Zug economy 2019: Between tradition and modernity

Anyone who thinks about the Canton of Zug - and who is not from the canton or lives here – will generally link the name "Zug” to wealth, traffic problems and tax havens. But the Canton of Zug is much more. It is primarily a success story that began 150 years ago, and is still ongoing. The development led the canton from being a poor agricultural canton to its present-day success.

As Michael van Orsouw, the historian of Zug, points out, this development was by no means planned, but owed much to fortunate circumstances. Good traffic development, available land reserves and innovative newcomers helped to drive this development forward. All this would have fizzled if our ancestors had not had the gift of recognizing what was offered to them, and allowing it happen. This was also a lucky development.

An interesting point in van Orsouw's remarks is the statement that the City of Zug did not initially become involved in this development, while the mountain communities experienced a veritable boom. Things look different today - even if you only look at the figures from the intra-cantonal financial equalization. The city will pay about CHF 56 million into the financial compensation of Zug in the coming year. And thereby more than twice as much as the other donor communities, Baar, Oberägeri and Walchwil, together (a total of CHF 20.7 million).

 

View of the Grafenau, Siemens, Schleifi and Feldhof areas in the city of Zug.

It can therefore be seen: the Canton of Zug has successfully mastered its past and established itself as an innovative canton in the present time. And not only in the financial area. Time and again, traditional companies in Zug show that there are always opportunities for change. You have to recognize them - and grasp them. WWZ AG, for example, which, through prudent planning, has evolved from a simple supplier of water into a supplier of electricity, and, eventually, into a comprehensive utility provider, including telephony and television. Or the Cham company Abnox, which has succeeded in taking advantage of digitisation, and thereby producing more efficiently - without dismissing any employees.

The tax base certainly plays an important role in the interplay of the canton and the companies. In addition to the existing excellent economic conditions, however, functioning contacts within the authorities are also important for international companies. The head of the Contact Point for the Economy in the Zug Department of Economic Affairs, Beat Bachmann, points out that the geographical location of Zug is a success factor - and why the very small size of the canton is a not insignificant competitive advantage.

It is well-known that Zug has seized opportunities in the past as well as in the present, and has made them successful through the openness of the authorities and the population. But what about the future? The futurologist Georges T. Roos considers which innovations in the Canton of Zug could be promising for the future. He sees opportunities in the pharmaceutical sector, specifically in individualized medicines. There are several pharmaceutical companies in Zug. But the blockchains that have made Zug one of its most important locations also have great potential.