Switzerland Ranks 3rd Globally in R&D Intensity
Switzerland continues to strengthen its position as a global innovation hub, with major companies ranking among the world’s top investors in research and development (R&D), according to a new EY study published on Tuesday.
The analysis of the world’s 500 largest corporate R&D spenders shows that Swiss firms achieved the third-highest research intensity globally in 2025, measured by the ratio of R&D spending to revenue. Only companies in the United States and the Netherlands ranked higher.
Swiss corporations recorded an average R&D intensity of 8.4%, significantly above the European average of 6.7%, although still below the United States, which leads with 9.2%.
In total, Swiss companies invested approximately €34 billion (CHF 31.2 billion) in innovation last year, placing Switzerland sixth worldwide in total R&D expenditure.
The study highlights the strong contribution of Basel-based pharmaceutical giants. Roche remains one of the world’s leading investors in innovation, spending €14.3 billion on R&D. Novartis also plays a key role, investing €9.9 billion and ranking among the top global companies.
According to EY analysts, medicines continue to be the most research-intensive industry worldwide, reflecting the importance of pharmaceutical innovation in Switzerland’s economy.
However, the report also highlights a growing gap between Europe and the United States. While American companies increased R&D spending by 12% in 2025, European firms saw only a 5% increase, with relatively stagnant revenue growth.
At the global level, technology giants dominate absolute R&D spending. Companies such as Amazon, Alphabet (Google), and Meta (Facebook) lead the rankings, with Amazon alone investing more than €96 billion, largely driven by artificial intelligence development.
EY concludes that global companies are prioritising innovation more than ever, with R&D budgets growing faster than overall revenues. This trend reinforces the importance of research investment in maintaining long-term competitiveness.