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Bus
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Economic Overview Germany:Market, Productivity, InnovationIssue 2013
Economic Overview Germany www.gtai.com
Economic Overview Germany
Basic Data
Area: 357,002 sq. km
Population (m.): 81.8
Number of companies*
3.7 million, 99.6% SMEs
Total turnover of all companies (2010)*
EUR 5.24 trillion,
37.8% SME turnover
Economic Development
GDP (nominal in EUR billion)
2011: 2,593; 2010: 2,496;
2009: 2,375
Per capita GDP (EUR)
2011: 31,700; 2010: 30,500;
2009: 29,000
Inflation rate
2011: 2.5%; 2010: 1.2%; 2009: 0.2%
Unemployment rate
2011: 6.0%; 2010: 7.1%; 2009: 7.7%
* ifm Bonn 2012 estimate
GDP Formation 2011
Foreign Trade
Foreign trade(EUR bn)
2011 % 2010 % 2009 %
Exports
Imports
Balance
1,061.2
902.5
+158.7
+11.5
+13.2
952.0
797.1
+154.9
+18.5
+19.9
803.3
664.6
+138.7
-18.4
-17.5
Germany’s trade relations with EU (EUR bn)
Exports to EU
Imports from EU
Balance
627.7
505.4
+122.3
+10.0
+13.7
570.9
444.4
+126.5
+14.0
+16.9
500.7
380.3
+120.4
-19.6
-17.5
Export goods (% of total exports – SITC) 2011: machinery 18.8; motor vehicles and parts 16.8; chemical goods 14.1;
electronic goods 9.3; foodstuffs 4.3; others 36.7
Import goods (% of total imports – SITC) 2011: foodstuffs 5.8; motor vehicles and parts 7.9; electronic goods 10.3;
chemical goods 11.8; machinery 12.3; crude oil and gas 12.5; others 39.4
Sources: Germany Trade & Invest, Federal Statistical Office, Federal Ministry of Finance, ifm Bonn 2012
GDP Growth
6
4
2
0
-2
-4
-62009 2010 2011
(real annual change in percent)
-5.1
4.23.0
Manufacturing
Industries 22.6%
Construction 4.6%
Commerce, Transporta-
tion, Catering 16.0%
Information &
Communication 3.8%Financial Services,
Renting, Business Services
26.3%
Others 26.7%
Economic Overview Germany www.gtai.com
Foreign Direct Investment
Paving the Way for Foreign Direct Investment
First Choice Business LocationA recent study conducted by the
American Chamber of Commerce
highlights the positive regard in
which the German business envi-
ronment is held by US companies.
Invited to indicate their main me-
dium-term investment focus within
the EU, 73 percent of participating
American companies named Ger-
many as their first choice; followed
by Eastern Europe (57 percent),
and Western Europe (33 percent)
respectively.
Ernst & Young’s “European Attrac-
tiveness Survey 2012” confirms
Germany’s reputation as one of the
most attractive business locations
in the world. International decision
makers ranked Germany first within
the EU, and sixth worldwide in the
“most attractive business location”
category.
Free and Open MarketsGermany has a welcoming attitude
towards foreign direct investment
(FDI). The German market is open
for investment in practically all
industry sectors, and business
activities are free from regulations
restricting day-to-day business.
German law makes no distinction
between Germans and foreign nati-
onals regarding investments or the
establishment of companies. The
legal framework for FDI in Germany
favors the principle of freedom of
foreign trade and payment. There
are no restrictions or barriers to
capital transactions or currency
transfers, real estate purchases,
repatriation of profits, or access
to foreign exchanges.
Supporting Investment ProjectsIncentives in Germany are designed
to meet the immediate capital needs
of investors. Early stage investment
financing provides funding at the
beginning of the new investment
project. These incentives, mostly
provided as cash grants, are impor-
tant as they guarantee liquidity at
a stage in the investment process
when investor capital requirements
are typically high. Later stage invest-
ment incentives are made available
in the form of a raft of programs
created to support putting together
a workforce in Germany (e.g. through
wage subsidies) and provide gene-
rous R&D project assistance. Incen-
tives in Germany are available to
all investors – regardless of inves-
tor country of provenance. Funding
to the tune of EUR 26.3 billion has
been freed up by the EU (co-financed
using means obtained from German
federal and federal state budgets)
through 2013. As well as this, Ger-
many and its individual federal states
also make their own incentives funds
available to prospective investors.
Please visit our website for
more incentives information:
www.gtai.com/incentives
Global FDI MagnetAccording to the United Nations
Conference on Trade and Develop-
ment (UNCTAD), Germany ranks
among the world’s leading countries
for foreign direct investments with
more than EUR 513 billion in inward
FDI stocks in 2011. This represents
a growth of 13 percent from 2008
to 2011.
According to official Bundesbank
(German Central Bank) statistics
for 2010, 76 percent of all FDI
stocks in Germany originate from
within the EU-27; with a further
eight percent derived from the re-
maining European non-EU coun-
tries. Investments from outside
the EU continue to grow. North
America accounts for ten per-
cent of FDI stock, while Asia holds
a five percent share.
AmCham Business Barometer 2012
American business executives highlighted the following factors as the top
location advantages that distinguish Germany from its competitors.
Stability, reliability, security, continuity
Skilled workers, qualified employees, education
Market size, market relevance, capacity
Infrastructure, logistics
Innovation and research intensity
Source: American Chamber of Commerce Germany, Roland Berger Strategy Consultants 2012
Economic Overview Germany www.gtai.com
Foreign Direct Investment
Foreign Direct Investment Projects
Every year more and more compa-
nies discover Germany as a secure
and rewarding investment location.
More than 55,000 foreign companies
are already operating in Germany,
providing employment to around
three million people – proof positive
of Germany’s attractiveness as an
international business location.
Between 2007 and 2011, fDi Markets
recorded a total of 3,535 investment
projects from around 3,000 foreign
companies. With 834 projects, 2011
proved to be the most successful
year on record – with Germany pla-
cing fifth internationally in terms of
FDI projects attracted.
The most important countries as
sources for new investment projects
are the USA (24 percent of all invest-
ment projects), Switzerland (eight
percent), and the UK (eight percent)
respectively. In 2009, China emerged
as a major source of investments,
with the number of Chinese invest-
ment projects into Germany more
than tripling within just one year.
This high level was even exceeded
in 2011, making Germany the world’s
number one location for Chinese
greenfield investments.
Diverse Industry OpportunitiesAccording to fDi markets, foreign
companies invested in 39 different
sectors – underlining Germany’s
highly diversified economy. Most
new investment projects were rea-
lized in the ICT & software industry
(18 percent of new projects). Busi-
ness and financial services as well
as automotive and industrial machi-
nery & equipment were close behind
each with 15 percent of all projects.
Most new projects open sales and
marketing & support offices. One in
seven investment projects is manu-
facturing-site located – making this
still a very important business acti-
vity in Germany.
Germany Trade & Invest's industry
experts will assist you to realize
your investment project in Germany.
Please contact [email protected] for more information.
ICT & Software 18%
Business & Financial
Services 15%
Automotive, Industrial
Machinery & Equipment 15%Chemicals, Plastics,
Paper 8%
Electronics &
Semiconductors 7%
Consumer Goods
(incl. Food & Beverages) 7%
Textiles 7%
Energy, Minerals,
Metals 6%
Transportation, Storage &
Logistics 6%
Health Care, Pharma,
Biotechnology 5%
Hotel, Tourism, Entertainment 2%
Other Sectors 4%
FDI Project Share in Germany by Sector 2007-2010 (as percent of total FDI projects)
Source: fDi Markets 2012
*Shared Service Center/Buisness Process Outsourcing/Contact Center
Source: fDi Markets 2012
0 5 10 15 20 25 30 35 40
Sales, Marketing & Support
Business Services
Manufacturing
Headquarters
Logistics, Distribution & Transportation
R&D
ICT & Internet Infrastructure
SSC/BPO/CC*
Education & Training
Other Activities
38%
15%
14%
7%
6%
1%
1%
1%
1%
16%
FDI Project Share in Germany by Business Activity 2007-2011 (as percent of total FDI projects)
Europe’s Economic Hub
Europe’s Largest Market Germany is the largest market in
Europe. It constitutes 20 percent of
European GDP, and is home to 16
percent of the total European Union
(EU) population. The German econo-
my is both highly industrialized and
diversified; with equal focus placed
on services and production.
Quick Recovery
Germany quickly recovered from
the economic slump of 2009. With
a GDP increase of 3.6 percent, the
economy experienced a strong
growth dynamic in 2010. In the
second quarter of 2010 alone,
Germany’s GDP expanded by 2.2
percent – the strongest quarter-
on-quarter growth since reunifica-
tion in 1990. This positive develop-
ment is reflected in all relevant eco-
nomic key data. The trend continued
in 2011, with the German economy
growing at a rate of three percent.
Global Player
Germany’s products continue to be
export hits worldwide. Offering inno-
vative and competitive products of
the highest quality, it is not surpris-
ing that, since 2000, Germany’s av-
erage export quota has amounted to
35 percent. German trade figures en-
joyed a brisk recovery from the glob-
al recession; increasing by around
20 percent in 2010 and 11 percent in
2011. Furthermore, for the first time
in history, exports amounted to more
than EUR 1 trillion (2011). Imports
also reached an all-time high of EUR
902 billion. The export quota in 2011
climbed to a record high of more
than 41 percent. German-produced
goods from the chemical, automotive,
and machinery & equipment indus-
tries are in particularly high demand
worldwide. Germany’s main trading
partners number European coun-
tries such as France, UK, Italy, and
the Netherlands as well as interna-
tional markets including the United
States, China, Russia, and Japan.
Seventy-one percent of all exports
are exported to European countries,
of which 59 percent go to EU mem-
ber states. In 2011, the number two
region for German exports was Asia;
receiving approximately 16 percent
of all goods from Germany, followed
by the Americas at approximately
10 percent.
Manufacturing Location Germany German companies represent more
than nine percent of European manu-
facturing companies and generate
26 percent of total EU turnover in
the sector. In fact, the manufacturing
sector represents nearly one fifth of
Germany’s “value added” – one of the
highest shares in Europe. Increas-
ingly more foreign companies are
placing their faith in Germany as a
vital production site location, and
are benefiting from the country’s
excellent business framework and
superior productivity rates.
SMEs: Germany’s Economic Backbone
Exports are driven by Germany’s
backbone of highly innovative small
and medium-sized enterprises (SMEs).
These constitute 99.6 percent of all
companies, employing almost 80
percent of all employees in Germany.
Many of these SMEs are world mar-
ket leaders in their respective niche
segments. Together with interna-
tionally leading large companies –
including Bayer, BASF, Daimler,
Volkswagen, and Siemens to name
but a few – they make up Germany’s
manufacturing industrial base.
Economic Overview Germany: Market
GDP (in EUR billion)
Share of Total GDP
(EU-27)
Population(in million)
Share of Total
Population(EU-27)
Germany 2,593 20% 82 16%
France 1,997 16% 65 13%
UK 1,750 14% 62 12%
Spain 1,063 8% 46 9%
Netherlands 602 5% 17 3%
Poland 370 3% 38 8%
Czech Rep. 156 1% 11 2%
Slovak Rep. 69 1% 5 1%
USA 10,830 313
Japan 4,219 128
EU-27 12,650 502
Eurozone 9,421 74% 332 66%
Share of Total GDP and Population in the European Union 2011
Source: Eurostat, US Census Bureau, Japanese Statistics Bureau 2012
Economic Overview Germany www.gtai.com
Closer to Market with First Class Infrastructure
Europe’s Global Logistics HubWith state-of-the-art transporta-
tion networks by road, rail, sea, and
inland waterways – as well as a
dense network of both national and
international airports – Germany
provides easy access to domestic
and international markets. Little
wonder that Germany is a global
logistics hub. More goods pass
through Germany than through any
other country in Europe. Its approx-
imately one quarter share of the
European logistics market (EU-27,
Norway and Switzerland) reflects
Germany’s role as the major pla-
yer in the continent’s economy.
World Class Transport InfrastructureGermany’s infrastructure excel-
lence is confirmed by a number of
recent studies including the Swiss
IMD’s World Competitiveness Year-
book and various investor surveys
conducted by institutions including
UNCTAD and Ernst & Young. The
2012-2013 Global Competitiveness
Report of the World Economic Fo-
rum (WEF) ranked Germany first
in Europe and third worldwide for
infrastructure; singling out Ger-
many’s extensive infrastructure
for highly efficient transportation
of goods and passengers for special
praise. Accumulated in this score
for Germany are high marks for the
quality of roads and air transport,
excellent railroads and port infra-
structure, as well as its communi-
cations and energy infrastructure.
Economic Overview Germany: Market
World Class Network InfrastructureAmong the highlights of the coun-
try’s network infrastructure are
Europe’s second largest port
measured in container port traffic
(Hamburg), Europe’s largest port
container terminal (Bremerhaven)
and over 250 inland ports. Germany
has a dense network of airports (of
which 21 are international airports).
Among them, Frankfurt is the world’s
seventh and ninth largest airport
in terms of cargo and passenger
volume respectively. The country’s
highway system has one of the high-
est highway kilometer density levels
in Europe, its 37,679 km of railway
track being almost enough to circle
the globe. Germany’s high-speed
railway network, with speeds of up
to 300 km/h, is the fourth largest
in the world.
Logistics GiantsNot only is Germany’s logistics infra-
structure among the best, its compa-
nies are also global logistics leaders.
In fact, the world’s leading logistics
services provider is a German com-
pany – Deutsche Post DHL. Deutsche
Bahn operates Europe’s largest rail
network and Lufthansa Cargo is
one of the world’s leading global air
freight companies. Annual revenues
of over EUR 220 billion in 2011 make
Germany Europe’s logistics leader.
No other EU country comes close to
Germany’s market size.
“Germany is our strategic focal point, a country
there is no way around in our industry. Germany
is the largest market in Europe, which creates the
greatest advantages for our company. Investing
here was an absolute must.”Sun Shubao, General Manager, Haier Group Europe and Germany
Source: World Economic Forum 2010
Rank Country
1 Germany
2 France
3 Switzerland
4 UK
5 Netherlands
6 Spain
7 Luxembourg
8 Austria
9 Denmark
10 Sweden
Quality of Infrastructure in Europe
Source: WEF 2012
Bringing East and West TogetherIn the north, Germany’s seaports
are an important conduit for trade
with the UK, Scandinavia, and the
Baltic states. In the west, an exten-
sive network of roads, rail links and
inland waterways feeds into France
and the Benelux countries. To the
south, Germany has strong com-
mercial ties with Switzerland and
Austria and direct road, rail and
water links with the Balkan states.
Turning eastwards, Germany’s bor-
ders with Poland and the Czech Re-
public also bring the Slovak Republic
and Hungary within easy reach and
make the more distant markets in
Turkey and Russia readily accessible.
Economic Overview Germany www.gtai.com
Economic Overview Germany: Productivity
Increasing Competitiveness
High ProductivityMeasured in unit labor costs, Ger-
many experienced a major increase
in productivity the past decade. In
marked contrast to other European
countries which have experienced
an overall increase in unit labor
costs, Germany’s unit labor costs
decreased by a yearly average of 0.4
percent for the period 2004 to 2011.
This made the economy more com-
petitive – particularly manufacturing.
Stable Labor CostsAt the same time, the labor cost gap
between Germany and its eastern
European neighbors has been sig-
nificantly reduced. In fact, Germany
has gained the labor-cost edge in
recent years. Since 2002, wages
have risen in most European coun-
tries (EU-27), with the growth rate
averaging 3.1 percent. While some
countries – particularly those in
eastern Europe – experienced a
rise of more than seven percent,
Germany recorded the lowest labor
cost growth within the EU at just
1.6 percent. This has been another
decisive argument in favor of Ger-
many as a premium business
location.
Excellent Production Standards Germany’s high productivity is also
closely linked to its excellent pro-
duction process standards. This
has been confirmed by a study of
international executives conducted
by the World Economic Forum (WEF).
According to the study findings,
Germany is seen as a country
where the best and most efficient
process technology is applied.
1=labor-intensive methods or previous generations of process technology
7=the world’s best and most efficient process technology
Source: World Economic Forum 2012
0 1 2 3 4 5 6 7
6.6
6.46.0
5.7
5.5
5.4
4.7
4.5
4.5
4.1
Assessment of Sophistication of Production Process 2011
Japan
GermanyNetherlands
USA
UK
France
Czech Rep.
Spain
Slovak Rep.
Poland
China 3.9
“Europe is a growing market for our light-curing
adhesives. Due to the highly qualified workers and
efficient cost structure, Germany was the clear
choice for the expansion of our production and
R&D activities.”A.Gregory Bachmann, President, DYMAX Corporation
0% 5% 10%
Source: Eurostat 2012
Labor Cost Growth in Total Economy 2002-2011(annual average growth in percent )
1.6%
2.4%
3.1%
3.3%
3.7%
5.7%
5.8%
7.5%
7.2%
Germany
France
Netherlands
Spain
UK
Czech Rep.
Poland
Hungary
Slovak Rep.
Economic Overview Germany www.gtai.com
Highly Skilled WorkforceGermany’s excellent workforce is
decisive to the country’s high pro-
ductivity rates. It comprises over
40 million people – making it the
largest pool of ready labor in the
EU. Germany’s world-class educa-
tion system ensures that the high-
est standards are always met. More
than 80 percent of the German work-
force has received formal vocational
training or is in possession of an
academic degree.
Dual Education SystemGermany provides direct access to
a highly qualified and flexible labor
pool. For vocational training the
country developed the dual educa-
tion system – unique in combining
the benefits of classroom-based and
on-the-job training over a period of
two to three years – which is specifi-
cally geared to meet industry needs.
There are currently around 350
occupations recognized by the sys-
tem. The German Chambers of In-
dustry and Commerce (IHKs) ensure
that exacting standards are rigidly
adhered to, guaranteeing the quality
of training provided across Germany.
Engineering ExcellenceAccording to the OECD, Germany
has an excellent standard in higher
education. In 2011, some 517,000
students – at more than 420 uni-
versities – embarked on a course of
academic study. Technical fields of
study experienced an undergraduate
enrollment level increase of more
than eight percent. Germany’s share
of university students in the sciences,
mathematics, computer sciences,
and engineering is the third high-
est in the EU, with 31 percent of all
students. German universities have
introduced masters and bachelor
degrees for improved international
acceptance and comparison.
In addition, the country can be proud
of one of the highest rates of gradu-
ates with a doctoral degree. With 311
PhD graduates per million inhabit-
ants, it ranks second in a comparison
of EU countries.
Outstanding ReputationGerman labor flexibility is reflected
in higher than average employee
motivation levels – exceeding those
of most leading industrialized nations.
In fact, according to the IMD World
Competitiveness Yearbook, German
Economic Overview Germany: Productivity
employee motivation levels are
greater than those of their coun-
terparts in the US, China, Poland,
France, and the UK. A direct corol-
lary of this is the fact that Germans
work more than their international
peers (40.6 hours per week) and lose
less days per annum to strike action
than other European nations (sig-
nificantly below the EU-27 average
according to Eurofound).
Workforce in Germany by Level of Professional Education 2011(percent of total workforce)
Source: Federal Statistical Office 2011
Skilled Craftsmen
(dual education system
apprentices) 55%
Vocational College
Graduates & Technicians
(master craftsmen) 11%
Unskilled 17%University Graduates 17%
10=highest motivation level
Note: IMD WCY Executive Opinion Survey based on an index from 0 to 10
Source: IMD World Competitiveness Yearbook 2012
Worker Motivation in Companies 2012
Switzerland
0 1 2 3 4 5 6 7 8
GermanyJapan
Netherlands
USA
Czech Rep.
UK
China
Slovak Rep.
Poland
7.397.35
7.17
6.55
5.87
5.78
5.73
5.24
5.08
Hungary
France
5.03
4.78
Spain 4.65
8.05
Economic Overview Germany www.gtai.com
High Innovation Rate
Innovation Leader GermanyIn Germany, enormous sums are
invested in the development of new
technologies and innovations. Today,
total R&D expenditures of almost
EUR 70 billion (2010) make Germany
Europe’s largest research location.
Since 2005, R&D expenditures have
steadily increased at a compound
annual growth rate of 4.6 percent.
R&D is considered to be among the
most important areas for the devel-
opment of the German economy. In-
dustry in particular has significantly
increased its R&D expenditures in
recent years. The European Com-
mission accordingly expects Germany
to reach its ambitious 2020 R&D tar-
get of three percent of R&D expen-
ditures of GDP in the coming years
(Innovation Union Competitiveness
Report 2011).
Location Advantage:Innovation Value-AddA 2011 study carried out by the Ger-
man Institute of Economic Research
(DIW) found that no other industrial-
ized country produces a larger share
of gross value added in research-
intensive manufacturing industries
than Germany. Germany especially
outperforms in its traditionally
strong industries: machinery, auto-
motive, chemicals, and electronics.
The share of total value creation in
research-intensive industries in
Germany exceeds that of Japan
and the US and is more than double
the share of France, UK, and Italy.
A broad base of foreign investors
in R&D underlines Germany’s
strong position. Around 85,000
employees work in R&D in Ger-
man subsidiaries owned by foreign
companies. With an annual R&D
budget of EUR 15.2 billion in 2009,
these companies account for more
than 27 percent of total industry
innovation expenditure. Most R&D
facilities are still operated by Euro-
pean and US companies. However,
Germany’s innovation landscape
is very firmly on China’s radar. In
a 2012 Ernst & Young study of 400
Chinese managers, 72 percent of
respondents identified Germany as
Europe’s best location for estab-
lishing an R&D center.
Diverse Innovation Landscape Industrial research reflects Ger-
many’s key source of innovation.
Domestic companies invested
almost EUR 47 billion in developing
new technologies for competitive
products in 2010. Five of the EU’s
top ten R&D companies are German
enterprises with Volkswagen lead-
ing the ranking. Germany’s innova-
tion landscape represents various
research players with the industry
as a major player in contract re-
search. In 2010, companies invested
almost EUR 11 billion in third-party
(i.e. contract) research led by uni-
versity and non-university research
organizations. Today, successful
research in Germany is based on
efficient cooperation of companies,
universities, and research organi-
zations. A national cluster network
combines cooperative research
along the value chain with tradi-
tionally strong and world-leading
industries.
High-Tech Products Made in GermanyGerman companies are global lea-
ders in the development of new
technologies. The “Made in Germany”
brand has been a seal of quality for
over a century. In 2010, Germany
exported high-tech goods to the
value of EUR 120 billion – making
it the top high-tech goods exporter
in Europe and second worldwide.
Economic Overview Germany: Innovation
Share of Research-intensive Industries of Gross Value Added 2009
Source: German Institute of Economic Research (DIW) 2012; Note: High-tech industries are characterized
by high internal R&D expenditures of between 2.5%-7% of the average OECD turnover; Cutting-edge technologies
show an internal R&D intensity of more than 7% of the average OECD turnover.
Economic Overview Germany www.gtai.com
14%
12%
10%
8%
6%
4%
2%
0% Germany Japan EU-14 USA
12.4%
9.5%
2.9%
9.8%
6.5%
3.3%
6.5%
4.2%
2.3%
6.9%
3.6% 3.4%
Research-intensive industries (total)
High-tech industries
Cutting-edge technology
This shows the commercial viability
of innovations made in Germany. The
country is also the leading European
nation in triadic patents (patents
registered at the three major global
patent offices: the European Patent
Office, the United States Patent and
Trademark Office, and the Japan
Patent Office).
Profiting from Innovation ClustersThe German R&D landscape is best
exemplified by close cooperation
between the worlds of science and
industry. Germany’s publicly funded
research bodies provide an interna-
tionally unique location advantage.
Large networks of applied research
institutes provide companies – par-
ticularly SMEs – with unparalleled
access to world-class research.
With about 80 research facilities
and more than 20,000 employees,
the Fraunhofer-Gesellschaft utilized
more than EUR 1.8 billion in research
funding in 2011. The Leibniz Associa-
tion has established a network of 86
research institutions with almost
17,000 employees. Some of the world’s
most renowned fundamental re-
search institutes are also located in
Germany. The Max Planck Society
and the Helmholtz Association al-
low companies to outsource costly
research activities. This eases the
access of developing new products
and decreases research and de-
velopment costs. Numerous spin-
offs underline the ability of German
research organizations to capitalize
on technology.
Public R&D Support: Germany’s High-Tech StrategyAn unprecedented campaign to foster
the advancement of new technolo-
gies has been launched by the Ger-
man government. The High-Tech
Strategy promotes the advancement
of new technologies by creating
synergy effects between industry
and institutional research. Most pro-
grams within the framework of the
High-Tech Strategy promote part-
nerships between different project
partners – particularly enterprises
and research institutes – in order
to bring together institutional re-
search and entrepreneurial exper-
tise. R&D projects can accordingly
count on generous financial support
in the form of R&D grants. Interest-
reduced loans and special partner-
ship programs complete Germany’s
public R&D project support.
World Class Know-HowWhile Germany is home to the lar-
gest population of researchers in
Europe (21 percent of all EU scien-
tists live and work in Germany),
German scientists work on projects
all over the world. For example, re-
search results obtained by the Max
Planck Society are achieved through
fruitful partnerships with more than
6,000 partners in research institu-
tions across 123 countries. Coope-
ration projects between companies
and academic research institutes
provide an efficient way to close
knowledge gaps. Scientists can be
easily integrated into the company
team of developers and researchers
and, increasingly, institutes provide
for the necessary laboratory facilities.
Europe’s Patent LeaderWith over 13,000 patents granted at
the European Patent Office in 2011,
Germany’s share of patents is more
than twice that of France and the UK
combined.
Economic Overview Germany: Innovation
Source: Eurostat 2012
Germany 21%
France 15%
UK 15%
Portugal 3%
Sweden 3%
Poland 4%
Italy 7%
Spain 9%
Others (18 EU countries) 20%
Netherlands 3%
National Share of Researchers in EU-27 2010
“As a global company, Alcatel-Lucent relies on
Germany’s excellent R&D landscape. A culture
of efficiency, creativity, and entrepreneurship
creates the ideal environment for us to innovate.”Alf Henryk Wulf, Chairman of the Board, Alcatel-Lucent Deutschland AG
Economic Overview Germany www.gtai.com
Ireland
UK
Russia
FinlandSweden
Norway
France
Spain
Portugal
Italy
Poland
GERMANY
Malta
Greece
Denmark
Czech Republic
Austria
SwitzerlandRomania
Netherlands
Belarus
Ukraine
Turkey
SerbiaBulgaria
Lithuania
Latvia
Estonia
Bosnia- Herzegovina
Slovak Republic
Hungary
RU
Moldova
Macedonia
Albania
Croatia
Slovenia
Montenegro
Dublin
London
Lisbon
Madrid
Paris
Luxembourg
Berlin
Belgium
Brussels
Amsterdam
Copenhagen
Oslo
Stockholm
Helsinki
Moscow
Minsk
Tallin
Riga
Vilnius
Warsaw
Kiev
Chisinau
Bucharest
Sofia
Ankara
Athens
Tirana
Skopje
Belgrade
Rome
Valletta
Bern
Sarajevo
Zagreb
Ljubljana
Vienna
Budapest
Bratislava
Prague
Podgorica
<12 h
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15 h > 30 h by train >
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Germany: At the Crossroads of Europe
Situated at the market crossroads of Europe, Germany’s optimal geographic
location is beyond question: Over half of the EU population lives within 500
kilometers of Germany’s borders; more goods pass through Germany than
any other European country; and almost all of Europe is reachable within
three hours by air or 24 hours by road.
Kosovo
Pristina
Economic Overview Germany www.gtai.com
R&D Expenditure by Federal State Equivalent Country 2010
NORTH SEA
BALTIC SEA
CZECH REPUBLIC
POLAND
THE NETHERLANDS
BELGIUM
FRANCE
LUXEM-BOURG
Source: Eurostat, Federal Statistical Office 2012
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Baden-Württemberg
Spain + Portugal
Bavaria Russia
Saarland
Slovak Republic
Rheinland-Pfalz
Czech Republic
North Rhine-Westphalia
Netherlands
lia
Hessen Finland
Saxony Poland
Thuringia Hungarygary
Saxony-Anhalt Sloveniavenia
Niedersachsen Norway
Mecklenburg-Vorpommern
Romania
Schleswig-Holstein
Slovenia + Croatia
Hamburg Bulgaria + Hungary + Romania
Bremen Luxembourg
Berlin Turkey
Brandenburg Bulgaria +
RomaniaGe
rman
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Fran
ce
UK
EUR 43.6 bn
EUR 30.1 bn
EUR 69.8 bn
DENMARK
Bulgaria
Innovation “Made in Germany”
Germany invests significantly in fast-developing tech-
nologies. With a 2010 R&D investment level of around
EUR 70 billion, Germany invested almost the com-
bined innovation expenditures of the UK and France
put together. Technology transfer between universities,
non-university research organizations, and companies
takes places in highly specialized technology clusters
located across the country.
Individual federal state research budgets often corres-
pond with those of other European countries. Bavaria’s
R&D spending, for example, significantly exceeds that
of Russia while North Rhine-Westphalia invests more
than its western neighbor, the Netherlands.
Economic Overview Germany www.gtai.com
Economic Overview Germany www.gtai.com
Our Investment Project Consultancy Services
Germany Trade & Invest Helps You
Germany Trade & Invest’s teams of
industry experts will assist you in
setting up your operations in Ger-
many. We support your project man-
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We provide you with all of the indus-
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everything from key markets and
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Contact
Imprint
PublisherGermany Trade and Invest
Gesellschaft für Außenwirtschaft
und Standortmarketing mbH
Friedrichstraße 60
10117 Berlin
Germany
T. +49 (0)30 200 099-555
F. +49 (0)30 200 099-999
www.gtai.com
Executive Board
Dr. Benno Bunse, Chairman/CEO
Dr. Jürgen Friedrich, CEO
AuthorsThomas Bozoyan, Market Intelligence Germany
Germany Trade & Invest, [email protected]
Dr. Hans-Peter Hüssen, Market Intelligence Germany
Germany Trade & Invest, [email protected]
Marc Lehnfeld, Market Intelligence Germany
Germany Trade & Invest, [email protected]
EditorWilliam MacDougall, Germany Trade & Invest
LayoutGermany Trade & Invest
PrintDas Druckhaus Bernd Brümmer, Bonn
SupportPromoted by the Federal Ministry of Economics and Technology and the Federal
Government Commissioner for the New Federal States in accordance with a
German Parliament resolution.
Notes©Germany Trade & Invest, December 2012
All market data provided is based on the most current market information
available at the time of publication. Germany Trade & Invest accepts no liability
for the actuality, accuracy, or completeness of the information provided.
Order Number14783
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Germany Trade & InvestFriedrichstraße 60
10117 Berlin
Germany
T. +49 (0)30 200 099-555
F. +49 (0)30 200 099-999
About Us
Germany Trade & Invest is the foreign trade and inward investment agency of the Federal Republic of Germany. The organization advises and supports foreign companies seeking to expand into the German market, and assists companies established in Germany looking to enter foreign markets.
All inquiries relating to Germany as a business location are treated confidentially. All investment services and related publications are free of charge.
Promoted by the Federal Ministry of Economics and Technology and the Federal Government Commissioner for the New Federal States in accordance with a German Parliament resolution.
www.gtai.com