Liechtenstein is heavily export-oriented, focuses on high-quality goods, and swiftly became one of the world’s most industrialized countries.
For centuries, the tiny alpine nation with no natural resources relied on agriculture as its primary industry. However, following World War II, the country evolved into a modern, export-oriented society. During the intervening years, it has gone from one strength to another, and transformed into one of the world’s most highly industrialized countries by concentrating on innovation.
Liechtenstein has evolved into an industrial state with a focus on high-quality goods and services. Approximately 38 percent of workers are employed by industry, a surprisingly large proportion by international standards. Together with manufacturing, it accounts for 46.6 percent of gross domestic product (GDP). The country can attribute its success to a well-developed innovation hub. In figures, Liechtenstein-based entities spend 5.6 percent of GDP on research and development per year, developing innovative solutions that tackle ongoing global challenges. Given Liechtenstein’s small population and few natural resources, efficiency and adaptability are ingrained in the national cultural identity.
The principality understood the value of reinvestment and the need for research to foster industrial growth early in its history. It has made industrial innovation a strong driving force of the economy. In addition, businesses in Liechtenstein benefit from access to highly educated professionals. The University of Liechtenstein offers degrees in business administration, finance, and even architecture. International students are always welcome, and the university encourages exchange programs with other institutions abroad.
While Liechtenstein is home to major international companies, small and medium-sized enterprises (SME) form the backbone of Liechtenstein’s economy. There is a vibrant and internationally successful SME landscape, many of them family-run. The SME Center at the Liechtenstein University of Applied Sciences promotes the tradition of entrepreneurship and fosters company formation.
Liechtenstein’s industrial companies cultivated a diverse array of highly specialized products and services. Coincidentally, or by design, they target niche markets that are strikingly distinct. Therefore, their products and approach avoid head-to-head conflicts over clients, and support a healthy collaborative mindset.
Liechtenstein is home to industry leaders in their respective fields, including Ivoclar Vivadent, Hilti, Oerlikon Balzers, Kaiser, Neutrik, Intamin, Optics Balzers, and Hilcona. Ivoclar Vivadent consistently receives accolades for its high-tech prosthesis material solutions disrupting the dental sector. Hilti, a manufacturer of professional-user construction technology tools, facilitates international construction work with award-winning product innovation such as its iconic drills.
Others include Oerlikon Balzers, a subsidiary of Swiss OC Oerlikon with extensive operations in Liechtenstein, shapes the future in what is possible in aerospace with groundbreaking surface technologies. Kaiser continues to set new industry standards, most recently with customized high-pressure pumps, as a specialized manufacturer of mission-critical vehicles.
Neutrik produces audio connectors used in audio and video productions, and connects 50 percent of the world’s professional audio systems including iconic microphones and audio devices used at the United States Congress in Washington, D.C.
Intamin manufactures amusement rides, such as record-breaking rollercoasters, to the delight of thrill-seekers around the world. Optics Balzers, a producer of optical thin-film coatings and components for the photonics industry, has become a globally recognized leader supplying next-generation solutions for the automotive sector.
Finally, Hilcona is a regional food processing company that has grown into one of Liechtenstein’s most important employers, providing convenient fresh foods to neighboring countries. Companies in Liechtenstein have diverse specialties, but share a global mindset and strive to innovate within their niche.
Dr. Martin Henck, CEO of Hilcona, emphasized, “Innovation is part of the local culture within the valley. At Hilcona we have consistently sought to innovate and develop new product ideas that satiate changing eating habits. Our in-house Taste Factory Center focuses on researching plant-based foods and developed ‘The Green Mountain Burger.’ The award-winning burger looks and tastes like meat, yet is entirely suitable for vegetarian diets and an excellent option for consumers seeking to reduce meat consumption.”
In all these areas, companies shy away from cheap, mass-marketed products, and focus on producing high-tech, value-added products of the highest quality that sell for a premium. Whether researching plant-based foods, creating high-tech dental prosthesis materials, setting new industry standards for pumps, or shaping the future of aerospace and the automotive industry, companies in Liechtenstein all have one mission in common – innovate and export better solutions globally.
A Land of Opportunity
As a business location with one of the most highly industrialized global economies, Liechtenstein has much to offer. The country is open to new opportunities for both domestic and foreign companies to expand their customer base and range of products and services.