to 7, the higher the better)
6.0
Switzerland
5.5
Germany
5.4
United States
5.0
Singapore
United Kingdom
4.7
Austria
4.7
4.7
France
4.6
Netherlands
4.6
Belgium
4.5
Ireland
4.2
China
4.1
United Arab Emirates
Italy
3.6
Brazil
3.6
3.6
India
3.4
Spain
3.1
Russian Federation
2.8
Poland
Source: World Economic Forum • The Global Competitiveness Report • 2013 - 2014
40
R&D AND INNOVATION
International comparisons
4.3
SCIENTIFIC RESEARCH
4.3.1 Quality of scientific research
Quality of scientific research (public and private) in relation to international standards
(on a scale from 0 to 10, the higher the better)
8.62
Switzerland
United States
8.27
Germany
7.56
Singapore
7.51
Netherlands
7.31
United Kingdom
7.15
France
6.85
Belgium
6.62
Ireland
6.55
United Arab Emirates
5.95
Austria
5.21
India
4.57
China
4.35
Russian Federation
4.23
4.04
Italy
3.78
Spain
3.42
Brazil
Poland
2.44
Source: IMD • World Competitiveness Yearbook Online • 2013
4.3.2 Quality of scientific research institutions
Quality of scientific research institutions by country
(on a scale from 0 to 7, the higher the better)
Switzerland
6.3
United Kingdom
6.2
Belgium
6.0
United States
6.0
Netherlands
5.8
Germany
5.8
Singapore
5.6
Ireland
5.6
France
5.6
Austria
5.0
United Arab Emirates
4.8
Spain
4.6
India
4.5
Italy
4.4
China
4.3
Brazil
4.3
Poland
Russian Federation
4.0
3.7
Source: World Economic Forum • The Global Competitiveness Report • 2013 - 2014
R&D AND INNOVATION
International comparisons
41
4.3
SCIENTIFIC RESEARCH
4.3.3 Scientific collaboration between industry and universities
Level of collaboration existing between industry and universities
(on a scale from 1 to 7, the higher the better)
5.8
Switzerland
5.7
United States
5.6
United Kingdom
5.6
Singapore
5.5
Belgium
5.4
Germany
5.3
Netherlands
5.2
Ireland
4.8
Austria
4.8
United Arab Emirates
4.5
France
4.4
China
Brazil
4.0
Spain
4.0
4.0
India
3.7
Italy
3.6
Russian Federation
3.5
Poland
Source: World Economic Forum • The Global Competitiveness Report • 2013 - 2014
4.3.4 Scientific and technical journal articles
Number of scientific and journal articles published (per 1,000 people)
Switzerland
1.242
Netherlands
0.898
Singapore
0.847
United Kingdom
0.74
United States
0.678
Belgium
0.677
Ireland
0.634
Austria
0.577
Germany
0.546
France
0.508
Spain
0.472
Italy
0.444
Poland
0.192
0.098
Russian Federation
Brazil
China
United Arab Emirates
India
0.064
0.055
0.038
0.016
Source: World Economic Forum • The Human Capital Report • 2013
42
R&D AND INNOVATION
International comparisons
4.3.5 Ranking of publications by research field
Ranking of countries according to the number of scientific publications (by country)
Ranking
1st
2nd
3rd
4th
Life science
Switzerland
United States
United Kingdom
Netherlands
Physical, chemical & earth science
Switzerland
Netherlands
United States
Denmark
Agriculture, biology & environment science
Netherlands
Denmark
Belgium
Switzerland
Engineering, computing & technology
Switzerland
United States
Denmark
Netherlands
Research field
Source: Interpharma • Le marché du médicament en Suisse • 2013
Note: Consideration of scientific publications from 2005 to 2009
4.3.6 Nobel prizes per capita
Nobel prizes awarded in physics, chemistry, physiology or medicine
and economics since 1950 (per million people)
1.50
Switzerland
0.92
United Kingdom
0.86
United States
0.48
Netherlands
0.48
Germany
0.35
Austria
0.30
France
0.27
Belgium
0.22
Ireland
Italy
Russian Federation
0.08
0.07
Source: IMD • World Competitiveness Yearbook Online • 2013
R&D AND INNOVATION
International comparisons
43
4.3
SCIENTIFIC RESEARCH
4.3.7 Scientific research legislation
Laws related to scientific research encourage innovation.
(on a scale from 0 to 10, the higher the better)
8.04
United States
7.79
Switzerland
7.65
Singapore
7.25
Ireland
6.94
Netherlands
6.85
United Kingdom
6.36
United Arab Emirates
6.35
Germany
6.25
Belgium
6.14
France
5.37
Austria
4.92
India
4.74
China
4.47
Poland
4.11
Brazil
3.97
Russian Federation
3.79
Italy
3.73
Spain
Source: IMD • World Competitiveness Yearbook Online • 2013
4.3.8 Attractiveness for researchers
Level of country’s attractiveness for researchers
(on a scale from 0 to 10, the higher the better)
8.65
Switzerland
8.51
United States
7.36
Singapore
7.21
Netherlands
7.11
Germany
6.88
United Kingdom
6.51
Ireland
5.91
United Arab Emirates
5.57
Belgium
5.46
France
5.44
Austria
4.54
China
4.19
India
Brazil
3.02
Russian Federation
2.85
Spain
2.82
Italy
Poland
2.66
1.60
Source: IMD • World Competitiveness Yearbook Online • 2013
44
R&D AND INNOVATION
International comparisons
4.4
INTELLECTUAL PROPERTY
4.4.1 Intellectual property rights
Level of intellectual property rights protection
(on a scale from 0 to 10, the higher the better)
8.91
Switzerland
8.61
Germany
8.39
United States
8.18
Netherlands
Ireland
8.04
Singapore
8.03
7.92
France
7.78
United Kingdom
7.31
Belgium
Austria
7.21
United Arab Emirates
7.15
6.84
Poland
5.79
Italy
5.44
Spain
5.11
India
4.78
Brazil
4.45
China
3.37
Russian Federation
Source: IMD • World Competitiveness Yearbook Online • 2013
4.4.2 Number of utility patents
Number of applications filed under the Patent Cooperation Treaty (PCT) (per million population)
Switzerland
290.10
Germany
214.60
Netherlands
184.70
Austria
157.70
United States
141.10
Singapore
124.40
Belgium
109.60
France
109.20
United Kingdom
90.60
Ireland
79.40
Italy
51.60
Spain
39.20
China
9.20
Poland
6.90
Russian Federation
6.10
United Arab Emirates
4.20
Brazil
2.90
India
1.40
Source: World Economic Forum • The Global Competitiveness Report • 2013 - 2014
R&D AND INNOVATION
International comparisons
45
46
Education,
human resources
& remuneration
5.1
5.2
5.3
5.4
Education
Labor market
Human resources
Average remuneration
5
47
5.1
EDUCATION
5.1.1 Quality of the educational system
The educational system meets the needs of a competitive economy.
(on a scale from 0 to 10, the higher the better)
Switzerland
8.43
Singapore
7.95
Belgium
7.69
Germany
7.32
Netherlands
7.24
Ireland
7.22
Poland
7.16
United Arab Emirates
6.86
France
6.45
United States
6.18
United Kingdom
6.07
Austria
6.05
India
4.85
Italy
4.85
Spain
4.53
China
3.81
Russian Federation
3.67
Brazil
2.46
Source: IMD • World Competitiveness Yearbook Online • 2013
5.1.2 Number of international schools per 100,000 inhabitants
Dubai
10.39
Frankfurt
2.13
Paris
1.94
Geneva
1.91
Vienna
1.44
Amsterdam
1.30
Singapore
1.30
Barcelona
1.18
Brussels
1.14
Warsaw
0.82
Milan
Shanghai
Sao Paulo
Moscow
0.81
0.51
0.45
0.36
Mumbai
0.34
Dublin
0.27
London
New York
0.22
0.11
Source: ISC Research Ltd, Oxon • 2013
Note: This chart only takes into account English-speaking schools in urban areas.
It does not include French and German international schools.
48
EDUCATION, HUMAN RESOURCES & REMUNERATION
International comparisons
5.1.3 Quality of management education
To what extent does management education meet the needs of the business community?
(on a scale from 0 to 10, the higher the better)
8.23
Switzerland
7.89
Singapore
7.43
United States
7.25
Netherlands
7.01
United Arab Emirates
6.90
Ireland
6.78
Germany
6.71
Belgium
United Kingdom
6.61
Poland
6.58
6.43
Austria
6.22
India
5.94
France
5.04
Italy
4.73
China
4.46
Russian Federation
4.31
Spain
3.75
Brazil
Source: IMD • World Competitiveness Yearbook Online • 2013
5.1.4 Executive education ranking
Ranking of top universities worldwide for executive education
School
Country
IMD
Switzerland (Lake Geneva Region)
Rank
1
IESE Business School
Spain
2
Thunderbird School of Global Management
United States
3
Harvard Business School
United States
4
University of Chicago: Booth
United States / United Kingdom / Singapore
5
INSEAD
France / Singapore / United Arab Emirates
6
HEC Paris
France
7
Esade Business School
Spain
University of St Gallen
Switzerland
20
Fundação Dom Cabral
Brazil
23
Ceibs
China
29
SDA Bocconi
Italy
30
Vlerick Leuven Gent Management
Belgium
41
Nyenrode Business Universiteit
Netherlands
48
9
Source: Financial Times • Executive Education, Open Programmes • 2013
Note: Data for Austria, India, Ireland, Germany, Poland and the Russian Federation are not available.
EDUCATION, HUMAN RESOURCES & REMUNERATION
International comparisons
49
5.1
EDUCATION
5.1.5 University ranking
Ranking of top universities for science and technology studies in Europe
University
Country
Swiss Federal Institute of Technology Lausanne (EPFL)
Switzerland (Lake Geneva Region)
Rank
1
University of Cambridge
United Kingdom
2
Swiss Federal Institute of Technology of Zurich (ETHZ)
Switzerland
3
University of Oxford
United Kingdom
4
Imperial College London
United Kingdom
6
Trinity College Dublin
Ireland
Leiden University
Netherlands
13
University of Geneva
Switzerland
14
University of Lausanne
Switzerland (Lake Geneva Region)
17
University of Zurich
Switzerland
18
Technische Universität München
Germany
20
KU Leuven
Belgium
40
University of Bordeaux Segalen
France
41
University of Vienna
Austria
106
University of Barcelona
Spain
110
9
Source: Leiden University • The Centre for Science and Technology Studies (CWTS) • 2013
5.1.6 Development of knowledge transfer
Level of development of knowledge transfer between companies and universities
(on a scale from 0 to 10, the higher the better)
Switzerland
7.90
United States
7.65
Germany
6.98
Netherlands
6.85
United Kingdom
6.67
Singapore
6.55
Ireland
6.51
United Arab Emirates
6.39
Belgium
5.96
France
5.43
Austria
5.40
China
4.04
Spain
4.00
Italy
3.84
Brazil
3.81
India
3.67
Russian Federation
Poland
2.61
2.18
Source: IMD • World Competitiveness Yearbook Online • 2013
50
EDUCATION, HUMAN RESOURCES & REMUNERATION
International comparisons
5.1.7 Local availability of specialized research and training services
Availability of high-quality, specialized research and training services
(on a scale from 0 to 7, the higher the better)
6.5
Switzerland
Netherlands
6.1
Germany
6.1
6.1
Austria
5.9
Belgium
5.7
United States
5.6
United Kingdom
France
5.4
Singapore
5.4
5.3
United Arab Emirates
5.0
Ireland
Spain
4.8
Poland
4.8
4.8
Italy
4.7
Brazil
India
4.5
China
4.4
Russian Federation
4.1
Source: World Economic Forum • The Global Competitiveness Report • 2013 - 2014
EDUCATION, HUMAN RESOURCES & REMUNERATION
International comparisons
51
5.2
LABOR MARKET
5.2.1 Labor market regulation
Labor regulations do not hinder business activities
(on a scale from 0 to 10, the higher the better)
7.70
Switzerland
7.19
United Arab Emirates
Singapore
6.57
United Kingdom
6.56
6.40
Ireland
6.14
United States
5.98
China
5.42
Poland
5.25
Netherlands
5.05
Austria
4.86
Germany
4.51
Russia
4.25
Spain
4.11
India
3.28
France
3.02
Italy
2.82
Belgium
Brazil
2.04
Source: IMD • World Competitiveness Yearbook Online • 2013
5.2.2 Hiring and firing practices
Hiring and firing practices are flexible for companies
(on a scale from 1 to 7, the higher the better)
Switzerland
5.6
Singapore
5.6
United States
4.9
United Arab Emirates
4.7
United Kingdom
4.5
China
4.4
India
4.4
Ireland
4.2
Russian Federation
3.9
Poland
3.4
Austria
3.3
Germany
3.3
3.3
Spain
3.2
Brazil
3.2
Netherlands
2.8
Belgium
Italy
France
2.6
2.5
Source: World Economic Forum •The Global Competitiveness Report • 2013 - 2014
Note: In Switzerland, the statutory notice of termination for an employee with 1 year of service is 1 month,
2 to 8 years of service is 2 months and 3 months starting from 9 years of service.
52
EDUCATION, HUMAN RESOURCES & REMUNERATION
International comparisons
5.2.3 Unemployment rate
Percentage of labor force unemployed (in %)
Singapore
2.00
India
4.00
China
4.10
Switzerland
4.19
Austria
4.30
United Arab Emirates
4.43
Netherlands
5.28
Germany
5.50
Brazil
5.50
Russian Federation
5.50
Belgium
7.30
United Kingdom
7.89
United States
8.07
Italy
8.40
Poland
10.11
France
10.25
Ireland
14.80
Spain
25.00
Source: IMD • World Competitiveness Yearbook Online • 2013
5.2.4 Global pension index
The index compares retirement income systems around the world.
Ratings are based on their adequacy, sustainability and integrity (from 0 to 100, the higher the better).
Netherlands
78.3
Switzerland
73.9
Singapore
66.5
United Kingdom
65.4
Germany
58.5
United States
58.2
Poland
57.9
53.5
France
52.8
Brazil
47.1
China
India
43.3
Source: Mercer • Melbourne Mercer Global Pension Index • 2013
Note: Data for Austria, Belgium, Ireland, Italy, Poland, Spain, the Russian Federation and the the United Arab Emirates are not available.
EDUCATION, HUMAN RESOURCES & REMUNERATION
International comparisons
53
5.2
LABOR MARKET
5.2.5 Annual and weekly working hours, holidays and paid vacation
Annual working time *
(in hours)
Weekly working time **
(in hours)
Holidays and paid vacation
(in days)
India
2,227
48
28
United Arab Emirates***
2,096
40
25
Brazil
1,998
48
37
China
1,912
40
21
Switzerland
1,894
40
25
Singapore
1,880
41
29
United States
1,880
44
33
Russian Federation
1,824
39
29
Ireland
1,802
38
31
Poland
1,784
40
37
Germany
1,742
40
32
Italy
1,740
38
36
Netherlands
1,740
39
38
Belgium
1,730
38
28
Spain
1,729
39
36
Austria
1,723
38
29
United Kingdom
1,680
38
30
France
1,595
36
36
Source: hkp/// • CCT-ProsurveyTM, September • 2013
Note: * Excluding weekends and statutory holidays. ** This corresponds to the legal weekly work hours according to the national legislation.
*** During Ramadan, a working day includes 6 hours instead of 8.
54
EDUCATION, HUMAN RESOURCES & REMUNERATION
International comparisons
5.3
HUMAN RESOURCES
5.3.1 Human Capital Index
The index measures the state of human capital development based on 4 main variables: health and wellness, education,
workforce and employment and enabling environment (on a scale from -1.5 to 1.5, the higher the better).
Country
Score
Switzerland
1.455
Rank
1
Singapore
1.232
3
Netherlands
1.161
4
Germany
1.109
6
United Kingdom
1.042
8
Belgium
0.985
11
Austria
0.977
13
United States
0.920
16
Ireland
0.824
20
France
0.746
21
United Arab Emirates
0.610
24
Spain
0.465
29
Italy
0.266
37
China
0.186
43
Poland
0.087
49
Russian Federation
0.010
51
Brazil
-0.054
57
India
-0.270
78
Source: World Economic Forum • The Human Capital Report • 2013
5.3.2 Language skills
Adequacy of language skills with the needs of companies
(on a scale from 0 to 10, the higher the better)
8.53
Switzerland
8.24
Netherlands
8.24
Singapore
8.04
Belgium
7.96
United Arab Emirates
7.31
Poland
India
7.00
Germany
6.95
Austria
6.73
Ireland
5.14
United States
4.97
China
4.46
France
4.39
United Kingdom
4.24
Russian Federation
4.10
Italy
Spain
Brazil
3.75
2.92
2.59
Source: IMD • World Competitiveness Yearbook Online • 2013
EDUCATION, HUMAN RESOURCES & REMUNERATION
International comparisons
55
5.3
HUMAN RESOURCES
5.3.3 Workers’ motivation
Level of workers’ motivation at work
(on a scale from 0 to 10, the higher the better)
Switzerland
7.77
Ireland
7.60
Austria
7.59
Germany
7.29
Netherlands
7.00
United Arab Emirates
6.97
United States
6.79
Singapore
6.78
Brazil
6.60
Belgium
6.15
China
6.14
6.00
United Kingdom
5.44
India
4.90
France
4.76
Italy
4.38
Poland
4.22
Spain
4.15
Russian Federation
Source: IMD • World Competitiveness Yearbook Online • 2013
5.3.4 Capacity to attract talent
Capacity of the countries to attract talents
(on a scale from 1 to 7, the higher the better)
Switzerland
6.08
Singapore
6.01
United Kingdom
5.83
United States
5.74
Ireland
5.03
Netherlands
4.73
Germany
4.69
China
4.39
Austria
4.25
France
3.88
Belgium
3.85
Brazil
3.73
India
3.72
Russian Federation
3.00
Spain
Poland
Italy
2.85
2.44
2.39
Source: World Economic Forum • The Human Capital Report • 2013
56
EDUCATION, HUMAN RESOURCES & REMUNERATION
International comparisons
5.3.5 International experience of senior managers
Importance of top managers’ international experience on economic performance
(on a scale from 0 to 10, the higher the better)
7.92
Switzerland
7.81
United Arab Emirates
7.20
Poland
6.97
Netherlands
6.93
Singapore
6.63
Ireland
6.57
Germany
6.50
Belgium
6.00
Austria
5.68
United Kingdom
5.53
United States
5.13
France
4.97
Brazil
4.87
India
4.71
Italy
4.00
Spain
4.00
China
Russian Federation
3.90
Source: IMD • World Competitiveness Yearbook Online • 2013
EDUCATION, HUMAN RESOURCES & REMUNERATION
International comparisons
57
5.4
AVERAGE REMUNERATION AND SALARIES
ADJUSTED TO PRODUCTIVITY IN US$
5.4.1 General Manager - CEO
Ireland
Salaries adjusted
to productivity
index
282,952
Productivity
index
USA = 100
102
Total
salary
cost
288,611
Company
compulsory
contributions
28,014
Annual
salary
base
260,597
254,407
Austria
369,416
87
321,392
66,985
Netherlands
370,716
84
311,402
29,972
281,429
Switzerland
395,585
130
514,260
66,883
447,377
Belgium
399,744
97
387,751
81,132
306,620
Italy
491,385
80
393,108
87,853
305,256
318,408
France
496,993
92
457,234
138,826
United States
509,629
100
509,629
36,216
473,413
Singapore
536,852
75
402,639
50,989
351,650
Germany
544,411
74
402,864
65,103
337,761
United Kingdom
581,171
75
435,878
52,857
383,021
United Arab Emirates
593,833
67
397,868
0
397,868
Spain
620,087
71
440,262
117,962
322,300
232,284
Poland
951,645
29
275,977
43,693
Russian Federation
1,511,421
26
392,969
90,685
302,284
China
1,860,105
10
186,010
50,236
135,774
Brazil
1,942,790
21
407,986
76,290
331,696
India
3,968,593
4
158,744
23,355
135,389
Source: hkp/// • CCT-ProsurveyTM, Geneva September • 2013
Note: Salaries adjusted to productivity: data for China and India are high in comparison to other countries.
This is due to the fact that these are emerging countries, the lower productivity index therefore generates higher amounts.
5.4.2 Head of finance - CFO
Ireland
Salaries adjusted
to productivity
index
171,441
Productivity
index
USA = 100
102
Total
salary
cost
174,870
Company
compulsory
contributions
16,974
Annual
salary
base
157,896
Netherlands
233,375
84
196,035
18,868
177,167
United Kingdom
240,070
75
180,052
21,834
158,218
Switzerland
243,485
130
316,531
41,167
275,364
Belgium
250,607
97
243,089
50,863
192,226
France
258,455
92
237,779
72,195
165,584
Austria
273,361
87
237,824
49,568
188,256
United States
280,725
100
280,725
19,949
260,775
Spain
289,951
71
205,866
55,159
150,707
Italy
299,278
80
239,422
53,507
185,916
Singapore
311,782
75
233,836
29,612
204,224
Germany
340,891
74
252,260
40,765
211,494
United Arab Emirates
354,525
67
237,532
0
237,532
Poland
568,144
29
164,762
26,085
138,677
Russian Federation
868,162
26
225,722
52,090
173,632
Brazil
1,059,164
21
222,424
41,592
180,833
China
1,636,889
10
163,689
44,208
119,481
India
2,811,607
4
112,464
16,546
95,918
Source: hkp/// • CCT-ProsurveyTM, Geneva September • 2013
Note: Salaries adjusted to productivity: data for China and India are high in comparison to other countries.
This is due to the fact that these are emerging countries, the lower productivity index therefore generates higher amounts.
58
EDUCATION, HUMAN RESOURCES & REMUNERATION
International comparisons
5.4.3 Head of HR
Salaries adjusted
to productivity
index
164,625
Ireland
Productivity
index
USA = 100
102
Total
salary
cost
167,918
Company
compulsory
contributions
16,299
Annual
salary
base
151,619
Netherlands
198,607
84
166,830
16,057
150,772
Austria
201,584
87
175,378
36,553
138,825
148,485
United Kingdom
225,302
75
168,976
20,491
United States
232,861
100
232,861
16,548
216,313
Belgium
233,420
97
226,418
47,375
179,043
Switzerland
239,292
130
311,080
40,458
270,622
France
243,019
92
223,577
67,883
155,694
Singapore
256,358
75
192,269
24,348
167,920
Spain
258,402
71
183,465
49,157
134,308
Italy
283,444
80
226,755
50,676
176,079
Germany
298,992
74
221,254
35,755
185,499
202,591
United Arab Emirates
302,375
67
202,591
0
Poland
484,571
29
140,526
22,248
118,278
Russian Federation
636,730
26
165,550
38,204
127,346
Brazil
1,055,756
21
221,709
41,458
180,251
China
1,587,147
10
158,715
42,865
115,850
India
2,430,157
4
97,206
14,301
82,905
Source: hkp/// • CCT-ProsurveyTM, Geneva September • 2013
Note: Salaries adjusted to productivity: data for China and India are high in comparison to other countries.
This is due to the fact that these are emerging countries, the lower productivity index therefore generates higher amounts.
5.4.4 Head of IT
Ireland
Salaries adjusted
to productivity
index
146,910
Productivity
index
USA = 100
102
Total
salary
cost
149,848
Company
compulsory
contributions
14,545
Annual
salary
base
135,303
Singapore
174,122
75
130,591
16,538
114,053
Netherlands
176,988
84
148,670
14,309
134,361
Belgium
197,224
97
191,307
40,028
151,279
Spain
203,160
71
144,244
38,648
105,596
Austria
207,907
87
180,879
37,699
143,180
Switzerland
216,440
130
281,372
36,594
244,778
Italy
222,521
80
178,017
39,784
138,233
France
256,915
92
236,362
71,764
164,597
United States
271,997
100
271,997
19,329
252,668
Germany
288,628
74
213,585
34,516
179,069
United Arab Emirates
301,342
67
201,899
0
201,899
United Kingdom
351,648
75
263,736
31,982
231,754
Poland
482,914
29
140,045
22,172
117,873
Russian Federation
651,121
26
169,292
39,067
130,224
Brazil
971,296
21
203,972
38,141
165,831
China
1,620,519
10
162,052
43,766
118,286
India
2,417,981
4
96,719
14,229
82,490
Source: hkp/// • CCT-ProsurveyTM, Geneva September • 2013
Note: Salaries adjusted to productivity: data for China and India are high in comparison to other countries.
This is due to the fact that these are emerging countries, the lower productivity index therefore generates higher amounts.
EDUCATION, HUMAN RESOURCES & REMUNERATION
International comparisons
59
5.4
AVERAGE REMUNERATION AND SALARIES
ADJUSTED TO PRODUCTIVITY, IN US$
5.4.5 Programmer analyst
Ireland
Salaries adjusted
to productivity
index
60,830
Productivity
index
USA = 100
102
Total
salary
cost
62,046
Company
compulsory
contributions
6,023
Annual
salary
base
56,024
Singapore
77,524
75
58,143
7,363
50,780
United Arab Emirates
80,889
67
54,196
0
54,196
Belgium
81,636
97
79,187
16,569
62,618
Italy
83,578
80
66,862
14,942
51,920
55,313
France
86,337
92
79,430
24,117
United States
88,796
100
88,796
6,310
82,486
Switzerland
102,703
130
133,514
17,364
116,150
78,674
Austria
114,240
87
99,389
20,715
Germany
116,965
74
86,554
13,987
72,567
Netherlands
126,655
84
106,391
10,240
96,150
Poland
129,629
29
37,592
5,952
31,641
Spain
151,862
71
107,822
28,889
78,932
Russian Federation
162,564
26
42,267
9,754
32,513
Brazil
186,938
21
39,257
7,341
31,916
United Kingdom
190,720
75
143,040
17,346
125,694
China
197,280
10
19,728
5,328
14,400
India
333,450
4
13,338
1,962
11,376
Source: hkp/// • CCT-ProsurveyTM, Geneva September • 2013
Note: Salaries adjusted to productivity: data for China and India are high in comparison to other countries.
This is due to the fact that these are emerging countries, the lower productivity index therefore generates higher amounts.
5.4.6 Accountant
United Arab Emirates
Salaries adjusted
to productivity
index
48,729
Productivity
index
USA = 100
67
Total
salary
cost
32,649
Company
compulsory
contributions
0
Annual
salary
base
32,649
Ireland
58,066
102
59,227
5,749
53,478
Spain
70,717
71
50,209
13,453
36,756
Netherlands
71,807
84
60,318
5,806
54,512
Austria
72,363
87
62,956
13,121
49,835
Singapore
73,641
75
55,231
6,994
48,237
United States
75,796
100
75,796
5,386
70,410
Belgium
76,887
97
74,580
15,605
58,975
Poland
78,091
29
22,646
3,585
19,061
Italy
78,625
80
62,900
14,057
48,843
Russian Federation
79,390
26
20,641
4,763
15,878
France
82,820
92
76,195
23,134
53,060
Switzerland
85,600
130
111,281
14,473
96,808
United Kingdom
88,634
75
66,475
8,061
58,414
Germany
103,380
74
76,501
12,363
64,139
Brazil
137,474
21
28,870
5,398
23,471
China
176,359
10
17,636
4,763
12,873
India
232,938
4
9,318
1,371
7,947
Source: hkp/// • CCT-ProsurveyTM, Geneva September • 2013
Note: Salaries adjusted to productivity: data for China and India are high in comparison to other countries.
This is due to the fact that these are emerging countries, the lower productivity index therefore generates higher amounts.
60
EDUCATION, HUMAN RESOURCES & REMUNERATION
International comparisons
5.4.7 Purchasing manager
Ireland
Salaries adjusted
to productivity index
79,621
Productivity
index USA = 100
102
Total Company compulsory
salary cost
contributions
81,213
7,883
Annual
salary base
73,330
Singapore
87,631
75
65,723
8,323
57,400
Belgium
97,256
97
94,338
19,739
74,599
Netherlands
101,933
84
85,624
8,241
77,383
Austria
105,547
87
91,826
19,139
72,688
France
115,787
92
106,524
32,343
74,181
Switzerland
121,964
130
158,553
20,621
137,932
United States
125,248
100
125,248
8,901
116,347
Italy
127,520
80
102,016
22,799
79,217
Spain
130,406
71
92,588
24,808
67,781
United Kingdom
140,207
75
105,155
12,752
92,403
Germany
155,225
74
114,867
18,563
96,304
Russian Federation
166,419
26
43,269
9,985
33,284
United Arab Emirates
192,900
67
129,243
14,360
114,882
Slovenia
236,612
45
106,475
22,636
83,839
Brazil
244,154
21
51,272
9,588
41,685
Hungary
252,404
29
73,197
10,151
63,047
Poland
274,783
29
79,687
12,616
67,071
China
639,046
10
63,905
17,259
46,646
India
727,814
4
29,113
4,283
24,829
Source: hkp/// • CCT-ProsurveyTM, Geneva September • 2013
Note: Salaries adjusted to productivity: data for China and India are high in comparison to other countries.
This is due to the fact that these are emerging countries, the lower productivity index therefore generates higher amounts.
5.4.8Marketing manager
Ireland
Salaries adjusted
to productivity
index
98,727
Productivity
index
USA = 100
102
Total
salary
cost
100,701
Company
compulsory
contributions
9,775
Annual
salary
base
90,927
Netherlands
130,751
84
109,831
10,571
99,260
Belgium
133,191
97
129,195
27,032
102,163
Austria
137,569
87
119,685
24,945
94,740
Switzerland
138,764
130
180,393
23,461
156,932
Spain
159,257
71
113,072
30,296
82,776
France
163,261
92
150,200
45,604
104,596
103,048
Italy
165,881
80
132,705
29,657
United Arab Emirates
168,531
67
112,916
0
112,916
Singapore
172,960
75
129,720
16,427
113,293
United Kingdom
177,541
75
133,156
16,147
117,009
Germany
184,585
74
136,593
22,074
114,520
United States
186,232
100
186,232
13,234
172,998
Poland
270,079
29
78,323
12,400
65,923
Russian Federation
356,187
26
92,609
21,371
71,237
Brazil
495,044
21
103,959
19,440
84,520
India
595,086
4
23,803
3,502
20,301
China
684,467
10
68,447
18,486
49,961
Source: hkp/// • CCT-ProsurveyTM, Geneva September • 2013
Note: Salaries adjusted to productivity: data for China and India are high in comparison to other countries.
This is due to the fact that these are emerging countries, the lower productivity index therefore generates higher amounts.
EDUCATION, HUMAN RESOURCES & REMUNERATION
International comparisons
61
5.4
AVERAGE REMUNERATION AND SALARIES
ADJUSTED TO PRODUCTIVITY, IN US$
5.4.9 Communication and PR specialist
Ireland
Salaries adjusted
to productivity
index
83,016
Productivity
index
USA = 100
102
Total
salary
cost
84,677
Company
compulsory
contributions
8,219
Annual
salary
base
76,457
86,214
Belgium
112,398
97
109,026
22,812
Netherlands
118,854
84
99,837
9,609
90,228
Switzerland
121,365
130
157,774
20,520
137,254
United States
127,278
100
127,278
9,045
118,233
Austria
130,968
87
113,942
23,748
90,194
Singapore
148,978
75
111,734
14,150
97,584
United Arab Emirates
150,119
67
100,580
0
100,580
Italy
155,214
80
124,171
27,750
96,421
France
157,415
92
144,822
43,971
100,851
Spain
161,786
71
114,868
30,777
84,091
United Kingdom
162,181
75
121,636
14,750
106,885
Germany
164,114
74
121,444
19,626
101,819
Poland
240,572
29
69,766
11,045
58,721
Russian Federation
245,769
26
63,900
14,746
49,154
Brazil
404,117
21
84,865
15,869
68,996
China
504,859
10
50,486
13,635
36,851
India
530,408
4
21,216
3,121
18,095
Source: hkp/// • CCT-ProsurveyTM, Geneva September • 2013
Note: Salaries adjusted to productivity: data for China and India are high in comparison to other countries.
This is due to the fact that these are emerging countries, the lower productivity index therefore generates higher amounts.
5.4.10 Legal adviser
Ireland
Salaries adjusted
to productivity
index
83,306
Productivity
index
USA = 100
102
Total
salary
cost
84,972
Company
compulsory
contributions
8,248
Annual
salary
base
76,724
58,390
United Arab Emirates
87,150
67
58,390
0
Belgium
92,906
97
90,119
18,856
71,263
Austria
104,804
87
91,179
19,004
72,176
Netherlands
117,505
84
98,704
9,500
89,204
Italy
130,694
80
104,555
23,366
81,189
Switzerland
133,135
130
173,076
22,510
150,566
Spain
138,916
71
98,630
26,427
72,204
France
139,058
92
127,934
38,843
89,090
Poland
139,661
29
40,502
6,412
34,090
Singapore
144,812
75
108,609
13,754
94,855
Russian Federation
146,274
26
38,031
8,776
29,255
United States
158,282
100
158,282
11,248
147,034
United Kingdom
159,516
75
119,637
14,508
105,129
Germany
164,375
74
121,638
19,657
101,981
Brazil
226,770
21
47,622
8,905
38,717
China
361,136
10
36,114
9,753
26,360
India
541,610
4
21,664
3,187
18,477
Source: hkp/// • CCT-ProsurveyTM, Geneva September • 2013
Note: Salaries adjusted to productivity: data for China and India are high in comparison to other countries.
This is due to the fact that these are emerging countries, the lower productivity index therefore generates higher amounts.
62
EDUCATION, HUMAN RESOURCES & REMUNERATION
International comparisons
Taxes and social contributions
6.1
6.2
6.3
Taxes
Compulsory social contributions
Cost of capital
6
63
6.1
TAXES
6.1.1 General index
6.1.1.1 Total tax rate (in %)
United Arab Emirates
14.9
26.4
Ireland
27.6
Singapore
30.2
Switzerland
35.5
United Kingdom
38.7
Spain
40.1
Netherlands
43.8
Poland
United States
46.7
Germany
46.8
53.1
Austria
54.1
Russian Federation
57.7
Belgium
61.8
India
63.7
China
65.7
France
68.3
Italy
69.3
Brazil
Source: World Economic Forum • The Global Competitiveness Report • 2013 - 2014
Note: The rates listed represent a combination of profit tax (% of profits), labor tax and contributions (% of profits), and other taxes (% of profits).
6.1.1.2 Tax impact on investment
Taxation level is perceived as adequate to encourage investments.
(on a scale from 1 to 7, the higher the better)
United Arab Emirates
6.2
Singapore
6.0
Switzerland
5.1
Netherlands
4.6
Ireland
4.6
United Kingdom
4.3
China
4.1
India
4.1
United States
4.1
Germany
4.1
Austria
3.9
Belgium
3.3
Poland
3.1
Spain
3.1
Russian Federation
3.0
France
2.6
Brazil
2.5
Italy
2.1
Source: World Economic Forum • The Global Competitiveness Report • 2013 - 2014
64
TAXES AND SOCIAL CONTRIBUTIONS
International comparisons
6.1.2 Personal income taxes
6.1.2.1 Personal income tax in Geneva
Net income (US$)
Single
Tax rate
Married without children
Married with 2 children
27,125
4.9%
0.1%
0.1%
54,250
14.9%
4.9%
0.1%
81,375
19.8%
11.2%
4.3%
108,500
23.3%
15.8%
9.6%
135,625
25.9%
19.2%
13.8%
162,750
27.9%
22.0%
17.2%
189,875
29.6%
24.6%
20.2%
217,000
31.3%
26.6%
22.7%
271,250
33.6%
29.3%
26.3%
325,500
35.4%
31.3%
28.7%
434,000
37.8%
34.0%
32.0%
542,500
39.4%
35.8%
34.2%
1,085,000
42.5%
40.2%
39.4%
Source: Ernst & Young • Geneva Taxes • 2012
6.1.2.2 Effective personal income tax rates in 2012
Switzerland
11.02
Brazil
11.02
India
Russian Federation
United States
Ireland
Spain
Singapore
United Kingdom
China
France
Italy
Poland
Germany
Belgium
Netherlands
Austria
12.02
12.47
13.40
15.67
16.06
20.75
21.34
22.33
24.79
25.25
25.80
27.03
27.27
29.64
31.08
Source: IMD • World Competitiveness Yearbook Online • 2013
Note: Rates are calculated as a percentage of an income equal to GDP per capita. No personal income tax rate in the United Arab Emirates.
TAXES AND SOCIAL CONTRIBUTIONS
International comparisons
65
6.1
TAXES
6.1.2.3 Effective income tax rates on a gross annual salary of 100,000 US$ and 300,000 US$
Effective income tax on gross income (in %)
100,000 US$
300,000 US$
United Arab Emirates
5.0
5.0
Singapore
6.7
14.1
Switzerland
11.4
25.6
Russian Federation
13.0
13.0
United States
18.7
26.8
France
20.0
34.0
China
22.0
35.0
United Kingdom
24.1
38.5
Austria
24.4
37.1
India
27.3
29.7
Brazil
27.5
27.5
Poland
27.9
30.6
Germany
28.3
37.0
Netherlands
28.5
44.2
Spain
32.0
43.0
Ireland
32.0
43.0
Belgium
33.9
40.3
Italy
35.6
41.8
Source: KPMG • Individual income tax and social security rate survey • 2012
Note: Data for the Russian Federation and United Arab Emirates are from 2011.
6.1.3 Corporate taxes
6.1.3.1 Average tax rates applied to corporate income
Switzerland
Tax rate
11.32 to 24.43
Ireland
12.50 to 25.00
Singapore
17.00
Poland
19.00
Russian Federation
20.00
United Kingdom
24.00
Austria
25.00
China
25.00
Netherlands
25.00
Germany
29.48
Spain
30.00
Italy
31.40
India
32.45
France
33.33
Belgium
33.99
Brazil
34.00
United States
40.00
United Arab Emirates
55.00
Source: KPMG • Corporate and Indirect Tax Survey • 2012
Notes: Ireland: The corporate income tax rate is 12.5 percent for active income of new operations. A corporate income tax rate of 25 percent applies to passive
income and income from certain land dealing activities, mining and petroleum activities. Capital gains are taxed at 30 percent with a participation exemption for
gains on disposals of certain shareholdings of 5 percent or more of companies resident in EU or income tax treaty sales. Switzerland: The maximum effective
corporate tax rate ranges from 11.32 percent to 24.43 percent depending on the canton and the commune. The rate comprises federal, cantonal and communal
taxes. All 26 cantons apply different tax rates.
66
TAXES AND SOCIAL CONTRIBUTIONS
International comparisons
6.1.3.2 Treaty withholding rates
Minimum rate
on dividend
ordinary rule 1
15%
Minimum rate
on dividend subsidiary
0%
Royalties on
licences 2
0%
Belgium
15%
10%
0%
Brazil (no treaty)
35%
35%
0%
China
10%
10%
0%
France
15%
0%
0%
Germany
15%
0%
0%
India
10%
10%
0%
Ireland
15%
10%
0%
Italy
15%
15%
0%
Netherlands
15%
0%
0%
Poland
15%
0%
0%
Russian Federation
15%
5%
0%
Singapore
15%
5%
0%
Spain
15%
0%
0%
United Arab Emirates
15%
5%
0%
United Kingdom
15%
0%
0%
United States
15%
5%
0%
Payments from a Swiss
company to
Austria
Source: Kendris • 2012
Notes: Rates from treaty applied as of the 31st of August 2012.
1. Dividend paid by a Swiss company is subject to a 35% Swiss withholding tax and can be reduced according to the above-mentioned tax treaty rates.
2. There is no Swiss withholding tax on payment of royalties.
Data for Poland are not available.
6.1.3.3 Value added tax
Singapore
Switzerland
India
7.0%
8.0%
14.0%
China
17.0%
Brazil
17.0%
Russian Federation
Germany
France
18.0%
19.0%
19.6%
United Kingdom
20.0%
Austria
20.0%
Spain
21.0%
Netherlands
21.0%
Belgium
21.0%
Italy
21.0%
Poland
23.0%
Ireland
23.0%
Source: Ernst & Young • Worldwide VAT, GST and Sales Tax Guide • 2013
Notes: Data for the United States are not homogeneous: the tax rate (state or local) may range from 2.9% to 7.5%.
No value added tax in the United Arab Emirates.
TAXES AND SOCIAL CONTRIBUTIONS
International comparisons
67
6.2
COMPULSORY SOCIAL CONTRIBUTIONS
6.2.1 Compulsory contributions for employers (in %)
Switzerland
United States
United Kingdom
Ireland
6.25
8.55
9.78
10.75
12.02
India
15.67
Singapore
17.90
Netherlands
19.28
Germany
Poland
20.53
Italy
27.87
Rusian Federation
29.88
Spain
30.25
Austria
30.90
Belgium
31.47
Brazil
39.87
China
44.15
France
51.60
Source: IMD • World Competitiveness Yearbook Online • 2013
Notes: Rates are calculated as a percentage of an income equal to GDP per capita. No compulsory contributions for employers in the United Arab Emirates.
6.2.2 Compulsory contributions for employees (in %)
Ireland
4.00
Switzerland
6.25
Spain
6.35
United States
7.65
United Kingdom
8.48
Brazil
9.49
Italy
11.02
India
12.02
Belgium
13.01
Poland
14.82
17.93
Austria
19.07
Netherlands
19.59
Singapore
20.18
Germany
22.33
China
23.94
France
Source: IMD • World Competitiveness Yearbook Online • 2013
Notes: Rates are calculated as a percentage of an income equal to GDP per capita. No compulsory contributions for employees
in the Russian Federation and in the United Arab Emirates.
68
TAXES AND SOCIAL CONTRIBUTIONS
International comparisons
6.2.3 Social security and other payroll withholdings
as a percentage of the gross salary (Geneva)
Fixed rates (in %)
Old age / survivors (AVS)1, Army (APG)2 and Disability insurance (AI)3
Unemployment payroll tax (AC)4
Employer
Employee
Total
5.15
1.1
5.15
1.1
10.3
2.2
1.9
/
1.9
Maternity insurance (Geneva)6
0.042
0.042
0.084
Sub-total
8.192
6.292
14.484
6.25
6.25
12.5
0.8
/
0.8
/
1.3
1.3
7.05
7.55
14.6
15.242
13.842
29.084
Family allowances (Geneva)5
Variable rates (in %)
Pension fund (LPP)7
Compulsory deferral accident insurance (LAA):8
Professional accidents (AP)
Non-professional accidents (ANP)
Sub-total
TOTAL
Source: Fédération des Entreprises Romandes • 2013
Notes:
1. AVS: compulsory federal old age / widowhood insurance.
2. APG: loss of salary compensation insurance and allowances for persons performing army and civil duty.
3. AI: compulsory federal disability insurance.
4. AC: compulsory federal unemployment insurance. Salary until CHF 126,000: 1.1 percent of the annual salary. Salary from CHF 126,001: 2.1 percent
(1.1 percent + 1 percent, as a solidarity contribution), as per January 1st 2014.
5. Family allowances: employer’s contribution only. It is established by cantonal law; the above rate applies in the Canton of Geneva.
6. Maternity insurance: the above rate applies in the Canton of Geneva.
7. Retirement pension fund: according to the law, the total amount of contributions by the employers must be at least equal to the total amount paid by all employees.
The legal total contribution rate is 12.5 percent. In practice, employers tend to contribute to 58% to the fund and the total contribution rate is 15 percent.
8. LAA: compulsory federal accident insurance; the amount depends on the risk of injury by profession. The annual salary subject to this withholding is limited to
maximum CHF 126,000 (US$ 136,710).
TAXES AND SOCIAL CONTRIBUTIONS
International comparisons
69
6.3
COST OF CAPITAL
6.3.1 Ten-year government bond yield
Switzerland
1.14%
Germany
1.91%
Netherlands
2.30%
Austria
2.32%
2.47%
France
2.67%
Singapore
Belgium
2.78%
United States
2.81%
2.91%
United Kingdom
China
4.00%
Ireland
4.01%
Italy
4.39%
Poland
4.43%
Spain
4.47%
7.63%
Russian Federation
8.34%
India
11.78%
Brazil
Source: www.tradingeconomics.com • August 2013
Note: Data for the United Arab Emirates are not available.
6.3.2 Cost of capital
Cost of capital encourages business development
(on a scale from 0 to 10, the higher the better)
Switzerland
7.83
United States
7.39
Germany
6.87
Singapore
6.85
United Arab Emirates
6.23
Belgium
5.65
Austria
5.48
France
5.42
United Kingdom
5.36
Netherlands
5.35
Ireland
5.33
Poland
4.89
India
4.19
China
3.42
Italy
3.33
Spain
3.11
Brazil
3.07
Russian Federation
2.78
Source: IMD • World Competitiveness Yearbook Online • 2013
70
TAXES AND SOCIAL CONTRIBUTIONS
International comparisons
Real estate
7.1
7.2
Commercial real estate
Residential real estate
7
71
7.1
COMMERCIAL REAL ESTATE
7.1.1 Prime office occupancy cost
Total occupancy cost of offices located in the city center (in US$/m2)
Total occupancy cost (US$/m²)
London
2,497
Beijing
2,178
New Delhi
2,008
Moscow
1,939
Paris
1,339
Sao Paulo
1,334
Geneva
1,170
Singapore
1,115
Dubai
1,039
New York
841
Milan
800
Frankfurt
741
Dublin
594
Warsaw
588
Brussels
583
Amsterdam
492
Vienna
481
Barcelona
392
Source: CBRE • Prime Office Occupancy Costs • 2013
7.1.2 Annual rent of offices in Geneva (in US$/m2)
Standard quality
Area
CBD 1
Rent min.
485
Rent max.
622
Rent max.
955
CBD left bank
372
461
476
640
CBD right bank
334
434
449
597
Airport / International organisations
304
411
434
543
Meyrin / Vernier
195
271
285
380
Praille / Acacias / Vernets
263
336
358
455
Lancy / Carouge
263
336
380
488
Chêne / Thônex
239
282
297
396
Source: Colliers International Suisse Romande SA & régies partenaires • Indicateur des Loyers de Bureaux (ILB) n°17 • 2013
Note: 1. CBD – Central Business District
72
Superior quality
Rent min.
695
REAL ESTATE
International comparisons
7.2
RESIDENTIAL REAL ESTATE
7.2.1 Average local rent (in US$)
Average rent prices (monthly gross rent) for a majority of local households
3,350
New York
2,450
Dubai
1,980
London
1,670
Paris
Geneva
1,570
Dublin
1,550
Frankfurt
1,280
Milano
1,260
Brussels
1,240
1,110
Amsterdam
980
Barcelona
950
Vienna
850
Sao Paulo
850
Moscow
710
Warsaw
470
New Delhi
Beijing
310
Source: UBS • Prices and Earnings • 2012
7.2.2 Housing prices (in US$)
Average cost of housing per month that an apartment seeker would expect to pay on the free market
Low rent
New Delhi
Beijing
Apartments, 3 rooms unfurnished *
Middle rent
High rent
Low rent
Apartments, 4 rooms furnished **
Middle rent
High rent
259
557
1,529
389
816
2,890
428
661
1,646
1,011
1,555
2,501
Barcelona
739
1,088
1,516
946
1,270
2,086
Warsaw
829
1,205
1,607
1,063
1,620
2,138
Vienna
1,101
1,425
1,866
1,814
2,488
3,732
Amsterdam
1,101
1,581
2,332
1,749
2,332
3,758
Sao Paulo
972
1,581
1,918
1,905
2,812
3,952
Dublin
1,192
1,594
2,527
1,555
2,332
3,240
Frankfurt
1,166
1,646
2,242
1,736
2,371
3,408
Milan
1,542
1,814
2,851
2,319
2,864
4,678
Brussels
1,270
1,840
3,123
1,814
2,540
3,628
Paris
1,387
2,281
3,343
2,488
3,252
4,665
Geneva
1,646
2,436
3,628
3,278
4,704
6,414
Moscow
1,801
2,786
3,719
2,618
3,641
5,922
London
2,008
3,265
5,403
2,825
4,833
8,565
Dubai
2,345
3,486
4,976
2,436
4,885
7,308
Singapore
2,462
3,810
6,349
3,188
4,743
7,036
New York
1,970
4,302
10,315
3,680
7,244
14,111
Source: UBS • Prices and Earnings • 2012
Notes:
* Rental prices (monthly gross rent) are based on apartments built after 1980 (3 rooms, kitchen, bathroom, with garage) including all ancillary costs
with an average comfort level in the locality and near the city center.
** Rental prices (monthly gross rent) are based on apartments built after 1980 (4 rooms, kitchen, bathroom, with garage) including all ancillary costs.
The living comfort meets the needs of mid-level managers in areas favored by them.
REAL ESTATE
International comparisons
73
74
Quality of life
8.1
8.2
8.3
Quality of life
Sustainable development
Health and security
8
75
8.1
QUALITY OF LIFE
8.1.1 The where-to-be-born index
The index combines subjective life-satisfaction surveys (how happy people say they are)
with objective determinants of the quality of life across countries.
8.22
Switzerland
8.00
Singapore
7.94
Netherlands
7.74
Ireland
7.73
Austria
7.51
Belgium
7.38
United States
Germany
7.38
United Arab Emirates
7.33
7.21
Italy
7.04
France
United Kingdom
7.01
Spain
6.96
6.66
Poland
6.52
Brazil
5.99
China
5.67
India
5.31
Russian Federation
Source: The Economist Intelligence Unit • 2013
8.1.2 Quality of life
Quality of life level (on a scale from 0 to 10, the higher the better)
9.49
Switzerland
9.49
Austria
9.15
Germany
8.90
Belgium
United Arab Emirates
8.68
Netherlands
8.63
8.54
France
8.44
Ireland
8.39
United States
8.08
Singapore
7.67
Spain
7.56
United Kingdom
6.83
Italy
5.04
Brazil
4.63
India
4.28
China
3.53
Poland
3.38
Russian Federation
Source: IMD • World Competitiveness Yearbook Online • 2013
76
QUALITY OF LIFE
International comparisons
8.1.3 Happiness index
The index measures population’s well-being and life satisfaction through 6 indicators: healthy life expectancy, perceptions of corruption,
GDP per capita, freedom to make life choices, social support and generosity (on a scale from 0 to 10, the higher the better).
Switzerland
7.7
Netherlands
7.5
Austria
7.4
United Arab Emirates
7.1
United States
7.1
Ireland
7.1
Belgium
7.0
United Kingdom
6.9
Brazil
6.8
France
6.8
Germany
6.7
Singapore
6.5
Spain
6.3
Italy
6.0
Poland
5.8
Russian Federation
5.5
China
5.0
Source: United Nations Sustainable Development Solutions Network • World Happiness Report • 2013
8.1.4 Life satisfaction
Average self-evaluation of life satisfaction
(on a scale from 0 to 10, the higher the better)
7.8
Switzerland
7.5
Netherlands
7.4
Austria
7.0
United States
7.0
Ireland
United Kingdom
6.8
Belgium
6.7
Brazil
6.7
Germany
6.7
France
6.6
Spain
Poland
Italy
Russian Federation
6.3
5.9
5.8
5.6
Source: OECD • Better Life Index • 2013
Note: Data for China, India, Singapore and the United Arab Emirates are not available.
QUALITY OF LIFE
International comparisons
77
8.2
SUSTAINABLE DEVELOPMENT
8.2.1 Environmental Sustainability
This index measures a country’s efforts to promote environmental sustainability by taking into account 7 factors: stringency and
enforcement of environmental regulation, sustainability of travel and tourism industry development, carbon dioxide emissions,
particulate matter concentration, threatened species, environmental treaty ratification (on a scale from 1 to 7, the higher the better).
6.00
Switzerland
5.80
Germany
Austria
5.60
France
5.60
Netherlands
5.60
United Kingdom
5.60
5.60
Ireland
5.50
Belgium
5.20
Spain
5.20
Singapore
5.10
Brazil
5.00
Poland
4.70
Italy
4.40
United Arab Emirates
4.20
China
4.20
India
4.10
United States
3.50
Russian Federation
Source: World Economic Forum • The Travel & Tourism Competitiveness Report • 2013
8.2.2 Quality of the natural environment
Natural environment is of good quality
(on a scale from 1 to 7, the higher the better)
6.7
Austria
6.5
Switzerland
6.1
Germany
5.9
Ireland
5.5
Singapore
United States
5.2
Netherlands
5.2
5.2
France
5.1
United Kingdom
5.1
Brazil
4.9
Belgium
4.8
United Arab Emirates
4.7
Spain
4.3
Poland
4.2
Italy
4.1
India
3.6
China
3.4
Russian Federation
Source: World Economic Forum • The Travel & Tourism Competitiveness Report • 2013
78
QUALITY OF LIFE
International comparisons
8.3
HEALTH and SECURITY
8.3.1 Quality of health infrastructure
Health infrastructure adequately meets the needs of society
(on a scale from 0 to 10, the higher the better)
Belgium
8.88
8.72
Switzerland
8.40
Singapore
8.40
France
8.19
Austria
Netherlands
8.18
Germany
8.15
8.03
Spain
7.05
United Arab Emirates
6.78
United Kingdom
6.39
United States
Italy
6.21
Ireland
4.60
Poland
4.44
India
3.74
China
3.66
Russian Federation
2.69
Brazil
2.38
Source: IMD • World Competitiveness Yearbook Online • 2013
8.3.2 Medical assistance
Density of health practicionners ( per 10,000 population)
Nurses and midwives
Physicians
Belgium
222.1
37.8
Switzerland
174.9
40.8
Germany
113.8
39.6
24.2
United States
98.2
United Kingdom
94.7
27.7
France
93.0
33.8
Russia
85.2
43.1
Austria
79.7
48.6
Brazil
64.2
17.6
Singapore
63.9
19.2
Poland
54.0
20.7
Spain
51.1
39.6
United Arab Emirates
40.9
19.3
China
15.1
14.6
India
10.0
6.5
Italy
NA
38.0
Source: World Health Organization • World Health Statistics • 2013
QUALITY OF LIFE
International comparisons
79
8.3
HEALTH and SECURITY
8.3.3 Quality of security
This index measures the quality of security, taking into account the following factors: the private costs incurred by terrorism,
the reliability of police services, the private costs incurred by crime and violence, road traffic accidents (on a scale from 1 to
7, the higher the better).
Switzerland
6.30
Austria
6.10
Singapore
6.10
Netherlands
6.10
Germany
6.00
Ireland
6.00
Belgium
5.90
United Kingdom
5.70
Spain
5.70
France
5.50
Italy
5.30
Poland
5.20
United Arab Emirates
5.20
United States
4.90
China
4.80
Brazil
4.70
India
4.70
Russian Federation
3.90
Source: World Economic Forum • The Travel & Tourism Competitiveness Report • 2013
8.3.4 Reliability of police services
Police services can be relied upon to enforce law and order
(on a scale from 1 to 7, the higher the better)
6.4
Switzerland
6.4
Singapore
6.2
Netherlands
6.1
United Arab Emirates
Ireland
6.0
Spain
6.0
6.0
Austria
5.9
Germany
5.9
United Kingdom
5.7
Belgium
5.5
United States
5.3
France
5.1
Italy
4.5
China
4.4
Brazil
4.3
Poland
4.3
India
2.8
Russian Federation
Source: World Economic Forum • The Travel & Tourism Competitiveness Report • 2013
80
QUALITY OF LIFE
International comparisons
8.3.5 Homicide rate
Average number of reported homicides (per 100,000 inhabitants)
Austria
0.60
Switzerland
0.70
Germany
0.80
Spain
0.80
Italy
0.90
Netherlands
1.10
France
1.10
Poland
1.10
United Kingdom
1.20
Ireland
1.20
Belgium
United States
1.70
4.80
10.20
Russian Federation
21.00
Brazil
Source: OECD • Better Life Index • 2013
Note: Data for China, India, Singapore and the United Arab Emirates are not available.
8.3.6 Personal security and private property protection
Level of personal security and protection of private property
(on a scale from 0 to 10, the higher the better)
8.93
Singapore
8.66
Germany
8.65
Switzerland
Netherlands
8.44
Ireland
8.39
United Kingdom
8.39
United Arab Emirates
8.34
Belgium
8.16
United States
8.08
Austria
7.58
France
7.57
Spain
7.22
Poland
7.02
India
6.37
Italy
6.31
Brazil
4.23
China
Russian Federation
4.21
2.68
Source: IMD • World Competitiveness Yearbook Online • 2013
QUALITY OF LIFE
International comparisons
81
82
Appendix
9.1
9.2
Exchange rates
Sources
9
83
9.1
Appendix
9.1 Exchange rates
CHF
EUR€
US$
GBP£
1
0.811
1.085
0.686
EUR€
1.230
1
1.336
0.850
United States
US$
0.897
0.726
1
0.621
United Kingdom
GBP£
1.443
1.168
1.609
1
Switzerland
CHF
Austria, Belgium, France,
Germany, Italy, Ireland,
Netherlands, Poland, Spain
Source: www.xe.com
Note: Average exchange rates calculated in August 2013 for US$, CHF and EUR€, and in October 2013 for GBP£
9.2 Sources
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84
AlpICT
Association Genevoise des Ecoles Privées
Banque Cantonale Genevoise • Economie genevoise • 2008
BCGE
BioAlps
CBRE • Prime Office Occupancy Costs • 2013
Fédération des Entreprises Romandes • 2013
City of Geneva
Colliers International Suisse Romande SA & régies partenaires •
Indicateur des Loyers de Bureaux (ILB) n°17 • 2013
Cornell University, INSEAD and WIPO • The Global Innovation
Index • 2013
Employers Federation of the Swiss Watch Industry • Census • 2012
Ernst & Young • Geneva Taxes • 2012
Ernst & Young • Worldwide VAT, GST and Sales Tax Guide • 2013
Ernst & Young’s European Investment Monitor • 2012
European Commission • Innovation Union Scoreboard • 2013
Fédération des Entreprises Romandes
Federation of the Swiss Watch Industry FH
Financial Times • Executive Education, Open Programmes • 2013
FutureBrand • Country Brand Index • 2012-2013
Geneva International Airport
Geneva International Cooperation
Geneva Public Transportation
Geneva Tourism
Geneva Trading and Shipping Association
Geneva Welcome Center
Genève Place Financière
Greater Geneva Bern area
hkp/// • CCT-ProsurveyTM, September • 2013
IMD • World Competitiveness Yearbook Online • 2013
Interpharma • Le marché du médicament en Suisse • 2013
ISC Research Ltd, Oxon
Kendris • 2013
KPMG • Corporate and Indirect Tax Survey • 2012
KPMG • Individual income tax and social security rate survey • 2012
Leiden University • The Centre for Science and Technology Studies
Annexes
International comparisons
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(CWTS) • 2013
Mercer • Melbourne Mercer Global Pension Index • 2013
OCSTAT 2013
OECD • 2013
OECD • Better Life Index • 2013
Scientific American • World View Scorecard • 2013
STOXX • 2013
Swiss Confederation • Background Report: Commodities • 2013
Swiss Federal Railways 2013
Swiss Watch making Industry Employers Federation
The Airwise Airport Guide • 2012
The Centre for Science and Technology Studies (CWTS), Leiden
University • 2012
The Economist Intelligence Unit • 2013
The Economist Intelligence Unit • Hotspots, Benchmarking global
city competitiveness • 2012
The Global Financial Centers Index 2014
The Heritage Foundation • Index of Economic Freedom • 2013
Transparency International • Corruption Perceptions Index • 2012
UBM Future Cities • 2013
UBS • Prices and Earnings • 2012
UNCTAD • World Investment Report • 2012
UNCTAD database • 2012
United Nations Sustainable Development Solutions Network • World
Happiness Report • 2013
University of Geneva
World Bank • 2013
World Economic Forum • The Global Competitiveness Report •
2013 - 2014
World Economic Forum • The Travel & Tourism Competitiveness
Report • 2013
World Health Organization • World Health Statistics • 2013
www.livetradingnews.com • 2013
www.tradingeconomics.com • August 2013
Yale Environmental Performance Index • 2012
85
86
If you would like to strengthen your presence in Europe and are
considering the Geneva region, the Geneva Economic Development
Office is keen to assist you in the realization of your projects. We have
large expertise in fiscal, legal, employment, infrastructure matters
and many other aspects. To learn more about the advantages of
working with, in and from our region, please visit our website:
www.whygeneva.ch
To discuss your plans and our help, you may
contact us directly at the following address:
Geneva Economic Development Office
Rue des Battoirs 7 • P.O. Box 740
CH-1211 Geneva 4 • Switzerland
Email: promotion@etat.ge.ch
www.whygeneva.ch
Phone: +41 22 388 34 34
Fax: +41 22 388 31 99
Department of Regional Affairs, Economy and Health
Geneva Economic Development Office
Rue des Battoirs 7 • P.O. Box 740 • CH-1211 • Geneva 4 • Switzerland
Phone: + 41 22 388 34 34 • Fax: + 41 22 388 31 99
Email: promotion@etat.ge.ch • www.whygeneva.ch • www.ge.ch/entreprises