Liechtenstein is not only an international financial center, but also has a broadly diversified economic structure. The share of manufacturing in the national economy is higher than in Liechtenstein's neighboring countries. Liechtenstein industrial companies have established around 170 branches worldwide. The most recent example is the establishment of a high-tech solar glass production site in the East German state of Brandenburg by Interfloat Corporation, which is domiciled in Liechtenstein.
Brandenburg's Minister of Economic Affairs, Ulrich Junghanns, lifted the secret surrounding the new investor for the former Samsung Corning site in Tschernitz. Starting in September 2008, the Liechtenstein Interfloat Corporation will use the site to produce flat glass for the solar industry, supplying manufacturers of solar modules and thermal collectors around the world. The investments for the new production site will amount to EUR 50 million. In the start-up phase, 140 jobs will be created, to be increased to 250 by the end of 2010.
Liechtenstein's production companies not only sell their products on the international market, but also have established production sites around the world, set up commercial representations, or bought up companies. At the beginning of 2008, for instance, Hilti AG purchased majority shares in an Indian company for diamond tools. In 2006, Malbuner-Ospelt established a production site for pizzas in the East German state of Thuringia. PAV AG also moved part of its prototype assembly for leading automobile manufacturers to Thuringia. By the end of 2006, the Liechtenstein Chamber of Commerce and Industry registered 167 foreign branches of Liechtenstein industrial companies, of which 103 were in Europe, 35 in Asia, 24 in North and South America, 4 in Australia, and 1 in Africa. 30,000 people are employed by these companies, so that more than three times as many employees work abroad than at the parent sites in Liechtenstein.
For Liechtenstein's industry, the home country itself with only 35,000 inhabitants is a very limited national market. Liechtenstein's industry responds to the disadvantages of a location characterized by limited resources, high wages, and lack of export subsidies with flexibility and adaptability on the international markets. Through intensive research and development as well as innovations in niche segments, the companies keep ahead of the international competition. The most important branches of the heavily export-oriented industry are machines and apparatuses, industrial plants, precision tools, food, and dental technology. In these segments, the focus is less on mass and cheap products than on high-tech products of the highest quality. Some companies, such as Hilti and Ivoclar Vivadent, have managed to establish themselves as world market leaders in specialized fields.
The high-tech and niche products are exported especially to the European Union and the European Economic Area, Asia, and North America. According to export statistics, an average share of 40% went to the EU/EEA, about 20% to Asia, and nearly 20% to the United States over the past ten years. According to the figures of the Swiss Federal Customs Administration, these shares shifted somewhat in 2007. Overall, direct exports of CHF 4.2 billion were registered, of which goods in the amount of more than CHF 2.5 billion were exported to Western Europe. Exports to Germany amounted to CHF 834 million, CHF 479 million to Austria, CHF 413 million to France, and CHF 264 million to Italy. Direct exports to Germany increased by 13.4% relative to the previous year, while exports to Italy increased by 20.3%, to France by 14.1%, and to Italy by 5.9%. Exports of goods to the US and Canada increased by only 7.6% to CHF 624 million, while exports to Asia increased by significantly higher rates: Southwest Asia 23%, South and Central Asia 30%, Northeast Asia 45%, and Southeast Asia 36%. Exports to China even increased by 54% relative to the previous year, but still only reached a share of about 2% of total exports. Not included in these export figures are the exports of Liechtenstein goods to Switzerland, which for many countries is both a home market and an export market. The total amount of deliveries to Switzerland is approximately CHF 600 – 800 million each year.
Although Liechtenstein is primarily known abroad as a financial center, it would be inaccurate to reduce Liechtenstein and its economy solely to financial services. The most important economic sector of the country continues to be industry and manufacturing. The strongly diversified and export-oriented industrial sector is the largest employer in the country. Nearly half of all workers are employed in industry and manufacturing. In addition to its position as the most important employer in Liechtenstein, the industrial and manufacturing sector contributes a significant share to the gross domestic product, namely more than 40%.
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