SWITZERLAND may be the land of 'lost wealth' of the developing countries and also a global leader in pharma and hi-tech goods such as bio and medical technology but R & D and innovation has been stagnating, says the latest OECD Territorial Review Report of 2011.

The Report states that Switzerland enjoys a strong national economy and has avoided many of the problems – transportation, access to services and ageing populations - common to most OECD countries but some regions of the country are lagging behind, affecting overall growth. The report recommends tapping into the potential of rural regions and small firms – expanding innovative activities, increasing inter-cantonal collaboration, and encouraging knowledge and technology sharing.

To improve regional economic performance, Switzerland introduced the New Regional Policy (NRP) in 2008. This reflects a clear shift away from financial assistance and toward supporting regions’ own competitive edge and value added. The NRP applies only to rural and mountainous regions while the agglomeration policy applies to urban areas. Expanding the reach of the New Regional Policy to all parts of the country, the report recommends, would strengthen the beneficial links between urban and rural areas. It would also prevent competition between urban and rural areas’ priorities and duplication of sectoral projects such as those related to agriculture, innovation and technology.