The Swiss economy is not built on mass production, but on high-quality work and well-trained workers. Many businesses have followed what they call a "niche strategy," concentrating on a small range of high-quality products. As a result even some small enterprises have been able to corner the world market in their own speciality.

The chemical industry is a particularly good example, with 90% of its total product range consisting of specialities. One consequence of this policy is to make the industry highly diversified, with more than 30,000 products.

Overall, the important areas for Swiss exports are micro-technology, high technology, biotechnology, the pharmaceuticals industry and banking and insurance know-how.

Swiss products can command high prices in world markets because consumers are ready to pay for high quality. But with such a strategy, Swiss companies cannot sit back on their laurels. There has to be a strong emphasis on research and development. In Switzerland, a higher percentage of people work in research and development than in other industrialized countries.

Over 2.9 % of the gross national product was spent on research in 2004. The bulk of the finance - more than two thirds - was accounted for by the private sector.

The UNDP Human Development Report for 2006, which listed R&D expenditure for the years 2000-2003, put Switzerland on the same level as the US and South Korea for the proportion of GDP spent on this. Top of the list was Israel, which spent 4.9 % of its GDP on research and development, followed by Sweden with four per cent.