Invest in Bavaria Presentation

Bavaria More than fairy tale castles

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

 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 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.

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.

14
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

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 technology policy: Operational targets
16
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.

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
17
Topics and Framework

18
Instruments of Bavarian innovation policy
Building research infrastructure
Supporting technology transfer
Supporting clusters
Supporting start-ups
Funding of R&D projects

Bavaria: Top location for research
U U
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U
U
F
F
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F U
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F
F
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F
F
F
M M
M
M M
M
M
M
M
M
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H H
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FI
FI FI
FA
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F
FI
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FI
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FI
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17 Universities of Applied
Sciences
F
13 Max-Planck-Institutes & 1 Research
Group
M
H
FI
L 5 Research Institutes of WGL
U
U
FA
5 Institutes of Helmholtz-Society
14 Fraunhofer Project- and Work-Groups
M
F
F
F
FA FA
F
FI
FA
U
FA
FA
FA
FA
H S 17 Other Research Institutes
L
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S
S
S
S S
S
S
S
S
S S S
S
S
S
M
H
S
11 Universities, thereof
6 Universities/projects of Excellence
9 Institutes & Research Establish-ments
of Fraunhofer-Society

20
„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)

21
 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

22
Fraunhofer Society in Bavaria

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
23
Definition of “cluster”

19 Bavarian Clusters
24

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
25
Bavaria‘s Clusters in a nut shell

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
26
Cluster services for their members

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. €
27
Supporting Start-up Companies

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

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

31
 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

32
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

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

36
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

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

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]

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)

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:
oDr. Lucie Merkle in San Francisco
oJanet Danisman in New York
 Trade Fair Participation Program:
oNAB in Las Vegas
oSolar Power International (2014 Las Vegas; 2015 Chicago)
oWaste Expo Las Vegas
oIMTS and Pack Expo Chicago
oWestec Los Angeles
oGreen 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

48
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

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
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Invest in Bavaria: References

Invest in Bavaria Presentation

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