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What’s inside

Business Bavaria Newsletter

Issue 11 | 2013

Regional

special:

Upper Palatinate

From page 5

Our hot topic: Digitalisation is everywhere

The Japanese company Toyobo, headquartered in Osaka, is opening its first Eu-

ropean production facility in Obernburg. With over 10,000 staff, the company is

a leading developer and manufacturer of special films, synthetic fibres, industrial

materials and biomaterial in the chemicals industry and a key supplier to textiles

manufacturers. “The highly qualified staff, good infrastructure and support from

Dr. Wolfgang Hübschle took over as the new Executive

Director of Invest in Bavaria on 4th November 2013.

Hübschle, 45, has many years of experience in location

marketing and business promotion. Previously, he had

been the representative of the Free State of Bavaria

in New York since October 2010. Before that, Hübschle

managed the “Regionalförderung und EU-Programme

Interreg” (Regional Promotion and EU Programmes In-

Toyobo adds its weight to Lower Franconia’s textiles sector

New Executive Director of Invest in Bavaria

OpenX Technologies and AdServerPub ready to go

The ICT sector, which already has a strong international flavour in Bavaria, is gain-

ing some new members from near and far. By opening its first German branch, the

Californian IT company OpenX Technologies is launching its market activities in

the heart of Europe. As one of the world’s leading providers in the field of technol-

ogy for digital and mobile advertising, the company is on the road to expansion in-

ternationally. It also has sites in New York, London and Tokyo, as well as Munich and

its headquarters in Los Angeles. Another IT company that has chosen Munich as the

location for its first branch in Germany comes from a little closer to home: the online

marketing agency AdServerPub from neighbouring France. Founded in Paris in 2010,

the performance display advertising specialist has already set new standards in its

field. A technology developed by the company itself makes it possible to address

each target group online with personalised adverts and thus to generate sales. With

2 billion clicks, 15.3 million unique users and around 200 campaigns started every

month, the French company is making considerable waves in online marketing, in-

cluding for customers such as Spartoo and Zalando.

terreg) department at the then Ministry of Economic Af-

fairs, Infrastructure, Transport and Technology. The doc-

tor of law has also had a chance to get to know the local

side of business promotion during his career, as head of

the Office of Business Promotion at the city of Augs-

burg from 2002. His predecessor at Invest in Bavaria,

Dr. Johann Niggl, has moved on to become the Managing

Director of Bayerische Eisenbahngesellschaft (BEG).

business promotion services on the ground in Obernburg, Lower Franconia, were

crucial factors in choosing this location,” emphasised CEO Ryuzo Sakamoto. He sees

these as providing the ideal conditions for his company to develop further in Europe.

New additions to a large community: Bavaria is now home to 330 branches of Japa-

nese companies.

Five minutes with ... Dr. Markus Wittmann,

head of Bavaria’s new representative office

in China Page 2

Focus topic: Bavaria – home of the digital

revolution Page 3

Bavaria in your briefcase: A Christmas market

for everyone Page 4

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Five minutes with …

Bavarian patent applications were submitted to the German Patent and Trade Mark

Office (DPMA) in 2012 – more than from any other state. Bavaria leads the way in

Germany with 30.8 per cent of all patent applications.

Source: 2012 Annual Report, German Patent and Trade Mark Office (Page 3).

Number of the month

Dr. Markus Wittmann established the first repre-

sentative office in Shandong as far back as 1997 and

was Executive Director of Invest in Bavaria for many

years. Most recently, he was Managing Director of

the Regional Association for Wholesale and Foreign

Trade, Distribution and Services of Bavaria (LGAD).

Now Dr. Markus Wittmann is taking over manage-

ment of both the existing office in Shandong and the

newly-established representative office in Shenzen

as Chief Representative in China. Shenzen is located

in Guangdong, the state with the strongest economy

in China, right next to Hong Kong.

Interest from Chinese companies in Bavaria as a

location is growing rapidly. Which factors are par-

ticularly important to investors?

Chinese investors value the market potential, the

technological efficiency of the companies and the

willingness to enter into real cooperation in the busi-

ness location of Bavaria. Good air links and the state’s

central position in Europe are also important.

What does a Chinese investor need to be aware of

in Bavaria?

Business life in Germany works very differently from

in China. The differences include the legal framework,

recruitment and development of staff, and the degree

of patience needed before a product or service begins

to make a profit. That is why it is essential that Chi-

nese investors prepare actively for these structures by

providing intensive training for their staff and their

Chinese managers. It is the companies that do this

that are successful in Bavaria.

Over 12,000 Chinese citizens already live in Bavaria.

Which regions and sectors do most of them work in?

Every region in Bavaria is attractive to Chinese citi-

zens and companies and a good place to live, but of

course the population is concentrated in the university

towns and economic regions with strong business

links to China, such as Erlangen, Nuremberg, Regens-

burg, Augsburg and Ingolstadt, as well as the state

capital, Munich. The range of sectors is encouragingly

wide, ranging from energy and electrical engineering,

mechanical and plant engineering and medical technol-

ogy to retail companies and, increasingly, service pro-

viders. The fact that many Chinese companies consider

Bavaria the ideal European location for their research

and development activities is also very positive.

There is a long history of trade relations between

China and Bavaria. Where do you think the focus will

be in the future?

The flow of trade between Bavaria and China, which is

already hugely important for many Bavarian compa-

nies, will continue to grow in both quantity and qual-

ity. The transfer of technology will also become ever

more significant in both directions, as the technologi-

cal capabilities of companies in China are growing rap-

idly. Bavaria is in a good position as a recognised, open

and efficient partner in this area.

You are about to move to China to live for the second

time. What fascinates you so much about the coun-

try and how has it developed since the last time you

lived there?

China has surprises in store time and time again, as

the country is changing incredibly dynamically. The

new level of modernity in everyday life and the new

sense of freedom for many Chinese people, espe-

cially in the Eastern coastal regions, are particularly

noticeable. The high quality in all areas of the public

infrastructure – including schools, healthcare and rail

transport – already exceeds European standards in

parts, as does the level of service orientation. The peo-

ple here are working towards the future with plenty of

energy and optimism.

Dr. Markus Wittmann, head of Bavaria’s new representative office in China

14,340

It is the innovative driving force behind the global economy. Bavaria will have pro-

vided half a billion euros for the comprehensive high-speed broadband network

alone by 2014 – more than any other country in Europe.

A vital role for politicians

The conditions for advancing digitalisation could not be better – and nowhere is this

more true than in Bavaria. The state has been shaped by industry and has always

been committed to long-term cooperation between business, science and research.

The political course was set early on for further expansion of broadband provision,

intensive funding programmes and an innovative start-up scene in the IT field.

Bavaria will have provided half a billion euros for the comprehensive high-speed

broadband network alone by 2014 – more than any other country in Europe.

A look at trends and potential

All the factors driving global markets, such as automation, flexibilisation and

increasing efficiency and productivity, ultimately come down to digitalisation. Even

IT developments such as cloud computing, big data and mobile solutions are not only

changing IT itself, but are also making entirely new business models, value chains

and production processes possible. With its “Digital Bavaria” strategy, Bavaria is aim-

ing to become a top class digital business location by 2020, offering a clear competi-

tive advantage for companies in all key sectors – from energy to health, communica-

tion and mobility to security.

Strong mainstays in the regions

40 per cent of Germany’s 83,000 ICT companies are based in Bavaria. It is not with-

out reason that the digital economy already has strong mainstays in every region

today. Upper Bavaria is a world class IT location, while Swabia is getting ahead not

only in IT, but also in robotics, automation and mechatronics. Upper Palatinate and

Lower Bavaria set standards in electrical engineering and the motor vehicle industry,

while Franconia’s strengths are in telematics and robotics, too. In addition, lively

cluster environments are springing up all over the state, allowing pioneering coop-

eration. This keeps companies fit for the future.

A perfect example: Medical Valley Nuremberg

Digitalisation is also bringing fundamental change and new applications in the

healthcare sector. Medical Valley Nuremberg is a good example of a top cluster that

works. 500 companies in medical technology work together with hospitals, universi-

ties and universities of applied sciences, and with great success: the region is the top

region in Germany for diagnostics, surgery and identification, and has great inno-

vative strength. Since 2010, over 110 patents and invention disclosures have been

submitted by top cluster projects alone.

More automation, more interaction

Technologies will play an ever increasing role as independent actors in value creation

processes. Robots are learning to act in a force-sensitive way; sensors make autono-

mous, connected systems possible; cars communicate with one another and will

soon be able to drive themselves – and the Internet of things is allowing completely

new applications. Those who are able to transform new technologies into market-

able solutions early will be ahead of the game.

Bavaria’s new awakening

The innovation-friendly climate offers very attractive conditions. In fact, Munich is

now ahead of Berlin by a long way in terms of IT start-ups. According to the sector

association BITKOM (Federal Association for Information Technology, Telecommu-

nications and New Media), Bavaria is the top area state and Munich is the top Ger-

man metropolitan region when it comes to the number of company start-ups in the

information, communications and digital sector. The fourth industrial revolution has

long been under way in Bavaria.

Bavaria – home of the digital revolution

How funding programmes become success stories

Bavaria is the only state in Germany to have set up an “Information and

Communications Technology” funding programme to support small and

medium-sized companies as they develop and apply this future technology.

The project sponsor VDI/VDE/IT GmbH handles all specialist and adminis-

trative tasks that arise as part of the funding programme and the research

and development projects it funds – for example in developing new types

of data structure for driver assistance systems in vehicles or innovative

technologies for broadband connection.

“We investigate the opportunities and risks of technologies and

examine their potential for implementation in practice.”

Dr. Jürgen Dam, VDI/VDE/IT Project Leader

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Focus Topic

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Bavaria in your Briefcase

Image sources

P. 1: © Thinkstock

P. 1/2: © Invest in Bavaria

P. 3: © Getty Images

P. 4: © Sigi Müller, www.tollwood.de

P. 5/6: © Thinkstock

Publisher

Invest in Bavaria – The Business Promotion Agency of the Bavarian Ministry of

Economic Affairs and Media, Energy and Technology and Bayern International

Prinzregentenstr. 22

80538 Munich | Germany

Phone +49 89 24210-7500

welcome@invest-in-bavaria.com

Business Bavaria

Coordination: Alexandra Schmidhuber

Art Direction: Alex Podolay

Editorial Department: www.red.de

Translation: www.aa-boundless.com

Layout: www.red.de

HTML Version: www.kirchbergerknorr.de

A Christmas market for everyone

In the run-up to Christmas, Bavaria is full of festive Christmas markets, most of

which are still very traditional. What is really fascinating here is that every town –

and sometimes even parts of towns – bring their own characteristics to their Christ-

mas market. Some are very historic; others have more multicultural flair. We want to

recommend two particularly unmissable Christmas markets from the many different

ones on offer.

In Anwanden (Zirndorf), near Nuremberg, the romantic Christmas market at idyllic

Gut Wolfgangshof will be held for the second time, organised by the famous Schloss

Hexenagger team. Over 100 craftsmen and exhibitors display their selected wares in

rustic wooden huts in the historic cow shed, carriage shed, hayloft and old pillared

grain store. The Christmas market is held on the following weekends: 29th Novem-

ber – 1st  December, 6th – 8th December, 13th – 15th December and 20th – 22nd

December.

The Tollwood Winter Festival has a very different concept: less traditional, but more

international and progressive. With programme highlights including “Classical Music

Differently”, “Weltsalon Mission Earth” and the “Market of Ideas”, the Tollwood Win-

ter Festival goes its own way for fans of art, culture and music. The South Afri-

can Isango Ensemble, for example, will be performing Mozart’s “The Magic Flute –

Impempe Yomlingo” on marimba and percussion. There is no lack of inspiration here,

nor of social or environmental commitment. See for yourself from 26th November

to 31st December.

More information at:

http://www.hexenagger.de/wolfgangshof.html

http://www.tollwood.de

Tollwood: an inspirational place to meet

… in Munich

Heim+Handwerk – Building, Furnishing, Living 27th November – 1st December 2013 Germany’s largest consumer exhibition for building, furnishing and living.

www.heim-handwerk.de

FOOD & LIFE – Where gourmets meet 27th November – 1st December 2013 The meeting place for gourmets and quality-conscious consumers with exhibitors from across Germany and Europe.

www.food-life.de

Meetingplace Germany 3rd December 2013 The specialist trade fair for MICE professionals.

www.muenchen.meetingplace.de/content/index_ger.html

… in Augsburg

akademika – the job fair20th – 21st November 2013 One of Germany’s largest careers fairs for young graduates.

www.akademika.de

… in Nuremberg

SPS IPC Drives – Electric Automation – Systems and Components 26th – 28th November 2013 Europe’s leading specialist trade fair for electric automation.

www.mesago.de/de/SPS/home.htm

... by and with Invest in BavariaInvest in Bavaria at the 3rd German-Turkish Business Day on 22nd November 2013 in Nuremberg, Bavaria

Your contact: Caglar Bektas | Tel.:+49 89 24210-7525 caglar.bektas@invest-in-bavaria.com

Invest in Bavaria at Medica on 20th – 23rd December 2013 in Düsseldorf, Germany Bayern Innovativ shared booth, Hall 03 | Booth E83

Your contact: Dr. Martin Wimbersky | Tel.:+49 89 2162-2209 martin.wimbersky@invest-in-bavaria.com

Trade Fairs and Events

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Upper Palatinate

Upper Palatinate will also see plenty of Christmas markets over the next few weeks.

Regensburg, the administrative district’s capital, offers a particularly beautiful back-

drop. Its medieval old town was made a UNESCO World Heritage Site in 2006 because

of its magnificent architecture. Thanks to long-distance trade with European centres

such as Paris, Venice and Kiev, the town on the Danube has enjoyed success since

the Middle Ages. Even today, Regensburg and Upper Palatinate benefit from their

geographical position in the heart of Europe, a healthy economic structure and in-

novative companies. According to the “Germany 2020” study by Zukunftsinstitut,

Upper Palatinate is one of the top 13 German regions in terms of future potential.

Upper Palatinate in numbers– Area: 3,742 square miles

– Population: approx. 1.1 million

– Regional structure: 3 urban districts (Amberg, Regensburg, Weiden),

7 rural districts

Top industries– Automotive production and technology

– Electronics and electrical engineering

– Plastics processing

– Mechatronics

– Bioengineering (clusters at Biopark Regensburg), Germany’s second

largest biotech location

– IT technology incl. IT security, IT logistics and internet services

(e.g. at the IT Speicher in Regensburg)

– Sensor systems (cluster technology)

– Renewable energies

– Glass, porcelain and ceramics industry (traditional, but also for

present-day applications)

– Logistics and special trade

– Special purpose machinery manufacture

Regensburg: building bridges for the future

Research and innovation– University of Regensburg, Universities of Applied Sciences

in Regensburg, Amberg and Weiden

– Fraunhofer project groups at Biopark Regensburg

– ATZ Development Center in Sulzbach-Rosenberg

– Technology campus for mechatronics in Cham

– Environmental institute in Neumarkt

– Medical engineering cluster

– Sensor systems sub-cluster

– Innovative in-cluster companies with particular expertise in the fields of

mechatronics & automation, sensor systems, environmental engineering

and bioengineering

Infrastructure– Excellent road network with the A3, A6 and A93 motorways, access to the

A9 and modern connections to the Czech Republic

– State-wide rail network including InterCity (IC) and InterCityExpress (ICE)

trains connecting urban areas

– Good, fast access to Munich, Nuremberg and Prague airports

– Bayernhafen Regensburg as a link between the seaport of Rotterdam

and the Black Sea

– Traffic hub: Cargo Transport Center (CTC) in Regensburg as the gateway

between road, rail and inland waterway networks

– Cargo terminal for combined freight transport (CFT) with nonstop regular

service transport connection

Special: Bavaria’s Regions

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Attractions in Upper Palatinate– Historic old town of Regensburg (UNESCO World Heritage Site)

– Walhalla memorial near Donaustauf

– Historic old towns of Amberg, Berching, Cham, Nabburg

and Weiden

– The region with the most festivals in Bavaria (including the “Slaying of

the Dragon” in Furth im Wald, the “Thurn und Taxis” concert and theatre

festival featuring international opera stars, the “Max Reger Days” ...)

– With more than 600 castles, Upper Palatinate is the “Land of castles,

Upper Bavaria”

– Outstanding church and monastery architecture (e.g. Regensburg Cathedral,

Kappel Trinity Church and the monastic library in Waldsassen)

Economic key figures– Highest GDP growth per capita in Bavaria in recent years: almost 40 per

cent since 1997

– Processing industry export quota approx. 50 per cent and rising

Living in Upper Palatinate– “Mecca“ for outdoor sports of all kinds at a total of 8 large nature parks

– Diverse opportunities for water sports at the Upper Palatinate lakes

and rivers.

Unique features of Upper Palatinate– Located in the geographical centre of Europe: forms a bridge to Eastern

Europe

– Inventor region: companies from Upper Palatinate file an above-average

number of patents

– Founder region: Upper Palatinate has been named one of Germany’s most

start-up-friendly regions

– Promising region: according to the “Germany 2020” study by Zukunfts-

institut, Upper Palatinate is one of the top 13 German regions in terms of

future potential.

– Cross-border value chain with the neighbouring Czech Republic

Special: Bavaria’s Regions

Upper Palatinate

Walhalla memorial“Stadtbrille” bridge in Amberg