A study conducted by fDi Intelligence, an investment portal owned by Financial Times, analyzed a total of 330 cities and 141 regions based on key factors essential for business expansion: economic potential, human capital and quality of life, cost-effectiveness, connectivity, and business friendliness.
In the micro cities category, Zug once again secured first place, ahead of the Irish cities of Limerick and Galway. According to the report, Zug’s lowest tax rate in Switzerland played a significant role in its success in attracting foreign investment. The business services sector received the largest share of these investments. Lugano ranked ninth in this category.
In the mid-sized cities category, Zurich maintained its second-place ranking from last year, behind the Polish city of Wroclaw. Vilnius (Lithuania) secured third place. The report summarises Zurich’s performance as follows: “The city stood out as the top performer in the Economic Potential subcategory, and it also made the top ten in the categories of Human Capital and Quality of Life, Connectivity, and Business Friendliness .”
Basel ranked seventh in the small cities category but achieved a significant success in the Foreign Direct Investment (FDI) Strategy category. The local agency Basel Area Business & Innovation impressed evaluators with its investment promotion strategy, which leverages Basel’s strength as Switzerland’s leading hub for life sciences, according to the report. Additionally, the Basel region stood out as the only area in Switzerland that offers business talent, academic research institutions, and laboratory space within a single ecosystem.
In the small regions category, Luxembourg dropped to second place, behind Dublin, but ahead of Prague. The cantons of Zug and Geneva ranked sixth and ninth, respectively, in this category.
In the mid-sized regions category in Europe, the canton of Zurich secured fourth place, following North Holland, Berlin, and Stockholm.