Germanys future = Start-Ups + Mittelstand
understanding!
Mittelstand!
Aufbruchsstimmung nach WW2“Aufbruchstimmung”
“Wirtschaftswunder”
Source: Fortune "Global Top 500"
0
15
30
45
60
# of sectors # of sectors with German companies
amongst top3
Lufthansa
In 25% of the most important industry sectors worldwide, German companies occupy leadership positions
Revenues
Employees
Export revenue share
EUR 92,5m
680
58%
Profile of a typical German Mittelstand world market leader
21© 2008 Prof. Dr. Bernd Venohr
Technology leadership
3,6%
5,0%
Mid-sized worldmarket leaders
1,250 most R&Dintensive companies
R&D expenditures in % of revenues
Source: J. Meffert/P. Radtke/H. Klein/J. Freiling/T. Hutzschenreuter, Unternehmertum Deutschland, Düsseldorf, McKinsey & Company 2005; sample of 600 medium-sized companies
Source: DTI, The R&D Scoreboard 2006, Commentary and Analysis, Volume 1 and 2, London, 2007, p. 60.
STRATEGY
Mittelstand: 40% higher R&D spendings then the most R&D intensive companies
Introduction Economy Exports Employment
12
R&DR&D Financing SME policy Sources
The “German Mittelstand” is highly innovative
Innovative SMEsFigures for 2010 in %
Reference size: European SME definition
� 54% of “German Mittelstand” companies brought a product or process innovation to market in the 2008 - 2010 period – the EU average was only 34%.
� The “German Mittelstand” invested approx. €8.7m in research and development in 2010 –that equates to one-seventh of the total.
� Spending on R&D rose by around 71% between 2004 and 2010 (figure for large companies: + 19%).
Sources: Stifterverband für die Deutsche Wissenschaft; Institut der deutschen Wirtschaft Köln; Eurostat
Spending on R&D rose by around 71% between 2004 and 2010 - while large companies only increased their spendings by +19%
Mittelstand: current innovation is “evolutionary,” and not “disruptive”
DIGITALE!
AGENDA!
= STARTUP!
AGENDA!
everything that can be digitalized!
!
will be digitalized!
!
Concrete: What is hindering startups the most and where can “Mittelstand” Companies help?
Availability of funding
Regulation
Lack of qualified staff
Lack of customer adoption
Cooperation with larger companies/corporations
business adminstration skills
market know-how
partnership and ccoperation with academia
0 % 10 % 20 % 30 % 40 %
Source: ZWE Studie - High-Tech Gründungen in Deutschland, Hemmnisse junger High-Tech-Unternehmer, Sept. 2010
Bringing together Mittelstand and Start-Ups
R&D and production
Sales and business
development
Innovation
• Production and process know-how transfer • Joint use of special equipment • Deployment of machineries and infrastructure • Use of individualized and standard-components • (New) Technology know-how transfer
• Transfer of specific market know-how • Complement product and service portfolio • Better client-relations trough existing larger partners • => Unfair advantage over international competitors
• Securing the innovation-level trough cooperations or strategic investments and partnerships
• Mew use cased for existing products / technologies • Compliment and extent existing product offerings • Acquisition of (high-)tech Start-Ups
starting a dialogue - losen the tie, drop by…
fundamental research
international talent
A perfect platform for this: Universities
risk takers
innovators
“think different”
decades of experience
influence, network, knowledge
fundamental research
getting involved - no isolated perspective - not being scared of the “new” - exchange ideas, foster
entrepreneurship and education
taking ownership and share risk (= investing)
3 Reasons this works
1.“Made in Germany”
2.Long-term thinking
3.Leading innovation
Thank you
Benjamin Rohé
br @ angelfund.vc
+49 173 975 1021
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