Economic Overview Germany: Market, Productivity, Innovation

Issue 2011/2012
Business Location Germany

Basic Data Area: 357,104 sq. km Population (m.): 82 Number of companies 3.72 million, 99.6% SMEs Total turnover of all companies* EUR 5.36 trillion, 38.0% SME turnover
* Most current data 2008

GDP Formation 2010 (in percent)

Others 32.3%

Production-based Industries 25.0%

Financial Services, Renting, Business Services 27.3% Commerce, Catering Industry and Communications 15.4%

Economic Development GDP (nominal in EUR billion) 2010: 2,477; 2009: 2,397; 2008: 2,481 Per capita GDP (EUR) 2010: 30,564; 2009: 29,278; 2008: 30,214 Inflation rate 2010: 1.1%; 2009: 0.2%; 2008: 2.8% Unemployment rate 2010: 7.3%; 2009: 7.5%; 2008: 7.3% GDP Growth
(real annual change in percent) 6 4 2 0 -2 -4 -6 2008 -4.7 2009 2010 1.3 3.6

Foreign Trade Foreign trade (EUR bn) Exports Imports Balance Germanys trade relations with EU (EUR bn) Exports to EU Imports from EU Balance 621.3 531.5 +89.8 +0.5 +5.1 489.1 441.3 +47.8 -21.3 -17.0 557.3 515.2 +42.1 +13.9 +16.7 2008 % 2009 % 2010 %

984.1 805.8 +178.3

+2.9 +4.3

803.3 664.6 +138.7

-18.4 -17.5

959.5 806.2 +153.4

+19.4 +21.3

Export goods (% of total exports SITC) 2010: machinery 18.1; motor vehicles and parts 15.9; chemical goods 15.7; electronic goods 9.5; foodstuffs 4.2; others 36.6 Import goods (% of total imports SITC) 2010: chemical goods 12.7; machinery 12.0; electronic goods 11.0; crude oil 7.5; motor vehicles and parts 7.4; foodstuffs 5.7; others 43.7
Sources: Federal Statistical Office, Federal Ministry of Finance, ifm Bonn 2011

Economic Overview Germany www.gtai.com

Foreign Direct Investment

Paving the Way for Foreign Direct Investment

First Choice Business Location A recent study conducted by the American Chamber of Commerce highlights the positive regard in which the German business environment is held by US companies. Invited to indicate their main medium-term investment focus within the EU, 60 percent of participating American companies named Germany as their rst choice; followed by Eastern Europe (28 percent), and the UK (18 percent) respectively. Ernst & Youngs European Attractiveness Survey 2011 conrms Germanys reputation as one of the most attractive business locations in the world. International decision makers ranked Germany rst within Europe, and fth worldwide in the most attractive business location category. Free and Open Markets Germany 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 nationals 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 prots, or access to foreign exchanges.

AmCham Business Barometer 2011 American business executives highlighted the following factors as the top location advantages that distinguish Germany from its competitors. Economic strength: diversied mixture of businesses Infrastructure: excellent nationwide infrastructure Framework conditions: governmental promotion of forward-thinking industries (e.g. solar and biotech) Human capital: highly qualied workforce, skilled talent pool
Source: American Chamber of Commerce Germany, Boston Consulting Group 2011

Supporting Investment Projects Incentives in Germany are designed to meet the immediate capital needs of investors. Early stage investment nancing provides funding at the beginning of the new investment project. These incentives, mostly provided as cash grants, are important as they guarantee liquidity at a stage in the investment process when investor capital requirements are typically high. Later stage investment 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 generous R&D project assistance. Incentives in Germany are available to all investors regardless of investor country of provenance. Funding to the tune of EUR 26.3 billion has been freed up by the EU (co-nanced using means obtained from German national and federal budgets) through 2013. As well as this, Germany and its individual federal states also make their own incentives funds available to prospective investors. For more incentives information, please visit our website: www.gtai.com/incentives

Global FDI Magnet According to the United Nations Conference on Trade and Development (UNCTAD), Germany ranks among the worlds leading countries for foreign direct investments with more than EUR 509 billion in inward FDI stocks in 2010. This represents a growth of 33 percent from 2005 to 2010. According to ofcial Bundesbank (German Central Bank) statistics for 2009, 77 percent of all FDI stocks in Germany originate from within the EU-27; with a further nine percent derived from the remaining European non-EU countries. Investments from outside the EU continue to grow. North America accounts for eight percent of FDI stock, while Asia holds a ve percent share.

Economic Overview Germany www.gtai.com

Foreign Direct Investment

Foreign Direct Investment Projects

Every year more and more companies 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 Germanys attractiveness as an international business location. Between 2003 and 2010, fDi Markets recorded a total of 3,925 investment projects from 2,929 foreign companies. With 776 projects, 2010 proved to be the most successful year on record with Germany placing fourth internationally in terms of FDI projects attracted. The most important countries as sources for new investment projects are the USA (27 percent of all investment projects), UK (nine percent), and Switzerland (seven percent) respectively. In 2009, China emerged as a major source of investments, with the number of Chinese investment projects into Germany more than doubling within just one year. This high level was reached again in 2010, making Germany the worlds number one location for Chinese greeneld investments. Diverse Industry Opportunities According to fDi markets, foreign companies invested in 39 different sectors underlining Germanys highly diversied economy. Most new investment projects were realized in the ICT & software industry (18 percent of new projects). Business and nancial services as well as automotive and industrial machinery & equipment were close behind each with 15 percent of all projects.

FDI Project Share in Germany by Sector 2003-2010 (as percent of total FDI projects)
Hotel, Tourism, Entertainment 3% Energy, Minerals, Metals 4% Transportation, Storage & Logistics 5% Health Care, Pharma, Biotechnology 6% Textiles 6% ICT & Software 18% Renewable Energy 2% Other Sectors 4%

Consumer Goods (incl. Food & Beverages) 7% Electronics & Semiconductors 7% Chemicals, Plastics, Paper 8%
Source: fDi Markets 2011

Business & Financial Services 15%

Automotive, Industrial Machinery & Equipment 15%

FDI Project Share in Germany by Business Activity 2003-2010 (as percent of total FDI projects)
Sales, Marketing & Support Manufacturing Business Services Logistics, Distribution & Transportation Headquarters R&D ICT & Internet Infrastructure SSC/BPO/CC* Education & Training Other Activities
0

35% 17% 15% 6% 6% 2% 1% 1% 1% 17%

5 10 15 20 25 30 35 40

*Shared Service Center/Buisness Process Outsourcing/Contact Center Source: fDi Markets 2011

Most new projects open sales and marketing & support ofces. Almost one in ve investment projects is manufacturing-site located making this the second most important business activity in Germany.

Germany Trade & Invest's industry experts will assist you to realize your investment project in Germany. Please contact request@gtai.com for more information.

Economic Overview Germany www.gtai.com

Economic Overview Germany: Market

Europes Economic Hub

Europes 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 economy is both highly industrialized and diversied; 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, Germanys GDP expanded by 2.2 percent the strongest quarter-on-quarter growth since reunication in 1990. This positive development is reected in all relevant economic key data. The trend is expected to continue in 2011, with the German government forecasting a GDP growth rate of 2.6 percent. Global Player Germanys products continue to be export hits worldwide. Since 2003, exports have grown by more than ve percent on average each year. In fact, Germany overtook the United States, becoming the world export leader for six years in succession until 2008. German trade gures enjoyed a brisk recovery from the global recession, increasing by around 20 percent in 2010. Imports and exports in 2010 amounted to EUR 806 billion and EUR 960 billion respectively. German-produced goods from the chemical, automotive, and machinery & equipment industries are in particularly high demand worldwide. Germanys main trading partners number European countries such as France, UK, Italy, and the Netherlands as well as international mar-

Share of Total GDP and Population in the European Union 2010 GDP (in EUR billion) Germany France UK Spain Netherlands Poland Czech Rep. Slovak Rep. USA Japan EU-27 Eurozone 2,477 1,933 1,697 1,063 588 354 145 66 10,957 4,122 12,284 9,170 Share of Total GDP (EU-27) 20% 16% 14% 9% 5% 3% 1% 1% Population (in million) Share of Total Population (EU-27) 16% 13% 12% 9% 3% 8% 2% 1%

82 65 62 46 17 38 11 5 309 128 501 331

Note: Czech Rep. GDP data are forecasts Source: Eurostat, US Census Bureau, Japanese Statistics Bureau 2011

kets including the United States, China, Russia, and Japan. Seventyone percent of all exports are exported to European countries, of which 15 percent go to eastern European countries. In 2010, the number two region for German exports was Asia; receiving approximately 15 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 manufacturing companies and generate 27 percent of total EU turnover in the sector. In fact, the manufacturing sector represents nearly one fth of Germanys value added one of the highest shares in Europe. Increasingly more foreign companies are placing their faith in Germany as a vital production site location, and are beneting from the countrys excellent business framework and superior productivity rates.

SMEs: Germanys Economic Backbone Exports are driven by Germanys backbone of highly innovative small and medium-sized enterprises (SMEs). These constitute 99.6 percent of all companies, employing 79.5 percent of all employees in Germany. Many of these SMEs are world market leaders in their respective niche segments. Together with internationally leading large companies including Bayer, BASF, Daimler, Volkswagen, and Siemens to name but a few they make up Germanys manufacturing industrial base.

Economic Overview Germany www.gtai.com

Economic Overview Germany: Market

Closer to Market with Germany is our strategic focal point, a country First Class Infrastructure there is no way around in our industry. Germany
Europes Global Logistics Hub With state-of-the-art transportation 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 approximately one quarter share of the European logistics market (EU-27, Norway and Switzerland) reects Germanys role as the major player in the continents economy. World Class Transport Infrastructure Germanys infrastructure excellence is conrmed by a number of recent studies including the Swiss IMDs World Competitiveness Yearbook and various investor surveys conducted by institutions including UNCTAD and Ernst & Young. The 2011-2012 Global Competitiveness Report of the World Economic Forum (WEF) ranked Germany rst in Europe and second worldwide for infrastructure; singling out Germanys extensive and efcient infrastructure for highly efcient 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 infrastructure, as well as its communications and energy infrastructure.

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

World Class Network Infrastructure Among the highlights of the countrys network infrastructure are Europes second largest port measured in container port trafc (Hamburg), Europes largest port container terminal (Bremerhaven) and over 250 inland ports. Germany has a dense network of airports (of which 22 are international airports). Among them, Frankfurt is the worlds seventh and ninth largest airport in terms of cargo and passenger volume respectively. The countrys highway system has one of the highest highway kilometer density levels in Europe, its 37,900 km of railway track being almost enough to circle the globe. Germanys high-speed railway network, with speeds of up to 300 km/h, is the fourth largest in the world. Logistics Giants Not only is Germanys logistics infrastructure among the best, its companies are also global logistics leaders. In fact, the worlds largest logistics services provider is a German company Deutsche Post DHL. Deutsche Bahn operates Europes largest rail network and Lufthansa Cargo is one of the worlds leading global air freight companies. Annual revenues of over EUR 200 billion in 2010 make Germany Europes logistics leader. No other EU country comes close to Germanys market size.

Bringing East and West Together In the north, Germanys seaports are an important conduit for trade with the UK, Scandinavia, and the Baltic states. In the west, an extensive network of roads, rail links and inland waterways feeds into France and the Benelux countries. To the south, Germany has strong commercial ties with Switzerland and Austria and direct road, rail and water links with the Balkan states. Turning eastwards, Germanys borders with Poland and the Czech Republic also bring the Slovak Republic and Hungary within easy reach and make the more distant markets in Turkey and Russia readily accessible. Quality of Infrastructure Rank 1 2 3 4 5 6 7 8 9 Country Hong Kong Germany Singapore France Switzerland UK Netherlands UAE South Korea Denmark

Source: World Economic Forum 2010

10

Source: WEF 2011

Economic Overview Germany www.gtai.com

Economic Overview Germany: Productivity

Increasing Competitiveness
High Productivity Measured in unit labor costs, Germany 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, Germanys unit labor costs decreased by a yearly average of 0.3 percent for the period 2005 to 2010. This made the economy more competitive particularly manufacturing. Stable Labor Costs At the same time, the labor cost gap between Germany and its eastern European neighbors has been signicantly reduced. In fact, Germany has gained the labor-cost edge in recent years. Since 2000, wages have risen in most European countries (EU-27), with the growth rate averaging 3.7 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 Germany as a premium business location. Excellent Production Standards Germanys high productivity is also closely linked to its excellent production process standards. This has been conrmed by a study of international executives conducted by the World Economic Forum. According to the study ndings, Germany is seen as a country where the best and most efcient process technology is applied.

Europe is a growing market for our light-curing adhesives. Due to the highly qualied workers and efcient cost structure, Germany was the clear choice for the expansion of our production and R&D activities.
A.Gregory Bachmann, President, DYMAX Corporation

Assessment of Sophistication of Production Process 2010

Japan Germany Netherlands USA France UK Czech Rep. Spain Slovak Rep. Poland China
0 1 2 3 4

6.5 6.3 6.0 5.6 5.6 5.5 4.6 4.5 4.4 4.0 4.0
5 6 7

1=labor-intensive methods or previous generations of process technology 7=the worlds best and most efcient process technology Source: World Economic Forum 2011

European Labor Cost Growth 2001-2010

Germany France Netherlands Spain UK Poland Czech Rep. Slovak Rep. Hungary
0% 5%

1.6% 2.1% 3.4% 3.6% 4.1% 6.3% 6.8% 7.7% 8.3%

10%

Annual average growth expresssed as percentage of industry, construction and services. Source: Eurostat 2011

Economic Overview Germany www.gtai.com

Economic Overview Germany: Productivity

Highly Skilled Workforce Germanys excellent workforce is decisive to the countrys high productivity rates. It comprises over 40 million people making it the largest pool of ready labor in the EU. Germanys world-class education system ensures that the highest standards are always met. More than 80 percent of the German workforce has received formal vocational training or is in possession of an academic degree. Dual Education System Germany provides direct access to a highly qualied and exible labor pool. For vocational training the country developed the dual education system unique in combining the benets of classroom-based and on-the-job training over a period of two to three years which is specically geared to meet industry needs. There are currently around 350 occupations recognized by the system. The German Chambers of Industry and Commerce (IHKs) ensure that exacting standards are rigidly adhered to, guaranteeing the quality of training provided across Germany. Engineering Excellence According to the OECD, Germany has an excellent standard in higher education. In 2010, some 443,000 students at more than 400 universities embarked on a course of academic study. Technical elds of study experienced an undergraduate enrollment level increase of more than eight percent. Germanys share of university students in the sciences, mathematics, computer sciences, and engineering is the second highest in the EU, with 31 percent of all students. German universities have introduced masters and bachelor degrees for improved international acceptance and comparison.

Worker Motivation in Companies 2011

Denmark Germany Netherlands Japan USA Czech Rep. China UK Hungary Poland Spain Slovak Rep. France
0 1 2 3

8.09 7.24 7.14 6.88 6.47 6.05 5.96 5.70 5.24 5.00 4.95 4.82 4.42
4 5 6 7 8

10=highest motivation level Note: IMD WCY Executive Opinion Survey based on an index from 0 to 10 Source: IMD World Competitiveness Yearbook 2011

Workforce in Germany by Level of Professional Education 2010 (percent of total workforce)

University Graduates 18% Unskilled 18% Vocational College Graduates & Technicians (master craftsmen) 9%

Skilled Craftsmen (dual education system apprentices) 55%

Source: Federal Statistical Office 2011

In addition, the country can be proud of one of the highest rates of graduates with a doctoral degree. With 312 PhD graduates per million inhabitants, it ranks second in a comparison of OECD countries. Outstanding Reputation German labor exibility is reected in higher than average employee motivation levels exceeding those of most leading industrialized nations. In fact, according to the IMD World Competitiveness Yearbook, German

employee motivation levels are greater than those of their counterparts in the US, China, Poland, France, and the UK. A direct corollary of this is the fact that Germans work more than their international peers (41.8 hours per week) and lose less days per annum to strike action than other European nations (signicantly below the EU-27 average according to Eurofound).

Economic Overview Germany www.gtai.com

Economic Overview Germany: Innovation

High Innovation Rate

Innovation Leader Germany In Germany, enormous sums are invested in the development of new technologies and innovations. Today, total R&D expenditures of EUR 66.7 billion (2009) make Germany Europes 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 development of the German economy. Industry in particular has signicantly increased its R&D expenditures in recent years. The European Commission accordingly expects Germany to reach its ambitious 2020 R&D target of three percent of GDP in the coming years (Innovation Union Competitiveness Report 2011). R&D Excellence in German Regions The large amounts Germany invests in fast-developing technologies is visible at a regional level. The individual federal state research budgets correspond with those of other European countries. For example, Bavaria signicantly exceeds Russias R&D investments, while North Rhine-Westphalia invests more than its western neighbor, the Netherlands. One of the most R&D intensive regions with the highest research expenditures in Europe can be found in Germany. The regions around Stuttgart, Karlsruhe, Tbingen, and Darmstadt are unique in Europe, beneting from high R&D budgets in strong industries and their immediate environs. Eight percent of the total R&D budget in Europe is spent in this geographical cluster alone.

R&D Expenditure by Federal State Equivalent Country 2009

DENMARK NORTH SEA BALTIC SEA

Schleswig-Holstein Slovenia + Slovak Rep. Mecklenburg-Vorpommern Romania Hamburg Czech Rep.

Bremen Luxembourg Niedersachsen Norway Berlin Turkey

THE NETHERLANDS

POLAND

Brandenburg Bulgaria + Romania Saxony-Anhalt Slovenia

North Rhine-Westphalia Netherlands Saxony Portugal Hessen Belgium

BELGIUM

Thuringia Hungary

LUXEMBOURG

Rheinland-Pfalz Poland

CZECH REPUBLIC

Saarland Croatia
Cartography: roccomontoya istockphoto.com

Bavaria Russia
FRANCE

Baden-Wrttemberg Spain + Portugal

EUR 67.7 bn EUR 42.1 bn EUR 29.3 bn

Germany

France

Source: Eurostat, Federal Statistical Office 2011

Value Added Through Innovative Technologies A 2011 study carried out by the German Institute of Economic Research (DIW) found that no other industrialized country produces a larger share of gross value added in research-intensive manufacturing industries than Germany. The share of total value creation in research-intensive industries in Germany exceeds Japan and US levels and is more than double the share of France, UK, and Italy.

High-Tech Products Made in Germany German companies are global leaders in the development of new technologies. Standing for high quality and innovation, the Made in Germany brand has been a seal of quality for over a century. In 2009, Germany exported high-tech goods to the value of EUR 102 billion making it the top high-tech goods exporter in Europe and second worldwide.

Economic Overview Germany www.gtai.com

UK

Economic Overview Germany: Innovation

Public R&D Support: Germanys High-Tech Strategy An unprecedented campaign to foster the advancement of new technologies has been launched by the German government. Annual R&D funding of approximately EUR 4 billion has been set aside to develop cutting edge technologies. R&D projects can accordingly count on numerous forms of nancial support. Interestreduced loans and special partnership programs complete Germanys public R&D project support. World Class Know-How While Germany is home to the largest population of researchers in Europe (20 percent of all EU scientists live and work in Germany), German scientists work on projects all over the world. For example, research results within the Max Planck Society are achieved through fruitful partnerships with more than 6,500 partners in research institutions across 123 countries. Cooperation projects between companies and academic research institutes provide an efcient 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. Europes Patent Leader With over 12,000 patents granted at the European Patent Ofce in 2010, Germanys share of patents is almost twice that of France and the UK combined. 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 ofces: the European Patent Ofce, the United States Patent and Trademark Ofce, and the Japan Patent Ofce).

As a global company, Alcatel-Lucent relies on Germanys excellent R&D landscape. A culture of efciency, creativity, and entrepreneurship creates the ideal environment for us to innovate.
Alf Henryk Wulf, Chairman of the Board, Alcatel-Lucent Deutschland AG

National Share of Researchers in EU-27 2009

Others (18 EU countries) 20% Germany 20% Portugal 3% Netherlands 3% Sweden 3% Poland 4% Italy 6% Spain 8%
Source: Eurostat 2011

France 18%

UK 15%

Intellectual property rights enjoy a high level of protection in Germany. For technical and commercial innovations, property rights can be registered in the form of patents, utility models, trademarks, and designs. The same conditions apply to foreigners as they do German nationals when registering property rights. These are just some reasons why Taylor Wessing ranked Germany rst in its Global Intellectual Property Index 2011. Proting from Innovation Clusters The German R&D landscape is best exemplied by close cooperation between the worlds of science and industry. Germanys publicly funded research bodies provide an internationally unique selling point. The applied research institutes of the Fraunhofer Society and Leibniz Association provide companies

particularly SMEs with unparalleled access to world-class research. With about 60 institutes and more than 13,000 employees, the Fraunhofer-Gesellschaft utilizes EUR 1.6 billion in research funding every year. The Leibniz Association has established a network of more than 80 research institutions with almost 12,000 employees. Some of the worlds most renowned fundamental research institutes are also located in Germany. The Max Planck Society and the Helmholtz Association allow companies to outsource costly research activities. This eases the access of developing new products and decreases research and development costs. Numerous spinoffs underline the ability of German research organizations to capitalize on technology.

Economic Overview Germany www.gtai.com

Germany: At the Crossroads of Europe

Situated at the market crossroads of Europe, Germanys optimal geographic location is beyond question: over half of the EU population lives within 500 kilometers of Germanys 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.

Sweden
p lan e >

Finland

Russia
Helsinki

Norway
Oslo

3 h by

Stockholm

Tallin

Moscow

Estonia
1,5 h >
Riga

Latvia Lithuania
Minsk

Edinburgh

Denmark
Copenhagen

RU

Vilnius

Dublin

Belarus

Ireland UK
Cardiff London Amsterdam Berlin

Warsaw Kiev

Netherlands Belgium
Brussels

GERMANY
Prague

Poland 15 h >

30 h by train > Ukraine

Luxembourg
Paris

Czech Republic Slovak Republic

Vienna Bratislava Budapest

Moldova
Chisinau

France
Bern

Austria

2 <1

Switzerland

Hungary Slovenia Zagreb Ljubljana Croatia

Belgrade BosniaHerzegovina Serbia Sarajevo Montenegro Kosovo

Romania
Bucharest

<
Portugal
Lisbon Madrid

24

by

u tr

ck
Italy
Rome

Bulgaria
So a Ankara

Podgorica

Pristina

Skopje

Tirana

Macedonia

Albania Greece
Athens
Source: Germany Trade & Invest 2011 Cartography: www.fotolia.de Antnio Duarte

Turkey Spain

Valletta

Malta

Economic Overview Germany www.gtai.com

Networks of Competence in Germany

The Kompetenznetze Deutschland (Competence Network Germany) initiative of the Federal Ministry of Economics and Technology brings together the bestperforming innovation clusters and networks in Germany. These are set up according to nine industry-specic category groups spread across Germany. The network helps promote international cooperation and international cluster knowledge transfer.

Greifswald Lbeck Bremerhaven Oldenburg Achim Vechta Hanover Bielefeld Paderborn Dortmund Unna Duisburg Velbert Dsseldorf Aachen Potsdam Berlin Braunschweig Gatersleben Stade Hamburg

Gttingen

Ldenscheid Kassel Dresden Jena Chemnitz

Wuppertal Remscheid Bonn

Wiesbaden

Hanau Gerbrunn

Wrstadt Saarbrcken Kaiserslautern

Darmstadt Heidelberg Erlangen Nuremberg Fellbach

Bayreuth

Neumarkt Cham

Industrial Focus of Networks of Competence Biotechnology Micro-Nano-Opto Production and Processing Transport and Mobility Health and Medicine Energy and the Environment New Materials and Chemicals Information and Communication Aerospace

Karlsruhe Stuttgart

Oberkochen Augsburg

Regensburg

Gppingen Gilching

Freising Martinsried Munich

Freiburg
Source: Kompetenznetze Deutschland 2011

Weling

Economic Overview Germany www.gtai.com

Our Investment Project Consultancy Services

Germany Trade & Invest Helps You

Germany Trade & Invests teams of industry experts will assist you in setting up your operations in Germany. We support your project management activities from the earliest stages of your expansion strategy. We provide you with all of the industry information you need covering everything from key markets and related supply and application sectors to the R&D landscape. Foreign companies profit from our rich ex-

perience in identifying the business locations which best meet their specific investment criteria. We help turn your requirements into concrete investment site proposals; providing consulting services to ensure you make the right location decision. We coordinate site visits, meetings with potential partners, universities, and other institutes active in the industry. Our team of consultants is at hand to provide you with the relevant background information on Germanys tax and legal system, industry regulations, and the domestic labor market. Germany Trade & Invests

experts help you create the appropriate nancial package for your investment and put you in contact with suitable nancial partners. Incentives specialists provide you with detailed information about available incentives, support you with the application process, and arrange contacts with local economic development corporations. All of our investor-related services are treated with the utmost confidentiality and provided free of charge.

Strategy
Project Management Assistance Business opportunity analysis and market research Market entry strategy support

Evaluation

Decision & Investment

Project partner identication and contact

Joint project management with regional development agency

Coordination and support of negotiations with local authorities

Location Consulting /Site Evaluation Identication of project-specic location factors Cost factor analysis Site preselection Site visit organization Final site decision support

Support Services Identication of relevant tax and legal issues Project-related nancing and incentives consultancy Organization of meetings with legal advisors and nancial partners Administrative affairs support Accompanying incentives application and establishment formalities

Economic Overview Germany www.gtai.com

Contact

Imprint
Publisher Germany Trade and Invest Gesellschaft fr Auenwirtschaft und Standortmarketing mbH Friedrichstrae 60 10117 Berlin Germany T. +49 (0)30 200 099-555 F. +49 (0)30 200 099-999 invest@gtai.com www.gtai.com Chief Executives Dr. Jrgen Friedrich, Michael Pfeiffer Authors Thomas Bozoyan, Market Intelligence Germany Germany Trade & Invest, thomas.bozoyan@gtai.com Dr. Hans-Peter Hssen, Market Intelligence Germany Germany Trade & Invest, hans-peter.huessen@gtai.com Marc Lehnfeld, Market Intelligence Germany Germany Trade & Invest, marc.lehnfeld@gtai.com Editor William MacDougall, Germany Trade & Invest Layout Germany Trade & Invest Print CDS Chudeck-Druck-Service, Bornheim-Sechtem Support 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. Notes Germany Trade & Invest, September 2011 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 Number 14783

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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 condentially. 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.

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