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Gunter Grittmann
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The annual job growth in science spin-offs is on average about 3.4 percentage points higher than that of other start-ups in knowledge-intensive economic sectors (research-intensive industry and knowledge-intensive service providers). This is the result of an analysis conducted by the Centre for European Economic Research (ZEW) in Mannheim. The study analyses more than 20,000 business start-ups in knowledge-intensive economic sectors from 1996 to 2000. Science spin-offs are start-ups with at least one person involved who had worked at a university or a non-university research institution, or who had been employed at a scientific institute during the firm foundation. read more
The strong economic growth in 2010 and the good situation on the labour market had no coherent impact on economically active start-ups and on young companies: In 2010, many start-ups were founded which would presumably not have been established during an economic crisis due to poor prospects of success. These start-ups were less innovative, had lower sales, and created fewer jobs than start-ups in the year before. Start-ups established before and during the financial and economic crisis benefited from the upswing. These are the main findings of the KfW/ZEW Start-Up Panel, presented by chief economist of the KfW Bankengruppe Dr. Norbert Irsch, head of the research department of Industrial Economics at the ZEW, Dr. Georg Licht, and head of the economic research department of Creditreform, Michael Bretz. read more
In 2010 the number of high-tech start-ups in Germany fell by two per cent. This is a result of a recent study of the Centre for European Economic Research (ZEW) conducted in cooperation with Microsoft Germany. The surge in growth in 2009, which was caused by the Unternehmergesellschaft (UG – a limited liability company with less restrictive entry costs) did not continue. In the last year 14100 high-tech start-ups were set up. This number is significantly lower than the numbers of the second half of the 1990s, where on average approximately 18500 start-ups per year were established. read more
Immigrants in Germany found considerably fewer firms in key economic sectors, such as engineering, chemical industry or software development, than Germans. Thus, with regard to the so-called knowledge-intensive start-ups, the present growth potential in Germany is not fully exploited, resulting in welfare losses for the society as a whole. These are the findings of a current study conducted by the Centre for European Economic Research (ZEW) in Mannheim. read more
Frankfurt (Main) does not only make its name as Germany’s financial capital but is also a leading force when it comes to high-tech start-ups in Germany. This is the finding of a recent study conducted by the Centre for European Economic Research (ZEW) in cooperation with Microsoft Germany. According to the study, Frankfurt shows particularly high start-up intensity in the high-tech sector. There are more than four high-tech founders (4.17) for every 10,000 employed people. Frankfurt is followed by Munich (3.88), Düsseldorf (3.79) and Hamburg (3.75). With these results, the study confirms the unrivalled position of highly populated areas in Germany as leading forces in the whole high-tech start-up scene. Still, the majority of German regions registered an ongoing decline of start-up intensity. read more
Many business ideas of newly founded companies were developed while the founders were employed at private companies. New start-ups based on such ideas are considerably more innovative than other start-ups. Moreover, they produce a considerably higher percentage of market innovations. This is one of the main findings of the latest KfW/ZEW Start-Up Panel, which is conducted by KfW Bankengruppe in cooperation with the Centre for European Economic Research (ZEW), Mannheim, and the credit rating agency Creditreform. read more
Young firms in Germany have coped considerably well with the economic crisis. Their turnover and profit situation proved stable and, according to the firms, will improve next year. "Young firms consider themselves well positioned after the economic and financial crisis. The positive profit expectations for 2010 confirm this. The firms have actively faced the crisis and have concentrated on their strengths by adjusting their products to their clients’ demands. At the same time, young firms have invested less then they had planned due to financing problems," says Dr. Axel Nawrath, member of Managing Board of KfW Bankengruppe, today at the press conference on the "KfW/ZEW Start-up Panel 2010" in Frankfurt. The third KfW/ZEW Start-up Panel, a cooperation of KfW Bankengruppe, the Centre for European Economic Research (ZEW) Mannheim and credit rating agency Creditreform, analyses the development of economically active start-ups since their foundation. read more
Software Start-ups Support Positive Development, Research-intensive Industries still Losing / Founders Name Biggest Problems The number of high-tech start-ups in Germany increased by 3.1 percent compared to the previous year. This is the finding of a recent study conducted by the Centre for European Economic Reserach (ZEW) in cooperation with Microsoft Germany. In the software sector, the number of new start-ups even increased by 15 percent. However, the number of high-tech start-ups in cutting-edge technologies such as medical engineering which have especially good chances of growth the long run decreased. In total, the number of high-tech start-ups standing at 14,000 is still on one of the lowest levels since the mid 1990s. read more
Academic spinoffs are spinoffs from universities and research institutes. They provide the opportunity to directly apply scientific findings in order that the economy may benefit from the results. In addition, many hope that spinoffs will provide new jobs. Academic spinoffs founded by a team have, on average, a 7.5 percent higher employment growth than spinoffs founded by a single entrepreneur. read more
Founders of High-Tech Start-Ups Become Older – Downwards Trend Cannot Be Compensated by More Start-ups Founded by Older Entrepreneurs Germany’s founders of high-tech start-ups become older. This is the finding of a study published today, which was conducted by the Centre for European Economic Research (ZEW) in Mannheim and Microsoft Germany. read more
In 2008, the number of start-ups in Germany decreased for the forth year in a row. A decline of about seven percent compared to the previous year resulted in only 206,000 start-ups. This is the lowest number of start-ups since the German reunification. The situation was the worst in the construction and trade sectors. Economic sectors like engineering and metrology and control engineering still had a positive development concerning the number of start-ups. These are the findings of a current evaluation by the Mannheim Enterprise Panel at the Centre for European Economic Research (ZEW) in Mannheim. read more
The financial and economic crisis also affects start-ups and young firms.48 percent of young firms in Germany stated that they were affected by negative consequences of the economic and financial crisis in the early summer 2009. The order situation (41 percent report less orders) and turnover and profit situation (43 percent and 40 percent report a worse situation) were particularly affected. These are the findings of the KfW/ZEW-Gründungspanel, which tracks start-ups from their foundation and reports their development over time. The findings of a second survey including start-ups of the years 2005 to 2008 were presented today by KfW, ZEW and Creditform representatives in the KfW Bankengruppe in Frankfurt. read more
The high-tech sector cannot escape the economic crisis. The number of start-ups dropped to a new low point in almost every high-tech sector. In total, the number of high-tech start-ups, which had been stable for years, decreased by eleven percent to about 15,300 start-ups in 2008. These are the findings of a study conducted by the Centre for European Economic Research (ZEW) in Mannheim in cooperation with Microsoft Germany. The study was presented today in Munich. The sectors affected the most are advanced technology and technology-oriented services. The development in IT services, especially in the software sector, is rather stable. The high-tech founders expect a clear market adjustment, but they are still optimistic regarding their firms' future. The founders consider the politicians' task to create good general conditions for start-ups in the long run. read more
Young German high-tech start-ups quickly take the risk of entering international markets. Within the first years after their foundation, 31 per cent of the start-ups alreadygenerate profits abroad. Start-ups which themselves are intensively committed to research and development (R&D) are especially successful, and are able to make use of their advantage, also on the international stage. But strategic preparation is a must. For 59 per cent of the start-ups that want to enter the international market, the efforts are fruitless. Usually, this is due to the insufficient planning of the internationalisation. The most important market for young German high-tech start-ups is Europe. But also Asian markets do have an increasing importance. These are the results of a current study conducted by the Centre for European Economic Research (ZEW) in Mannheim, Germany, in cooperation with Microsoft Germany. read more
To keep the number of start-ups in Germany on a high level in 2050, the percentage of women venturing into independence has to increase by six percentage points and the number of university graduates by ten percentage points in the next 42 years. If this does not happen, a significant decrease in start-ups in Germany is likely to take place. Due to the demographic change, the 30- to 45-year-old dependent labour force will decline. As most company founders derive from this group, the dynamics of start-ups will slow down. This is likely to result in declining employment figures and a lower innovative strength of the whole economy. These are the findings of a study by the Centre for European Economic Research (ZEW) in Mannheim. The study analyses the parameters which have to be altered to stimulate the start-up activities in a declining and ageing population. read more
In 2007, there were more high-tech start-ups in Germany than in the previous years. Despite this upward tendency, the number of start-ups is still below the number reached in 1995. These are the findings of a study conducted by the Centre for European Economic Research (ZEW) in Mannheim in cooperation with Microsoft Germany. The study outlines that the number of high-tech start-ups in 2007 increased by four percent compared to the previous year to a total of 19,200 start-ups. The extraordinary good economic situation in the high-tech sectors is the reason for this trend. High-tech start-ups develop contrary to the general trend as the number of start-ups in all economic sectors is still declining. There are clear regional differences concerning the number of high-tech start-ups over the last ten years: Nuremberg surprisingly ranked second after Munich, the Stuttgart region on the other hand lost its place among the top ranks. The study also finds that every twelfth high tech firm in Germany is founded by a majority of women. read more
In 2006, the number of companies offering corporate services increased considerably. Compared to the previous year, the number of start-ups in this economic sector rose by four per cent. The total number of start-ups in Germany, however, remained relatively constant with 252,000 new businesses in comparison with the previous year. read more
In the course of the previous year, the number of high-tech start-ups in Germany stabilised. These are the findings of a study conducted by the Centre for European Economic Research, Mannheim, in cooperation with Microsoft Germany. The study was published today in Berlin. The results suggest that the total of high-tech start-ups in 2006 has remained constant compared to the previous year. Still the overall level remains low. The high-tech sector has thus developed against the general trend as the numbers of new businesses in all economic sectors keeps declining. However, the study also shows that the shortage of skilled workers and financial problems remain serious hindrances to high-tech founders and negatively influence foundation numbers. read more
The bottoming-out of the persistent downward trend of firm foundations in Germany, since 1999 the case, seems to have been reached. The semi-annual examination of firm foundations in Germany by the Centre for European Economic Research (ZEW) in Mannheim reveals that the number of firm foundations for the year 2002 has stayed the same in comparison to 2001. read more