Federal public contracts as a springboard for Swiss startups

Switzerland’s startup ecosystem is among the most innovative globally. Yet many startups struggle to turn innovation into sustainable economic success. One key reason is limited access to stable markets and reference customers, particularly in the early and growth stages.

Federal public procurement, with an annual volume of nearly CHF 8 billion, represents a significant but still underutilised opportunity for startups. Public contracts could serve as an important springboard, enabling young companies to validate their solutions, generate early revenue, and scale their impact within the public sector and beyond.

Why public procurement is under review
The Federal Department of Finance is examining how access to federal public contracts could be improved for startups. While procurement rules are designed to ensure fairness, transparency, and competition, they are often tailored to established suppliers rather than young, innovative companies.

Startups frequently face barriers such as complex procedures, high administrative requirements, or reference criteria that are difficult to meet without prior public-sector experience.

Key elements of the current framework
Existing procurement law already provides instruments that can support innovation, including:

• Innovation as an award criterion
• Pilot projects and prototype procurement
• Functional specifications instead of detailed technical requirements
• Splitting contracts into smaller lots
• Participation through consortia or as subcontractors 

The challenge lies less in the legal framework itself and more in its consistent and proactive application.

Why this matters for startups
Access to public procurement can be transformational for startups. It provides credibility, learning opportunities, and a pathway to scale solutions that address real societal challenges. Without such access, many startups remain dependent on private markets alone, limiting their growth potential.

Political outlook
The current discussion focuses on how procurement practices can be modernised without compromising core principles such as equal treatment and transparency. The outcome will determine whether public procurement becomes a strategic innovation tool or remains largely inaccessible for startups.

Conclusion
Making federal public contracts more accessible to startups would strengthen innovation, competition, and value creation in Switzerland. Unlocking this potential requires not new rules, but a more startup-aware implementation of existing ones