Research
Young firms | Start-Up | Corporate Finance and Investment Policy | Venture capital | Promotional measures | Investment incentive
INVEST mobilises more venture capital from business angels to help young businesses in Germany finance the difficult early stage.

With a venture capital totalling 29 million euros, the funding programme "INVEST – Subsidy for Venture Capital" launched by the Federal Ministry for Economic Affairs and Energy (BMWi) is by all means a success story. Since the programme's launch in May 2013, a total of 1,253 business angels have provided 536 young innovative businesses with venture capital of around 104 million euros. The main advantages of the programme are its orientation to markets and its clear focus on business angels and young businesses. These are the findings of a report conducted by the Centre for European Economic Research (ZEW) on behalf of the Federal Ministry for Economic Affairs and Energy (BMWi).

Research
Digitisation | Labour market research | Automation | Labour Market | Computer-Aided Manufacturing | Regional labour market
According to the study, automation increases the demand for products as a result of lower production costs and also lower product prices.

The progressing digitalisation raises the question about the extent to which jobs are technically automatable and therefore replaceable by machines. A new study by the Mannheim Centre for European Economic Research (ZEW) and the University of Utrecht now shows that automation has a positive net effect on labour demand in Europe.

Research
Patent | China | Research and Development | International patent law
China\\\'s patent quality decreases over time in international comparison.

China has revealed itself as the enfant terrible of patent applications. Well known for its leading position in copying foreign products, China has increasingly been filing patents to protect domestic products and established itself as one of the world's leading patent applicants since the turn of the millennium. Researchers from the Centre for European Economic Research (ZEW), Mannheim, and the German Graduate School of Management and Law (GGS), Heilbronn, developed in collaboration a quality index allowing the measurement of patent quality in cross-country comparison. The current study revealed a widening gap between patents from China and high-income countries as well as a decrease in patent quality over time.

Information Economy
Sentiment Indicator for Information Economy

Economic sentiment among companies in the German information economy sector is optimistic in the second quarter of 2016. While the companies' business expectations remain equally optimistic as they were in the previous quarter, the current business situation even records a significant improvement. The ZEW Sentiment Indicator has increased once again by 3.2 points, thereby reaching an impressive value of 65.5 points. This suggests that the majority of companies evaluates the business situation positively. The media sector, however, forms the exception. This is the result of a survey among companies in the German information economy conducted by the Centre for European Economic Research (ZEW) in June 2016.

CEE Indicator of Economic Sentiment
Central Europe | Business survey | Cyclical indicator | Short-term forecast | Central-Eastern Europe | Eastern Europe | Turkey | ZEW-Erste Group Bank Economic Sentiment Indicator for Central and Eastern Europe (CEE)
After improving in the previous month, economic expectations for Central and Eastern Europe including Turkey decline slightly in July 2016.

Economic expectations for Central and Eastern Europe including Turkey (CEE region) have slightly decreased in July 2016. In the current survey, the ZEW-Erste Group Bank Economic Sentiment Indicator for the CEE region has dropped by 3.9 points to a level of 11.9 points.

CH Indicator of Economic Sentiment
ZEW-CS-Indicator | Switzerland | Short-term forecast | Cyclical indicator | Business survey
The ZEW-CS-Indicator for the economic sentiment in Switzerland has dropped to a reading of 5.9 points in July. Likely, because of the Brexit vote.

In July, the ZEW-CS Indicator for the economic sentiment in Switzerland has fallen by 13.5 points to a reading of 5.9 points. The Brexit vote is likely to be partly responsible for the decline in Swiss economic sentiment. The ZEW-CS Indicator, however, remains in the positive. The share of financial experts expecting the economic situation to improve still outweighs the share of surveyed experts expecting a decline in the economic situation. The ZEW-CS Indicator reflects the expectations of the surveyed financial market experts regarding the economic development in Switzerland on a six-month time horizon. It is calculated monthly by the Mannheim Centre for European Economic Research (ZEW) in cooperation with Credit Suisse (CS), Zurich.

ZEW Indicator of Economic Sentiment
ZEW Indicator of Economic Sentiment | Business survey | Germany | Short-term forecast | Cyclical indicator | Business Cycle
ZEW Indicator of Economic Sentiment for Germany, July 2016

The ZEW Indicator of Economic Sentiment for Germany decreased sharply in July 2016. The index has decreased by 26.0 points compared to the previous month, now standing at minus 6.8 points (long-term average: 24.3 points). This is the indicator’s lowest reading since November 2012.

"The Brexit vote has surprised the majority of financial market experts. Uncertainty about the vote’s consequences for the German economy is largely responsible for the substantial decline in economic sentiment. In particular, concerns about the export prospects and the stability of the European banking and financial system are likely to be a burden on the economic outlook," comments ZEW-President Professor Achim Wambach.

Awards
ZEW Summer Workshop | Heinz König Young Scholar Award | Research Award
The winners Jan Tilly (middle) and Nick Frazier (right) together with Andreas Peichl, head of ZEW Research Group \\\"International Distribution and Redistribution\\\".

The Mannheim Centre for European Economic Research (ZEW) has awarded two young researchers with the Heinz König Young Scholar Award. The winners are Nicholas Patrick Frazier of the Rice University in Houston, Texas, and Jan Tilly of the University of Pennsylvania in Philadelphia.

China Economic Panel
China | Cyclical indicator | Short-term forecast | Business survey | China Economic Panel
China Economic Panel (CEP) - June 2016

Expectations concerning the economic development in China have again become more pessimistic in the June CEP survey (June 27 – July 6). The CEP Indicator, which reflects the expectations of international financial market experts regarding China’s macroeconomic development over the coming twelve months, has dropped by 4.1 points to a current reading of exactly zero points.

Public Events
ZEW-Wirtschaftsforum | ZEW President | official ceremony
Change of presidency at ZEW (from left): Achim Wambach, Theresia Bauer and Clemens Fuest at the official handover ceremony.

Professor Achim Wambach, PhD, was inaugurated as the new President of the Mannheim Centre for European Economic Research (ZEW) in a ceremony on July 5, 2016. Wambach had already assumed the position as Director of Science and Research of the institute on April 1, 2016.

Contact

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