The Swiss Cross Dispute: Swissness is More Than Just Production – What This Means for Swiss SMEs

The Federal Council has spoken: "Swissness" is more than just production. This seemingly small adjustment, which stirred up a lot of dust for On Running, has far-reaching consequences for every Swiss SME. It shifts the focus from pure manufacturing to innovation, development, and design – thereby opening up unimagined strategic opportunities that affect over 99% of Swiss companies.

For a long time, the Swiss cross was a symbol tied to strict production criteria. Anyone wanting to use it had to generate a significant portion of the value creation physically in Switzerland. With the recent relaxation, the Confederation now acknowledges that the value of a product or service can lie just as strongly in its conception and development. This is a clear positioning for Switzerland as an innovation hub, a signal that we as SME leaders cannot afford to ignore.

For many of us operating in the digital age, perhaps not manufacturing physical goods, using the Swiss cross has often been a hurdle. Now, the path is clear to clearly communicate the intellectual value creation that originates here. It's about how we strategically leverage this expanded definition to strengthen our brands and remain globally competitive.

How can Swiss SMEs leverage the new Swissness definition for their brand building?

The answer is clear: by consciously communicating the intellectual value creation that takes place here. The "Designed in Switzerland" label with a small Swiss cross is not a weak substitute for "Made in Switzerland," but a distinct, strong statement. It highlights the quality of ideas, research and development, engineering, and design invested in our country. For SMEs, this means they can now make visible their innovative strength and expertise, which often lies hidden.

Consider the development of a new software solution, a specialised consulting approach, or an AI-powered tool. Even if the server infrastructure or hardware component production is abroad, the intellectual work, the algorithms, the user interfaces, the security concepts – everything that makes the product or service unique – originated in Switzerland. This indication of origin signals to potential customers worldwide the values Switzerland stands for: precision, reliability, and a high degree of quality.

As Lukas Huber, with an IPSO specialist qualification in AI Business, I see enormous opportunities here, especially in the field of Artificial Intelligence. For example, when developing an AI agent for a call centre, as I analysed for Cembra Bank AG within a business case challenge, the value lies not in the hardware, but in the intelligent linking of data, the optimisation of processes, and adherence to the highest security standards. The RAG framework, the choice of vector DB like Supabase on Infomaniak, or the use of Infomaniak AI – these are all technical decisions based on Swiss know-how and values, even if the underlying LLM is international. This expertise, this "Designed in Switzerland," is our competitive advantage.

The challenge lies in not viewing this new freedom merely as a marketing gimmick, but as an integral part of the corporate strategy. It requires a precise analysis of one's own value chain and an honest assessment of where "Swissness" truly originates. Superficial use without substance will be quickly seen through and can harm the brand more than help it.

What strategic advantages do Swiss SMEs gain from the relaxation of Swissness rules?

The strategic advantages are manifold and can significantly boost the competitiveness of Swiss SMEs. The most obvious advantage is the strengthening of brand identity. The Swiss cross is globally synonymous with quality, reliability, and excellence. Even if a product isn't entirely manufactured in Switzerland, the "Designed in Switzerland" label transfers these positive associations to the brand.

Another crucial point is global competitiveness. Many SMEs compete in international markets where proof of origin plays an important role. By being able to use the Swiss cross for products developed in Switzerland but produced abroad for cost reasons or due to economies of scale, Swiss companies can position their products more attractively. This allows them to combine the benefits of Swiss design and engineering with the efficiencies of global supply chains.

Let's consider the example of On Running: they actively pushed for this relaxation and are now using it to further strengthen their globally successful brand. The development and design of their shoes take place in Switzerland, but production is international. This allows them to offer innovative products at competitive prices while preserving Swissness as a core element of their brand. For me as a practitioner, this is an excellent example of how a strategic reorientation of the Swissness definition can have a direct impact on global market success. The relaxation allows On to use the Swiss cross even for products not entirely made in Switzerland, which strengthens the brand and further highlights Switzerland as a location.

Furthermore, the expanded Swissness definition can increase Switzerland's attractiveness as a location for talent. Specialists in areas like AI development, cybersecurity, or high-tech design seek environments where their work is valued and made visible globally. When a company can market its products or services as "Designed in Switzerland," it signals a commitment to innovation and quality that attracts highly skilled workers. This is particularly relevant for technology-intensive SMEs that rely on skilled professionals to drive their digital transformations and AI projects.

Last but not least, the expanded definition offers increased flexibility in supply chain strategy. Companies are less bound by geographical production restrictions and can optimise their supply chains without losing the value of the Swiss cross. This can lead to cost savings and a more robust supply chain, which is a significant advantage in times of global uncertainty.

What does the expanded definition of Swissness specifically mean for the production and supply chain strategies of Swiss SMEs?

Specifically, the expanded definition means a significant decoupling of development location and production location, creating new strategic freedoms. Previously, many SMEs were forced to keep their production in Switzerland to use the Swiss cross, even if it involved higher costs or scaling limitations. With the new regulation, they can relocate production to where it makes the most economic sense – whether for cost reasons, capacity, or to be closer to specific markets – without losing their connection to Switzerland.

This opens up possibilities for a hybrid production strategy: high-quality, specialised components or prototypes can continue to be manufactured in Switzerland, while mass production or less critical parts are produced abroad. However, core know-how, research and development, quality control, and design remain firmly anchored in Switzerland. Supply chains thus become more flexible and resilient. Companies can diversify risks and reduce dependencies by diversifying their production partners, while simultaneously maintaining brand attractiveness through the Swiss cross.

For companies in the service sector or software development, this relaxation is particularly relevant. Here, "production" often takes the form of code development, algorithm design, and process optimisation. If this intellectual work is performed in Switzerland, the resulting digital products and services can bear the Swiss cross, regardless of where the servers are located or which cloud infrastructure is used. This underscores the importance of Swiss hosting providers like Infomaniak, who provide infrastructure in Switzerland and can thus further strengthen the physical component of "Swissness" for digital products, even if it's not strictly necessary to obtain the design label.

In my work, for example, when conceptualising AI agents, I have repeatedly emphasised the importance of local anchoring. The professionalisation of a demo bot by Swiss AI freelancers, based on a technology stack with LangChain or LlamaIndex and Supabase on Infomaniak, is a prime example. Here, the entire development value chain is created in Switzerland, which more than justifies the "Designed in Switzerland" claim. This is a clear advantage over international providers who often cannot offer this local expertise and trust in Swiss standards.

Conclusion: Positioning Switzerland as an Innovation Engine

The reorientation of the Swissness definition is not a minor bureaucratic act, but a strategic repositioning of Switzerland as a hub for innovation and development. For Swiss SMEs, this means an immense opportunity to strengthen their brands, make their products more globally competitive, and increase their attractiveness to talent. However, it requires a conscious and substantial engagement with their own value creation and transparent communication.

Those who seize this opportunity and clearly position their intellectual performance as "Designed in Switzerland" will secure a decisive advantage in global competition. It's time to connect the strength of our ideas and our innovative power with the globally valued Swiss cross.

✅ Identify Your Intellectual Value Creation: Where are your core ideas and know-how generated in Switzerland?

✅ Communicate Transparently: Use the "Designed in Switzerland" label with substance and clarity.

✅ Leverage Flexibility: Optimise your production and supply chains without losing brand appeal.

Would you like to analyse the potential of the new Swissness definition for your SME and connect it with AI solutions? Contact us for an initial consultation. Click here for a non-binding inquiry.