Liechtenstein is not only a financial center, as is often assumed by those lacking knowledge of the economic structure. Liechtenstein is also an extremely diversified industrial location with a strong small and medium-size business sector. The "Liechtenstein Economic Study 2008" commissioned by the Government concludes, following an analysis of development from 2000 to 2007, that employment in the Liechtenstein industrial sector – in contrast to Switzerland – has grown.
The Principality of Liechtenstein ranks among the strongest industrialized areas of Europe according to the "Economic Study 2008". The strong industrial sector focusing on the metal and machine industries, vehicle manufacturing and the electrical and optical areas were well able to sustain their position in spite of increasing tertiarization. In additional to the industrial sector, Liechtenstein has developed into an attractive financial center including a multitude of related service enterprises, according to the study's assessment. "With its strengths in two different sectors," states the study with reference to the economic structure, "the Liechtenstein economy is relatively widely diversified in comparison to other small states".
Between 2000 and 2006, the number of enterprises located in Liechtenstein rose from 2,906 to 3,416. The increase of 17.5% applies almost exclusively to the service sector, whereas only two new enterprises were established in the industrial sector. In particular, branches such as real estate, information systems and services for enterprises display a sharp increase, followed by trust companies and legal services showing a somewhat less remarkable increase. As a rule, the newly established enterprises tend to be small. The economic study determined that as of the end of 2006, approximately 99.5% of all enterprises in general located in Liechtenstein are small and medium-sized enterprises: The manufacturing sector averages 22.5 employees, while an average of only 6.4 are employed in the service sector.
Compared to the Swiss economic structure, tertiarization of the economy in the Principality of Liechtenstein remains less advanced. The employment trend from 2000 to 2006 totaled 14.3% in agriculture, 11.3% in industry and 15.5% in services. In this connection, the economic study refers to a different trend in Switzerland: While Switzerland during the same period showed a positive employment trend in the service sector only, it was confronted with a decrease of employment in both industry and agriculture; Liechtenstein, on the other hand, indicated an employment increase in all sectors. According to the economic study's assessment, the slight shift in employment from industry to services is the result of differing positive growth rates and not an indication of weakness in the industrial sector. "It is not a case of de-industrialization. The fact that Liechtenstein displayed a positive employment trend in all three economic sectors during the period under study is an indication of broadly based and sustainable economic growth."
The Liechtenstein service sector is dominated by legal services, trust companies, general financial services as well as information technology and services for enterprises. Leaders in the industrial sector include vehicle manufacturing, the electrical, precision engineering and optical industries as well as food production, mechanical engineering and the metal industry. The economic study concluded that Liechtenstein shows a high ratio of knowledge-based lines of business and enterprises comprised of a high ratio of highly qualified employees and distinguished by an above-average high intensity of value added. Differentiating among traditional industry, higher-value technology and leading edge technology, the two higher segments represent 16.6% of total employment. The ratio of employment in higher-value technology and leading edge technology is a good twice as high as in Switzerland. The high-tech branches with a 7% employment increase between 2000 and 2006 clearly indicated stronger growth than the traditional industry sector with 4%.
The significance of the industrial sector for the Liechtenstein economy is reflected in foreign trade. The export surplus is 42,000 Swiss francs per capita and thus higher than in the neighboring countries. The export economy is aligned with Western Europe: Approximately 61% of all Liechtenstein exports go to Western Europe, followed by North America and East Asia. When examined according to country, Germany is the most important customer of the Liechtenstein export industry.
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