Switzerland has been named the most competitive economy in the World Economic Forum's Global Competitiveness Report for 2006-2007.

When it comes to innovative R&D and manufacturing practices, Switzerland may not be the first country that comes to mind, but strides in various sectors, especially biotechnology, make it a hard place to ignore. The entire country is only about the size of Vermont and New Hampshire combined, but it has developed a strong business presence in a small space and serves as a strong example of innovation and development for other countries as well as individual companies.

Switzerland was recently named the most competitive economy in the World Economic Forum's Global Competitiveness Report for 2006-2007. The country is up from No. 4 in the previous report, followed by Finland, Sweden, Denmark, Singapore, the United States, Japan, Germany, the Netherlands and the U.K.

Switzerland has become a hub for several international biotechnology companies such as Novartis, Roche and Serono, as well as a slew of start-ups, many of which work closely with researchers at the country's various institutions.

Pentapharm Ltd., based in Basel, has established a presence in the cosmetics and pharmaceutical industries with several innovative products. Its SYN-AKE product is derived from the venom of poisonous snakes, specifically, peptides present in Temple Viper venom. The product is sold as an active ingredient to cosmetic companies such as Avon, Amway and La Prairie for use in anti-wrinkle skin creams. The consumer product is a topical, over-the-counter alternative to treatments such as Botox.

At one of its Basel facilities, Pentapharm also manufactures other active pharmaceutical ingredients, including a protein extracted from cow lungs. Also based in Basel, pharmaceutical giant Roche manufactures its Tamiflu product, which is used to treat and prevent seasonal influenza and has also been used to treat avian influenza, or bird flu.

In September, Roche reported that it had been gearing up production capacity and was in a position to produce 400 million treatment courses by the end of the year. Manufacturing Today recently toured one of Roche's Tamiflu manufacturing sites in Basel, where the company completes a portion of the process of transforming the star anise plant into the drug.

Dr. Peter Grossman, head of Tamiflu chemical production, said the company maintains many of its manufacturing facilities on its Basel campus and produces a large percentage of its drug products there.

Overall, Switzerland boasts a scientific and research work force with a broad education, said Augusto Lopez-Carlos, chief economist and director of the Global Competitiveness Network. “The top rankings of Switzerland and the Nordic countries show that good institutions and competent macroeconomic management, coupled with world-class educational attainment and a focus on technology and innovation, are a successful strategy for boosting competitiveness in an increasingly complex global economy,” Lopez-Carlos said.

These companies are proving what many U.S. manufacturing companies have already realized – bottom-line-only thinking can be disastrous in the long run. Instead, expertise and diverse and qualified people often make for long-term success.