There is a paradox at the heart of western prosperity. For decades, Western Europe has enjoyed peace, democracy, the rule of law, social safety nets and world-class education. By any rational measure, these should instil confidence. Yet in many of the world’s fastest-growing regions – from the Gulf to parts of Asia and Africa – one senses a bolder optimism about the future. This “optimism gap” isn’t rational, but it matters.
Dubai has become an example of this forward-looking mindset. In just 13 years, the World Governments Summit has evolved from a modest gathering into a global platform that convenes leaders across government, industry and academia to tackle questions that will define the century: artificial intelligence, sustainability, education, health, climate and cross-border co-operation. The message is clear: innovation shouldn’t live in silos. It thrives where public institutions, private enterprise and civil society meet – and where governance itself is treated as a domain for innovation. This message becomes even more important when protectionism, partisanship and prejudice are on the rise.
Switzerland’s economic model is open, predictable and deeply connected to global markets. Rules-based trade and legal certainty aren’t abstractions; they are the scaffolding that makes investment, entrepreneurship and long-term planning possible. By diversifying trade and investment relationships beyond traditional markets, Switzerland is not merely hedging against geopolitical volatility – it is expanding the range of opportunity and enhancing resilience.
Digital transformation is central to that resilience. Switzerland’s shift to fully digital trade procedures – exemplified by the rollout of the “Passar” system for export customs – does more than replace paperwork with pixels. It shortens clearance times, cuts costs and brings visibility to processes previously hidden in opaque workflows. For small and medium-sized enterprises – the backbone of the Swiss economy, representing more than 99 per cent of firms and employing nearly two-thirds of the workforce – predictability and speed are not luxuries. They are lifelines that determine whether a niche manufacturer can reach a customer across the world or whether a scale-up can translate a breakthrough into market traction.
But efficiency alone will not define the next era of trade relations. Predictability and trust will. In a world racing to digitalise everything – from supply chains to public services – what matters as much as throughput is the integrity of the networks themselves. Who owns the data? Who has recourse when systems fail? Which standards govern accountability? Open economies can succeed under difficult circumstances if they combine digital innovation with governance that is proactive, transparent and enforceable. Predictability and trust, not just trade volumes, are the new premium.
That is where innovation policy becomes nation-building. Switzerland invests close to 3 per cent of its GDP in research and development and treats fundamental research as a public good. The country’s universities and research institutes – most notably ETH Zurich and EPFL – anchor a wider ecosystem that includes labs, startups and industrial partners. This is not innovation theatre. It is an architecture designed to move ideas from the lab to the market with speed and integrity. Cern, based in Geneva, stands as a testament to what multilateral science can achieve: in addition to the World Wide Web, it has expanded our understanding of the universe and catalysed industries. The lesson is straightforward: when societies invest in curiosity-driven science and connect it to entrepreneurial energy, they build platforms for industries that don’t yet exist.
Artificial intelligence increasingly shortens the distance between discovery and deployment. Properly governed, AI can help high-value sectors boost productivity, maintain global relevance and unlock entirely new capabilities – from precision manufacturing to drug development to climate resilience. In the public sector, AI can strengthen decision-making, streamline service delivery and increase long-term resilience. But “properly governed” is doing the heavy lifting. Data protection, digital rights, intellectual property safeguards and clear, predictable regulatory frameworks are not brake pedals; they are the steering wheel. They enable innovation to scale safely, ethically and with public trust.
The next decade will force a choice. AI will transform economies and societies whether we are ready or not. The question is whether we will shape this transformation – or be shaped by it. A human-centred, ethically anchored approach is not just a doctrinal nicety; it is a competitive advantage. Open, rules-based economies that pair scientific excellence with fast translational pathways, that modernise trade with digital infrastructure, and that build trust through clear governance will not only weather disruption – they will set the terms of progress.
Closing the optimism gap in today’s world is therefore not about rhetoric. It is about institutions that earn confidence because they deliver: customs systems that work in real time, courts that enforce rights, regulators that are transparent and tech-literate, SMEs that can easily plug into global networks and universities that partner with industry without compromising academic independence. When these pieces align, optimism stops being a mere mood and becomes a macroeconomic asset.
Dubai’s ascent as a hub for governance innovation, and Switzerland’s steady refinement of an open, trusted and research-intensive model point to a shared conclusion: prosperity in the AI age will benefit those who combine ambition with reliability. If we want a future defined by broad-based opportunity rather than technological determinism, we must invest in the connective tissue – standards, institutions and networks – to make innovation not only faster, but also fairer and more resilient. That is how confidence becomes justified, and how open societies can truly be optimistic.
