How Dual-Use Technology Quietly Places Switzerland on the Defence Map

Switzerland is experiencing a rare shift in its security policy. In November 2024, Parliament approved a loosening of some arms-export rules, a move that continues to spark debate among the public. While attention focuses on the political arguments surrounding the War Materials Act, another development is taking place largely unnoticed. Modern Swiss defence capability is increasingly shaped by dual-use technologies that originate in civilian research and industry. Robotics, satellite data, autonomous systems and advanced manufacturing have become central to security planning in Europe. Switzerland, with its deep pockets of engineering talent and a strong research base, finds itself positioned as an important technological contributor at a time when Europe is reassessing how it equips itself.

A European Defence Landscape Under Strain

European governments have entered a phase of accelerated defence investment. According to the European Defence Agency, defence expenditure by EU states rose to EUR 289 billion in 2023, the highest level recorded. The Stockholm International Peace Research Institute reports that Europe posted the fastest global growth in military spending in both 2022 and 2023. Forecasts by McKinsey suggest that European defence expenditure could reach nearly EUR 800 billion by 2030. This shift reflects not only the war in Ukraine but also broader concerns about the reliability of long-term security guarantees.

Against this backdrop, Switzerland is increasing its own defence budget. Federal figures show that the country spent CHF 5.95 billion on defence in 2024. Current planning aims for a budget of approximately CHF 7.1 billion by 2030. Defence Minister Viola Amherd has stressed that innovation from small and medium-sized Swiss companies must play a greater role in the modernisation of equipment. This represents an important shift in emphasis for a country that traditionally viewed defence procurement through a narrow lens.

Export Trends Illustrate a Shifting Environment

Swiss arms exports are shaped by strict regulation, yet their volume reveals that Switzerland remains a relevant supplier of defence-related goods. SECO statistics show that in the first half of 2025 Swiss companies exported war material worth CHF 358 million, an increase of more than 20 percent compared with the previous year. Full-year figures for 2023 placed Swiss military exports at CHF 696 million, with approved licences exceeding one billion francs. A large share of these exports consists of components and systems that fit into dual-use categories such as sensors, electronics and materials.

The recent parliamentary initiative to relax re-export rules has intensified debate over Switzerland’s role in international security frameworks. The discussion focuses primarily on ethics and neutrality. However, the technological developments behind these export volumes point to a broader transformation. Defence procurement in Europe increasingly depends on capabilities that originate in civilian innovation rather than in traditional arms manufacturing.

Dual-Use Start-ups Gain Importance Across Europe

The reliance on civilian technology is visible in investment trends. Between 2017 and 2020, European defence-related start-ups attracted USD 307 million in private capital. Between 2021 and 2024, the volume increased to nearly USD 2.2 billion. These figures reflect growing demand for technologies that can be deployed quickly and adapted to many contexts. Reuters has highlighted that venture investments in defence technology have become more accepted in Europe as governments look for solutions in areas such as drone defence, satellite-based intelligence and software-driven command systems.

Industry analysis suggests that governments will continue to broaden their supplier bases. They need faster procurement cycles and more flexible systems than the traditional defence industry alone can provide. This change benefits countries with strong civilian technology ecosystems. Switzerland’s role becomes more visible precisely because defence authorities now value capabilities that have long been Swiss specialities.

Switzerland’s Technological Base Aligns with Defence Needs

The country’s strengths lie in fields that underpin modern security. These include robotics, advanced manufacturing, precision engineering, sensors, microdrives and space technology. They are areas that developed independently of defence policy yet have become central to European capability planning.

The robotics cluster around ETH Zurich has grown into one of the most productive in Europe. ANYbotics, headquartered in Zurich, develops autonomous inspection robots used in industrial and energy infrastructure. Such systems can also be applied to logistics, perimeter protection and post-incident assessment, all fields in which armed forces seek automation. The Swiss robotics industry counts more than two hundred companies and employs thousands of specialists.

Advanced manufacturing adds another layer. Saeki, based in the Zurich area, focuses on large-format industrial 3D printing for aerospace and complex structural components. Additive manufacturing has become strategically important because it can shorten supply chains and allow rapid production of parts in times of crisis. European armed forces have recognised that traditional manufacturing processes can be too slow for certain requirements.

Switzerland’s space sector reinforces this picture. The Swiss Space Office counts more than one hundred companies active in space technology, roughly one third of which are start-ups or spin-offs. ClearSpace in Lausanne is developing technology for space debris removal in partnership with the European Space Agency. Its navigation and capture systems intersect with capabilities relevant for satellite protection and situational awareness. Beyond Gravity, the former RUAG Space, supplies components for launch vehicles and satellite structures and maintains a presence in multiple European programmes.

Precision engineering remains a signature advantage. Maxon in Obwalden produces micromotors used in aerospace, robotics and medical applications. Their reliability and precision are integral to control and actuation functions in numerous systems. Much of Switzerland’s microtechnology base originates from the watch industry but now serves high-tech sectors that overlap with defence supply chains.

Research and Public Agencies Accelerate Dual-Use Capacity

Federal agencies contribute to the country’s dual-use capacity. armasuisse Science and Technology manages more than 250 research projects a year in fields ranging from cyber defence and autonomous systems to materials science and communication technologies. It collaborates with more than eighty Swiss start-ups and SMEs. The Swiss Drone and Robotics Centre in Emmen has tested over seventy drone systems during the past five years. The annual research budget of armasuisse S+T lies between CHF 30 and 40 million.

Switzerland’s overall R&D environment supports these developments. National R&D spending amounts to roughly 3.4 percent of GDP, one of the highest levels worldwide. Total expenditure exceeds CHF 24 billion annually, with more than 70 percent financed by the private sector. These investments create an innovation infrastructure that can generate capabilities useful for defence even if they originate in civilian markets.

Growing Integration into European Programmes

Although Switzerland is not a NATO member, it participates in several European defence research initiatives. Swiss institutions take part in more than twenty projects funded by the European Defence Fund. Switzerland is also involved in PESCO’s Military Mobility project, which aims to improve cross-border cooperation. Such participation strengthens the connections between Swiss technology providers and European procurement frameworks.

European ministries have begun formalising routes for start-ups and non-traditional suppliers to enter defence markets. Germany has expanded its innovation programmes through the Cyber Innovation Hub der Bundeswehr. The United Kingdom has launched rapid procurement pathways for emerging technologies. France has streamlined approval processes for new suppliers via its Direction Générale de l’Armement. These reforms increase the relevance of Swiss dual-use companies within European supply chains.

A Hidden but Strategic Role

Switzerland is unlikely to develop a traditional arms industry that resembles those of Germany, France or the United Kingdom. Its strengths lie elsewhere. The country hosts research institutions and technology companies that excel in fields now considered essential for modern defence. They develop capabilities for civilian markets that can be adapted to military use when circumstances require it.

This dual-use landscape has positioned Switzerland as a quiet contributor to European security. It is not the result of industrial policy but of a technological base that aligns with contemporary defence needs. As governments across Europe seek more flexible, software-driven and rapidly deployable systems, Switzerland’s innovation ecosystem gains strategic relevance. The public debate may focus on export rules and neutrality, but a broader development is underway in the background. Dual-use technology has placed Switzerland on the defence map in a manner that reflects the country’s technological identity rather than its political tradition.