8/3/2019 Economic Overview Germany - September 2011 (Germany Trade & Invest)
1/15
BusinessLocationGermany
Economic Overview Germany:Market, Productivity, Innovation
Issue 2011/2012
8/3/2019 Economic Overview Germany - September 2011 (Germany Trade & Invest)
2/15Economic 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 rate2010: 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-basedIndustries 25.0%
Commerce, Catering Industryand Communications 15.4%
Others 32.3%
GDP Formation 2010 (in percent)
Foreign Trade
Foreign trade
(EUR bn)
2008 % 2009 % 2010 %
ExportsImportsBalance
984.1805.8
+178.3
+2.9+4.3
803.3664.6
+138.7
-18.4-17.5
959.5806.2
+153.4
+19.4+21.3
Germanys trade
relations with
EU (EUR bn)
Exports to EUImports from EUBalance
621.3531.5+89.8
+0.5+5.1
489.1441.3+47.8
-21.3-17.0
557.3515.2+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
8/3/2019 Economic Overview Germany - September 2011 (Germany Trade & Invest)
3/15Economic Overview Germany www.gtai.com
Foreign Direct Investment
Paving the Way forForeign DirectInvestment
First Choice Business Location
A recent study conducted by theAmerican Chamber of Commercehighlights the positive regard inwhich the German business envi-ronment is held by US companies.
Invited to indicate their main me-dium-term investment focus withinthe EU, 60 percent of participatingAmerican companies named Ger-many as their first choice; followedby Eastern Europe (28 percent), andthe UK (18 percent) respectively.
Ernst & Youngs European Attrac-tiveness Survey 2011 confirmsGermanys reputation as one of themost attractive business locations
in the world. International decisionmakers ranked Germany first withinEurope, and fifth worldwide in the
most attractive business locationcategory.
Free and Open Markets
Germany has a welcoming attitudetowards foreign direct investment(FDI). The German market is openfor investment in practically allindustry sectors, and businessactivities are free from regulations
restricting day-to-day business.German law makes no distinctionbetween Germans and foreign nati-onals regarding investments or theestablishment of companies. Thelegal framework for FDI in Germanyfavors the principle of freedom offoreign trade and payment. Thereare no restrictions or barriers tocapital transactions or currencytransfers, real estate purchases,repatriation of profits, or accessto foreign exchanges.
Supporting Investment Projects
Incentives in Germany are designedto meet the immediate capital needsof investors. Early stage investmentfinancing provides funding at thebeginning of the new investmentproject. These incentives, mostlyprovided as cash grants, are impor-tant as they guarantee liquidity ata stage in the investment process
when investor capital requirementsare typically high. Later stage invest-ment incentives are made availablein the form of a raft of programscreated to support putting togethera workforce in Germany (e.g. throughwage subsidies) and provide gene-rous R&D project assistance. Incen-tives in Germany are available to allinvestors regardless of investorcountry of provenance. Funding tothe tune of EUR 26.3 billion has beenfreed up by the EU (co-financed using
means obtained from German nati-onal and federal budgets) through2013. As well as this, Germany and itsindividual federal states also maketheir own incentives funds availableto prospective investors.
For more incentives information,please visit our website:www.gtai.com/incentives
Global FDI Magnet
According to the United NationsConference on Trade and Develop-ment (UNCTAD), Germany ranksamong the worlds leading countriesfor foreign direct investments withmore than EUR 509 billion in inwardFDI stocks in 2010. This representsa growth of 33 percent from 2005to 2010.
According to official Bundesbank(German Central Bank) statisticsfor 2009, 77 percent of all FDIstocks in Germany originate fromwithin the EU-27; with a furthernine percent derived from the re-maining European non-EU coun-tries. Investments from outsidethe EU continue to grow. NorthAmerica accounts for eight per-cent of FDI stock, while Asia holdsa five percent share.
AmCham Business Barometer 2011
American business executives highlighted the following factors as the toplocation advantages that distinguish Germany from its competitors.
Economic strength: diversified mixture of businesses
Infrastructure: excellent nationwide infrastructure
Framework conditions: governmental promotion of forward-thinkingindustries (e.g. solar and biotech)
Human capital: highly qualified workforce, skilled talent pool
Source: American Chamber of Commerce Germany, Boston Consulting Group 2011
8/3/2019 Economic Overview Germany - September 2011 (Germany Trade & Invest)
4/15Economic Overview Germany www.gtai.com
Foreign Direct Investment
Foreign DirectInvestment Projects
Every year more and more compa-nies discover Germany as a secureand rewarding investment location.More than 55,000 foreign companiesare already operating in Germany,providing employment to aroundthree million people proof positive
of Germanys attractiveness as aninternational business location.
Between 2003 and 2010, fDi Marketsrecorded a total of 3,925 investmentprojects from 2,929 foreign compa-nies. With 776 projects, 2010 pro-ved to be the most successful yearon record with Germany placingfourth internationally in terms ofFDI projects attracted.
The most important countries as
sources for new investment projectsare the USA (27 percent of all invest-ment projects), UK (nine percent),and Switzerland (seven percent) res-pectively. In 2009, China emerged asa major source of investments, withthe number of Chinese investmentprojects into Germany more thandoubling within just one year. Thishigh level was reached again in 2010,making Germany the worlds num-ber one location for Chinese green-field investments.
Diverse Industry Opportunities
According to fDi markets, foreigncompanies invested in 39 differentsectors underlining Germanyshighly diversified economy. Mostnew investment projects were rea-lized in the ICT & software industry(18 percent of new projects). Busi-ness and financial services as wellas automotive and industrial machi-nery & equipment were close behind
each with 15 percent of all projects.
Most new projects open sales andmarketing & support offices. Almostone in five investment projects ismanufacturing-site located makingthis the second most importantbusiness activity in Germany.
Germany Trade & Invest's industryexperts will assist you to realizeyour investment project in Germany.Please contact [email protected] more information.
ICT & Software 18%
Business & FinancialServices 15%
Automotive, IndustrialMachinery & Equipment 15%
Chemicals, Plastics,Paper 8%
Electronics &Semiconductors 7%
Consumer Goods(incl. Food & Beverages) 7%
Textiles 6%
Health Care, Pharma,Biotechnology6%
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)
8/3/2019 Economic Overview Germany - September 2011 (Germany Trade & Invest)
5/15
Europes Economic Hub
Europes Largest MarketGermany is the largest market inEurope. It constitutes 20 percent ofEuropean GDP, and is home to 16percent of the total European Union(EU) population. The German econo-my is both highly industrialized anddiversified; with equal focus placed
on services and production.
Quick RecoveryGermany quickly recovered fromthe economic slump of 2009. Witha GDP increase of 3.6 percent, theeconomy experienced a strong growthdynamic in 2010. In the second quar-ter of 2010 alone, Germanys GDPexpanded by 2.2 percent the stron-gest quarter-on-quarter growth sincereunification in 1990. This positive
development is reflected in all rel-evant economic key data. The trendis expected to continue in 2011, withthe German government forecastinga GDP growth rate of 2.6 percent.
Global PlayerGermanys products continue to beexport hits worldwide. Since 2003,exports have grown by more than fivepercent 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 figures enjoyed a briskrecovery from the global recession,increasing by around 20 percent in2010. Imports and exports in 2010amounted to EUR 806 billion andEUR 960 billion respectively.
German-produced goods from thechemical, automotive, and machin-ery & equipment industries are inparticularly high demand worldwide.
Germanys main trading partnersnumber European countries suchas 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, ofwhich 15 percent go to eastern Euro-pean countries. In 2010, the numbertwo region for German exports wasAsia; receiving approximately 15percent of all goods from Germany,followed by the Americas at approx-imately 10 percent.
Manufacturing Location GermanyGerman companies represent morethan nine percent of European man-ufacturing companies and generate27 percent of total EU turnover in thesector. In fact, the manufacturingsector represents nearly one fifthof Germanys value added oneof the highest shares in Europe. In-creasingly more foreign companiesare placing their faith in Germany as
a vital production site location, andare benefiting from the countrysexcellent business framework andsuperior productivity rates.
SMEs: GermanysEconomic BackboneExports are driven by Germanysbackbone of highly innovative smalland medium-sized enterprises(SMEs). These constitute 99.6 percentof all companies, employing 79.5percent of all employees in Germany.Many of these SMEs are world mar-ket leaders in their respective nichesegments. Together with interna-
tionally leading large companies including Bayer, BASF, Daimler,Volkswagen, and Siemens to namebut a few they make up Germanysmanufacturing 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%
CzechRep. 145 1% 11 2%SlovakRep. 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 forecasts
Source: Eurostat, US Census Bureau, Japanese Statistics Bureau 2011
Economic Overview Germany www.gtai.com
8/3/2019 Economic Overview Germany - September 2011 (Germany Trade & Invest)
6/15
Closer to Market with
First Class Infrastructure
Europes Global Logistics HubWith state-of-the-art transporta-tion networks by road, rail, sea, andinland waterways as well as adense network of both national andinternational airports Germanyprovides easy access to domesticand international markets. Littlewonder that Germany is a globallogistics hub. More goods passthrough Germany than through anyother country in Europe. Its approx-imately one quarter share of theEuropean logistics market (EU-27,Norway and Switzerland) reflectsGermanys role as the major pla-yer in the continents economy.
World Class Transport
InfrastructureGermanys infrastructure excel-lence is confirmed by a number ofrecent studies including the SwissIMDs World Competitiveness Year-book and various investor surveysconducted by institutions includingUNCTAD and Ernst & Young. The2011-2012 Global CompetitivenessReport of the World Economic Fo-rum (WEF) ranked Germany firstin Europe and second worldwide
for infrastructure; singling outGermanys extensive and efficientinfrastructure for highly efficienttransportation of goods and passen-gers for special praise. Accumulatedin this score for Germany are highmarks for the quality of roads andair transport, excellent railroadsand port infrastructure, as wellas its communications and energyinfrastructure.
Economic Overview Germany: Market
World Class NetworkInfrastructureAmong the highlights of the coun-trys network infrastructure areEuropes second largest portmeasured in container port traffic(Hamburg), Europes largest portcontainer terminal (Bremerhaven)and over 250 inland ports. Germanyhas a dense network of airports (ofwhich 22 are international airports).Among them, Frankfurt is the worlds
seventh and ninth largest airportin terms of cargo and passengervolume respectively. The countryshighway system has one of the high-est highway kilometer density levelsin Europe, its 37,900 km of railwaytrack being almost enough to circlethe globe. Germanys high-speedrailway network, with speeds of upto 300 km/h, is the fourth largest inthe world.
Logistics GiantsNot only is Germanys logistics infra-structure among the best, its compa-nies are also global logistics leaders.In fact, the worlds largest logisticsservices provider is a German com-pany Deutsche Post DHL. DeutscheBahn operates Europes largest railnetwork and Lufthansa Cargo isone of the worlds leading global airfreight companies. Annual revenuesof over EUR 200 billion in 2010 makeGermany Europes logistics leader.
No other EU country comes close toGermanys market size.
Germany is our strategic focal point, a countrythere is no way around in our industry. Germanyis the largest market in Europe, which creates the
greatest advantages for our company. Investinghere was an absolute must.Sun Shubao, General Manager, Haier Group Europe and Germany
Source: World Economic Forum 2010
Rank Countr y
1 Hong Kong
2 Germany3 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, Germanys seaportsare an important conduit for tradewith the UK, Scandinavia, and theBaltic states. In the west, an exten-sive network of roads, rail links andinland waterways feeds into Franceand the Benelux countries. To thesouth, Germany has strong com-mercial ties with Switzerland andAustria and direct road, rail andwater links with the Balkan states.
Turning eastwards, Germanys bor-ders with Poland and the Czech Re-public also bring the Slovak Republicand Hungary within easy reach andmake the more distant markets inTurkey and Russia readily accessible.
Economic Overview Germany www.gtai.com
8/3/2019 Economic Overview Germany - September 2011 (Germany Trade & Invest)
7/15
Economic Overview Germany: Productivity
IncreasingCompetitiveness
High ProductivityMeasured in unit labor costs, Ger-many experienced a major increasein productivity the past decade. Inmarked contrast to other Europeancountries which have experiencedan overall increase in unit laborcosts, Germanys unit labor costsdecreased by a yearly average of 0.3percent for the period 2005 to 2010.This made the economy more com-petitive particularly manufacturing.
Stable Labor CostsAt the same time, the labor cost gapbetween Germany and its easternEuropean neighbors has been signifi-cantly reduced. In fact, Germany hasgained the labor-cost edge in recent
years. Since 2000, wages have risenin most European countries (EU-27),with the growth rate averaging 3.7percent. While some countries particularly those in eastern Europeexperienced a rise of more thanseven percent, Germany recordedthe lowest labor cost growth withinthe EU at just 1.6 percent. This hasbeen another decisive argument infavor of Germany as a premium busi-ness location.
Excellent Production StandardsGermanys high productivity is alsoclosely linked to its excellent pro-duction process standards. This hasbeen confirmed by a study of inter-national executives conducted bythe World Economic Forum. Accord-ing to the study findings, Germanyis seen as a country where the bestand most efficient process technol-ogy is applied.
Japan
1=labor-intensive methods or previous generations of process technology7=the worlds best and most efficient process technology
Source: World Economic Forum 2011
0 1 2 3 4 5 6 7
Germany
Netherlands
USA
France
UK
Czech Rep.
Spain
Slovak Rep.
Poland
6.5
6.3
6.0
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 ser vices.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-curingadhesives. Due to the highly qualified workers andefficient cost structure, Germany was the clearchoice for the expansion of our production andR&D activities.A.Gregory Bachmann, President, DYMAX Corporation
Economic Overview Germany www.gtai.com
8/3/2019 Economic Overview Germany - September 2011 (Germany Trade & Invest)
8/15
Highly Skilled WorkforceGermanys excellent workforce isdecisive to the countrys high pro-ductivity rates. It comprises over40 million people making it thelargest pool of ready labor in theEU. Germanys world-class educa-tion system ensures that the high-est standards are always met. Morethan 80 percent of the German work-force has received formal vocationaltraining or is in possession of anacademic degree.
Dual Education SystemGermany provides direct access toa highly qualified and flexible laborpool. For vocational training thecountry developed the dual educa-tion system unique in combiningthe benefits of classroom-based andon-the-job training over a period oftwo to three years which is specifi-
cally geared to meet industry needs.There are currently around 350occupations recognized by the sys-tem. The German Chambers of In-dustry and Commerce (IHKs) ensurethat exacting standards are rigidlyadhered to, guaranteeing the qualityof training provided across Germany.
Engineering ExcellenceAccording to the OECD, Germanyhas an excellent standard in higher
education. In 2010, some 443,000students at more than 400 uni-versities embarked on a course ofacademic study. Technical fields ofstudy experienced an undergraduateenrollment level increase of morethan eight percent. Germanys shareof university students in the sciences,mathematics, computer sciences,and engineering is the second high-est in the EU, with 31 percent of allstudents. German universities haveintroduced masters and bachelor
degrees for improved internationalacceptance and comparison.
In addition, the country can be proudof one of the highest rates of gradu-ates with a doctoral degree. With 312PhD graduates per million inhabit-ants, it ranks second in a comparisonof OECD countries.
Outstanding ReputationGerman labor flexibility is reflectedin higher than average employeemotivation levels exceeding thoseof most leading industrialized nations.
In fact, according to the IMD WorldCompetitiveness Yearbook, German
Economic Overview Germany: Productivity
employee motivation levels aregreater 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 Germanswork more than their internationalpeers (41.8 hours per week) and loseless days per annum to strike actionthan other European nations (sig-nificantly below the EU-27 averageaccording to Eurofound).
Workforce in Germany by Level of Professional Education 2010(percent of total workforce)
Source: Federal Statistical Office 2011
Skilled Craftsmen(dual education systemapprentices) 55%
Vocational CollegeGraduates & 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 10Source: IMD World Competitiveness Yearbook 2011
Worker Motivation in Companies 2011
Denmark
0 1 2 3 4 5 6 7 8
Germany
Netherlands
Japan
USA
Czech Rep.
China
UK
HungaryPoland
7.24
7.14
6.88
6.47
6.05
5.96
5.70
5.245.00
Spain
Slovak Rep.
4.95
4.82
France 4.42
8.09
Economic Overview Germany www.gtai.com
8/3/2019 Economic Overview Germany - September 2011 (Germany Trade & Invest)
9/15
High Innovation Rate
Innovation Leader GermanyIn Germany, enormous sums areinvested in the development of newtechnologies and innovations. Today,total R&D expenditures of EUR66.7 billion (2009) make GermanyEuropes largest research location.Since 2005, R&D expenditures have
steadily increased at a compoundannual growth rate of 4.6 percent.
R&D is considered to be among themost important areas for the devel-opment of the German economy. In-dustry in particular has significantlyincreased its R&D expenditures inrecent years. The European Com-mission accordingly expects Germanyto reach its ambitious 2020 R&Dtarget of three percent of GDP in
the coming years (Innovation UnionCompetiti veness Report 2011).
R&D Excellence in German RegionsThe large amounts Germany investsin fast-developing technologiesis visible at a regional level. Theindividual federal state researchbudgets correspond with those ofother European countries. For ex-ample, Bavaria significantly exceedsRussias R&D investments, whileNorth Rhine-Westphalia invests
more than its western neighbor, theNetherlands.
One of the most R&D intensiveregions with the highest researchexpenditures in Europe can befound in Germany. The regionsaround Stuttgart, Karlsruhe, Tbin-gen, and Darmstadt are unique inEurope, benefiting from high R&Dbudgets in strong industries andtheir immediate environs. Eight
percent of the total R&D budget inEurope is spent in this geographicalcluster alone.
Value Added ThroughInnovative TechnologiesA 2011 study carried out by theGerman Institute of EconomicResearch (DIW) found that no otherindustrialized country produces alarger share of gross value addedin research-intensive manufactur-ing industries than Germany. Theshare of total value creation inresearch-intensive industries in
Germany exceeds Japan and USlevels and is more than double theshare of France, UK, and Italy.
High-Tech Products Madein GermanyGerman companies are global lead-ers in the development of new tech-nologies. Standing for high qualityand innovation, the Made in Germanybrand has been a seal of quality forover a century. In 2009, Germany ex-ported high-tech goods to the valueof EUR 102 billion making it the tophigh-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 2011Cartography:roccomontoyaistockphoto.c
om
Baden-Wrttemberg
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
Germany
France
UK
EUR 42.1 bn
EUR 29.3 bn
EUR 67.7 bn
DENMARK
Economic Overview Germany www.gtai.com
8/3/2019 Economic Overview Germany - September 2011 (Germany Trade & Invest)
10/15
Intellectual property rights enjoy ahigh level of protection in Germany.For technical and commercial in-novations, property rights can beregistered in the form of patents,utility models, trademarks, anddesigns. The same conditions applyto foreigners as they do German
nationals when registering propertyrights. These are just some reasonswhy Taylor Wessing ranked Germanyfirst in its Global Intellectual Prop-erty Index 2011.
Profiting from Innovation ClustersThe German R&D landscape is bestexemplified by close cooperationbetween the worlds of science andindustry. Germanys publicly fundedresearch bodies provide an interna-tionally unique selling point. The
applied research institutes of theFraunhofer Society and LeibnizAssociation provide companies
particularly SMEs with unparal-leled access to world-class re-search. With about 60 institutes andmore than 13,000 employees, theFraunhofer-Gesellschaft utilizesEUR 1.6 billion in research fundingevery year. The Leibniz Associationhas established a network of more
than 80 research institutions with al-most 12,000 employees. Some of theworlds most renowned fundamentalresearch institutes are also locatedin Germany. The Max Planck Societyand the Helmholtz Association allowcompanies to outsource costlyresearch activities. This eases theaccess of developing new productsand decreases research and de-velopment costs. Numerous spin-offs underline the ability of Germanresearch organizations to capitalize
on technology.
Public R&D Support:Germanys High-Tech StrategyAn unprecedented campaign to fosterthe advancement of new technolo-gies has been launched by the Ger-man government. Annual R&D fund-ing of approximately EUR 4 billionhas been set aside to develop cuttingedge technologies. R&D projectscan accordingly count on numerousforms of financial support. Interest-reduced loans and special partner-ship programs complete Germanyspublic R&D project support.
World Class Know-HowWhile Germany is home to the larg-est population of researchers inEurope (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 achievedthrough fruitful partnershipswith more than 6,500 partners inresearch institutions across 123countries. Cooperation projectsbetween companies and academicresearch institutes provide an ef-ficient way to close knowledge gaps.Scientists can be easily integratedinto the company team of develop-ers and researchers and, increas-ingly, institutes provide for the
necessary laboratory facilities.
Europes Patent LeaderWith over 12,000 patents grantedat the European Patent Office in2010, Germanys share of patents isalmost twice that of France and theUK combined. This shows the com-mercial viability of innovations madein Germany. The country is also theleading European nation in triadicpatents (patents registered at thethree major global patent offices:
the European Patent Office, theUnited States Patent and TrademarkOffice, and the Japan Patent Office).
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 onGermanys excellent R&D landscape. A cultureof efficiency, creativity, and entrepreneurshipcreates the ideal environment for us to innovate.Alf Henryk Wulf, Chairman of the Boar d, Alcatel-Lucent Deutschland AG
Economic Overview Germany www.gtai.com
8/3/2019 Economic Overview Germany - September 2011 (Germany Trade & Invest)
11/15
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
SlovakRepublic
Hungary
RU
Moldova
Macedonia
Albania
Croatia
Slovenia
Montenegro
Dublin
London
Lisbon
Madrid
Paris
Luxembourg
Berlin
Belgium
Brussels
Amsterdam
Copenhagen
Oslo
Stockholm
Helsinki
Moscow
Minsk
Tallin
Riga
Vilnius
Warsaw
Kiev
Chisinau
Bucharest
Sofia
Ankara
Athens
Tirana
Skopje
Belgrade
Rome
Valletta
Bern
Sarajevo
ZagrebLjubljana
Vienna
Budapest
Bratislava
Prague
Podgorica
1,
5h>
3hb
yp
lane
>
Cartography:www.fotolia.deAntnioDuarte
Sour
ce:GermanyTrade&Invest2011
Edinburgh
Cardiff
Germany: At the Crossroads of Europe
Situated at the market crossroads of Europe, Germanys optimal geographiclocation is beyond question: over half of the EU population lives within 500kilometers of Germanys borders; more goods pass through Germany thanany other European country; and almost all of Europe is reachable withinthree hours by air or 24 hours by road.
KosovoPristina
Economic Overview Germany www.gtai.com
8/3/2019 Economic Overview Germany - September 2011 (Germany Trade & Invest)
12/15
Industrial Focus ofNetworks 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
Source:KompetenznetzeDeutschland2011
Greifswald
Berlin
Dresden
ChemnitzJena
Cham
Munich
Bayreuth
Erlangen
Gerbrunn
Hanau
Darmstadt
Freising
Regensburg
MartinsriedGilching
Weling
Augsburg
Gppingen
Oberkochen
Neumarkt
Freiburg
Stuttgart
Fellbach
Heidelberg
Karlsruhe
SaarbrckenKaiserslautern
Wrstadt
Wiesbaden
Bonn
Nuremberg
Kassel
GttingenPaderborn
Bielefeld
Hanover
Gatersleben
Braunschweig
Vechta
Achim
Oldenburg
Bremerhaven Stade Hamburg
Lbeck
Aachen
Remscheid
DsseldorfLdenscheid
Wuppertal
UnnaDortmund
Duisburg Velbert
Potsdam
Networks of Competence in Germany
The Kompetenznetze Deutschland(Competence Network Germany) initiativeof the Federal Ministry of Economics and Technology brings together the best-performing innovation clusters and networks in Germany. These are set upaccording to nine industry-specific category groups spread across Germany.The network helps promote international cooperation and international clusterknowledge transfer.
Economic Overview Germany www.gtai.com
8/3/2019 Economic Overview Germany - September 2011 (Germany Trade & Invest)
13/15
Economic Overview Germany www.gtai.com
Our Investment Project Consultancy Services
Germany Trade &Invest Helps You
Germany Trade & Invests teams ofindustry experts will assist you insetting up your operations in Ger-many. We support your project man-agement activities from the earlieststages of your expansion strategy.
We provide you with all of the indus-try information you need coveringeverything from key markets andrelated supply and application sec-tors to the R&D landscape. Foreigncompanies profit from our rich ex-
perience in identifying the businesslocations which best meet their spe-cific investment criteria. We helpturn your requirements into concreteinvestment site proposals; providingconsulting services to ensure youmake the right location decision. Wecoordinate site visits, meetings withpotential partners, universities, andother institutes active in the industry.
Our team of consultants is at handto provide you with the relevantbackground information on Germa-nys tax and legal system, industryregulations, and the domestic labormarket. Germany Trade & Invests
experts help you create the appro-priate financial package for your in-vestment and put you in contact withsuitable financial partners. Incen-tives specialists provide you withdetailed information about availableincentives, support you with the ap-plication process, and arrange con-tacts with local economic develop-ment corporations.
All of our investor-related servicesare treated with the utmost confiden-tiality and provided free of charge.
Project Management Assistance
Coordination andsupport of nego-tiations with localauthorities
Joint projectmanagement withregional develop-ment agency
Project partneridentificationand contact
Market entrystrategy support
Business oppor-tunity analysis andmarket research
Location Consulting /Site Evaluation
Final site
decision support
Site visit
organization
Site preselectionCost factor
analysis
Identification of
project-specificlocation factors
Accompanyingincentives applicationand establishmentformalities
Administrativeaffairs support
Organization ofmeetings withlegal advisors andfinancial partners
Project-relatedfinancing and incen-tives consultancy
Identification of re-levant tax and legalissues
Support Services
Decision & InvestmentStrategy Evaluation
8/3/2019 Economic Overview Germany - September 2011 (Germany Trade & Invest)
14/15
Contact
Imprint
Publisher
Germany Trade and InvestGesellschaft fr Auenwirtschaftund Standortmarketing mbH
Friedrichstrae 6010117 BerlinGermany
T. +49 (0)30 200 099-555
F. +49 (0)30 200 [email protected]
Chief Executives
Dr. Jrgen Friedrich, Michael Pfeiffer
Authors
Thomas Bozoyan, Market Intelligence GermanyGermany Trade & Invest, [email protected]. Hans-Peter Hssen, Market Intelligence GermanyGermany Trade & Invest, [email protected]
Marc Lehnfeld, Market Intelligence GermanyGermany Trade & Invest, [email protected]
Editor
William MacDougall, Germany Trade & Invest
Layout
Germany Trade & Invest
CDS Chudeck-Druck-Service, Bornheim-Sechtem
Support
Promoted by the Federal Ministry of Economics and Technology and the FederalGovernment Commissioner for the New Federal States in accordance with aGerman Parliament resolution.
NotesGermany Trade & Invest, September 2011All market data provided is based on the most current market informationavailable at the time of publication. Germany Trade & Invest accepts no liabilityfor the actuality, accuracy, or completeness of the information provided.
Order Number
14783
8/3/2019 Economic Overview Germany - September 2011 (Germany Trade & Invest)
15/15
Photo:istockphoto.com
ClaudiaDewald
Germany Trade & Invest
Friedrichstrae 6010117 BerlinGermany
T. +49 (0)30 200 099-555F. +49 (0)30 200 [email protected]
About Us
Germany Trade & Invest is the foreign trade and inward investment
agency of the Federal Republic of Germany. The organization
advises and supports foreign companies seeking to expand into
the German market, and assists companies established in
Germany looking to enter foreign markets.
All inquiries relating to Germany as a business location are
treated confidentially. All investment services and related
publications are free of charge.
Promoted by the Federal Ministry of Economics and Technologyand the Federal Government Commissioner for the New FederalStates in accordance with a German Parliament resolution.
www.gtai.com
Top Related