Federal agency Innosuisse Innosuisse managers benefit from subsidies

Several senior officials at Innosuisse, Switzerland's federal innovation agency, have been found to have benefited directly or indirectly from public funding intended for business projects and research initiatives. According to reports by Swiss public broadcaster RTS, which obtained documents under freedom of information laws, multiple instances were uncovered where individuals associated with Innosuisse’s leadership received financial support through companies linked to them. One case involves a member of Innosuisse’s Innovation Council who leads several firms that collectively received around one million Swiss francs in subsidies in 2021. This is not an isolated incident. Data from the federal database Aramis shows approximately twenty payments were made to companies connected to individuals serving on Innosuisse’s governing bodies. According to RTS, members of Innosuisse have profited in various ways, including through their affiliated businesses receiving state funding. Innosuisse acknowledges that such situations can occur, explaining that its Innovation Council members are deliberately recruited from the innovation sector to ensure practical experience. The agency also notes that some grants are directed not to private firms but to academic partners participating in joint research projects. The agency emphasizes its conflict-of-interest rules, stating that anyone involved in a funding application must disclose their connection, recuse themselves from the evaluation process, and refrain from participating in decision-making. However, according to documents accessed by RTS, grant decisions are often made by small groups consisting of three to five individuals. In some cases, council members participated in discussions regarding funding applications submitted by other members who had stepped aside, and vice versa. Yves Gingras, a sociologist at the University of Quebec in Montreal and expert in research evaluation, argues that these measures may not be sufficient to prevent conflicts of interest. He criticizes the practice of allowing just three to five people to decide on funding applications, calling it the worst possible approach. He highlights concerns when members of these decision-making groups simultaneously apply for funding for their own ventures, potentially reinforcing perceptions of bias. Another notable example involves André Kudelski, president of Innosuisse, who also serves on the board of Montreux Media Ventures. That company received 440,000 Swiss francs in subsidies from Innosuisse. Innosuisse relies on experts from the innovation sector to evaluate funding requests. Other organizations employ different methods for making funding decisions. Innosuisse operates under the Federal Department of Economic Affairs, Education and Research (WBF), headed by Federal Councillor Guy Parmelin. The department appoints Innosuisse’s board of directors and sets strategic goals. When asked by RTS, the WBF stated it does not oversee Innosuisse’s day-to-day operations. Instead, responsibility for oversight lies with Innosuisse itself, which partially delegates this role to the Federal Audit Office. However, the audit office clarifies that it only checks whether appropriate control mechanisms exist, rather than actively monitoring compliance. The revelations have sparked debate over the effectiveness of current safeguards against conflicts of interest within Innosuisse. Critics argue that while formal procedures exist, they may not adequately address potential biases in decision-making processes. As investigations continue, attention will focus on how these issues might influence future funding allocations and the perception of fairness in the allocation of public resources.