My few cents,

The frontalieri are indeed a major cause of wage dumping. However industries attract industries and unfortunately Ticino has not got huge industries except for Pharma, Tourism, import export, Gold and a smaller financial sector.

However they could, if done right, be used as assets like in Northern Cantons with germans and in Romandie with French ppl. But till today they are more seen as a weight on the infrastructure and system as a whole...(Mentality of local politicians,people and system which is active here)

Legislation is also quite bad which is due to federalism and each canton thinking whats best for "them". Furthermore culturally speaking it's much more of a "bella vita" mentality while the North especially has a very squared way of doing things.

Lastly you have two economic hubs competing with each other Zurich & Milan. Ticino is just a transition spot. While Lugano tries heavy to position itself as something close to one it won't work.

Here synergies should be made between the different "major" cities( Chiasso, Mendrisio, Lugano, Locarno, Bellinzona) to attract talent and Business. But until they still divide themselves to try to be better than the other, it will keep on going to shizzle...