exclusiv in conversation
with Dr. Hubert Büchel
Director

What is the significance
of the Principality of Liechtenstein
as an industrial location?

The significance of industry as well as the respective producing sector in the Principality of Liechtenstein is very considerable if one considers that 45 % of the country’s workforce is employed in the industrial sector. In other countries - comparably Switzerland, Germany or Austria - the percentage amounts to between
25 - 33 %. When considered externally, it is often assumed that the Principality of Liechtenstein is a business service location. Of course, like in other developed industrial nations of the western hemisphere, the majority of the jobs are also in the service sector here (i.e. 54 %), but the percentage of industry is well above average
in Liechtenstein.

Development and changes since the EEA?

The industrial sector produces in a magnitude of more than 4 billion francs.
Practically the entire production is exported. If one considers this fact it is logical that the industrial sector was also that sector of the economy which had intensively fought for the accession to the EEA. Four billion francs compared with the national budget
of 800 million francs - ca. 1/5 of the export total. Since Liechtenstein recognises neither an export risk guarantee nor export promotional measures, the industrial sector has to be successful with their products vis-à-vis competitors. Either the prices must be lower or one has to produce high-quality, high-tech or niche products at the same or even higher prices. This increasingly leads to capital and research-intense production.

How great is the industrial workforce abroad?
Where are the sales markets?
Development and globalisation?

The domestic industrial workforce has ca. 7’000 employees, compared with a figure of ca. 24’000 employees abroad: Europe has ca. 16’000; the USA is ranked second, followed by Asia. What one generally describes as globalisation has long since come to pass in Liechtenstein. The industrial sector thus offers a tremendously high added value. The per capita export value amounts to ca. five times that of the comparative Swiss figure. As a result of the fact that «Made in Liechtenstein» is hardly ever labelled on any of the products, the sale of Liechtenstein products is for the most part underestimated.

The «Image Liechtenstein Foundation» was also founded with the consideration that the industrial sector and other economic sectors should even more actively corroborate the country’s solid reputation. The industrial sector should not be spoken about without mentioning the people behind it. In our country we have a major potential in people who - by virtue of their commitment, their knowledge and their ability - contribute on a daily basis to the fact that the export firms successfully measure up to the global competition.

Dr. Hubert Büchel is a qualified economist, works in a large-scale Liechtenstein industrial operation as well as at the University of Innsbruck and also works for the Liechtenstein national administrative authority. Dr. Hubert Büchel has been employed since 10 years as Director of the Office of Economic Affairs, which is responsible for the most varying economic affairs.


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