Information & Communication Technology in Bavaria

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1 Information & Communication Technology in Bavaria Manfred Cerwenka Invest in Bavaria ANIMA Seminar on Cluster Development May 2003

2 ICT Market Bavaria: Overview Bavaria is the Silicon Valley of Germany The active centres of ICT in Bavaria are: Region Nürnberg-Fürth-Erlangen: employees, n 8 of European ranking Munich: employees, n 1 of European ranking

3 ICT Market in Bavaria: Munich ICT Region Munich: employees enterprises Turnover per year 61 bln. Euros Expected market growth until 2004: est. 115% Expected increase in personal until 2004: est. 50% IHK, April 2000

4 Turnover Branches: Munich ICT Region Munich (2000) IT-Hardware, Distribution: est. 23 bln. Euros Publishing & Printing Houses: est. 12 bln. Euros Data- & IT-Provider of Services: est. 7 bln. Euros Advertising/Journalism: est. 7 bln. Euros Audiovision-/Multimedia: est. 6 bln. Euros Software-Enterprises: est. 6 bln. Euros IHK, April 2000

5 ICT Companies in the Munich Area

6 Facts about ICT in Bavaria A variety of universities, applied science universities and research organisations 11 Universities 19 applied science universities 11 Max-Planck-Institutes 6 Fraunhofer-Institutes 3 important R&D Institutes A high concentration of qualified ICT personnel A professional network of service institutions and venture capital companies

7 ICT Market Bavaria: Capital Bavaria offers access to «Venture Capital» > 40 Venture Capital companies in Munich > 20% of German Venture Capital is invested in Southern Bavaria Munich is the centre of Venture Capital Bavaria supports R&D projects with special funds Bavaria offers access to «Public Venture Capital» The LfA- Förderbank Bayern co-finances projects by granting loans with favourable conditions.

8 Newcomers Tata Consultancy Services Patni NTT Docomo GE General Electric Galileo Industries

9 ICT Market Bavaria: Facts Excellent environment for innovative Start ups Favourite market place for the Media- and Multimedia Sector Many Global Players like BMW, Siemens and Microsoft Municipal and political support Well-known exhibitions established 30 % of all German ICT Start ups are located in Bavaria

10 Munich is a very young Cluster More than 80% of Hightech-Start-ups are less than five years old. 50% of Hightech-Start-ups have not more than 20 employees. The percentage of employees directly engaged in high-growth Hightech-Companies is less than 3%. Source: Bain & Company, Mai 2001

11 Wide spectrum of technologies Hightech- Cluster Munich Biotech Technology ICT - Gene-technology - Pharmaceutical and chemical products - Agriculturally products - Nourishment products - Electrical elements of building - Nanotechnology - Medicinetechnology Software - Softwaredeveloper - Web- Enabler Internet -B2B/B2C Platforms - Internet Service Provider Source: Bain & Company, Mai 2001

12 Cluster in different positions of development Capitalisation (in bln. USD) Silicon Valley 100 Boston 10 1 Tel Aviv Munich Cambridge 0 Sophia Antipolis Age of cluster (in years) Quelle: Bain & Company, Mai 2001

13 ICT Politics in Bavaria: Bavarian Online Initiative Bavarian Online from 1994 to 1999 with a budget of about 75 million EURO With the goal to quickly and widely spread ICT technology in Bavaria by initiating more than 50 pilot projects Building a powerful data highway for the region of Bavaria

14 ICT Politics in Bavaria: Software Initiative Bavaria Software Initiative Bavaria from 2000 to 2004 with a budget of about 51 million EURO Goal: Strengthening Bavaria as a major location for development and marketing of software and software consultancy Program parts: Action Program Software-Campus R&D Program, I&C Technology of the state of Bavaria

15 Software Initiative Bavaria: Action Program and Software Campus Action Program Main focus: Start-ups Innovation SMEs Qualification / Education Software Campus Consultancy, Coaching Partnering-network Office space, Infrastructure Support for research Events

16 Software-Campus Moosach

17 Goals: Supporting innovative enterprises in ICT Software Initiative Bavaria: R&D Program «ICT» Large enterprises as pilot customers Co-operation between Start ups and SMEs with Research Organisations Optimal transfer of technologies for innovative products Topics: Software Engineering Data and Knowledge Management Information & Telecommunication networks Graphical User Interface (GUI) Realtime and Embedded systems

18 Software Forum Bavaria e.v. President Dr. Rudolf Hanisch Honorary Members: Chamber of Commerce, Scientific Universities, Universities of applied sciences

19 Creation of the different Hightech-Clusters Silicon Valley: The intellectual nucleus was the University of Stanford. The University worked together very early with established companies like Hewlett Packard. Boston: A similar role to that of Stanford was played in Boston by the Massachusetts Institute of Technology (MIT). Cambridge: First stories of success came from graduates, only afterwards the University entered as an initiator.

20 Current Challenges Increasing the participation in international Software-Business Stimulatin co-operations with Middle and Eastern Europe Active support of the Development Gatewas Foundation Upgrading the Maturity Levels of Bavarian Software- Companies Establishing Champions League of IT Cluster

21 Creation of the different Hightech-Clusters Tel Aviv: Military Research and aid programmes by the state affected the development of this cluster. Sophia Antipolis: The location profits from the engagement of established companies like Texas Instruments and IBM with their own R&D organisations. Munich: The creation of this cluster was especially favoured by government support, high presence of venture capital and the existence of an established scientifictechnical and industrial infrastructure.

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