"Wnt" signal protein: new aspects in stem cell development (cover image)

Because of their therapeutic potential, stem cells are today a major focus of atten-tion in biomedical research. To realise this potential, however, it is essential to know the signal factors that can regulate the differentiation of a stem cell into thevarious cell types of an organism. An important factor in stem cell biology is the signal protein "Wnt". In the case of quite a number of stem cell types, such as em-bryonic stem cells or stem cells of the central nervous system, "Wnt" results in cell proliferation, while at the same time suppressing the development of maturecell types.

Scientists at the Institute of Cell Biology at ETH Zurich have now discovered a newrole for Wnt. They have shown that, in stem cells of the peripheral nervous system,"Wnt" has no effect on the proliferation of the stem cells, but on the contrary, stimulates the development of certain nerve cells. Stem cells of different originstherefore appear to respond very differently to the same signals in their environ-ment. For an as yet still hypothetical kind of stem cell therapy, this could mean thata certain type of stem cell could possibly be useful for the treatment of a certaintype of neuropathy, but would in contrast be unsuitable for the treatment of another type of disease or injury.

2003

OBJECTIVESTHE ETH BOARD 2003 THE ETH BOARD 2004 ORGANIZATIONAL CHART

ETH Zurich

ProfessorOlaf KüblerPresident

EPF Lausanne

ProfessorPatrick Aebischer

President

PSI

ProfessorRalph Eichler

Director

WSL

PD Dr Mario Broggi

Director

EMPA

ProfessorLouis SchlapbachGeneral Director

EAWAG

ProfessorAlexanderJ.B.Zehnder

Director (until 30.06.2004)

General Secretariat

Dr Sebastian Brändli General Secretary

ADDRESSES IN THE ETH DOMAIN

EMPASwiss Federal Laboratories for Materials Testing and ResearchÜberlandstrasse 129CH-8600 DübendorfTel. +41 1 823 55 11Fax +41 1 821 62 44www.empa.ch

EMPALerchenfeldstrasse 5CH-9014 St. GallenTel. +41 71 274 74 74Fax +41 71 274 74 99

EMPAFeuerwerkerstrasse 39CH-3602 ThunTel. +41 33 228 46 26Fax +41 33 228 44 90

EAWAGSwiss Federal Institute for Environmental Science and Technology Überlandstrasse 133CH-8600 DübendorfTel. +41 1 823 55 11Fax +41 1 823 50 28www.eawag.ch

EAWAGLimnological Research CenterCH-6047 KastanienbaumTel. +41 41 349 21 11Fax +41 41 349 21 68

ETH BoardETH ZentrumCH-8092 ZurichTel. +41 1 632 20 50Fax +41 1 632 12 53www.ethrat.ch

en BassengesCH-1015 LausanneTel. +41 21 693 50 01Fax +41 21 693 50 04

ETH ZurichCH-8092 ZurichTel. +41 1 632 11 11Fax +41 1 632 35 25www.ethz.ch

EPF LausanneCH-1015 LausanneTel. +41 21 693 11 11Fax +41 21 693 43 80www.epfl.ch

PSIPaul Scherrer InstituteCH-5232 Villigen PSITel. +41 56 310 21 11Fax +41 56 310 21 99www.psi.ch

WSLSwiss Federal Institute for Forest, Snow and Landscape ResearchZürcherstrasse 111CH-8903 BirmensdorfTel. +41 1 739 21 11Fax +41 1 739 22 15www.wsl.ch

SLFSwiss Federal Institute for Snow and Avalanche Research Flüelastrasse 11CH-7260 Davos-DorfTel. +41 81 417 01 11Fax +41 81 417 01 10

From left to right:

Prof. Adriano Aguzzi, MDUniversity of Zurich

Dr Heinrich RohrerNobel prize winnerWollerauuntil 31.12.2003

Dr Monica Duca WidmerDipl. Ing. ETHManaging Director EcoRisana SA, Manno Member of Great Council of the Canton of Ticino

Dr Stephan BieriCEO and Vice-Presidentuntil 31.12.2003

Alois Sonnenmoser, Dipl.- Ing. HTL Niederrohrdorf

Beth Krasna, Dipl.-Ing. ETH CEO of Albert Inc SA, LausanneChêne-Bougeries

Prof. Francis Waldvogel, MDPresidentUniversity of Geneva

Dr Jacques RognonElectricité Neuchâteloise SAENSA-GANSA, Corcellesuntil 31.12.2003

Dr Sebastian BrändliGeneral Secretary

On 29 October 2003, the FederalCouncil elected the following new to the ETH Board with effectfrom 1 January 2004:

President (from 01.07.2004)Prof. Alexander J.B. ZehnderDirector of the Swiss Federal Institute for EnvironmentalScience & Technology (EAWAG)

Vice-PresidentProf. Ernst Buschor

Members

Prof. Olaf KüblerPresident of ETH Zurich

Prof. Patrick Aebischer, MDPresident of EPF Lausanne

Prof. Ralph EichlerDirector of the Paul Scherrer InstituteRepresentative of the researchinstitutions of the ETH domain

Dr Kristin Becker van SlootenRepresentative of the UniversityAssemblies of ETH Zurich andEPF Lausanne

Prof. Paul HerrlingHead of Corporate Research, Novartis International AG

Prof. Francis Waldvogel, MDPresident (until 30.06.2004)

Prof. Alexander J.B. ZehnderPresident (from 01.07.2004)

Prof. Ernst BuschorVice-President

Members

Prof. Olaf KüblerPresident of ETH Zurich

Prof. Patrick Aebischer, MDPresident of EPF Lausanne

Prof. Adriano Aguzzi, MDUniversity of Zurich

Dr Kristin Becker van SlootenRepresentative of the UniversityAssemblies of ETH Zurich and EPF Lausanne

Dr Monica Duca WidmerDipl. Ing. ETHManaging Director EcoRisana SA, MannoMember of Great Council of the Canton of Ticino

Prof. Ralph EichlerDirector of the Paul Scherrer InstituteRepresentative of the research institutions of the ETH domain

Prof. Paul HerrlingHead of Corporate Research, Novartis International AG

dipl. Ing. ETH Beth KrasnaChêne-Bougeries

Alois Sonnenmoser, Dipl.-Ing.HTLNiederrohrdorf

Dr Sebastian BrändliGeneral Secretary

The performance mandate given by the Federal Council to the ETH Board for theperiod 2004 to 2007 states seven strategic objectives:

The ETH domain will provide teaching which, on the basis of an international comparison, is top class and attractive.

The ETH domain will consolidate its leading position in international research.

In order to ensure high quality teaching and research, the ETH domain will createattractive working conditions and promote equality of opportunity.

The ETH domain will define and foster future-oriented subject areas.

The ETH domain will continue and strengthen its cooperative projects with Switzerland's other universities.

In order to foster Switzerland's innovative strengths, greater technological andeconomic use will be made of the knowledge created in the ETH domain.

The role played by the ETH domain's institutions in society will be strengthened.

Federal Department of the Interior

Board of the Swiss Federal Institutes of Technology

Professor Francis Waldvogel (until 30.06.2004) President

Professor Alexander J.B. Zehnder (from 01.07.2004)President

Professor Ernst BuschorVice-President

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ETH BOARD

2003

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CONTENTS

Keynote topic 4

Executive Summary 12

Foreword 14

ArenaThe national arena 16

The international arena 18

Key ActivitiesInnovative financial allocation system in preparation 20

Governance of the new ETH Board 22

Repositioning the research institutes 26

Employment conditions for professors: enhanced international competitiveness 28

Greater autonomy for CSCS 29

Student fees earmarked for moderate rise 34

Getting the Swiss construction industry back on track 36

The ETH DomainETH Zurich 38

EPF Lausanne 40

PSI 45

WSL 46

EMPA 47

EAWAG 48

ResourcesFinances and Real Estate 50

Indicators and Statistics 78

People 82

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TEACHING REFORM

SECURING A LEADING PLACE IN SCIENCE

Implementation of the “Bologna declaration” is a centennial projectfor Europe's universities. The objective of the ETH Board and ETH domain is to bring about a root and branch reform of teaching. Leading representatives here give an account of how they experiencedthe introduction of the Bachelor’s and Master’s programs.

The ETH domain is introducing graduate schools at the highest international level so that it will continue to be able to carry out topclass, cutting-edge research. The intention is to attract the world's top students and teaching staff.

A “European Space for Higher Education” with comparable degrees is to be created by the year 2010, the primary aims being to promotestudent mobility within higher education worldwide and to make educationmore flexible. To date, the “Bologna Declaration”, which dates back to 1999, has been signed by 32 European countries. Implementation of the Bologna process is intended to make European universities morecompetitive with the institutions of higher education in America andAsia.

The ETH Board’s strategic planning for 2004–2007 includes anotherimportant factor: academic reform which is intended to consolidate the ETH domain’s top international ranking in science. The primary focus here is that the Federal Institutes of Technology, ETH Zurich andEPF Lausanne, both operate graduate schools with the world’s mosthighly qualified Master’s students, so enabling these two institutions to conduct top quality research and making them an attractive place to study and to work. The ETH Board laid the legal foundations for the implementation of reform within the ETH domain as long ago as July2001.

Bachelor’s program as the key to mobilityOnce the ETH Board had made its decision, the Federal Institutes ofTechnology, ETH Zurich and EPF Lausanne, began to introduce the two-stage Bachelor’s and Master’s programs, the cornerstone of thereform. The six semesters of basic study provide a solid grounding leading to the award of a Bachelor’s degree and are intended to equipstudents properly for the demanding Master’s program. The Bachelor’sdegree is the key to mobility, for example enabling students to changeto another university or institution of higher education, or allowing them to change discipline for the second half of their university studies.

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The academic reform means that EAWAG researchers are completely integrated intoteaching activities, not only for doctoral programs, but also for Master’s programs.

Students are actively involved in current research. This problem-oriented approachopens up important perspectives and pro-vides students with an interdisciplinary pro-gram which may well relate to basic re-search. However, EAWAG also performs excellently in applied research and in creatingnew services or innovative products and it is precisely in these areas that the humanitiescan make a valuable contribution.

Involvement in current researchThe following three semesters of studies lead to the Master’s degree.Teaching is conducted in English and the students are involved in current scientific research. The Master’s degree opens the door todoctoral study at a graduate school either in one of ETH Zurich or EPF Lausanne or at another institution of higher education in Switzer-land or another country.

In the Bachelor’s/Master’s system, internationally comparable creditsare the common unit of measure for learning achievements.

The winter semester 2003/04 at ETH Zurich saw students in 18 out of 22 programs beginning a Bachelor’s program. EPF Lausanne introduced all its Bachelor’s programs in autumn 2003. Academic reform will be complete at the Federal Institutes of Technology, ETH Zurich and EPF Lausanne, by autumn 2005.

As privileged partners of the professors at the Federal Institutes of Technology, ETH Zurich and EPF Lausanne, our researchersbenefit very directly from the motivation and creativity of the students, who are alwaysmost welcome in the laboratory.

Prof. Alexander J.B. Zehnder, Director of the Swiss Federal Institute for Environmental Science & Technology (EAWAG)

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"MAJOR STICKING POINTS RESOLVED"

"ETH Zurich has seized the opportunity offered by the Bologna Process to reconsider its entire educational policy,” says Prof. Konrad Osterwalder.

What issues still need to be resolved in the implementation of the Bologna Process?The Swiss University Conference (CUS) issued binding guidelines regarding the Bologna Process on 4 December 2003. These were negotiated and agreed with CRUS, and comprise the structuring of allprograms at Bachelor, Master and doctorate levels, as well as the introduction of the credit system, the timetable for the implementationof the Bologna Process, and the admission criteria for the Master’sprograms. This means the most crucial questions have been decided.The last point, the admission criteria, remained controversial to thevery end, as it leaves the universities only a narrow scope of action.

Is the Bachelor’s degree a kind of academic extension to the “Matura”, secondary school leaving examinations entitling to uni-versity studies, or does it involve some initial specialisation?The Bachelor’s degree is an academic qualification awarded after a broad, basic course of learning combined with initial specialisation in acertain field. According to CUS guidelines, a Bachelor’s degree from a Swiss university entitles the holder to a Master’s course only in themain disciplines of the Bachelor’s course. The universities may also offer specialised Master’s courses for which additional admission criteriahave to be fulfilled.

One criticism of the academic reform is that the new Bachelor’s/Master’s system focuses on “producing” sufficient numbers of academically qualified individuals to satisfy the demands of the labourmarket. How do you respond to this objection?It is not our primary aim that students should move into the privatesector after the Bachelor’s program. Ultimately, however, it’s up to themarket to determine which individual with what kind of qualification finds employment.

Prof. Konrad Osterwalder is the Rector of ETH Zurich and is leading the “Bolognaprocess implementation” project for the Rectors’ Conference of Swiss Univer-sities (CRUS).

TEACHING REFORM

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How can ETH Zurich make itself sufficiently attractive to ensure that not too many talented students leave for foreign countries aftertheir Bachelor’s degree?There are clear signs that we are facing a “brain gain” rather than a“brain drain". For ETH Zurich, it is important that the number of Bachelor graduates who depart is clearly lower than the number of external students enrolling for our Master’s programs. Our Master’sprograms have to be appealing enough to attract the best qualifiedamong external students. The quality of the teaching staff is a majorfactor in this context, and in this respect ETH Zurich can hold its own in any international comparison.

As part the academic reform process, EPFLausanne is reorganising its doctoral studiesinto 14 doctoral programs. In each program,the actively used laboratories are combinedinto a common discipline (for example photo-nics or mechanics), so ensuring a jointlyagreed, demanding curriculum together withwell organised recruitment and supervisionof the doctoral students.

Professor Andreas Mortensen, Dean of the Doctoral School, EPF Lausanne

It is a fundamental characteristic of our sub-ject, information technology and electricalengineering, to think beyond the boundariesof disciplines. What could be more obvious,when revising the curriculum, than to openup the subject to qualifying graduates fromother schools, in other words to enable mobility at the Bachelor’s level? The imple-mentation of this “pre-Bologna” decision made a substantial contribution to repo-sitioning us in the international higher edu-cation landscape and to defining clearly the profile of a university-trained engineer.

Prof. Albert Kündig, Computer Engineering & Networks Laboratory (TIK), ETH Zurich.

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Full speed ahead at EPF Lausanne (EPFL): autumn 2003 saw the simultaneous introduction of Bachelor’s programs in all disciplines.All sectors of EPFL will begin Master’s programs in the 2004 winter semester. Thanks to software developed at EPFL, the intro-duction of the new programs went efficiently and successfully.

"So far, we’re very satisfied with the introduction of the Bachelor’s/Master’s system,” says Prof. Jufer, “it’s been a positive beginning”.EPFL took advantage of the changes arising from the Bologna Processto further optimise its course programs. While it’s still too soon todraw any definitive conclusions, “it’s clear that the change-over willmean a thorough remodelling of course content".

Up to 15 percent obtaining Master’s degree elsewhereOne key theme of the Bologna Process is mobility, explains Prof. Jufer,while “brain gain” is another. EPFL will create appealing teaching and research conditions in order to attract students and professors. “Wealready have our first students from various countries who studied for their Bachelor’s degrees at other institutions,” reports EPFL’s Vice-President Education. “In the long term, we anticipate that 10 to 15 percent of EPFL students will obtain their Master’s degree from anotheruniversity."

No additional administrative overheads in the long runPositive and efficient: EPFL introduced all its Bachelor’s programs simultaneously in autumn 2003. This success was at least in part dueto university management software developed at EPFL (IS-Academia)which is also being used at other Swiss institutions of higher education.Prof. Jufer is convinced that, “in the long run, we need not anticipateany additional administrative overheads". Master’s programs are begin-ning in autumn 2004.

1 credit = 30 hours’ workPerformance is monitored at EPFL using the ECTS credit system, with blocks (monitoring by average marks) and groups (monitoring by accumulated credits). Only in the first year of study is performance evaluated by average marks and rewarded with 60 credits (in which case, basic knowledge is deemed to have been examined). One creditcorresponds to 30 hours’ work. 180 credits are required for comple-tion of the Bachelor’s program, while 90 to 120 credits are requiredfor the Master’s program.

TEACHING REFORM

SIMULTANEOUS INTRODUCTIONOF BACHELOR’S PROGRAMS

Prof. Marcel Jufer, Vice-President EducationEPF Lausanne

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The partially revised ETH Law and the 2004–2007 performancemandate were approved by the Swiss National Council and Upper Chamber. The global budget for this period, allowing foran annual increase of 3 percent, is CHF 7.7 billion.

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For the ETH domain to hold its own among the top universities ofapplied sciences, the ETH Board must continuously examine theconditions under which it operates and make suitable adjust-ments. The basis for these adjustments is the partially revisedETH Law and the 2004-2007 performance mandate. Both propo-sals were approved by the Swiss National Council and UpperChamber. The global budget for this period, allowing for an an-nual increase of 3 percent, amounts to CHF 7.7 billion.

The ETH domain is gaining a new, coherent management systemin which trust, responsibility and control go hand in hand. TheETH Board has developed a set of management tools comprisingmonitoring, reporting and controlling. Another milestone is thenew model for financing the six institutions of the ETH domain,which creates transparency and certainty of planning. This newmodel is geared towards compliance with agreed objectives andrewards strategically relevant activities and any moves towardsincreased competition.

Fit for the future – the ETH Board intends to provide the ETH do-main with an optimum structure to enable first class research.The four research institutions will be repositioned and their pri-mary activities will in future be oriented towards programmedresearch to complement their applied research, and towards thedevelopment of the associated technologies.

Swiss and foreign universities are striving to attract the bestteachers. The ETH Board has developed new terms of service inorder to make the Federal Institutes of Technology, ETH Zurichand EPF Lausanne, a more attractive option in the internationalmarket place for professors. The Presidents of ETH Zurich andEPF Lausanne now have greater flexibility in setting salaries.Professors can now remain in service beyond pensionable age.The new regulations also give the Executive Boards the authorityto take decisions regarding initial setup credits and basicequipment.

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Thanks to study reforms, students can now play an active part in ongoing research. This problem-oriented approach opens up promising new perspectives.

One request from the Federal Council in January 2003 arousedsome strong public reaction. The Federal Council had requestedthe ETH Board to raise tuition fees in stages as part of 2004’sbudget reduction measures. The ETH Board is now examiningthe increase in fees, which could be applied in two stages.

When it comes to carrying out computer simulations or proces-sing huge quantities of complex data, Switzerland’s nationalsupercomputing centre SCSC (Swiss Centre for Scientific Com-puting) in Manno, Ticino, can provide solutions at the highestinternational level. In 2003, the ETH Board and ETH Zurich rede-fined SCSC’s strategic objectives and granted it greater autonomy.The SCSC is to strengthen and develop strategic directions inscientific computing, including the analysis of complex data,benchmarking and the development of a national computing grid.

The construction industry is Switzerland’s single most importantdomestic sector, but it is battling against economic difficulties.The ETH Board initiated the “Future Construction” platform tofoster collaboration between industry, the teaching and researchdepartments of the ETH domain, and the Swiss universities ofapplied sciences.

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It is important that both the freedom of research for scientists and professors and the scope of action for the institutions’ managing bodies be expanded. This enables better support for ambitious projects.

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ETH BOARD AND ETH DOMAINON THE UP

During 2003, the Swiss National Council and Upper Chamberapproved the revision of the ETH Law and the new 2004-2007performance mandate for the ETH Board. For the period 2004 to2007, the global budget for the ETH domain amounts to CHF 7.7billion, allowing for an annual increase of 3 percent. The insti-tutions are being given considerably more autonomy and theconditions remain set for growth.

New terms of employment for teaching staff, the new systemgoverning academic succession with the introduction of assis-tant professorships (tenure track), the strengthening of non-professorial academic staff and the introduction of Bachelor’sand Master’s programs are all combining to give the ETH domaina flexible structure and a high-quality system of universities andresearch institutions. Today, the ETH domain’s mode of ope-ration is taken as a model by many European institutions. It isconceivable that the focus of the next planning period will be onverifying how objectives have been achieved and adapting thetools which have been used. However, as Nobel prize winnerProfessor Kurt Wüthrich said in a speech at the Humboldt Uni-versity in Berlin in November 2003, innovation must mean morethan perfecting methods and making them more dynamic as theglobal academic and economic arena is in a constant state of flux.

Important activities are under way. The interim evaluation of theperformance mandate in May 2002 among other things addressedissues regarding the future of the research institutions PSI, WSL, EMPA and EAWAG. The ETH Board suggested a projectwhich would focus on the future profile of the research institu-tions of the ETH domain. The aim is to investigate various organi-sational options and to submit appropriate recommendationsand action plans to the ETH Board by 2004.

The universities and research institutions of the ETH domain aresubjected to constant international competition. The issue thusarises of identifying which factors can increase the institutions’chances of success and, of these, which ones the ETH domain caninfluence. Initially, the aim will be not only to increase the re-search freedom of the scientists and professors, but also to givethe institutions’ management greater room for manoeuvre.Ambitious projects are thus being encouraged, sometimes at thecost of programmed research. In other words, the universitiesare encouraged to carry out pioneering research projects andpursue bold objectives.

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On 31 December 2003, Dr Stephan Bieri retired ongrounds of age as CEO and Vice-President of the ETH Board. In December he took his leave at a farewell party, one of the guests being the former Swiss FederalCouncillor Ruth Dreifuss.

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In the past, the scientific method was characterised by carefullyformulated hypotheses drawn from observations and experi-ments under precisely controlled conditions. However, at thebeginning of the 21st century, science has two powerful newtools at its disposal which enhance the effectiveness of scientificmethods: digital simulation and communications technology.The situation today enhances scientific discoveries and analyseswhile saving huge amounts of time in comparison with purely ex-perimental approaches. These new tools will become an integralpart of chemistry, nanosciences and the life sciences. There arealso good prospects for spectacular breakthroughs in communi-cations science (DNA as the data storage medium of the future)and on the micro- and nanoscale in the life sciences, i.e. at thevery origins of the phenomenon of life.

Nevertheless, scientists face issues not only of the feasibility,relevance and originality of an experiment but also of their res-ponsibility to society. As a consequence, it is no longer possibleto exclude ethics and the humanities from the key skills taughtby universities of applied sciences. Instead of being a purelymarginal issue or at best a course of study in a Bachelor’s orMaster’s program, it is vital for ethics and humanities to becomean integral part of everyday scientific and laboratory work. Thisthrows a whole new light on scientific activities because of theneed to reconcile the population’s interests and concerns withthe knowledge scientists are producing. The ETH Board is aware of such issues and devoted a “focus day” to them in 2003,the results of which will be put into practice in 2004.

Professor Francis Waldvogel Dr Stephan Bieri

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In times of economic difficulties, Swiss parliament has taken a forward-looking decision. With a large majority, it advocated state funding for research and teaching and approved the strategy put forward by the ETH Board.

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THE NATIONAL ARENA

Proving that investment in research bears fruit

2003 was an important year for the Swiss university community.The Federal parliament’s decision to approve a considerableincrease in funding over the next four years despite the dif-ficult economic situation was a strong vote of confidence inSwitzerland’s universities. The investments are tied up withexpectations to which the ETH domain has geared its strategicplanning.

In 2003, the Swiss parliament approved major research andeducation policy proposals: the new, partially revised ETH Law,the statement on the promotion of education, research and tech-nology, and the 2004 to 2007 performance mandate from theFederal Council to the ETH Board. The performance mandatewas adjusted to the global budget, which allows for an annualincrease of 3 percent. Despite difficult economic conditions, theSwiss parliament has thus made an investment in the future – aclear government commitment to research and teaching andapproval of the strategy conceived by the ETH Board.

Structural simplification

By accepting the research and education policy proposals for thenext four years and overall funding of CHF 7.7 billion, parliamentmade two things clear: it is essential firstly to simplify the struc-ture of the Confederation’s research policy from 2008 onwards,and secondly to ensure that Switzerland’s universities can meetthe challenges in the fields of research and teaching and satisfythe requirements of the knowledge society and the informationeconomy.

One of the principal demands coming from parliament is thatvalue be generated from knowledge. This, together with the training of scientists and engineers at the Federal Institutes ofTechnology, ETH Zurich and EPF Lausanne, is the most impor-tant output of the ETH domain for Swiss society. These objec-tives are also included in the ETH Board’s strategic planning for2004 to 2007, in which educational reform plays a central part.

In September 2003, the President’s Office of the ETH Board organised a “focus day” in Berne on the topic“Which humanities are suitable for scientists and engineers?".(In the picture: Prof. Francis Waldvogel)

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The implementation of the Bologna Declaration is the most important European university project of our age. The ETH Board and the ETH domain are aiming for a thorough-going reform of the study programs.

Switzerland in fifth place

The question arises what the possible features of such studieswill be in view of the global economic challenges Switzerlandwill be facing in the coming years. Various documents fore-casting trends in this area are already available.

In the internationally renowned IMD study of 60 highly developednations, Switzerland is in fifth place in terms of internationalcompetitiveness, a ranking it has held, apart from slight vari-ations, since 1999. On the basis of this study, it is possible toidentify factors which have a negative impact on the ranking inthis category, as well as those on which the ETH domain can have a direct influence. It should be clearly recognised that, bycreating forward-looking study programs, the ETH domain cancontribute to the growth of Switzerland’s gross national product.

Other factors are less obvious, but still worthy of considerationdespite their qualitative nature. The report mentions a some-times chronic lack of openness in Switzerland, together with alow degree of flexibility and adaptability in the face of new situa-tions. Although the prospects for mobility in the course of theeducational reform, international recruitment at Master’s leveland the associated personal responsibility of the students aremoves in the right direction, further measures are conceivable.

Active role for humanities

A course of study at the Federal Institutes of Technology, ETHZurich and EPF Lausanne, should not merely provide studentswith the best possible preparation for their professional lives,but should also develop them as citizens who are aware of theirresponsibilities towards society and the environment in an evermore global context. A study course here will only be able tomeet expectations if the humanities are acknowledged an activerole. Both of the Federal Institutes of Technology have alreadymade considerable efforts in this respect – ETH Zurich with thereorientation of the Collegium Helveticum and EPF Lausannewith the development of the Collège des Humanités. The ETHBoard devoted a “focus day” to this important issue in Septem-ber 2003.

1 IMD World Competitiveness Year Book 2003

Which humanities are suitable for scientists and engineers?

In September 2003 in Berne, the President’s Office of the ETHBoard together with guest professors Bernadette Bensaude-Vincent, University of Paris X, and Hans-Jörg Rheinberger, MaxPlanck Institut Berlin, organised a focus day on the topic “Whichhumanities are suitable for scientists and engineers?". It was thehistory of science and technology which aroused considerable in-terest, focusing in particular on the socio-cultural and economiccontext in which scientific developments have been made. How-ever, bringing science and society together within the Bache-lor’s and Master’s programs is only the first step. These activi-ties should be continued where knowledge is created, in theresearch laboratory and among scientists, if full weight is to begiven to the words of the philosopher Gaston Bachelard, “Whenthe researcher’s culture takes the form of a continuous transfor-mation of its own content, epistemology will arise at the point where scientific findings are transmitted”.

THE INTERNATIONAL ARENA

Testing our mettle under severe conditions

The ETH Board and ETH domain are at an intersection betweencountervailing forces. They have to develop their activities onthe periphery of a powerful nation, the USA, to cooperate withan economically stagnating Europe and to promote the interna-tional image of Switzerland as a science location.

It may be assumed today that, out of 100 outstanding scientists,80 will be working in the USA. This leading position in researchand teaching is of such great significance that it is sometimesdifficult for a small country like Switzerland to take a directionin research policy which differs from that of the United States.

For this reason, making prudent use of the available funds andresources and developing a long-term strategic vision whichtakes account of international interests are among the ETHBoard’s central tasks. The scientific excellence achieved in theETH domain confirm that the right decisions have been taken.This also applies to the joint programmes which the FederalInstitutes of Technology, ETH Zurich and EPF Lausanne, is con-ducting with the best universities of applied sciences in America,Europe and, increasingly, in Asia.

In the centre of a flagging Europe

In the year 2000 in Lisbon, the Council of Europe set itself theambitious target of positioning Europe as the world’s most com-petitive and dynamic economic region. In contrast with GreatBritain, which has risen to the challenge, research and teachingexpenditure in the most important EU countries, France andGermany, is stagnating. In the light of this critical situation,doubts have been expressed in Brussels about Europe’s chancesof winning out in the competition, which sometimes seems morelike an economic war, between the four most important regionsof the world.

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The ETH Board and the ETH domain are faced with the challenge of strong centrifugal forces from the USA, Europe and Asia.

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Another factor which must be borne in mind is that the meteoriceconomic and scientific progress being made by China and Indiais certain to raise the bar for the whole world. Some parts of thehigh-tech sector which generate substantial added value andare dependent on the presence of high quality universities are today already affected by the relocation of production. At a valueUSD 53 billion in 2002, China has far outstripped the UnitedStates in the race for foreign investment. As for India, the scien-tific and technological institutes of Mumbai, Delhi, Chennai,Kampur and Kharagpur are among Asia’s most highly renownedinstitutions of learning, which is why the Federal Institutes ofTechnology, ETH Zurich and EPF Lausanne, have entered intoclose collaboration with them.

Landlocked in the heart of Europe, Switzerland cannot escapethe consequences of these trends in either its trade relations orits scientific cooperation. The American economy’s stronggrowth in the final two quarters of 2003, despite dizzying deficits,is raising economic hopes in Europe too, which could in turn ha-ve a positive impact on the investment policies of the individualcountries.

Finding new arguments to support research

In many countries, Switzerland’s abilities in science are gene-rally recognised in research and university circles. The inte-gration of tertiary education and the service sector, which cangenerate a large number of skilled jobs in the field of researchand education, is thus of the greatest significance for the quali-ty image of Switzerland. On the other hand, the world of scienceis not immune to the constant probing on the part of the mediaand politics. Thus, researchers and scientists must forever findnew arguments to assert their place in society.

The phenomenon of creationism as a religious and political forcein the USA and Great Britain, which is sometimes supported bypeople who have studied at the top universities, is not of greatsignificance in Switzerland. But what might this mean for researchinto nanotechnology, one of the ETH domain’s strategic priori-ties, which is highly controversial in the USA due both to itsdestructive and self-replicating potential and to the lack of guide-lines? This also happens to be the subject of Michael Crichton’slatest novel “Prey".

We are experiencing a similar situation in relation to the ETHZurich’s trials of genetically modified seeds, which are beingcarried out solely for the purposes of basic research, but meetwith opposition from a considerable proportion of the populationin the EU and in Switzerland.

With study programs geared to future realities, the ETH domain contributes to the attraction of Switzerland as a business location.

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Representation of the institutions is better balanced in the new ETH Board structure. The ETH Board’s strategic function is strengthened by direct inputs from outside the ETH domain.

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Innovative financial allocation system in preparation

The new model for financing the institutions is intended to creategreater transparency and a secure foundation for planning. This new model focuses on strategic planning objectives andrewards strategically relevant activities and a reorientationtowards increased competition.

The new model for financing the six institutions was adopted asa goal of the 2004–2007 performance mandate. It is based oncriteria such as transparency, secure foundations for planning,compliance with agreed obligations and a performance-based,strategic and competitive outlook.

The model consists of three segments. The first comprisesapproximately 20 percent of total funding and is establishedaccording to volume-based indicators (for example studentnumbers or numbers of employees).

A second segment relates to performance-based indicators(such as number of Bachelor’s/Master’s degrees per year ornumber of doctorates or publications). These indicators are usedto determine 70 percent of total funding.

The third segment comprises supplemental strategic and inno-vation funding based on the institutions’ agreed objectives, theETH Board’s strategic planning and the performance mandate.

A mathematical model

The ETH Board set up a work group under the designation “KriMi”(work group for a criteria-based model for the allocation offinancial resources). Chaired by Prof. Peter Leuthold (ETHZurich), the group was directed to develop a mathematical mo-del suitable for implementation and capable of providing the ETHBoard with additional assistance in decision-making. The KriMigroup’s proposals initially generated some lively debate withinthe ETH domain. The current second phase of the project involvesrefining the recommendations and testing their usability. Theaim for 2004 is to present a mathematical model for the allo-cation of financial resources in 2006 and beyond.

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“The ETH Board’s new governance forms thefoundation of a visionary research policy and aquality assurance system comprising tools thatpromote continual improvement. It is this veryperspective that enables the ETH Board toassert its position as an innovative researchdriver.”

Dr Sebastian Brändli, General Secretary of the ETH Board

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The new annual monitoring procedure for the ETH domaincomprises 25 key indicators, for example the number of students at the Federal Institutes of Technology, ETH Zurich and EPF Lausanne.

2004–2007: Initial allocation of funds

Under the government’s statement on the promotion of educa-tion, research and technology, the ETH Board has a global bud-get of CHF 7.7 billion for the years 2004 to 2007. At the very startof 2003, the Board undertook an initial allocation of these fundsto the institutions as part of its internal financial planning pro-cess. About three-quarters of the total (approx. 77 percent) was allocated to the Federal Institutes of Technology, ETH Zurich andEPF Lausanne, with just under one quarter (approx. 23 percent)going to the four research institutes. Given the size of the ETHdomain and its importance, the use and development of fundingis carefully monitored and evaluated. An updated version of theinternal financial plan will be compiled in 2004 based on resolu-tions of Parliament concerning the 2003 relief program and theresults of the KriMi project.

Contact: Dr Sebastian Brändli; braendli@ethrat.ch

The performance mandate

The Swiss Federal Council’s performance mandate is an officialpolitical directive including targets and financial resources. It isthe result of an intensive development process in which the StateSecretary for Science and Research and the ETH Board partici-pated as partners. Approval of the mandate by the members ofthe Federal Council makes it particularly significant. The politicalleadership monitors its success by means of annual reports andof an evaluation of the performance mandate by an internationalgroup of experts.

The cornerstones of the mandate are the ETH Board’s strategicplanning for 2004 to 2007, the government’s statement on thepromotion of education, research and technology for the plan-ning period, and the recommendations from the interim evalua-tion of the performance mandate for 2000–2003 based on a self-evaluation compiled by the ETH Board.

The performance mandate rests on the following principles:

– Mutual obligations over four years, with both sides doing theirutmost to bring funding, performance and objectives intoaccordance with one another.

– Obligations over four years which are as far as possible quan-tifiable and relate to the fundamentals (over-arching indica-tors). The achievement of objectives is periodically evaluated.

– Obligations which are reflected each year in the budget and areanalyzed in the annual reports.

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Governance of the new ETH Board.

The ETH domain has been given a new, coherent managementsystem comprising selective monitoring, objectively basedreporting and strategic controlling. Applying this system, theETH domain is set to gain valuable experience for Switzer-land’s universities.

The new composition of the ETH Board provides more balancedrepresentation to the institutions in the persons of the two ETHpresidents and the director of one of the research institutions.The ETH Board’s strategic function is strengthened by direct inputsfrom the ETH domain.

Trust, responsibility and control go hand in hand in the newmanagement system. In developing and implementing themanagement tools defined in consultation with the FederalDepartment of the Interior (EDI) and included in the FederalCouncil’s performance mandate to the ETH Board, the Board hasrefined the existing monitoring and annual reporting frame-works and added a new strategic controlling system. These threetools are complemented by interim and final assessments ofperformance in accordance with the mandate, carried out jointlyby the EDI and the ETH Board. The 2005 interim evaluation, whichwill be based on a self-assessment by the ETH Board, will supplya partial basis for the 2008–2011 performance mandate.

25 key indicators of basic performance

The indicators for the ETH domain encompass both quantitativeand qualitative factors by means of which the development of itssix constituent institutions can be described. The performancemandate specifies a total of 63 indicators. The annual monitoringsystem covers 25 key indicators (such as number of students ordiplomas) relating to basic performance, 20 of which are used forforecasting purposes. Indicators are not, however, the same asobjectives. The seven objectives specified in the performancemandate are of a qualitative nature.

Annual reporting

Reporting is based on the 25 comprehensive key indicatorsspecified in the performance mandate. Objectives are evaluatedon a quantitative basis and by a qualitative assessment. Theresults are summarized in an annual report and submitted to the federal parliament. Drafting of the annual report is the sub-ject of a working session of the President’s Office of the ETHBoard with the Director or President of the respective institution.The form of evaluation, reflecting new directions and outlooks,is prepared by the strategic controlling team. In the future, an-nual reporting will help determine financing for the institutions.

Strategic controlling

Within the ETH domain, controlling is carried out while the activi-ties are underway, with a focus on attaining the objectives for2004–2007 as stated in the ETH Board’s strategic planning or inthe institutions’ performance agreements.

Contact: lic. oec. HSG Christophe Banderet; banderet@ethrat.ch

Obtaining hydrogen with solar chemistry

Burning as it does without generating pollutants, hydrogen is an environmentallysensible alternative to fossil energy sources. PSI’s research is following two different routes towards a future hydrogen society. As a significant user laboratory,PSI also develops and operates major facilities which are actively used in environ-mental research.

One variant is based on solar energy. Peak temperatures exceeding 2000°C areproduced in PSI’s solar furnace. This heat powers chemical processes in a reactor.In this way it is possible, for example, to convert zinc oxide powder into metalliczinc, which can be stored and transported. This solar fuel may be used to producehydrogen (by reaction with water) and in zinc/air batteries. This in turn produceszinc oxide again, so closing the zinc cycle. In another process tested at PSI and ETHZurich, concentrated sunlight is used to obtain hydrogen and carbon nanofibresfrom methane.

In the second variant, a combustible gas is produced from indigenous wood. Using a catalyst, the wood gas can be converted into methane and so fed into the con-ventional natural gas system. In future, once the hydrogen supply infrastructurehas been developed, pure hydrogen may also be obtained directly from the wood gas.

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Repositioning the research institutions

Acting on recommendations by the expert committee respon-sible for the interim assessment of the 2000-2003 performancemandate, the ETH Board seeks, through its “Future of the re-search institutions” project, to redefine the role of PSI, WSL,EMPA and EAWAG within Switzerland’s research community.

The ETH domain, in its present form, is the product of organicgrowth over many decades. Its current structure is not ideallysuited to allow it to stand out against the international compe-tition. The four research institutions – PSI (Paul Scherrer Insti-tute), WSL (Swiss Federal Institute for Forest, Snow and Land-scape Research), EMPA (Swiss Federal Laboratories for Mate-rials Testing and Research) and EAWAG (Swiss Federal Institutefor Environmental Science and Technology) – are engaged in awide range of activities, from basic and thematic research to theprovision of services to third-party companies and organizations.By the same token, this broad scope and versatility blunts theirprofile. This prompted the expert committee responsible for theinterim assessment of the 2000-2003 performance mandate tocall for a clear-cut repositioning of the four institutions.

"Future of the research institutions” project members

The organizational structure comprises a Steering Committee,the Project Management and the KLANGBORD Working Group.

Steering Committee:

– Dr Charles Kleiber (State Secretary)– Professor Francis Waldvogel (President of ETH Board)– Dr Stephan Bieri (Delegate and Vice-President of ETH Board).

Project Management: – Professor Alexander Zehnder (EAWAG Director – Chairman

of Project Management) – Dr Barbara Rigassi (Vice-President of BHP Consulting) – Dr Heinrich Neukomm (General Secretariat of ETH Board).

KLANGBORD Working Group: – Dr Barbara Haering (National Councillor and author of postu-

late (00.3755) for assessment of research institutes)– Professor Hubert Markl (former President of Max Planck

Society) – Professor Jakob Nüesch (former President of ETH Zurich) – Daniel Borel (Logitech) – Dr Andreas Steiner (economiesuisse and President of Belimo

AG, Wetzikon).

The ETH Board is repositioning the ETH domain research institutions within the Swiss research landscape.

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Short glossary

Pure basic research: This is chiefly performed at universitiesand is primarily geared to the acquisition of new knowledge. Itsorientation is disciplinary and international, and its aims arelargely independent of society’s needs. Subjects are selected bythe researchers themselves. The timeframe for knowledge ac-quisition ranges between 20 and 50 years.

Thematic research: This tends to concentrate on topics of rele-vance to society that require long-term effort at an internationallevel. The subjects are interdisciplinary in nature, necessitatetop-down/bottom-up interaction and often have a politicaldimension; the time horizon lies between 10 and 30 years.

Applied research and technology development: These entailthe transfer of knowledge from basic and thematic research tospecific product and service applications of importance for theprivate or public sectors. This type of research meets thedemands of the market and serves institutional clients. Thetimeframe is approximately two years.

Key role of experts underlined

In June 2002, the ETH Board launched the “Future of the re-search institutions” programme, which aims to define the strate-gic focus and map out the future role of the various institutionsin research, teaching and service provision.

In its first report to the ETH Board in July 2003, the Project Ma-nagement team expressly underlined the pivotal role played bythe research institutions within the Swiss research community. Itrecommended a clear focus on leading-edge thematic researchsupplemented by applied research and technology development.It urged the institutions to examine the practicability of theselected strategy and adjust their structures accordingly.

Redefinition of tasks

Following an internal assessment of the existing situation, theresearch institutions redefined their individual and collectivetasks. With strategies in place by the start of 2004, the focus isnow on analysing inter-institutional activities in materials science,the environment, energy, natural hazards and developmentplanning plus the associated impact on organizational strategiesand implementation. The concluding report is expected by theend of 2004 and the project scheduled for completion sometimein 2005.

Contact: Dr Heinrich Neukomm; neukomm@ethrat.ch

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Employment conditions for professors:enhanced international competitiveness

A new ordinance giving the Presidents of the ETH greater flexi-bility in laying down the employment conditions for professorshas been in force since 1 January 2004, enhancing the compe-titiveness of the Federal Institutes of Technology on the inter-national academic labor market.

The ETH Board is implementing provisions of the Swiss FederalEmployment Law, which stipulates minimum social and employ-ment law requirements. This creates favourable conditions forthe ETH domain to establish a modern and innovative personnelpolicy. It also allows the Presidents of the two Federal Institutes

of Technology greater flexibility and decision-making powerswithin the scope of the new ordinance governing professors’terms of service.

Professors as “research entrepreneurs"

Professors are governed by a separate ordinance which takesaccount not only of their function and the academic freedom theyare granted but also of their status as “research entrepreneurs".Their status is somewhat similar to that of managers in smalland medium-sized high-tech companies. A work group led byProfessor Urs Christoph Nef (ETH Zurich) was given the task ofrevising the status of professors by the ETH Board. The group hasrestructured the professors’ employment law status and pensionand retirement rules.

The new ordinance enhances the competitiveness of the FederalInstitutes of Technology, ETH Zurich and EPF Lausanne, relativeto leading universities in the United States and some EU coun-tries. It also gives the Presidents of the two universities greaterfreedom to set salaries and thus attract the most highly regar-ded scientists. The rules further give the Executive Boards theauthority to take decisions regarding initial funding and basicequipment on the appointment of such scientists.

Remaining in service beyond pensionable age

The retirement rules also contain a provision intended to retainleading scientists. In exceptional cases and at the request of theETH President, the ETH Board can agree to continue to employ aprofessor beyond the pensionable age of 65. This provisionimplements the “Lex Wüthrich", as the media have somewhatmaliciously come to refer to the partially revised ETH Law.Professors receiving a pension are additionally entitled to acceptlectureships and make use of facilities and materials.

The ETH Board adopted the proposal in September 2003. TheFederal Council gave its consent in December 2003.

Contact: Martin Sommer; martin.sommer@ethrat.ch

The ETH Board’s new terms of service enhancethe competitiveness of the Federal Institutes of Technology, ETH Zurich and EPF Lausanne, inthe international market place for professors.(In the picture: Prof. Peter Rieder)

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The ETH Board took this change in leadership as an opportunityto clarify issues relating to the organization and management ofthe Center and to determine its strategic orientation. It appoin-ted a work group including ETH Board members Dr HeinrichRohrer, Nobel laureate and chairman of the work group, and DrMonica Duca Widmer, business and political leader in Ticino.

International positioning

The work group’s report was adopted by the ETH Board on 13November 2003. It provides recommendations with regard to themanagement structure and international positioning of the CSCSand to high-performance scientific computing and high-technetworking.

The recommendations call on the CSCS to reinforce and developstrategic directions for scientific computing, including the ana-lysis of complex data, benchmarking and the development of anational computing grid. For life and information sciences aswell as researchers in the fields of physics, chemistry and engi-neering science, the Center will provide scientific calculations inthe high-performance domain along with modeling of the climateand terrestrial systems using high-performance servers.

Greater autonomy for CSCS

In 2003 the ETH Board and ETH Zurich redefined the strategicobjectives of the national high-performance computing centreCSCS (Centro Svizzero di Calcolo Scientifico) and granted itadditional autonomy, completing the final stage of its reposi-tioning.

The CSCS, an organizational unit of ETH Zurich, carries outresearch activities on an international level in Manno, Ticino. Itprovides services involving simulation and processing of com-plex or comprehensive data sets to academic institutions and thebusiness sector. One example is the collaboration with Meteo-Schweiz relating to weather forecasting.

Professor Parrinello, General Manager of the CSCS, elected tostep down from his management duties in March 2003 and againdevote himself fully to research. He assumed a key position atthe newly founded computer science faculty of the Universitàdella Svizzera Italiana. Researcher Marie-Christine Sawley wasappointed General Manager of the CSCS in June 2003.

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Members of the CSCS work group

Members of the CSCS work group included

– Dr Heinrich Rohrer, (Nobel-prize winner and Member of theETH Board)

– Dr Stephan Bieri (CEO and Vice-President of the ETH Board)– Professor Ulrich Suter (Vice-President of Research at ETH

Zurich) – Dr Monica Duca Widmer (Member of the ETH Board) – Professor Giorgio Margaritondo (Dean of Basic Sciences at EPF

Lausanne)

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Enhanced autonomy

The CSCS is headed by a steering committee and is supported bya high-ranking science committee. It is financed from the ETHZurich budget. For the 2004–2007 planning period, the ETHBoard and management of ETH Zurich allocated a budget of CHF55.5 million for the Center, accommodating the development andinvestment plan that it had compiled to support its repositioning.Intensive promotion and communication activities will be requiredto secure future external funding and new partners. . Contact: Dominik Ulmer; ulmer@ethrat.ch

A flying laboratory to circumnavigate the world

Around the world in a solar airplane. Nighttime flying, optimum energy con-sumption, ultralight design and safety: great challenges require exceptional tech-nologies. Bertrand Piccard’s new project puts EPF Lausanne’s scientific advice and high-tech research project “Solar Impulse” into practice.

Solar cells are enclosed in a newly developed polymer membrane. This membranecovers the entire surface of the plane, where it will capture light from all directionsand make maximum use of the electric power generated from sunlight.

The active photovoltaic film consists of a white paste containing minuscule tita-nium dioxide particles silk-screened onto a conductive substrate. Light is capturedby a dye on the surface of the particles. The conversion of light into electricity is so efficient that even in diffuse daylight a fan can be powered by a small flexiblelaboratory cell. (Photo: EPFL)

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Student fees earmarked for moderate rise

In January 2003, the Swiss Federal Government requested theETH Board to raise student fees at the two Federal Institutes ofTechnology and duly prompted a wave of indignation amongsome sections of the public. An initial adjustment taking accountof cost inflation over the last eight years is under discussion. Afee increase in line with Switzerland’s new higher educationlandscape will be a topic for debate over the longer term.

A statement issued in the year under review provoked a storm ofcontroversy in the media and sparked a heated public debate: aspart of the 2004 relief programme, the Swiss Federal Councilrequested the ETH Board to implement a phased increase instudent fees at the two Federal Institutes of Technology, the ETHZurich and EPF Lausanne. The plan envisages introduction of thetop rate of CHF 1,224 per semester at the latest by the academicyear 2007/08. Given a total 18,000 students, this would bump upthe ETH domain’s revenue by some CHF 20-24 million. Yet, withcuts of this order planned by the Federal Government in theoverall financing of the ETH domain, the move is not designed toprovide any additional resources.

First fee review in eight years

The ETH Board is responsible for fixing the level of student feesat both Federal Institutes. These are governed by the ETHdomain fee scale and are roughly on a par with those of thecantonal universities. The current fee of CHF 550 per semesteris supplemented by an additional semester contribution of CHF57 at the ETH Zurich and CHF 42 at the EPF Lausanne. Thesefigures have remained static for eight years. Moreover, unlikethe cantonal universities (and numerous European universities),the Federal Institutes of Technology apply the same rates forSwiss nationals and foreign students alike. While foreign nation-als account for 14% of the intake, they come mainly from fami-lies resident in Switzerland for many years.

The increase in tuition fees rapidly turned into an explosive debate. The fees could be raised in two stages.

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Given the minor contribution made by student fees to the financ-ing of the two Federal Institutes, the Head of the Swiss FederalDepartment of Home Affairs, Federal Councillor Pascal Couche-pin, has proposed that the fee increase be combined, from 2008onwards, with a review of the grant system and the developmentof a new vision for higher education in Switzerland.

Possible two-phase increase

The higher education reform (introduction of Bachelor and Masterdegrees) could usher in a multi-tiered fee system. The aim istherefore to develop a new student fee concept, also taking intoaccount student financing, in tandem with the Swiss UniversityConference (CUS) and in consultation with student associations,Federal Institute/University Assemblies, the management teamsat both Federal Institutes and other research policy represen-tatives.

The fees could thus be increased in two phases: an initial rise inthe near future to offset the (approx. 5%) growth in costs over thelast eight years, plus a later rise, in line with the ETH Law, toreflect the changed university system in Switzerland.

Contact: Dr Christoph Grolimund; grolimund@ethrat.ch

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Members of “Zukunft Bau” platform

– Dr Stephan Bieri (Delegate and Vice-President of ETH Board)– Robert Keller (President of bauenschweiz and National Coun-

cillor) – Daniel Kündig (President of Swiss Society of Engineers and

Architects, SIA) – Ulrich König (Board Member of Swiss Commission for Techno-

logy and Innovation, CTI, of Swiss Federal Office for Professio-nal Education and Technology)

– Werner Messmer (National Councillor and President of SwissContractors’ Association)

– Professor Eugen Brühwiler (School of Architecture, Civil andEnvironmental Engineering, ENAC, at EPF Lausanne)

– Professor Kurt Schellenberg (former Rector at University ofApplied Sciences Rapperswil, HSR, and Delegate of the Con-ference of Swiss Universities of Applied Sciences)

Getting the Swiss construction industry back on track

The “Zukunft Bau” (Future of Construction) initiative was laun-ched two years ago at the instigation of the ETH Board Delegateand the President of the then Conference of the Swiss Cons-truction Industry (now bauenschweiz). The permanent dialo-gue with business and society is enshrined in the performancemandate laid down by the Swiss Federal Council and forms acornerstone of the ETH Board’s strategy.

The forum brings together representatives from key construc-tion sector associations, the ETH domain, universities of appliedsciences and the Swiss Commission for Technology and Innovation(CTI), the main promoter of applied research and development inthe building sector. It serves as a platform for discussions, infor-mation exchange and co-ordination between the various organiza-tions and is intended to stimulate activity in areas of innovation.One particular goal is to enhance the appeal of the constructionprofessions – also for women – through an overhaul of careerprofiles.

Boasting an approximately 500,000-strong workforce, the Swissconstruction industry in 2002 achieved a turnover of some CHF42 bn. Its expertise in the fields of architectural design, highwayengineering and tunnelling commands an outstanding world-wide reputation. Accounting for 12% of GDP, it ranks as Switzer-land’s prime domestic segment.

The construction industry is primarily composed of small andmedium-sized enterprises whose operational radius is, for themost part, confined by national and cantonal boundaries. Itsfragmented structure and below-par earnings power providelimited scope for investment and innovation.

The “Future Construction” platform intends to foster collaboration between the Swiss building sector, the ETH domain and the Swiss universities of applied sciences.

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Key disciplines united

The “Zukunft Bau” platform brings together disciplines reachingfar beyond construction:

– Materials science and technology (e.g. high-performancematerials and composites)

– Energy research and environmental systems (energy effi-ciency and energy provision)

– Information science– Natural hazards (e.g. earthquake-resistant construction) and

risk management.

The necessary background is provided by:– the basic sciences ofchemistry, physics, mathematics and

biology– enterprise sciences (process orientation, product and process

innovation, knowledge management, benchmarking) – research in architecture and development planning (urban

development, new-build/refurbishment and renewal, mixeddevelopment etc.).

Overall, considerable research is needed in the field of sustain-ability (economic, ecological and social problems relating to construction and the built environment). The involvement of thehumanities and, in particular, the social sciences is crucial,particularly with regard to the last two issues mentioned above.

Research will be funded mainly by the Swiss Commission forTechnology and Innovation (CTI), the Swiss National ScienceFoundation (SNF) and the research budgets of individual federaloffices.

Improved collaboration

More intensive co-operation in teaching and research is neededbetween the two Swiss Federal Institutes of Technology (ETHZurich and EPF Lausanne), the Swiss universities of appliedsciences and the construction industry. In the field of research,the aim is to boost the potential for organizational and technicalinnovation within the construction industry by stepping up know-ledge and technology transfer. The focus here is on new buildingtechnologies, new materials as well as the maintenance andrefurbishment of the property stock.

Adjustments will be made to the civil engineering portfolio, whileactivities within the Department of Civil, Environmental andGeomatics Engineering (DBAUG) at the ETH Zurich are to be co-ordinated with those of the School of Architecture, Civil andEnvironmental Engineering (ENAC) at the EPF Lausanne. Thebuilding services and construction materials know-how of theSwiss Federal Laboratories for Materials Testing and Research(EMPA) will also be integrated.

Contact: lic.oec.publ. Albert Fritschi; fritschi@ethrat.ch

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The universities and research institutions of the ETH domain are subjected to constant international competition.

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ETHZ: roll-up screens

Reading daily newspapers updated at any time on a paper-likemonitor? Rolling up the display and putting it in your pocket?Since the 1980’s, it has often been said that such visions will“soon” become a reality thanks to organic, polymeric semi-conductors. However, materials which are sufficiently stableand processable for such applications have not been available.As part of a wide-ranging international collaborative project,ETH researchers from the Department of Materials have suc-ceeded in developing stable field-effect transistors on the basisof polymer-like materials.

There has long been a requirement for the mass production oflow cost electronic components from plastics. In order to achievethis aim, research has focused for over two decades on organicpolymeric semiconductors. However, such materials must notonly be readily processable, but also resistant to air, water andlight during manufacture and use. Virtually no organic polymersand oligomers which have been considered for such applicationssatisfy these requirements.

Dr Walter Caseri and his team from the Polymer TechnologyGroup, which is led by Professor Paul Smith at the Departmentof Materials, have now succeeded in producing inorganic/organichybrid compounds which are self-arranging in a polymer-like,quasi-one-dimensional supramolecular structure. These com-pounds form a platinum rod of atomic diameter which is enclosedin a molecular shell of organic matter.

The basic structure was developed as long ago as 1828 byHeinrich Gustav Magnus, but the resulting material could not beprocessed by conventional methods. The ETH Zurich researchteam managed to achieve the necessary processability by makinga pivotal chemical modification to this material. This was achievedby the particular selection of the organic “shell” component.This component serves firstly to adjust the distance between theplatinum atoms and thus the electrical conductivity of the platinumrods, and consequently makes them processable in ordinaryorganic solvents.

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Essential components in screens and displays

The polymer-like materials may be processed in air without anyparticular precautions to form spun fibres or films. Intensivecollaboration with the University of Cambridge (UK) revealedthat such films are suitable for the production of field-effecttransistors (FET’s) which exhibit extraordinary stability. Sixmonths’ exposure to air and daylight or twelve or more hours’immersion in hot water at 90°C resulted in virtually no impair-ment of the transistors’ electrical characteristics.

The principle demonstrated could pave the way for the deve-lopment of processable, stable chemical structures which aresuitable for critical electronic components for screens and dis-plays which, despite of the presence of platinum, are not onlysignificantly cheaper but also flexible and foldable. In this way,it will be possible to read a daily newspaper online by means ofa flexible screen. Mini-displays containing important customerinformation and security features could also be applied cheaplyon packaging.

Die ETH Zurich took part in the Shell Eco Marathon 2003 in Southern France using a hydrogen-powered vehicle. The aim of the event was to complete the race with the lowestpossible fuel consumption.

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EPFL: Self-Organisation and Security for Mobile Communications

The Swiss Federal Institute of Technology in Lausanne (EPFL)is in pole position in the development of information andcommunications networks. The institution is searching foralternatives to the existing GMS (Global System for MobileCommunications) system as part of the Swiss National ScienceFoundation’s National Centre of Competence in Research onMobile Information and Communications Systems (NCCRMICS).

The MICS National Centre of Competence in Research lendsimpetus to synergies in the areas of mathematics and engineer-ing. Research on mobile information and communications sys-tems further develops key knowledge, for example in samplingtheory. Fundamental mathematical principles are developed forthe translation and transmission of external information andsignals and their processing in computer language. Investi-gations published in 2003, as part of the NCCR MICS in the areaof signal processing, already make considerably higher datatransmission capacities and improved systems compatibility andperformance possible today.

Self-organisation as a possible solution

GSM (Global System for Mobile Communications) enables peopleto communicate with each other anytime, anywhere. Mobiletelephones pass messages to antennae via electromagneticfrequencies. The antennae distribute the messages using fixedinstallations consisting of fibreglass networks or electric cables.This infrastructure and its maintenance are costly; many antennaeare required.

Self-organising systems could offer an alternative, says MartinVetterli, Professor at the Department for CommunicationsSystems at EPFL and Leader of the MICS National Centre ofCompetence in Research. In this scenario, the mobile telephoneswould also serve as relay stations. Instead of transmitting infor-mation via antennae, a mobile telephone would pass its data to

Photonic crystals: channelling light

Over the past 30 years, optical fibres have meant that light has become generallyaccepted as a largely loss-less means for transmitting data at ultra-high rates over extremely long distances. However, if you want to guide light signals “arounda corner” or split or couple such signals, then new technologies are required formicrometre scale components. These “optical circuits” could be miniaturised byguiding light along defects in periodically modified dielectric structures or “photoniccrystals". In conventional photonic crystals, the light is guided, for example, in InP semiconductor layers, thereby not only allowing light to be guided along curvesbut also the integration of active components for the wavelength of 1.55 µm pre-ferred in telecommunications. In this way, it is possible to manipulate the propaga-tion of light in dimensions of the order of the optical wavelength and so implementvaluable component functions at an extremely high integration density. (Picture:MaX-1 simulation by Jasmin Smajic, ETH Zurich)

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another mobile telephone which, in turn, would pass it on to aneighbouring mobile telephone until the message reaches theintended recipient.

The mobile telephone would not only send and receive, but act asa relay station for wireless message transmission to other usersand thereby ease the strain on antenna networks. This simpleprinciple, however, poses complex questions. For example: Howcan cooperation between devices be improved? This question ispertinent if the mobile telephones are providing data transportfor other users, i.e. if they are not direct participants in the com-munication. Simulation projects at EPFL are investigating thebehaviour of this type of network and the tools enabling thedevices to interact with each other.

Greater security

Particular importance within MICS is placed on research in thearea of data security. Intense research is also being done on theInternet, another self-organising system. A team at EPFL suc-cessfully detected a loophole in the central security system forpayment processing on the Internet and developed the toolsnecessary to prevent abuse by hackers.

Whether it is researching issues of principle, long or medium-term applications or technology transfer: The National Centre ofCompetence in Research regularly opens up new scientific andeconomic perspectives within a short time span.

NCCR MICS

Apart from the two Federal Institutes of Technology and the Uni-versities of Lausanne, Berne, Zurich and St. Gall, membership ofthe NCCR MICS also includes the Swiss Centre for Electronicsand Microtechnology (CSEM) and various Swiss and foreignindustrial partners.

Development of novel catalysts: the fruit of combinatorial chemistry at EPF Lausanne, these catalysts are being handled in a closed systemunder controlled conditions.

PSI: strengths in environmental research

Researchers from the Paul Scherrer Institute (PSI) drilled in-to what is probably the Alps’ oldest ice on Monte Rosa. Chemi-cal analysis of the core samples with a novel accelerator massspectrometer is intended to determine how old this ice actual-ly is. Further objectives are to provide a better description ofclimatic trends over the last 500 years and to shed some lighton pollutant emissions from the time of the Roman empire.

The Colle Gnifetti, which is at an altitude of 4452 metres abovesea level, has already long been a focus of research by glacio-logists and climate researchers. The glacier researchers suspectthat the oldest ice in the Alps lies deep beneath this col in theMonte Rosa massif. A research team from PSI, together withspecialists from the University of Venice and ETH Zurich, hope touncover the glacier’s secret and, to this end, in September 2003drilled two holes down to the bedrock at a depth of 82 metres.The group from PSI contributed their wide-ranging experience ofdrilling glacier ice cores which they had gained on expeditions toRussia (Altai mountains), South America and also in Switzerland(Fiescherhorn glacier, Piz Zupo).

From a scientific standpoint, the questions arising from thedeepest layers of ice are extremely interesting. When did theglacier form? Was it during the last ice age more than 10000years ago or more recently? What conclusions can be drawnfrom the ice about climatic trends over the preceding millenia?Glacier ice is an ideal climate archive: trace substances in theatmosphere are deposited with the snow in chronological orderand preserved. The composition of the isotopes in the ice makesit possible to draw conclusions about atmospheric temperature.

Radiocarbon dating with ultra-small samples

The researchers intend to perform the dating with a recentlydeveloped method based on the 14C content of any carbon-containing particles present in the ice. The method makes use ofPSI’s innovative accelerator mass spectrometer which allowsradiocarbon dating to be carried out on ultra-small samples.This mass spectrometer is an example of the facilities developedand operated by PSI as a major user laboratory. Other major PSIresearch instruments are also commonly used in environmentalresearch, such as the proton accelerator and spallation neutronsource in radiochemical environmental analyses, for example ofatmospheric samples, or the Swiss Synchrotron Light Source(SLS) for elucidating the behaviour of pollutants in the geosphereand biosphere.

It is also hoped that the investigations of the ice cores from ColleGnifetti will reveal the emissions caused by the Romans 2000years ago. Huge quantities of lead were mined and processed forwater pipes and drinking vessels at that time and it will probablybe possible to detect the resultant emissions in the glacier ice.The results may also give rise to further speculation about thefate of the Roman empire.

Previous glacier ice cores drilled in the Monte Rosa massif we-re directed towards analysing industrial pollution and so focusedon recent centuries, for example revealing a huge rise in sulfa-te levels between 1870 and 1975. Atmospheric sulfate is formedfrom sulfur dioxide, which is released when coal and heating oilis burnt. The investigations furthermore demonstrated thatsulfate concentrations in the ice have in recent years declined to1940 levels as a result of environmental protection measures.

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Drilling into what is probably the world’s oldest ice: research at PSI is directed towardsclarifying just how old this ice on Monte Rosa

actually is and getting to the bottom of climatictrends over the last 500 years.

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Snow is an excellent insulator, just like the quilt on your bed.Ideal permafrost conditions are thus for there to be very littlesnowfall in early and midwinter, so allowing the ground to cooldown properly. If there are then considerable snowfalls at theend of winter, the ground is well protected from the hot springsunshine. At these altitudes, the ground is usually snow-coveredfor nine to ten months, so its influence on the permafrost isgreater than that of air temperature. This has been demons-trated by measurements carried out in Davos by the SLF, whichis part of the Swiss Federal Institute for Forest, Snow and Land-scape Research (WSL).

When it comes to estimating the consequences of any possibleclimate warming on permafrost, the distribution of snow coverin the Alps plays a decisive role. A research team from SLF Davosaccordingly developed a model which can be used to investigateprocesses in the atmosphere/snow cover/ground system. At thesame time, scientists are attempting to gain a better understan-ding of the complex action of water in the thawing layer of thepermafrost.

Avalanche defences in the permafrost

However, the influence of water and climate is not the only matterof interest to the researchers. A crucial practical concern issafety in mountain areas. Many avalanche defences are con-structed in permafrost. In the case of icy mountainsides withloose rock or rock glaciers, this results in great instability due tothe slowly moving ground. The “avalanche defences in perma-frost” project, which is funded by the Cantons of Graubünden andValais and by BUWAL (Swiss Agency for the Environment, Forests& Landscape), has been running since 1996.

At present the SLF is testing three types of avalanche defencesand five anchoring systems in steep permafrost slopes. Time willshow which anchoring system will best withstand the strain.With regard to avalanche defences, it is already clear that steelcable nets are better than conventional snow bridges. They alsoprovide protection from falling rocks and, due to their flexibility,suffer damage less rapidly.

Such findings are very important, not least for financial reasonsas avalanche defences cost up to CHF 2300 per linear metre.Accordingly, if local authorities install the right systems properly,it is possible to reduce costs while at the same time providinghigher levels of safety.

WSL: cold ground hotly debated

The landslide on the Matterhorn attracted considerable mediaattention to permafrost, the conclusion rapidly being drawnthat the hot weather was causing the ground to thaw. Inves-tigations at the Swiss Federal Institute of Snow and AvalancheResearch (SLF) have shown that it is primarily winter condi-tions which determine whether the permafrost starts to melt.

"Entire mountainsides can start to slip when the permafrostthaws,” warned one media source, while another prophesied“increasing numbers of scree avalanches” and a third reportedthe mountains to be “wobbling like a jelly". The excitement afterthe landslide on the Matterhorn was considerable and it wassoon agreed that 2003’s hot summer weather was making theground in the mountains thaw.

If ground remains at a temperature below zero centigradethroughout the year, it is referred to as permafrost. The groundneed not necessarily contain ice, temperature is the definingcharacteristic. Permafrost is found in the Alps from altitudes ofaround 2500 to 3000 metres above sea level – often on steepmountainsides and under rubble. If the boulders and screecontain a lot of ice, these masses are referred to as rock glacierswhich flow slowly downhill like thick honey.

Permafrost is not enough by itself

If the ice thaws, the rocks may start to move, so encouraging mudflows and landslides. However, thawing permafrost is not byitself enough to cause such phenomena, other geological weak-nesses, such as heavy precipitation, an unfavourable soil struc-ture or critical slope water conditions are always necessary aswell. However, it is not primarily high summer temperatureswhich determine whether the ground thaws, but instead mainlythe preceding winter’s snowfall.

WSL investigates changes in marshlands of national importance to Switzerland. A researcher is identifying one of the local plants.

The reinforced rigging elements of the yacht Alinghi also attracted the attention of Swiss Federal CouncillorJoseph Deiss at EMPA’s 2003 Hannover Fair stand.

EMPA: a successful start in nanotechnology

Over the past three years, the Swiss Federal Laboratories forMaterials Testing and Research (EMPA) have been payinggreater attention to the nanosciences. More resistant tools,new flat screen displays and fibres for multifunctional textilesare three of the results that have been achieved.

This increased activity in the nanosciences is being funded in thecontext of two programmes. Firstly, there is the specially created“nanotechnology innovation and cooperation programme",which is supported by seed funding from the ETH Board. Consid-erable project-based promotion has been provided via the “TOPNano 21” Swiss Priority Programme.

Physicists at EMPA are carrying out projects to determine howto produce harder coatings with nanocomposites to make toolsmore resistant. Promising results have been achieved withminute titanium nitride particles embedded in a silicon nitridematrix, the hardness achieved being almost twice that of a puretitanium nitride layer.

Two further specific objectives are the focus of work at the new-ly formed “nanotech@surfaces” laboratory in Thun; an initialstart in the promising field of “molecular electronics” and thefirst industrial use of carbon nanotubes (CNT).

In “molecular electronics", a disk-like molecule of 42 carbonatoms known as hexabenzocoronene (HBC) will act as the cen-tral component of the electronic switch of the future, which itshould be possible to switch between the “on” and “off” statewith a single electron. Research is also being conducted intowhether, if suitably chemically functionalised, this molecule iscapable of forming self-organising, complex supramolecularstructures with other molecules (NRP 47, SupramolecularFunctional Materials).

Collaboration with Sony

Fundamental research into the physical mechanisms behindelectron emission by carbon nanotubes at Thun is enabling workon application-oriented projects for the development of efficientCNT electron emitters. This research is performed using a scan-ning anode field emission microscope, which was developed inthe laboratory itself, and with which emission properties arecharacterised at the micrometre scale.

An important question in this context is the homogeneity ofelectron emissions, control of which is closely linked to theorientation, length and diameter of the nanotubes on the cathode.Controlled growth of carbon nanotubes is thus also beinginvestigated. These successes led to collaboration with Sony,the world’s largest consumer electronics manufacturer. A know-ledge transfer specialist from EMPA is providing several months’support in Japan for the development of new field-emission flatscreen displays.

The applications of efficient carbon nanotube electron sourcesare not, however, limited to flat screen production, where the na-notubes are used as low-cost emitters. In cooperation withvarious Swiss and European partners in industry and research,EMPA is also working on the development of field-emissionsources for high-frequency and X-ray tubes, as well as forparticle accelerator applications.

In other projects, EMPA has manufactured ceramic nanopar-ticles on a pilot scale, has scaled up its production process andseen the nanoparticles used in electrically conductive, high-temperature ceramics, in oxide fuel cells or for dental repairs.By incorporating specific nanoparticles into thin coatings, EMPAhas also functionalised fibres which can be converted intomultifunctional textiles and has also conducted experiments oncells to investigate the compatibility of nanoscale particles.

The professorship jointly established with the University of Baselwill ensure the continued purposeful development of nanotech-nology at EMPA. Participation in the National Centre of Compe-tence in Research “Nanoscience", a national network led by theUniversity of Basel, has already been initiated.

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EAWAG: Major events focusing on fresh water

2003 was the “International Year of Fresh Water". In respon-se, the Swiss Federal Institute for Environmental Science &Technology (EAWAG) arranged three major events: the “Inter-national Water Management Course IWMC", a Conference onthe Environmental Future of Aquatic Ecosystems and “WaterCity Zurich".

The United Nations Organization called on the world communityto carry out activities, programmes and projects with the aim ofraising the awareness of world’s population to the importance ofwater and sustainable management. Water is, after all, thefundamental basis of life. Current trends in water consumptionworldwide are, however, anything but sustainable. Unless thereis fundamental change in current usage, around half the world’spopulation will be suffering from water shortages by 2025. If theWorld Bank’s “Millennium Development Goals” for water are toachieved, annual investment of US$ 26.7 billion is required until2015.

Against this background, Swiss Re and EAWAG launched the first“International Water Management Course IWMC". Using casestudies, the four-day course taught managers and water expertsfrom the government and public sectors targeted decisionmaking methods which can be used as the basis for implemen-ting sustainable water management strategies. The 16 partici-

pants and 24 moderators rated the first course a great success.The combination of teaching basic principles with applied casestudies and the opportunities for discussion with internationalexperts from both research and real-world environments provedeffective. The next course is scheduled for September 2004.

Future of aquatic ecosystems

The International Conference on the Environmental Future ofAquatic Ecosystems provided a forum for some 160 scientists todiscuss the earth’s hydrological systems. Meeting in March 2003,representatives from all continents highlighted trends in thefuture development of aquatic ecosystems. There was consensusamong the experts that virtually all aquatic systems are nowunder pressure and that this pressure will continue to rise infuture. Examples of such pressure are the increase in nutrientloading, the decline of fresh water inputs into wetlands andcoastal seas due to irrigation, and the destruction and salini-fication of habitats.

However, as is clear from Europe’s recent history, entirelystraightforward measures are available for reversing the nega-tive trend in the future. For example, the discharge of non-bio-degradable chemicals into running water has been prohibitedsince the Stockholm conference. Moreover, an abundance ofscientific knowledge is already available which should make itpossible to have a positive influence on aquatic systems. What islacking is not so much knowledge as the political courage to putsuch measures into practice.

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Water City Zurich

Between 21 June and 20 July 2003, Zurich became a Water City.The focal point of this joint project was an open air exhibition onthe banks of the Limmat. The “water path” comprising sevenstations illustrated where the rain falling on the city goes, whereZurich’s drinking water comes from and the organisms living inan aquatic environment. The project also included a websiteproviding additional information, materials for schools, eventsand guided tours. A guided walk through the Water City, water-related readings in the Wasserkirche, an exhibition on ground-water and a panel discussion on water management generatedconsiderable interest among the general public. The water sto-ry competition was a great success with more than 250 entries.The strong presence was achieved thanks to the involvement oflocal players.

Water City Zurich: the rain installation on Paradeplatz offered a welcome opportunity to cool down during 2003’s hot summer (photo: Franco Bottini, Zurich).

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Total revenues for the ETH domain were CHF 2.213 billion, CHF 35 million above the previous year’s figure.

6

FINANCE

2003 accounts: higher third-party revenues

With a total of CHF 2.213 billion, the ETH domain’s total reve-nues exceeded the 2002 figure by CHF 35 million. Total expenseslikewise increased to CHF 1.936 billion (+CHF 15 million).Capital expenditures remained practically unchanged from theprevious year’s level (CHF 353 million) at CHF 348 million.

The surplus reported on the single-column income statement(ETH domain revenues and expenses) is not regarded as a profitor loss as customary in the private sector, but is reinvested afterdeduction of non-cash transactions. The capital expenditurestatement shows expenditures for acquisition of furnishings andIT equipment as well as for real estate; the latter remains theproperty of the Swiss Confederation. Current and capital expen-ditures are financed by the financial contribution of the SwissConfederation.

Income statement: expenditures hold steady

The ETH domain is primarily financed by the Swiss Confedera-tion (just under 80%) and revenues from third parties. These third-party funds are used to carry out research projects. The SwissConfederation’s financial contribution held steady in 2003 ascompared to the previous year while third-party revenues grew.All funds were used in service of the ETH domain’s overall goal,fulfilling its performance mandate for 2000 to 2003.

The total surplus for 2003 (CHF 277 million) stated in the multi-stage single-column income statement is calculated in threesteps: first, ordinary expenses (2003 statement: CHF 1.900 billion)are subtracted from revenues giving Surplus 1 (CHF 303 million).Adding extraordinary revenues less expenses (CHF 35 million)gives Surplus 2 (CHF 267 million). The third step, adding thefinancial surplus (including capital gains on securities as part offinancial revenues) to Surplus 2 gives the Total Surplus (CHF 277million) as declared in the income statement.

Both subtotals and the total surplus were higher in the 2003income statement than in the previous year of 2002. Aside fromthe change in provision balances resulting from the writing back

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of provisions posted in previous years for future EAWAG con-struction projects, the reported figures are fairly constant fromyear to year. Comparing the relative allocations of expense com-ponents in the 2002 and 2003 statements provides another indi-cator of the continuity and steadiness of the reported figures.The slightly higher output volume in fiscal year 2003 was financedby an increase in revenues from third parties. Conversely, theSwiss Confederation’s financial contribution in 2003 (CHF 1.756billion) remained the same as in 2002 (CHF 1.756 billion). Thetight federal budget situation led to a cut of 1 percent or CHF 18million from the federal contribution budgeted and approved byParliament for 2003 (CHF 1.774 billion) in the form of a half-ratefunding block for the ETH domain. This cut was more than offsetby higher third-party revenues, however. The funding block wasapplied to the institutions with reference to the approved 2003budget.

Total revenues (including financial revenues) came to CHF 2.213billion (2002 statement: CHF 2.178 billion). The Swiss Confede-ration’s contribution (CHF 1.756 billion including CHF 51 millionfor innovation and cooperation projects) is exclusively for the

purpose of attaining the higher-level goals set forth in the2000–2003 performance mandate imposed by the Federal Coun-cil on the ETH Board (11 May 1999). The distribution of funds tothe Federal Institutes of Technology and the ETH domain re-search institutions was carried out in accordance with the2000–2003 strategic plan and was set out in the annual perfor-mance agreements negotiated between the ETHs and researchinstitutions and the ETH Board. Funds were allocated to innova-tion and cooperation projects in accordance with the directivescontained in the Addendum to the Federal Council’s 2000–2003performance mandate for the ETH Board. These funds representa subsidy for participation by the ETH domain in regional andnational coordination projects. Funding for innovation and co-operation projects (CHF 51 million) is included in the SwissConfederation’s financial contribution.

Third-party revenues (including financial revenues) have beengrowing steadily for some time, particularly as concerns remu-neration from third-party funds. During the 2000–2003 mandateperiod such funds practically always exceeded the forecastamounts and increased steadily. The effective inflow of funds

ETH Board

ETH Zurich

EPF Lausanne

PSI

WSL

EMPA

EAWAG

Total

CHF million

8.3

946.3

410.0

219.8

46.5

80.8

44.2

1755.8

% of total

0.5

53.9

23.3

12.5

2.6

4.6

2.5

100

Division of financial resourcesStatement for 2003

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from third-party sources is declared in the ETH and researchinstitutions financial statements.

The sum of research projects financed by third parties is well inexcess of the total third-party remuneration (CHF 353 million)declared in the 2003 financial statements. Within the category ofthird-party funds, there were notable shifts in sources. One ofthese shifts concerns research subsidies: the reduction in fun-ding for the Commission for Technology and Innovation (KTI) isalmost fully offset by the increase in the Swiss National Fund (SNF).As in the previous year, reimbursements of research subsidies,collaboration with the private sector (commercially orientedresearch) and the European Research Programmes of the EU allsaw increases. Research assignments from federal departments(departmental research) were also slightly above the previousyear’s level, though on average they remain at the high level ofrecent years. The question as to the amount of direct or indirectconsequential costs (for example of infrastructure) per franc ofthird-party funds remains unanswered. Establishing these costswould be advantageous as they must be paid from the publicbudget.

Other third-party revenues (including tuition, services, sales etc.)amount to CHF 94 million, or four percent of the ETH domain’stotal revenues. All components of other revenues, includingfinancial revenues, rose slightly in fiscal 2003 in comparison tothe previous year (CHF 85 million).

Total expenses (including extraordinary expenses and interestexpense) in 2003 came to CHF 1.936 billion (2002: CHF 1.921billion). The increase is distributed evenly over all componentsof ordinary expenses except other operating expenses, whichdeclined from the 2002 figure. The additional expenses (+CHF 15million) in comparison to the previous year were financed fromadditional third-party revenues.

By far the greatest expense item (CHF 1.421 billion) is staff. Theincrease of CHF 48 million from the 2002 financial statements(CHF 1.373 billion) can be broken down into a quantitative and aninflation/promotion–related component. A greater number ofresearch projects was carried out in fiscal 2003, as reflected inthe number of staff positions (full-time equivalents/person-years). The increase in positions multiplied by the annual average

Third-party income

in CHF million

Research subsidies:

– Swiss National Science Foundation (SNF)

– Commission for Technology and Innovation (CTI)

– Miscellaneous income from research promotion

Research of ressort

European Research Programmes

Business-oriented research

Special Fund

Total

Remuneration 2002

122.3

69.7

44.2

8.4

68.1

40.4

95.4

3.0

329.2

Proportion in %

37

21

13

3

21

12

29

1

100

Remuneration 2003

119.5

87.9

30.8

0.8

71.7

53.2

101.4

6.8

352.6

Proportion in %

34

25

9

0

20

15

29

2

100

Uncovering plant responses to stress

Plant tissues and cells give away a lot about environmental conditions; when examined by light and fluorescence microscopy, they reveal information about theeffects of various stress factors such as ozone, heavy metals, fungal infections, insects or drought. The scientists at the WSL use various methods to detect the responses to stress by plant tissues and cells.

Changes in the cell walls and cell contents, for example, reveal damage caused by the aggressive substance ozone in the natural environment. The high levels ofatmospheric ozone over the summer of 2003 did more than generate headlines,they also caused damage to alpine trees in particular. The reason for this was that while heat and drought stress to a certain extent limited ozone uptake at lowaltitudes (the leaves close their stomata or pores under drought conditions, so reducing ozone uptake), this protective mechanism was not effective in mountainareas due to the greater availability of water.

As part of the framework project “From the cell to the tree", WSL, together withSwiss and foreign institutes, is investigating plant responses to stresses other than ozone. In some 30 projects, scientists are studying the impact of heavy metalsand acid rain on model ecosystems.

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cost per employee (approx. CHF 100,000–120,000) yields thequantitative component in francs. The remainder of the increasein staff expense results from pay-related measures (inflationadjustments, promotions, etc.). The portion of staff expensesfinanced through third-party funds comes to roughly CHF 280million (2002: CHF 249 million).

Occupancy expense comprises only the cost of leased properties.No rent is charged or paid for properties owned by the SwissConfederation and used by the ETH domain (no tenancy model).In line with accounting standards, depreciation increased by anadditional yearly portion. This is because furnishings and ITequipment in the ETH domain have only been carried as assetsand depreciated over a service life of three to ten years since2000. The change in third-party funds depends on the timing ofresearch projects. Prepaid research funds are carried on thecredit side of the balance sheet as “tied fund capital”, as a serviceobligation exists vis-à-vis the funding providers. The transfer asincome of provision balances posted in previous years for a futureEAWAG construction project to equity resulted in a sharp decreasein changes in provisions.

Capital expenditure statement: constant volume

While the overall volume of capital expenditures (CHF 348 million)remains at the previous year’s level (CHF 353 million), therewere differences among individual components.

The balance of funding commitments (“Verpflichtungskredit”)for buildings and facilities (as per the list of properties) showshigher outlays on construction as at the end of 2003 (CHF 263million) in comparison to the statement for 2002. Unlike thefunding commitments, the ETH domain capital expenditure sta-tement subsumes the initial furnishing of buildings and facilitieswith equipment and scientific apparatus under movable assets(CHF 11 million). The differential treatment of building costclassification item 9 results in a divergence between total outlaysfor funding commitments and the capital expenditure statement.Funding commitments cover all expenditures (BCC 0–9) occur-ring in connection with the production of buildings and facilities.The ETH domain capital expenditure statement, on the otherhand, distinguishes between real estate (BCC 0–8) and movableassets (initial equipment, BCC 9). Moreover, initial equipment ofbuildings and facilities immediately becomes the property of theETH domain, whereas real estate remains the property of the

ETH domain: Summary of revenuesfrom third parties

ETHZ EPFL PSI WSL EMPA

Statement 2002

Statement 2003

220

200

180

160

140

120

100

80

60

40

20

0

EAWAG

in CHF million

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ETH domain: Summary of expenditure by type

Personnel expenditure Materials expenditure

Statement 2002

Statement 2003

1600

1400

1200

1000

800

600

400

200

0

Other expenditure

(incl. depreciation)

Provisions, contri-

butions, transfer

in CHF million

ETH Board ETHZ EPFL PSI WSL EMPA EAWAG

ETH domain: Summary of expendi-ture by institutions

ETHZ PSI WSL EMPA

Statement 2002

Statement 2003

1000

900

800

700

600

500

400

300

200

100

0

EAWAG

in CHF million

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Balance sheet

The consolidated balance sheet of the ETH domain shows totalassets of CHF 1.097 billion as at 31 December 2003 (2002 balancesheet: CHF 1.064 billion). The structure of the debit and creditsides of the balance sheet corresponds to the minimum require-ments of commercial principles. Besides liabilities and equity,the credit side also includes a “tied fund capital (third-partyfunds)” line, a peculiarity of the ETH domain. The presentbalance sheet, however, declares only a portion of the capitalactually employed by the ETH domain. The actual value of theassets used by the ETH domain probably totals a good three tosix billion francs, mostly in real estate.

As noted above, this real estate is the property of the SwissConfederation and is carried on its balance sheet. Moreover, theresidual value of movable tangible assets acquired before 2000is missing (residual value CHF 60–80 million). In accordance withthe revised relevant legislation, movable assets acquired before1 January 2000 will become the property of the ETH domain. Since

Swiss Confederation and is carried on its balance sheet. Accrualsfor period matching also account for a portion of the differencebetween the capital expenditure statement total (CHF 233 million)and funding commitments (CHF 263 million).

Capital expenditures for replacement and acquisition of movableassets (CHF 92 million) and IT equipment (CHF 22 million) declinedin comparison with the 2002 figures. Some CHF 22 million ofcapital expenditures on movable assets and IT equipment wasfinanced through third-party funding. This amount does notinclude any third-party contributions in kind (such as scientificdevices supplied free of charge).

in CHF million

Total Investment

(lines 5 + 9)

Real estate

Furnishings

IT facilities

Proj. costing more than 10 million

(lines 6 to 8)

Real estate

Furnishings

IT facilities

Proj. costing up to 10 million

(lines 10 to 12)

Real estate

Furnishings

IT facilities

ETH DOMAIN: INVESTMENT STATEMENT 2003

Line no.

1

2

3

4

5

6

7

8

9

10

11

12

Statement

2002

353.3

206.3

106.3

40.6

177.0

153.2

23.2

0.0

176.3

52.6

83.1

40.6

Statement

2003

347.7

233.2

92.1

22.4

193.5

182.8

10.6

0.0

154.2

50.4

81.4

22.4

Proportion

in %

16.3

9.5

4.9

1.9

8.2

7.1

1.1

0.0

8.1

2.4

3.8

1.9

Proportion

in %

15.8

10.6

4.2

1.0

8.8

8.3

0.5

0.0

7.0

2.3

3.7

1.0

Change in %

R 03/ R 02

-1.6

13.0

-13.4

-44.9

9.3

18.9

-54.2

-

-12.5

-4.2

-2.0

-44.9

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in CHF million

Income(lines 2 to 4)

Federal financial contribution *)

Innovation and cooperation projects

Income third-party resources

(lines 5 to 10)

Remuneration from third-party resources

Proceeds from sales

Fees and income from services

IT income

Income from reimbursements

Other income

Expenditure(lines 12 + 16 + 22 + 27 + 32 + 33)

Materials expenditure

(lines 13 to15)

Materials expenditure

Expenditure of goods

Furniture, machinery, vehicles

Personnel expenditure

(lines 17 to 21)

Wages and saleries

Social security

Staff insurance

Accident and health insurance

Other personnel expenditure

Other general expenditure

(lines 23 to 26)

IT and telecommunications

Other services, fees

Other general expenditure

Bad depts

Infrastructure expenditure

(lines 28 to 31)

Expenditure on premises

Maintenance, repairs, leasing

Water, energy, operating materials

Administrative expenditure

Depreciation

Change in third-party resources

Result 1

(lines 1 minus 11)

Extraordinary expenditure/income(lines 37 to 40)

Extraordinary result

Contributions / transfer expenditure

Non-operating result

Changes in provisions

Result 2

(lines 35 minus 36)

Interest expense

Financial income

Total result **)

(lines 41+43 minus 42))

ETH DOMAIN: INCOME STATEMENT

Line no.

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

35

36

37

38

39

40

41

42

43

44

Statement

2002

2170.7

1712.2

44.0

414.5

329.2

6.4

38.0

1.5

2.3

37.2

1869.8

74.2

62.0

0.0

12.1

1373.0

1103.6

70.0

90.8

5.7

102.8

186.8

79.7

67.3

40.1

-0.4

122.0

23.8

40.3

39.2

18.7

70.7

43.2

300.9

50.7

-0.1

27.4

-0.9

24.3

250.2

0.1

7.4

257.5

Statement

2003

2202.6

1704.3

51.5

446.8

352.6

7.3

42.2

2.5

2.4

39.8

1900.1

84.4

63.0

0.0

21.4

1420.8

1144.0

70.4

89.5

6.0

110.9

174.9

76.0

72.8

26.5

-0.4

129.1

26.1

44.8

40.5

17.7

77.8

13.1

302.5

35.2

5.7

33.8

-0.4

-3.9

267.3

0.2

10.3

277.4

Proportion

in %

100.0

78.9

2.0

19.1

15.2

0.3

1.7

0.1

0.1

1.7

86.1

3.4

63.3

8.6

5.6

3.3

2.0

13.9

2.3

11.5

11.9

Proportion

in %

100.0

77.4

2.3

20.3

16.0

0.3

1.9

0.1

0.1

1.8

86.3

3.8

64.5

7.9

5.9

3.5

0.6

13.7

1.6

12.1

12.6

Change in %

R 03/R 02

1.5

-0.5

17.0

7.8

7.1

14.4

11.2

68.4

3.2

6.9

1.6

13.8

3.5

-6.4

5.8

10.1

-69.8

0.5

-30.5

6.8

7.7

*excluding innovation and cooperation projects

**before investment (real estate, movables, IT)

ETH DOMAIN: CONSOLIDATED BALANCE SHEET 2003

in CHF million

Assets(lines 2 + 9)

Current assets

(lines 3 to 8)

Liquidity and securities

Accounts receivable

Financial resources

Third-party resources

Inventories

Prepaid expenses

Fixed assets

(lines 10 to 12)

Tangible assets

Financial assets

Intangible assets

Liabilities(lines 14 + 23 + 24)

Borrowings

(lines 15 + 19)

Short-term borrowings

(lines 16 to 18)

Financial liabilities

Other liabilities

Deferred receivables

Long-term borrowings

(lines 20 to 22)

Financial liabilities

Other liabilities

Provisions

Tied fund capital

Equity

(lines 25 + 26)

Capital and various reserves

Reserves, federal financial contribution

Line no.

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

Balance sheet

2002

1064.3

765.4

4.0

192.7

17.2

510.1

20.0

21.3

298.9

272.3

26.6

0.0

1064.3

320.3

214.8

138.0

26.0

50.8

105.5

2.0

0.0

103.5

487.2

256.9

239.7

17.2

Balance Sheet

2003

1097.2

765.3

2.8

167.0

32.4

531.3

16.7

15.2

331.9

303.1

28.9

0.0

1097.2

294.6

187.5

145.1

17.9

24.5

107.1

4.5

0.0

102.6

499.3

303.3

271.0

32.4

Proportion

in %

100.0

71.9

28.1

100.0

30.1

20.2

9.9

45.8

24.1

Proportion

in %

100.0

69.7

30.3

100.0

26.8

17.1

9.8

45.5

27.6

Diff. %

3.1

0.0

11.0

3.1

-8.0

-12.7

1.5

2.5

18.1

60

Res

ourc

es

61

Res

ourc

es

the net book values will have been written down to roughly CHF60 million by 1 January 2005, the integration of the movableassets is carried out free of charge. As in the previous year,consolidation is restricted to the elimination of mutual claimsand debts within the ETH domain in the amount of CHF 3 million.

On the debit side, the increase of CHF 33 million is attributablesolely to the increase in fixed assets. The changes in currentassets cancel each other out.

On the credit side, the decline in short-term liabilities is themost prominent change. The reduction of CHF 26 million isdistributed over all institutions of the ETH domain. Long-termprovisions (CHF 103 million) include, among other things, the accumulated holiday and overtime claims of ETH domain employees (approx. CHF 30 million). A relatively large compo-nent of provisions consists of commitments by the ETH domaininstitutions to various projects (approx. CHF 70 million), of whichEPF Lausanne alone accounts for CHF 61 million. The provisionsfor an EAWAG construction project accumulated as at the end of2002 (approx. CHF 12 million) was written back as income andtransferred to equity (reserves) through the income statement.Additional provisions were posted to account for risk manage-ment considerations.

Third-party income

Research subsidies

Departmental research

European Research Programmes

Business-oriented research

Special Fund

Total

Remuneration 2002

CHF million

77.7

61.7

47.9

201.0

98.8

487.2

Proportion in %

16

13

10

41

20

100

Remuneration 2003

CHF million

81.7

62.3

44.2

209.5

101.7

499.3

Proportion in %

16

12

9

42

20

100

The composition of tied fund capital is shown in a separate table.These funds are “tied” because they are offset by a correspon-ding claim for services on the part of the funding providers.

The increase in equity (capital, various reserves, reserves fromthe federal financial contribution) is mainly attributable to theremaining undepreciated residual value of movable assets, asthe annual depreciation figure is still below the standard value.Additionally, reserves drawn from surplus federal financialcontributions again increased overall during fiscal 2003. Thisincrease in reserves, however, was mainly due to the write-backof provisions for an EAWAG construction project (approx. CHF 12 million) and transfer of the corresponding balance to equity.After replenishment, the EAWAG reserves, originally drawn fromthe federal financial contribution, amount to CHF19 million.Conversely, the ETH Board was forced to draw down reserves inthe amount of CHF 4 million to cover expenses (grants, ownconsumption) for 2003.

in CHF million

Cash flow from current activities

Cash Flow

Total result income statement

Depreciation

Miscellaneous deferrals, changes in liabilities

Cash Flow

Increase/decrease in net current assets

Cash flow from current activities

Cash flow from investment activities

Investments in real estate, movables, IT

Financial investments

Divestment

Net investment

Free Cash Flow

(Lines 6 to 10)

Cash flow from financing activities

Change in reserves, Federal government’s

financial contribution

Credit balance, Federal governement’s financial

contribution per 31.12.

Origin of Federal government’s financial contribution

Total expenditure

Net investment

Miscellaneous revenue

Misc. deferrals, variations in balance sheet items

Change in funds, liquid resources

Formation of reserves, financial contribution

Federal government financing

(Lines 15 to 20)

ETH DOMAIN CASH FLOW STATEMENT 2003

Line no.

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

Statement

2002

257.5

70.7

42.3

370.5

-23.6

346.9

353.3

2.9

-0.8

355.4

-8.5

10.9

5.4

0.0

Statement

2002

1920.6

355.4

-421.9

-100.3

-3.0

5.4

1756.2

Statement

2003

277.4

77.8

15.3

370.6

-0.5

370.2

347.7

2.9

-3.7

346.9

23.3

-9.3

15.2

0.0

Statement

2003

1935.5

346.9

-457.1

-83.5

-1.2

15.2

1755.8

Proportion

in %

17.1

16.0

16.4

-0.4

0.3

0.0

Proportion

in %

88.5

16.4

-19.4

-4.6

-0.1

0.3

80.9

Proportion

in %

16.8

16.8

15.8

1.1

0.7

0.0

Proportion

in %

87.9

15.8

-20.8

-3.8

-0.1

0.7

79.7

Change in %

S 03/S 02

0.0

6.7

-2.4

Change in %

0.8

-2.4

8.3

0.0

62

Res

ourc

es

63

Res

ourc

es

Cash flow statement

The cash flow statement reflects processes from the incomestatement, capital expenditure statement and balance sheet.Cash flow from ordinary activities is declared indirectly in therepresentation used. Based on the overall surplus from theincome statement, all non-cash processes are deducted andchanges in net current assets are accounted for.

Cash flow from capital expenditures (net capital expenditures) isderived from the total of the capital expenditure statement(gross capital expenditures) minus disposals.

The free cash flow calculation shows whether available funds aresufficient to cover current spending and capital expenditures.Since these funds were indeed sufficient in fiscal 2003, the unusedsurplus was transferred to the reserve from federal financialcontributions. WSL, EMPA and EAWAG declared such surpluses.During the year, the ETH Board found it necessary to draw downa portion of reserves (CHF 4 million) to bridge a financing gap.

The source of the Swiss Confederation’s financial contributionrepresents a peculiarity for auditing purposes.

64

Res

ourc

es

ETH domain

in CHF million

ETH Zurich

ETH Lausanne

PSI

WSL

EMPA

EAWAG

Total ETH domain

Statement

2002

146.5

51.4

28.8

1.2

5.2

1.5

234.6

Statement 2002

Proportion in %

62.4

21.9

12.3

0.5

2.2

0.6

100

Statement

2003

181.8

46.3

24.5

3.7

3.9

2.6

262.8

Statement 2003

Proportion in %

69.2

17.6

9.3

1.4

1.5

1.0

100

ETH domain:Real estate 2003 and 2002

Type of work

in CHF million

Land and real estate

acquisition

New construction

Maintenance

Rebuilding and extension

Systematic demolition

Total Type of work

ETH domain

Expenditure

2002

1.1

145.0

65.7

22.2

0.7

234.6

Proportion in %

0.5

61.8

28.0

9.5

0.3

100

Expenditure

2003

11.1

158.4

68.1

25.0

0.2

262.8

Proportion in %

4.2

60.3

25.9

9.5

0.1

100

ETH domain:Allocation of resources by type of building work

Real estate

In 2003, nearly one-third of ETH domain capital expenditureswent to repairs to maintain the value and function of Swiss Con-federation real estate. Further maintenance expenditures weremade from the annual budget.

In a federal decree of 16 December 2003, the Federal Assemblyapproved a funding commitment in the form of a block grant(“Sammelkredit”) totalling CHF 313 million for pending con-struction projects under the ETH domain 2004 construction pro-gramme.

The direct funding amounts (“Zahlungskredit”) allocated andapproved for 2003 at the ETH domain institutions at the beginningof the fiscal year were based on the “Capital Expenditure Plan for

Buildings and Facilities in the ETH Domain for 2003 to 2006”. A total of CHF 270.5 million was budgeted for buildings and faci-lities in 2003. A further CHF 26 million was provided uponapplication of the institutions in the form of grants from the ETHBoard’s discretionary reserve. Transfers of “construction funds”in other areas along with economies and optimizations accountfor the CHF 34 million lowering in expenditures.

At the end of 2003, the ETH domain encompassed a total of 442approved funding commitments in the amount of roughly CHF1.79 billion. The Property List of ETH Domain Buildings andFacilities in the 2003 State Accounts reveals the status of allfunding commitments approved by parliament.

Developing functional textiles which provide both protection and comfort

There is an ever increasing desire to provide the human body with greater protection and wellbeing. EMPA is making good use of its considerable skills andknowledge in materials and systems engineering to satisfy these desires andachieve progress. EMPA combines specialist knowledge from various disciplinessuch as textile and materials engineering, biology and nanosciences, placing anever increasing emphasis on research into medical applications and devoting attention to the interaction between materials in bioactive surroundings.

Dummies festooned with sensors march robotically for hours in EMPA’s researchlaboratory, putting up with heat, sweating or experiencing simulated cloudburstsand conflagrations. These simulations enable the researchers to understand howheat and moisture are stored and transported on the human body and in clothing.Such new findings make it possible for them to assist the body’s thermoregulatorysystems with more suitable clothing systems. EMPA researchers are exploitingknow-how from nanosciences in the development of functional fibres in order totailor material properties to match requirements for human health and wellbeing.Tomorrow’s functional textiles will be plasma-coated and, as required, sparinglyflammable, electrically conductive, odour-binding or provided with UV protection,so ensuring not only protection but also comfort.

68

Res

ourc

es

Departments

in CHF m

Mathematics

Physics

Chemistry and applied biosciences

Biology

Humanities, social and political sciences

Architecture

Civil, environmental and geomatics engineering

Industrial management and manufactoring

Mechanical and process engineering

Information technology and electrical engineering

Computer science

Materials

Agriculture and food science

Forest sciences

Earth sciences

Environmental sciences

Interdisciplinary

Total

(lines 1 to 17)

Total

38.2

110.0

124.2

89.8

45.5

58.5

85.9

26.9

79.7

85.5

44.7

38.4

74.8

17.3

47.0

57.8

22.3

1046.5

COSTS INCURRED BY ETH ZURICH IN 2003, BY DEPARTMENT

Line no.

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

Personnel

costs

24.1

51.5

58.8

43.6

25.6

31.8

46.4

15.1

42.7

47.5

25.2

20.3

37.9

9.8

27.7

32.2

9.7

549.9

Depreciation

0.1

2.2

5.1

2.5

0.2

0.5

1.0

0.2

2.0

1.9

1.2

1.2

0.7

0.0

1.0

0.7

1.8

22.3

Direct costs

663.9

Material-

and other

costs

0.9

18.8

10.6

13.3

5.5

4.2

5.2

0.8

3.8

4.6

2.5

3.0

4.0

1.0

3.2

3.8

6.3

91.7

Overhead

10.9

23.3

26.6

19.7

11.6

14.4

21.0

6.8

19.3

21.5

11.4

9.2

17.1

4.4

12.5

14.6

4.4

249.0

Expenditure

on premises

2.1

14.3

23.1

10.7

2.6

7.7

12.3

3.9

11.8

10.0

4.3

4.7

15.2

2.0

2.6

6.4

0.0

133.6

Indirect costs

(reclassification) 382.6

69

Res

ourc

es

Faculties

in CHF million

Basics

(lines 2 to 5)

Mathematics

Physics

Chemistry

Chemical engineering

Arcitecture, Civil and Environmental Engineering

(lines 7 to 9)

Civil Engineering

Architecture

Rural Engineering

Engineering Sciences and Techniques

(lines 11 to 15)

Microengineering

Electrical Engineering

Mechanical Engineering

Materials

Biomedical Engineering

Computer and Communication Sciences

(lines 17 to 18)

Computer Science

Communication Systems

Life Sciences

(lines 20 to 21)

Life Sciences

Biomedical Engineering

College of Humanities

Technology Management

Total

(lines 1 + 6 + 10 + 16 + 19 + 22)

Total

182.4

26.6

86.7

69.1

0.0

107.6

44.1

29.1

34.5

159.4

40.7

37.9

38.6

36.8

5.5

56.7

32.3

24.4

19.9

19.2

0.7

8.1

8.1

534.1

COSTS INCURRED BY EPF LAUSANNE IN 2003, BY FACULTY

Line no.

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

Personnel

costs

101.9

17.7

47.5

36.7

59.4

23.3

18.4

17.8

91.8

25.1

23.6

20.1

19.5

3.5

34.6

20.9

13.7

7.8

7.6

0.2

4.2

4.2

299.7

Depreciation

4.4

0.2

2.3

2.0

1.0

0.4

0.2

0.4

2.4

0.7

0.6

0.4

0.6

0.1

0.8

0.4

0.4

1.6

1.6

0.0

0.0

0.0

10.3

Material and

other costs

17.6

1.6

8.8

7.3

11.1

3.2

2.2

5.6

12.2

3.7

2.8

2.7

2.5

0.5

4.4

1.6

2.8

3.3

3.0

0.3

1.6

1.6

50.3

Overheads

28.3

4.9

13.2

10.2

16.5

6.5

5.1

4.9

25.5

7.0

6.6

5.6

5.4

1.0

9.6

5.8

3.8

2.2

2.1

0.1

1.2

1.2

83.1

Expenditure

on premises

30.1

2.2

15.0

13.0

19.6

10.6

3.2

5.7

27.6

4.2

4.3

9.8

8.8

0.5

7.2

3.5

3.7

5.0

4.9

0.1

1.1

1.1

90.7

Indirect costs

(reclassifications)173.8

Direct costs

360.3

70

Res

ourc

es

in CHF million

Research institutions and priority fields

PSI

(lines2 to 7)

SLS + SINQ Synchrotron Light Source Switzerland/ Spallation Neutron Source

(From 2003 broken down by National Centre of Competence in Research)

Particles and astrophysics

Biosciences

Solid state research/ material sciences

Nuclear energy and safety

General energy

WSL

(lines 9 to 11)

Forest

Landscape

Natural hazards

EMPA

(lines 13 to 15)

Modern materials, their surfaces and interfaces

Materials and systems for the protection and wellbeing of the human body

Materials and systems for construction/engineering

Information technology, reliability engineering and simulation

Mobility and environment

EAWAG

(lines 17 to19)

Environmental protection

Social structures and interrelationships

Research and utilisation of the physical environment

Total for the research institutions

(lines 1 + 8 + 12 + 21)

COST / PRODUCT ACCOUNT OF THE RESEARCH INSTITUTIONS 2003

Line no.

1

2

3

4

5

6

7

8

9

10

11

12

16

17

18

19

20

21

22

Teaching

10.7

1.3

2.2

4.4

1.6

1.2

5.5

1.6

2.3

1.6

6.5

1.9

0.7

1.6

1.3

0.9

9.0

3.9

0.3

4.8

31.6

Services

10.7

1.3

2.2

4.4

1.6

1.2

11.2

4.0

1.5

5.7

31.8

6.3

3.5

10.0

3.2

8.9

11.2

6.9

0.6

3.7

64.9

Research

191.8

23.0

40.3

78.6

28.8

21.1

30.7

10.4

11.4

8.9

66.9

18.1

9.7

17.0

13.4

8.7

39.6

15.9

3.9

19.7

329.1

Total

213.1

0.0

25.6

44.8

87.4

32.0

23.4

47.4

16.0

15.2

16.2

105.3

26.4

13.8

28.6

17.9

18.5

59.7

26.7

4.8

28.2

425.5

Finding leaks in the sewer network

Over time, urban sewer networks suffer damage, eventually becoming leaky, withclean groundwater infiltrating into the system and waste water exfiltrating into the surrounding soil. Exfiltration of waste water is considered a serious hazard tohumans and the environment because drinking water can be directly contamina-ted. Groundwater infiltration is also problematic because it results in dilution ofthe waste water, subjecting the effluent treatment plant to unnecessary hydraulic loads. Primarily because they are invisible, both processes are generally only perceived as a problem once they involve serious volumes of water. Traditional measurement methods are moreover complex and provide relatively unreliable results.

This is why EAWAG is devising new methods for determining the infiltration and exfiltration of water. These new methods involve the use of natural and synthetictracers. Synthetic tracers are, for example, ordinary or fluorescent dyes which areadded to the water at one point and the presence of which is measured at anotherpoint. Specific properties of the local drinking water, groundwater or waste waterare described as natural tracers; for example their specific isotope compositionwhich can be used to distinguish between different kinds of water. The increase ordecrease in the quantity of tracer is used to determine the relative quantity of water flowing into or out of the sewer system.

74

Accounting principles

The annual accounts present a true and fair view of all asset,equity and income figures in compliance with accepted commer-cial principles.

Scope of consolidation

The ETH domain’s scope of consolidation comprises the follow-ing entities:

The Board of the Swiss Federal Institutes of Technology (ETH Bo-ard), Zurich and Lausanne

ETH Zurich (ETHZ), Zurich

EPF Lausanne (EPFL), Lausanne

The Paul Scherrer Institute (PSI), Villigen

The Swiss Federal Institute for Forest, Snow and Landscape Re-search (WSL), Birmensdorf and Davos

The Swiss Federal Laboratories for Materials Testing and Re-search (EMPA), Dübendorf, St. Gallen and Thun

The Swiss Federal Institute for Environmental Science and Tech-nology (EAWAG), Dübendorf and Kastanienbaum

Principles of consolidation

The ETH domain belongs to the Swiss Confederation, where it issituated in the third circle of the “four-circle model”. Consolida-tion of capital is not necessary.

Foreign currency amounts are translated at the final exchangerate (daily or average rate for the month of December); exchangerate gains and losses are not posted.

Participating interests in companies are permitted from 2004pursuant to Art. 3a of the revised ETH Law. At present, loans areextended, for example to spin-off and start-up companies.

There are no inter-entity profits within the ETH domain.

Valuation guidelines

Valuations are undertaken in accordance with the AccountingManual of December 2003.

–

–

–

–

–

–

–

–

–

–

–

–

Res

ourc

es

NOTES TO THE FINANCIAL STATEMENTS

75

–

–

–

–

–

–

–

–

–

–

Res

ourc

es

Balance sheet

The evolution of the gross property, plant and equipment andaccumulated depreciation account balances is disclosed in thefinancial statements of the individual entities (see capital expen-diture schedule).

As at 31 December 2003, the ETH domain carries neither good-will nor intangible fixed assets on its balance sheet.

Calculation of changes in capital can be seen in the financialstatements of the individual entities.

The ETH domain has a small number of off-balance-sheet leasingliabilities (approx. CHF 3 million).

Cash flow statement

Cash flow from ordinary activities was calculated by the indirectmethod.

Composition of the cash and cash equivalents account (cash,postal and bank accounts)Starting balance: CHF 4,001,806Ending balance: CHF 2,840,745Change: CHF -1,161,061

Extraordinary pending transactions and risks

No provisions have been made for insufficient reserves in federalretirement systems.

Provisions have been made to cover any risks in connection withsustaining of damage.

The provisions for construction projects at EAWAG accumulatedin previous years were written back as income and the amount(CHF 12 million) transferred to equity (reserves).

Rules for rounding up or down

All figures are calculated according to commercial rules, so thatsmall differences are possible in individual sums or subtotals.

76

Res

ourc

es

Cost and product accounting

The complete development and expansion of the ETH’s cost ac-counting system to encompass the core products of teaching,research and services was delayed in fiscal year 2003. An ETHcost-performance accounting system remains in the planningstages. Figures for 2003 were therefore again calculated in apragmatic manner.

The objectives and directives of the ETH Board, the Swiss Fede-ral Statistics Office (SFSO) and the Federal Office for Educationand Science (OFES) on implementation of an expanded cost/pro-duct accounting system at the ETHs are to be achieved througha coordinated process by a working group of the Swiss Universi-ty Conference (CUS). Besides standardizing the procedure forcompiling cost accounting statements at Swiss universities, thegoal of this project is to achieve comparability of figures. This willhowever only be possible upon completion of the developmentproject. Costs will be distributed over a total of 20 departmentsand evaluated according to the core products of teaching, rese-arch and services.

Compared to the 2002 accounts, closer attention was given in2003 to ensuring the best possible matching of causes andprimary costs (cost elements). The refinement process is alsomoving in the direction of including only effective costs neces-sary for operating performance in the calculation. Due to theserefinements along with a higher output volume, comparison withthe previous year is possible only to a limited extent and withlimited information value.

Accrued operating expenses include occupancy expense, whichis replaced by occupancy costs determined through the costaccounting system. This cost accounting calculation, with diffe-rential cost rates for each basic type of space, is carried outusing the cost calculation model of the Swiss University Confe-rence (CUS) (draft of October 2002).

ETH Zurich’s total costs came to CHF 1.047 billion (2002: CHF1.048 billion). Direct costs increased again in direct consequen-ce of the refined methods, representing further progress withrespect to optimal cost matching. Total overhead costs declinedaccordingly. Cost totals in individual departments changed onlyslightly in comparison to the previous year. Direct costs made up63% of the total (2002: 61%).

A significant change from the previous year was the dissolutionof the Applied Biosciences Department and its integration intothe Chemistry and Applied Sciences Department and BiologyDepartment. The change prompted a restatement of the previousyear with proportional allocations to the two successor depart-ments.

The costing analysis segregates non-operating costs, includingpension payments to retired professors, which pass through ETHZurich’s accounts. These costs are not related to operations andtherefore not allocated to cost centres. Scholarships are like-wise not regarded as belonging to university operations and aretherefore treated as transfer payments and segregated in theaccounts. Similar activities (e.g. subsidies for intramural sports,canteens and student housing) are treated the same way for thesake of consistency.

A further cost allocation operation concerns “services to thirdparties”. The CSCS high-performance computing centre in Mannois also used by organizations outside ETH Zurich. Measurementsshow users outside ETH Zurich accounting for 52% of CPU use in2003. The ETH Zurich library incurs costs on its own account aswell as costs managed by ETH Zurich on a “fiduciary” basis;furthermore, in addition to its services for ETH students andresearch, some 10% of its services are for third parties.

The total staff costs of the receiving units are used as a uniformallocation basis, both for costs posted within ETH Zurich and forseparately recorded occupancy costs which cannot be allocatedto individual departments.

77

Res

ourc

es

Out of total costs of CHF 1.047 billion, directly apportioned costsaccount for CHF 664 million (63%) and indirect costs for CHF 383million (37%). Cost totals in individual departments changed on-ly slightly in comparison to the previous year, largely becauseindirect costs declined thanks to improved apportionmentmethods and improved ability to determine occupancy costs.

Improved cost matching also led to a shift of indirect to directcosts in comparison to the previous year at EPF Lausanne. EPFLausanne’s costs are again apportioned amongst the six facul-ties. Total costs came to CHF 534 million (previous year: CHF 506million). Changes in amounts allocated to the faculties werecomparatively minor. Direct costs made up 67% of total costs(65% on the annual accounts).

Within the focus areas of the ETH domain research institutions,EMPA has undergone restructuring and PSI has newly allocatedthe costs of the SLS to the areas of focus. Greater output volumehas led to higher costs in the research product group. Teachingand research cost totals are practically unchanged from theprevious year.

78

Indi

cato

rs a

nd s

tatis

tics

Students

Diploma students 2)

Doctoral students

Postgraduate students

Total number of students

Diplomas, doctorates and postgraduates

Diplomas

Doctorates

Postgraduates

Total number of diplomas, doctorates and postgraduates

Personnel

Professors (SHIS*-categories I and II)**

Non-professorial academic staff (SHIS*-categories III to X)**

Administrative and technical staff

(SHIS*-categories XI to XVII)**

Total staff***

Financial resources

Own resources

Federal financial contribution**

Contribution from other federal bodies

Third-party credits

Other revenues of third-party credits and financial income**

Total revenues in CHF million

* Swiss Universities Information System

** New classification from 1 January 2000

*** Equivalent number of full-time posts1) List of indicators contained in the performance mandate2) incl. Bachelor students3) Total Prof. and non-professorial academic staff

INDICATORS FOR THE ETH DOMAIN

Indicator

no. 1)

1

2

3 + 4

15

16

17 + 18

37

40

41 + 42

1998

12635

3035

567

16237

1964

641

271

2876

3) 483

10036

10519

1136.0

617.8

285.3

2039.1

Change in %

since 1998

13.3

23.9

9.3

15.1

-7.6

-2.0

24.4

-3.3

0.1

23.6

8.5

2003

14315

3759

620

18694

1815

628

337

2780

553

7221

3991

11765

1755.8

352.6

104.5

2212.9

7Indicators and statistics

79

Indi

cato

rs a

nd s

tatis

tics

Students

Diplomas

Doctorates

Postgraduate diplomas

Supervised doctorates

Research

Publications (ISI*) (for 2002, source: CEST)

Publications (non-ISI*)

Patents applied for

Licensing and technology tranfer agreements

Spin-offs and start-ups

Personnel

Professors**

Men

Woman

Assistant professors**

Men

Woman

Scientific staff**

Men

Woman

Administrative and technical staff**

Men

Woman

Trainee

New elected professors

Financial resources (CHF million)

of which federal financial contribution (incl. IKP)

of which third-party credits

of which financial income

* Institute for Scientific Information

** Equivalent number of full-time posts1) List of indicators contained in the performance mandate2) Incl. ETH Board

Total

1815

628

337

471

3959

1008

184

110

23

445

427

18

108

90

18

7221

3991

401

114

2) 2212.9

1755.8

446.8

10.3

INDICATORS FOR THE FEDERAL INSTITUTES OF TECHNOLOGY AND THERESEARCH INSTITUTIONS, 2003

EPFL

484

199

160

1013

71

76

10

153

148

5

44

38

6

1974

1608

366

958

593

365

78

37

550.9

410.0

138.4

2.5

ETHZ

1331

429

177

2191

80

22

10

292

279

13

64

52

12

3694

2845

849

1841

1092

749

136

33

1146.1

946.3

193.9

5.9

PSI

169

504

200

19

6

1

634

654

76

272.4

219.8

51.3

1.3

WSL

113

66

276

0

0

0

390

61

12

64.2

46.5

17.6

0.1

EMPA

67

42

305

14

6

2

342

381

33

115.5

80.8

34.3

0.4

EAWAG

122

143

227

0

0

0

187

96

23

55.6

44.2

11.4

0.0

Indicator no. 1)

15

16

17 + 18

21

23

24

29

30

31

37

38 + 39

40

41 + 42

43

44

80

ETH ZURICHSTUDENTS ENROLLED ON DIPLOMA COURSES BY DISCIPLINE 2003*

Disciplines

Civil Engineering and Geomatics

Engineering Sciences

Natural Sciences and Mathematics

System oriented Sciences

Other Sciences and Sport

ETHZ Total

* including Bachelor

Total

1690

3199

2705

1471

639

9704

Men

1088

2902

1644

838

375

6847

Woman

602

297

1061

633

264

2857

Non-Swiss

258

387

330

92

10

1077

Indi

cato

rs a

nd s

tatis

tics

81

EPF LAUSANNESTUDENTS ENROLLED ON DIPLOMA COURSES BY FACULTY 2003*

Indi

cato

rs a

nd s

tatis

tics

Faculties

Architecture, Civil and Environmental Engineering (ENAC)

Computer and Communication Sciences (IC)

Basic Sciences (SB)

Engineering Sciences and Techniques (STI)

Life Sciences (SV)

Management of Technology

EPFL Total

* including Bachelor

Total

1140

1166

872

1304

126

3

4611

Men

734

1034

644

1154

79

1

3646

Woman

406

132

228

150

47

2

965

Non-Swiss

245

332

141

241

16

3

978

82

PEOPLE

DeparturesDr Stephan Bieri born 1938, served as CEO and Vice-Presi-dent of the ETH board for eight and a halfyears. He retired on 31 December 2003.

With leadership experience from theworlds of business and science, StephanBieri helped the ETH domain on its way tobecoming a world-class combination oftechnical universities and research insti-tutes. He had a substantial impact on twoplanning periods.

Since 1 January 2000 the ETH domain hasbeen managed in accordance with theFederal Council’s performance mandateand a global budget. Stephan Bieri con-sidered this important milestone in itsoperations to be a major success. In themedium term, he believes, it will simplifyprocesses and increase the flexibility ofthe institutions, ultimately enhancingcompetitiveness and strengthening inno-vation in the domain.

Stephan Bieri always considered his roleto be one of “enabling” and creating oppor-tunities. Shaping the course of scientificresearch, he says, is the role of the insti-tutions and their teaching and researchfacilities where “science happens”.

Dr Jacques RognonJacques Rognon, born 1937, has been amember of the ETH Board since 1992. Agraduate physicist and representative ofthe energy sector, he brought an aware-ness of Switzerland’s needs as a compe-titive business location to the Board’swork. His contribution was further infor-med by his wide-ranging knowledge ofengineering, electricity, physics and me-chanics and his contacts in Parliamentand the political sphere.

Jacques Rognon was always concernedwith ensuring that the ETH curriculumpays proper attention to those disciplines– especially energy and electrical engi-neering – whose long-term economic out-look offers significant medium-term deve-lopment potential.

As a dedicated member of the ETH Board,Dr Rognon emphasized close cooperationbetween the two Federal Institutes ofTechnology and the cantonal universities.He was pleased to see an increasing num-ber of joint programs, although he stillsees significant room for further develop-ment in this area.

Dr Heinrich RohrerA Nobel laureate in physics, HeinrichRohrer (born 1933) has been a member ofthe ETH Board since 1 February 1993. Heknows the requirements of both acade-mia and the business sector and is able tocall on a network which has enabled himto identify and promote trends and deve-lopments in research.

Heinrich Rohrer has been especially in-terested in the orientation of the researchinstitutes PSI, WSL, EMPA and EAWAG,which he believes are ideally suited tosuccessfully tackle interdisciplinary prob-lems and rapidly mobilize researchresources in response to new develop-ments.

Heinrich Rohrer views the mutually com-plementary nature of the six ETH domaininstitutions as a success factor in inter-national competition. In his opinion, theinstitutions should coordinate their ef-forts, especially in teaching, in discipli-nes where student numbers are low orresearch activities are currently beco-ming less significant.

Peo

ple

8

83

Peo

ple

New appointmentsProf. Dr med. Adriano Aguzzi The appointment of Adriano Aguzzi to theETH Board in January 2003 reflects theincreasing importance of life sciences inthe academic teaching and researchspheres.

Born in 1960, Prof. Aguzzi holds a degreein medicine from the University of Frei-burg im Breisgau. In 1995 he becamedirector of the Swiss National ReferenceCenter for Human Prion Diseases; twoyears later he was appointed full profes-sor at the University of Zurich School ofMedicine.

Adriano Aguzzi maintains that investingin scientifically guided curiosity is a moralduty for industrialized countries such asSwitzerland. In the past, the politicalleadership favored research into basicscience, but today he sees greater em-phasis being placed on applied scienceand development.

As head of the National Reference Centerfor Human Prion Diseases, ProfessorAguzzi knows from personal experiencethe important results that basic researchnot directed towards immediate applica-tion can provide. His own research activi-ties focus on fundamental discoverieswhich may later lead to the developmentof novel diagnostic methods and innovati-ve medicines. His conclusion is that theETH domain must focus on disciplineswhich are not expected to yield immedia-tely applicable results, or where a re-search topic can also be the starting pointfor philosophical and political debates.

Dipl. Ing. ETH Beth Krasna A specialist in technology transfer andmanager with a background in internatio-nal corporate culture, Beth Krasna, born1953, has been a valuable addition to theETH Board since January 2003.

Beth Krasna completed a degree in che-mistry from ETH Zurich in 1977 and holdsan MBA from MIT in Boston. She was CEOof Veltronic Holding from 1994 to 1996,followed by two years as general managerof Symalit AG. From 1998 to 2000 sheserved as General Director of SécheronSA, from 2000 to 2003 as CEO of Albertinc. SA in Lausanne.

International networking, in her opinion,should be an important objective not onlyfor the ETH domain, but for Switzerlandas a whole. The ETH domain is already atthe leading edge in science and technologyand could, in fact, lead the world in certainsectors. Investing in such strengths isvital to science, the economy and thefuture of Switzerland.

Switzerland should aim for first place intwo or three industrial sectors and providethe necessary resources to achieve thisambition. Finding more human and finan-cial capital for certain sectors does not byany means imply that other scientific areasshould be neglected or even dropped.

General Secretariat

Dr Sebastian BrändliGeneral Secretary

ResourcesDr Walter Kemmler

ScienceDr Heinrich Neukomm

Business AuditingDr Christoph Grolimund

CommunicationDr Michel JaccardErika von Tobel

Legal ServicesDr Urs Müller

Human ResourcesDipl. geogr. Martin Sommer

ControllingLic. oec. HSG Christophe Banderet

Inspectorate of FinancesDr Hans-Ulrich Giezendanner

Publishing details

Publisher:ETH BoardETH ZentrumCH-8092 Zurich

Concept and editing:Dr Michel Jaccard, Head of CommunicationErika von Tobel, Information Manager panta rhei pr gmbh, Amriswil/Zurich

Layout and design:inform, Agentur für visuelle Kommunikation, Zurich

Printing/lithography:BuchsMedien AG, Buchs SG

Print run:German 3000, French 1000, English 700

Address for queries:ETH BoardCommunicationETH-ZentrumCH-8092 ZurichTel. +41 1 632 20 50Fax +41 1 632 11 90vontobel@ethrat.ch

© 2004 ETH Board

The Annual Report of the ETH Board is supplemented by the Annual Reportsof the two federal institutes of technology and the four research institutions.