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Cross-border
economic
development
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Territory portraits: economic development on different borders
microtechnology, are both great and underexploited. Projects to
encourage cross-border networking do however exist, particularly
in the area of innovation by SMEs (INNOVARC). Thus, between
companies, the border remains quite clearly marked.
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In Greater Geneva
, cross-border exchanges are more longstanding
and diverse, in particular due to the presence of an interdependent
metropolitan economy (as a city whose centre is separated from
the surrounding area by an international border). These exchanges
are, however, hard to quantify, as no precise study has been
carried out to record them. Despite this, the border remains
strongly present in the people’s minds, as observed by the public
authorities and consular chambers. This is due to the customs
and administrative difficulties involved in crossing the border
(payment of VAT, customs duty formalities, a general feeling of
administrative complexity on crossing the border).
That said, economic exchanges do take place, often with the decision-
making centre in Geneva (internationally, Switzerland has a positive
image, it is the centre of the metropolis, etc.) and the place of production
located in the French hinterland (more space available for activities
requiring larger premises). “Bi-location” (being located in both countries)
does exist, but remains marginal.
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For more on this subject, see the study for the Trans-Jura Conference carried out by the
MOT in 2013, in particular the territorial assessment section: “Stratégie transfrontalière de
développement de l’Arc jurassien franco-suisse” (Cross-border development strategy for the
French-Swiss Jura Arc region).
Going from Switzerland to France, services and construction firms often
cross the border in order to accompany their Swiss clients who move
to France (where property is more affordable), or to offer identical retail
services to those in Switzerland but at lower cost.
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For example, Migros, the Swiss retailer is established in France
with a clientele of French residents as well as Swiss residents who
cross the border to shop in France (in 2012 “consumer tourism”
represented 1.5 billion Swiss francs for the Cantons of Geneva,
Neuchâtel, Jura and Vaud
41
), or to benefit from access to the EU
market (bi-location), or specific facilities (research, university
partnerships – often benefiting from French research tax credits).
Going from France to Switzerland, crossing the border is often motivated
(particularly in the case of SMEs) by the simplicity and stability of
administrative, social and tax rules in Switzerland (simplicity comes far
before social security costs as the main motivation
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), as opposed to the
shifting rules (frequently changing) in France. The smallest businesses
are more likely to set up completely in Switzerland, while larger ones
retain a degree of bi-location. Finally, the image of Switzerland is more
favourable internationally than that of France for a company which, by
setting up in Geneva, is still only an hour away from Lyon.
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GfK study from 2013, commissioned by the Communauté d’intérêt du commerce de détail
suisse (Community of Interests of the Swiss Retail Trade). In 2012, “consumer tourism”
(purchases made by the Swiss abroad) represented 5% of the total turnover of the Swiss retail
trade (96.8 billion francs in 2012).
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600 business managers were surveyed as part of the EUREX study “Avantages comparés
pour l’implantation d’activités économiques en France et en Suisse (Genève/Vaud)”
(Comparative advantages for the establishment of economic activities France and
Switzerland), op.cit.
Le Locle, Swiss town of 1422 inhabitants in the Jura Arc region (Canton of Neuchâtel, Switzerland)