Bavaria More than fairy tale castles

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Bavaria: Your Partner in the Heart of Europe

Bavaria:

Germany’s biggest Federal State

Area :

Germany‘s biggest Federal State

(70,550 km2)

GDP (2013) :

No. 7 in EU

(€ 488 billion)

Population (2013):

No. 9 in EU (12.5 Mio. inhabitants)

Munich

Stuttgart

Frankfurt

Dusseldorf

Hamburg

Berlin Hanover

Erfurt Dresden

Bavaria: Strong and Successful

Bavaria is among the most dynamic sites worldwide

* (30 % of total German applications)

Innovative

Prosperous

Competitive Productive

Growth oriented

8,5 %

(GDP 2008 - 2013)

Export volume:

€ 168 billion (2013)

GDP per capita:

€ 38.429 (2013)

14.829 patent applications

(2013)*

Dynamic

GDP: € 488 billion

(2013)

Stable

102.591 businesses

founded (2013)

Unemployment rate:

3.8 % (2013)

Bavaria: Strong and Successful

Bavaria: worldwide demand : Every second euro is generated through exports

Quelle: StMWI Bayern | April 2014

Bavaria:

In great company

Bavaria : In great company

Global Player Bavaria

More than one quarter of the German DAX-companies are located in Bavaria

Bavaria : In great company

More than 20 % of the german world market leaders are from Bavaria

World‘s leading insurance company

World‘s leading company in

Industry, Energy and Health Sectors

World‘s leading premium car

manufacturer

World market leader for diesel engines

World market leader in gas

and engineering sectors

Second-biggest sportswear

manufacturer in the world

World's third-largest sporting

goods manufacturer

Global market leader in

power semiconductors

World market leader in the

development of cyclodextrins

(ring-shaped sugar molecules

Second-biggest aerospace

manufacturer in the world

Bavaria : In great company

Bavaria has a rich and diverse SME population

Companies with more than 500 employees

Companies with less than 500 employees

Turnover

60.9 %

39.1 %

Employees

50.7 %

49.3 %

Companies

94.4 %

5.6 %

Bavaria: In great company

Bavaria: Location for Trade Fairs

Munich

Nuremberg

Augsburg

• International Toy Fair

• Interzoo - Pet supplies

• BRAU Beviale -

Beverage industry

• Stone+tec - Natural stone

and stone processing

technology

• BioFach - Organic

products

• Interlift - Escalators, components and accessories

• GrindTec - Grinding machines

• Bauma - Construction

machinery, building material

machines, construction

vehicles and equipment and

mining machines

• Electronica - Electronics

components and

assemblies

• ispo - Sports equipment

and fashion

• Ifat - Water, sewage,

refuse, recycling

• I.H.M. - International trade

fair for SMEs

Bavaria:

Innovation and Quality

Bavaria : Innovation and Quality

The Dual Education System

Advantages for the industry

High workforce competence

Ensurance of skilled labour required

Accurately fitting staff qualification

THEORY

PRACTICE =

DUAL EDUCATION

SYSTEM

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

12

Vocational Training and Education System

(VET) Dual apprenticeship system

unites contents of general education with relevant occupational skills.

education takes place in school and on the job in firms.

companies are responsible for education and payment of apprentices.

VET in Germany is strongly regulated: Firms and companies need formal permission to educate apprentices.

Assessment of formal requirements (personal and professional eligibility of the

instructors) is required.

Influence of companies and business and chamber organizations

on the content of occupational education is fairly high: Establishment of new occupations.

Abolishment of obsolete and antiquated occupations.

Adjustments within existing occupations.

Realignments of existing occupations.

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

13

VET: Advantages

Uniformity of educational contents within VET guarantees High occupational uniformity of workers.

comfortable screening of workers regarding their “quality”.

VET is crucial to economic development. Occupational skills and on the job training.

Tacit knowledge: Organization of work and sociology of labor.

VET offers an equally accepted path for further individual

professional development. Possibility to enter the university system.

Sophisticated System of non academic training.

VET offers widespread benefits for the social development of the

state by educating youths from weaker social backgrounds.

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

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Patent applications

Patentanmeldungen nach Bundesländern 2013

Bundesland Anmeldungen Anteil in % Anmeldungen

pro 100 000

Einwohner

Bayern 14 829 31,3 118

Baden-Württemberg 14 564 30,8 138

Nordrhein-Westfalen 7 073 14,9 40

Niedersachsen 2 924 6,2 38

Hessen 2 162 4,6 36

Rheinland-Pfalz 1 036 2,2 26

Sachsen 966 2,0 24

Berlin 897 1,9 27

Hamburg 741 1,6 43

Thüringen 536 1,1 25

Schleswig-Holstein 465 1,0 17

Brandenburg 322 0,7 13

Saarland 352 0,5 25

Sachsen-Anhalt 228 0,5 10

Mecklenburg-Vorpommern 181 0,4 11

Bremen 160 0,3 24

Insgesamt 47 336 100 Ø 59

Source: Patent-Statistik 2013, Deutsches Patent- und Markenamt (DPMA), April 2014

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

15

Companies conducting research grow more quickly

and are more stable in times of crisis.

Well networked companies expand twice as fast and

are more innovative.

The SMEs conducting research are by far the most

successful. Success factors: differentiation,

internationalisation, market environment and know-

how.

Positive correlation between R&D investments and

economic growth.

Bavarian technology policy: Motivation

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

Bavarian technology policy: Operational targets

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Ensuring a top ranking position within the competition for

innovation leadership in Germany and the EU.

Bavaria‘s contribution to the Lisbon target: increasing R&D

expenditures to 3,6% of GDP by 2020.

Bavaria as a top location for R&D institutes.

Increase percentage of employment in high-tech industries.

Distinct increase of SMEs committed to reseach and

innovation activities.

Bavaria as Germany‘s leading region for technology

orientated start-ups.

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

Government has no privileged knowledge, however acts from a

different perspective („Referee vs. Player“)

Use of expert knowledge (e.g. Studies, advisory groups,

experts)

Indirect support (e.g. tax credits) is preferable (efficient

allocation)

Display grants clearly as subsidies (transparency)

Support programs focus on technology sectors rather than

industry sectors

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Topics and Framework

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

18

Instruments of Bavarian innovation policy

Building research infrastructure

Supporting technology transfer

Supporting clusters

Supporting start-ups

Funding of R&D projects

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

Bavaria: Top location for research

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17 Universities of Applied

Sciences

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13 Max-Planck-Institutes & 1 Research

Group

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5 Institutes of Helmholtz-Society

14 Fraunhofer Project- and Work-Groups M

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H S 17 Other Research Institutes

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11 Universities, thereof

6 Universities/projects of Excellence

9 Institutes & Research Establish-

ments of Fraunhofer-Society

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

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„Haus der Forschung“

Joint initiative of the Bavarian Ministry of Science and the Bavarian

Ministry of Economic Affairs

Integrated consultancy service on research and technology funding

as well as EU financing and EU funding application

Four Partners: Bayern Innovativ,

BayFOR (Bavarian Research Alliance),

ITZB (Innovation and Technology Center Bavaria) and

BFS (Bavarian Research Foundation).

Established June 2010

Two locations (Munich and Nuremberg)

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

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Fraunhofer is the biggest and the leading organisation for

applied research in Europe.

67 Institutes and research establishments

23,000 employees

2 bill. € funding for R&D, thereof

about 1/3: orders from industry,

about 1/3: projects with public funding,

about 1/3: basic research (financed 90:10).

founded and headquarters in Munich

Joseph von Fraunhofer (1787-1826):

Scientist, Inventor, Entrepreneur

Fraunhofer Society

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

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Fraunhofer Society in Bavaria

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

A geographic concentration of interconnected

businesses, suppliers and associated institutions in a

particular field (Michael E. Porter).

A network of businesses, suppliers and associated

institutions in a particular field managed by a cluster

organisation.

A cluster provides positive effects to the

competitiveness of the companies in a region:

specialisation along the value chain

specialized work force

increase in innovation dynamics

clear competence profile for a region

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Definition of “cluster”

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

19 Bavarian Clusters

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Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

19 cluster platforms within 5 segments

Small management teams of 2-6 professionals in each cluster

Average funding per cluster of 1.2 Mio. € in the period 2012-

2015

Funding only for cluster management, not R&D projects

Degressive funding

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Bavaria‘s Clusters in a nut shell

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

Access to an independent networking platform

Participation on (R&D-)projects

Participation on business fairs and missions

„Pilot“ to support programms on EU-, federal and Bavarian level

Contact to national and international networks

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Cluster services for their members

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

BUSINESS PLAN Competition

1996-2013: >1,200 companies with >10,000 employees

Incubators

24 technology driven incubators (e.g. MVC Erlangen with 35

companies and 200 employees, IZB Martinsried with 57

companies and 600 employees)

Funding of technology-driven Start-up companies

(e.g. FLÜGGE, BayTou programme)

Bayern capital:

Since 1995 over 220 venture capital investment projects with a

volume of more than 190 Mio. €

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Supporting Start-up Companies

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

28

Bavarian Technology Grant Program (BayTP)

credits (cut interest rates) 163,7 Mio. €

grants 31,8 Mio. €

Specific grant programs

Advanced materials 43,0 Mio. €

Micro systems technologies 27,9 Mio. €

Information and communiction technologies 60,2 Mio. €

Electromobility (since august 2010) 5,6 Mio. €

Efficient energy generation and use 64,8 Mio. €

Grant Program for technology oriented start-ups (BayTOU) 11,6 Mio. €

Innovation vouchers (since june 2009) 11,7 Mio. €

Technology grant programs for companies (2005-2012)

Funding of R&D projects

Internationalization

Bayerisches Staatsministerium für

Wirtschaft und Medien, Energie und Technologie

30

Foreign

Economic

Relations;

America

Michael

Gotschlich Martin

Grossmann

Europe,

Trade Fairs

Asia, Pacfic,

Africa,

Development

Aid

Dr. Johann Schachtner

Director

Internationalisierung,

Industry

Ulrich Konstantin

Rieger

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

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In 1995, the Bavarian State Government founded Bayern International, an

organization to promote foreign trade.

This was part of a strategic initiative funded by privatization revenues.

Closely cooperating with government and private partners, Bayern International

helps Bavarian companies to go abroad and to access international markets.

Manager:

Hans-Joachim Heusler

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

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Promotion of Foreign Trade in Bavaria

Preparation for Export Business

Go International – Personal and individual advice for small enterprises

Internet: Programmes by all Partners in Bavaria: www.aussenwirtschaft-in-bayern.de

Youtube: http://www.youtobe.com/watch?v=s-4B9pa9hAQ

Key-Technologies data bank

Introduction to Export Business:

ABROAD

Trade Missions – lead by Minister Aigner or Vice Minister Pschierer

Business Trips - sector specific

Trade Fair Participation Programme

IN BAVARIA

Bavaria – Fit for Partnership

Solutions – Made in Bavaria

Visit of foreign Delegations

CROSS-BORDER

Innovation Vouchers

More than 20 Bavarian Foreign Representatives all over the world

Funding and financial support via LfA Förderbank Bayern

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

Worldwide: 25 Bavarian Representative Offices

Trade relations

USA – Bavaria: ties that bind

USA | Bavaria : Ties that Bind

35

TZ

A strong US community in Bavaria

About 23,000 US citizen are living in Bavaria

Bavaria has by far the largest US community in

Germany

22 city partnerships between Bavaria and the USA

Education

210 partnerships between Bavarian and US

universities

About 470 US students are studying in Bavaria

USA | Bavaria : Ties that Bind

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TZ

5 US State Representative Offices in Bavaria

• State of Colorado

• State of Florida

• State of Georgia

• State of South Carolina

• State of West Virginia

USA | Bavaria : Ties that Bind

37

TZ

US Consulate General, Munich

www.munich.usconsulate.gov

9 American – German organizations in Bavaria

> German-American Institute, Nuremberg

www.dai-nuernberg.de

> Bavarian-American Academy, Munich

www.amerika-akademie.de

> Council of American States in Europe, Munich

www.case-europe.com

> American Chamber of Commerce in Germany, Munich

www.amcham.de

> Bavarian-American Center, Munich

www.amerikahaus.de

> American-German Business Club, Munich

www.agbc.de

> Bavaria-California Technology Center, Erlangen

www.bacatec.de

USA | Bavaria – Foreign Direct Investment

38

TZ

German / Bavarian FDI (stocks) in US 2012 1)

Germany: Euro 168.1 billion (US$ 230.3 billion)

Bavaria: Euro 33.5 billion (20 per cent of German total)

US FDI (stocks) in Germany / Bavaria 2012 1)

Germany: Euro 77.1 billion (US$ 105.6 billion)

Bavaria: Euro 13.1billion (17 per cent of total)

German / Bavarian companies in US

No of Companies Turnover Workforce

GER 4,731 € 403.6 bn 762,000

BAV 784 € 104.0 bn 160,000

Share BAV 16.6 % 25.8 % 21%

• US Companies in Bavaria

no official records available

at least 1,000 (presumably more than 1,200) 1) Source: Bundesbank

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

39

Bavaria’s Most Important Export Countries (2013)

5,2

5,3

5,7

6,4

10,3

11,0

11,7

13,4

15,5

18,9

0 5 10 15 20

Switzerland

Czech Republic

Netherlands

Belgium

Italy

Great Britain

France

Austria

China

USA

[€ bn]

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

40

Bavaria’s Most Important Import Countries (2013)

5,2

5,8

6,1

7,2

7,4

9,2

9,7

10,3

11,3

14,9

0 5 10 15 20

Great Britain

Hungary

France

Russia

Netherlands

USA

Czech Republic

Italy

China

Austria

[€ bn]

USA | Bavaria: Ties that bind

41

TZ

Bavaria : Home of more than 1,000 US companies

USA | Bavaria: Ties that bind

Bavaria : Top location for US investments

> First German research and development center in Munich

> 110.000 sqm logistics center in Graben / Swabia

> Up to 1.000 long term employees

> GE Aviation research facility in Regensburg

> European research and technology center in Garching / Munich

> 80.000 sqm logistics center in Straubing / Lower

Bavaria

> Largest logistics center in the European IT distribution

> Headquarter for Europe, Middle East, Africa and Canada in Munich

> High tech production plant in Illertissen / Swabia

> Euro 60 million investment

USA | Bavaria: A favourite location for global tech giants

• International tech majors make Bavaria

their location of choice in Germany

• Major operational base in Europe for

companies like Microsoft, Cisco, Intel

• Value Bavaria’s highly-skilled labor

force, dynamic economy and unrivalled

scope for business

• Google is expanding its R&D center in

Munich due to the high demand for

mobile services

USA | Bavaria: Attraction for New Tech

• Bavaria magnet as German hub for

new generation technology champions

• Focus for companies with B2B target

customers

• Bavaria itself leader of Germany’s non-

city states in native tech startups and

Munich metropolitan region THE tech

startup hub Germany-wide

(significantly ahead of Berlin)

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

45

Foreign Trade Activities related to the USA

March 2015: Business Trip to Austin, Texas, to SXSW Interactive

31. May to 6th June: Trade Mission lead by Vice Minister Pschierer to

Atlanta and Savannah, Georgia, Charleston, South Carolina and Mobile, Alabama

for the aerospace industry (scientists and companies) and media representatives

19.-25. October: Business Trip to New York http://www.oktoberinvestfest.com and to

Silicon Valley for ICT Start-Ups and other related companies

Two Bavarian Representatives:

o Dr. Lucie Merkle in San Francisco

o Janet Danisman in New York

Trade Fair Participation Program:

o NAB in Las Vegas

o Solar Power International (2014 Las Vegas; 2015 Chicago)

o Waste Expo Las Vegas

o IMTS and Pack Expo Chicago

o Westec Los Angeles

o Green Build Expo (2014: New Orleans, 2015 Washington DC)

December 2013: Minister Ilse Aigner met US Secretary of Commerce Penny Pritzker

Regular Meetings with the US Consulate General in Munich

Several Delegations from the USA on specific topics, e.g. Montana on vocational

training; Brookings Instititution on Manufacture, Innovation and Workforce

Your Contact in the USA

46

TZ

Representative Office New York

Jan Danisman

Bavarian U.S. Offices for Economic Development LLC

East Coast Division

560 Lexington Avenue, 17th Floor

New York, NY 10022, USA

Tel.: +1 212 / 317 – 0588

jdanisman@bavaria.org

www.bavaria.org

Representative Office San Francisco

Dr. Lucie Merkle

Bavarian U.S. Offices for Economic Development LLC

West Coast Division

388 Market Street, Suite 1050

San Francisco, CA 94111

Tel.: +1 415/ 362 - 1001

lmerkle@bavaria.org

www.bavaria-westcoast.com

Your Contact in Bavaria – Invest in Bavaria

47

TZ

Christian Gnam

Manager USA | Service Industries

Invest in Bavaria

Widenmayerstraße 34

80538 München | Germany

Tel.: +49 89 24210-7506

Fax: +49 89 24210-7557

christian.gnam@invest-in-bavaria.de

www.invest-in-bavaria.com

Bavarian Ministry of Economic Affairs

and Media, Energy and Technology

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Silke Schmidt

Deputy Head of Division

Foreign Trade

Europe (excl. CEE), North America

Prinzregentenstrasse 28

80538 München | Germany

Tel.: +49 89 2162 2285

Fax: +49 89 2162 3285

Silke.schmidt@stmwi.bayern.de

www.aussenwirtschaft-in-bayern.de

Your Contact in Bavaria – Foreign Trade

Bavaria:

Partner for Business – Our Services

Bavaria : Partner for Business

Invest in Bavaria: Business promotion

agency of the Free State of Bavaria

First point of contact for interested

investors in case of setting up a new

business or expanding present

facilities in Bavaria

One-stop service for investors

Fullservice for your company:

comprehensive | customized | confidential | free

Bavaria : Partner for Business

Invest in Bavaria: Tailored services for investors

Contacts Site Search Information

Business set-up | Expansion

Market information

Branch information

Identification of location

Site visits Contacts to partners

Contacts to networks

1 2 3

Bavaria : Partner for Business

Invest in Bavaria: References

See you in Bavaria!

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