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Economic Overview Germany:Market, Productivity, InnovationIssue 2011/2012
Economic Overview Germany www.gtai.com
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
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%
* Most current data 2008 Financial Services, Renting,
Business Services 27.3%
Production-based
Industries 25.0%
Commerce, Catering Industry
and Communications 15.4%
Others 32.3%
GDP Formation 2010 (in percent)
Foreign Trade
Foreign trade(EUR bn)
2008 % 2009 % 2010 %
Exports
Imports
Balance
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
Germany’s 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
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
GDP Growth
6
4
2
0
-2
-4
-62008 2009 2010
(real annual change in percent)
1.3
-4.7
3.6
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, 60 percent of participating
American companies named Ger-
many as their fi rst choice; followed
by Eastern Europe (28 percent), and
the UK (18 percent) respectively.
Ernst & Young’s “European Attrac-
tiveness Survey 2011” confi rms
Germany’s reputation as one of the
most attractive business locations
in the world. International decision
makers ranked Germany fi rst within
Europe, and fi fth 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 profi ts, or access
to foreign exchanges.
Supporting Investment ProjectsIncentives in Germany are designed
to meet the immediate capital needs
of investors. Early stage investment
fi nancing 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 investor
country of provenance. Funding to
the tune of EUR 26.3 billion has been
freed up by the EU (co-fi nanced using
means obtained from German nati-
onal 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 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 509 billion in inward
FDI stocks in 2010. This represents
a growth of 33 percent from 2005
to 2010.
According to offi cial 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 re-
maining European non-EU coun-
tries. Investments from outside
the EU continue to grow. North
America accounts for eight per-
cent of FDI stock, while Asia holds
a fi ve percent share.
AmCham Business Barometer 2011
American business executives highlighted the following factors as the top
location advantages that distinguish Germany from its competitors.
Economic strength: diversifi ed mixture of businesses
Infrastructure: excellent nationwide infrastructure
Framework conditions: governmental promotion of forward-thinking
industries (e.g. solar and biotech)
Human capital: highly qualifi ed workforce, skilled talent pool
Source: American Chamber of Commerce Germany, Boston Consulting Group 2011
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 2003 and 2010, fDi Markets
recorded a total of 3,925 investment
projects from 2,929 foreign compa-
nies. With 776 projects, 2010 pro-
ved 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 invest-
ment projects), UK (nine percent),
and Switzerland (seven percent) res-
pectively. 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 world’s num-
ber one location for Chinese green-
fi eld investments.
Diverse Industry OpportunitiesAccording to fDi markets, foreign
companies invested in 39 different
sectors – underlining Germany’s
highly diversifi ed economy. Most
new investment projects were rea-
lized in the ICT & software industry
(18 percent of new projects). Busi-
ness and fi nancial 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 offi ces. Almost
one in fi 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 [email protected] 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 6%
Health Care, Pharma,
Biotechnology 6%
Transportation, Storage &
Logistics 5%
Energy, Minerals, Metals 4%Hotel, Tourism, Entertainment 3% Renewable Energy 2%
Other Sectors 4%
FDI Project Share in Germany by Sector 2003-2010 (as percent of total FDI projects)
Source: fDi Markets 2011
Sales, Marketing & Support
*Shared Service Center/Buisness Process Outsourcing/Contact CenterSource: fDi Markets 2011
0 5 10 15 20 25 30 35 40
Manufacturing
Business Services
Logistics, Distribution & Transportation
Headquarters
R&D
ICT & Internet Infrastructure
SSC/BPO/CC*
Education & Training
Other Activities
35%
17%
15%
6%
6%
2%
1%
1%
1%
17%
FDI Project Share in Germany by Business Activity 2003-2010 (as percent of total FDI projects)
Europe’s Economic Hub
Europe’s Largest MarketGermany 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
diversifi ed; with equal focus placed
on services and production.
Quick RecoveryGermany 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 quar-
ter of 2010 alone, Germany’s GDP
expanded by 2.2 percent – the stron-
gest quarter-on-quarter growth since
reunifi cation in 1990. This positive
development is refl ected in all rel-
evant 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 PlayerGermany’s products continue to be
export hits worldwide. Since 2003,
exports have grown by more than fi 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 fi 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 machin-
ery & equipment industries are in
particularly high demand worldwide.
Germany’s main trading partners
number European countries such
as France, UK, Italy, and the Nether-
lands as well as international mar-
kets including the United States,
China, Russia, and Japan. Seventy-
one percent of all exports are ex-
ported to European countries, of
which 15 percent go to eastern Euro-
pean 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 approx-
imately 10 percent.
Manufacturing Location GermanyGerman companies represent more
than nine percent of European man-
ufacturing companies and generate
27 percent of total EU turnover in the
sector. In fact, the manufacturing
sector represents nearly one fi fth
of Germany’s “value added” – one
of the highest shares in Europe. In-
creasingly more foreign companies
are placing their faith in Germany as
a vital production site location, and
are benefi ting from the country’s
excellent business framework and
superior productivity rates.
SMEs: Germany’s Economic BackboneExports are driven by Germany’s
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 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 2,477 20% 82 16%
France 1,933 16% 65 13%
UK 1,697 14% 62 12%
Spain 1,063 9% 46 9%
Netherlands 588 5% 17 3%
Poland 354 3% 38 8%
Czech Rep. 145 1% 11 2%
Slovak Rep. 66 1% 5 1%
USA 10,957 309
Japan 4,122 128
EU-27 12,284 501
Eurozone 9,170 331
Share of Total GDP and Population in the European Union 2010
Note: Czech Rep. GDP data are forecastsSource: Eurostat, US Census Bureau, Japanese Statistics Bureau 2011
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) refl ects
Germany’s role as the major pla-
yer in the continent’s economy.
World Class Transport InfrastructureGermany’s infrastructure excel-
lence is confi rmed 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
2011-2012 Global Competitiveness
Report of the World Economic Fo-
rum (WEF) ranked Germany fi rst
in Europe and second worldwide
for infrastructure; singling out
Germany’s extensive and effi cient
infrastructure for highly effi cient
transportation of goods and passen-
gers 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.
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 traffi c
(Hamburg), Europe’s 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 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 37,900 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 largest 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 200 billion in 2010 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 Hong Kong
2 Germany
3 Singapore
4 France
5 Switzerland
6 UK
7 Netherlands
8 UAE
9 South Korea
10 Denmark
Quality of Infrastructure
Source: WEF 2011
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 0.3
percent for the period 2005 to 2010.
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 signifi -
cantly 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 busi-
ness location.
Excellent Production Standards Germany’s high productivity is also
closely linked to its excellent pro-
duction process standards. This has
been confi rmed by a study of inter-
national executives conducted by
the World Economic Forum. Accord-
ing to the study fi ndings, Germany
is seen as a country where the best
and most effi cient process technol-
ogy is applied.
Japan
1=labor-intensive methods or previous generations of process technology7=the world’s best and most effi cient process technology
Source: World Economic Forum 2011
0 1 2 3 4 5 6 7
GermanyNetherlands
USA
France
UK
Czech Rep.
Spain
Slovak Rep.
Poland
6.5
6.36.0
5.6
5.6
5.5
4.6
4.5
4.4
4.0
Assessment of Sophistication of Production Process 2010
China 4.0
Annual average growth expresssed as percentage of industry, construction and services.Source: Eurostat 2011
European Labor Cost Growth 2001-2010
0% 5% 10%
1.6%
2.1%
3.4%
3.6%
4.1%
6.3%
6.8%
8.3%
7.7%
Germany
France
Netherlands
Spain
UK
Poland
Czech Rep.
Slovak Rep.
Hungary
“Europe is a growing market for our light-curing
adhesives. Due to the highly qualifi ed workers and
effi cient cost structure, Germany was the clear
choice for the expansion of our production and
R&D activities.”A.Gregory Bachmann, President, DYMAX Corporation
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 qualifi ed and fl exible labor
pool. For vocational training the
country developed the dual educa-
tion system – unique in combining
the benefi ts 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 2010, some 443,000
students – at more than 400 uni-
versities – embarked on a course of
academic study. Technical fi elds 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 second 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 312
PhD graduates per million inhabit-
ants, it ranks second in a comparison
of OECD countries.
Outstanding ReputationGerman labor fl exibility is refl ected
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 (41.8 hours per week) and lose
less days per annum to strike action
than other European nations (sig-
nifi cantly below the EU-27 average
according to Eurofound).
Workforce in Germany by Level of Professional Education 2010(percent of total workforce)
Source: Federal Statistical Office 2011
Skilled Craftsmen
(dual education system
apprentices) 55%
Vocational College
Graduates & Technicians
(master craftsmen) 9%
Unskilled 18%University Graduates 18%
10=highest motivation levelNote: IMD WCY Executive Opinion Survey based on an index from 0 to 10 Source: IMD World Competitiveness Yearbook 2011
Worker Motivation in Companies 2011
Denmark
0 1 2 3 4 5 6 7 8
GermanyNetherlands
Japan
USA
Czech Rep.
China
UK
Hungary
Poland
7.247.14
6.88
6.47
6.05
5.96
5.70
5.24
5.00
Spain
Slovak Rep.
4.95
4.82
France 4.42
8.09
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 EUR
66.7 billion (2009) 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 signifi cantly
increased its R&D expenditures in
recent years. The European Com-
mission 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 ex-
ample, Bavaria signifi cantly exceeds
Russia’s 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, Tübin-
gen, and Darmstadt are unique in
Europe, benefi ting 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.
Value Added Through Innovative TechnologiesA 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 manufactur-
ing 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 GermanyGerman companies are global lead-
ers in the development of new tech-
nologies. Standing for high quality
and innovation, the “Made in Germany”
brand has been a seal of quality for
over a century. In 2009, Germany ex-
ported 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: Innovation
R&D Expenditure by Federal State Equivalent Country 2009
NORTH SEABALTIC SEA
CZECH REPUBLIC
POLAND
THE NETHERLANDS
BELGIUM
FRANCE
LUXEM-BOURG
Source: Eurostat, Federal Statistical Office 2011
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Baden-Württemberg
Spain + Portugal
Bavaria Russia
Saarland Croatia
Rheinland-Pfalz
Poland
North Rhine-Westphalia
Netherlands
Hessen Belgium
Saxony Portugal
Thuringia Hungary
Saxony-Anhalt Slovenia
Niedersachsen Norway
Mecklenburg-Vorpommern
Romania
Schleswig-Holstein
Slovenia + Slovak Rep.
Hamburg Czech Rep.
Bremen Luxembourg
Berlin Turkey
Brandenburg Bulgaria +
Romania
Germ
any
Fran
ce
UK
EUR 42.1 bn
EUR 29.3 bn
EUR 67.7 bn
DENMARK
Economic Overview Germany www.gtai.com
Intellectual property rights enjoy a
high level of protection in Germany.
For technical and commercial in-
novations, 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
fi rst in its Global Intellectual Prop-
erty Index 2011.
Profi ting from Innovation ClustersThe German R&D landscape is best
exemplifi ed by close cooperation
between the worlds of science and
industry. Germany’s publicly funded
research bodies provide an interna-
tionally unique selling point. The
applied research institutes of the
Fraunhofer Society and Leibniz
Association provide companies –
particularly SMEs – with unparal-
leled access to world-class re-
search. 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 al-
most 12,000 employees. Some of the
world’s 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 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. Annual R&D fund-
ing of approximately EUR 4 billion
has been set aside to develop cutting
edge technologies. R&D projects
can accordingly count on numerous
forms of fi nancial support. 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 larg-
est population of researchers in
Europe (20 percent of all EU scien-
tists live and work in Germany),
German scientists work on proj-
ects all over the world. For ex-
ample, 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 ef-
fi cient way to close knowledge gaps.
Scientists can be easily integrated
into the company team of develop-
ers and researchers and, increas-
ingly, institutes provide for the
necessary laboratory facilities.
Europe’s Patent LeaderWith over 12,000 patents granted
at the European Patent Offi ce in
2010, Germany’s share of patents is
almost twice that of France and the
UK combined. This shows the com-
mercial 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 offi ces:
the European Patent Offi ce, the
United States Patent and Trademark
Offi ce, and the Japan Patent Offi ce).
Economic Overview Germany: Innovation
Source: Eurostat 2011
Germany 20%
France 18%
UK 15%
Portugal 3%
Sweden 3%
Poland 4%
Italy 6%
Spain 8%
Others (18 EU countries) 20%
Netherlands 3%
National Share of Researchers in EU-27 2009
“As a global company, Alcatel-Lucent relies on
Germany’s excellent R&D landscape. A culture
of effi ciency, 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
Sofi a
Ankara
Athens
Tirana
Skopje
Belgrade
Rome
Valletta
Bern
Sarajevo
Zagreb
Ljubljana
Vienna
Budapest
Bratislava
Prague
Podgorica
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< 24 h by truck
15 h > 30 h by train >
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Edinburgh
Cardiff
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
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
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Greifswald
Berlin
Dresden
ChemnitzJena
Cham
Munich
Bayreuth
Erlangen
Gerbrunn
Hanau
Darmstadt
Freising
Regensburg
MartinsriedGilching
Weßling
Augsburg
Göppingen
Oberkochen
Neumarkt
Freiburg
Stuttgart
Fellbach
Heidelberg
Karlsruhe
SaarbrückenKaiserslautern
Wörstadt
Wiesbaden
Bonn
Nuremberg
Kassel
GöttingenPaderborn
Bielefeld
Hanover
Gatersleben
Braunschweig
Vechta
Achim
Oldenburg
Bremerhaven Stade Hamburg
Lübeck
Aachen
Remscheid
Düsseldorf Lüdenscheid
Wuppertal
UnnaDortmund
Duisburg Velbert
Potsdam
Networks of Competence in Germany
The Kompetenznetze Deutschland (“Competence Network Germany”) initiative
of the Federal Ministry of Economics and Technology brings together the best-
performing innovation clusters and networks in Germany. These are set up
according to nine industry-specific category groups spread across Germany.
The network helps promote international cooperation and international cluster
knowledge transfer.
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-
agement activities from the earliest
stages of your expansion strategy.
We provide you with all of the indus-
try information you need – covering
everything from key markets and
related supply and application sec-
tors to the R&D landscape. Foreign
companies profit from our rich ex-
perience in identifying the business
locations which best meet their spe-
cific 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 Germa-
ny’s tax and legal system, industry
regulations, and the domestic labor
market. Germany Trade & Invest’s
experts help you create the appro-
priate financial package for your in-
vestment and put you in contact with
suitable financial partners. Incen-
tives specialists provide you with
detailed information about available
incentives, support you with the ap-
plication process, and arrange con-
tacts with local economic develop-
ment corporations.
All of our investor-related services
are treated with the utmost confiden-
tiality and provided free of charge.
Project Management Assistance
Coordination and
support of nego-
tiations with local
authorities
Joint project
management with
regional develop-
ment agency
Project partner
identifi cation
and contact
Market entry
strategy support
Business oppor-
tunity analysis and
market research
Location Consulting /Site Evaluation
Final site
decision support
Site visit
organization
Site preselectionCost factor
analysis
Identifi cation of
project-specifi c
location factors
Accompanying
incentives application
and establishment
formalities
Administrative
affairs support
Organization of
meetings with
legal advisors and
fi nancial partners
Project-related
fi nancing and incen-
tives consultancy
Identifi cation of re-
levant tax and legal
issues
Support Services
Decision & InvestmentStrategy Evaluation
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
Chief ExecutivesDr. Jürgen Friedrich, Michael Pfeiffer
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
PrintCDS Chudeck-Druck-Service, Bornheim-Sechtem
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, 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 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 intothe German market, and assists companies established in Germany looking to enter foreign markets.
All inquiries relating to Germany as a business location are treated confi dentially. 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
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