How To Develop Hessen

Transcription

1 Socio-economic structures in Hessen and instruments of monetary economic development Ulrich Lohrmann Poznan, 9th September 2008

2 Content Partnership between Hessen and Wielkopolska Socio-economic structures in the state of Hessen and the importance of SME for business location the state of Hessen in the european context the trading partners the economic structure of Hessen and the importance of SME Organization and instruments of monetary economic development in Germany and the state of Hessen European framework for business development Institutions for business development Monetary Instruments for funding programmes

3 Partnership Hessen - Wielkopolska Since 1996: Cooperation centre of the Federal State of Hessen in Poznan Since 2000: Official Partnership between Hessen and Wielkopolska Goals: Establish cross-border cooperations and partnerships Build up network structures among SMEs Promote economic development in both regions Strengthening the European Union Instruments: Cooperation data base on websites and Assistance in finding business partners Giving informations about all legal aspects of doing business in Hessen and Wielkopolska Delegation visits Regular workshop Business Circle Poland that informs Hessian companies about business opportunities in Poland

4 Hessen in Europe European Union including new member states Population 490 Million 3 h 1.5 h Stockholm Moskau 24 h London 12 h Paris Warschau Frankfurt Budapest Madrid 48 h 24 h Rom Europa Europe Europäische European Union Union May Mai Deutschland Germany Quelle: Source: Financial Times, Statistisches Federal Bundesamt, Statistical Office IiG Germany, IiG

5 Hessen the European Hub Outstanding access to European markets: In a radius of 150 miles around Frankfurt you can reach 35 million consumers To reap the benefits of this advantage there is an excellent transportation network: Europe s freight airport No 1: Frankfurt Europe s passenger airport No 3: Frankfurt Europe s railway station No 1: Frankfurt Railway stations for cargo handling: Frankfurt, Malsfeld 7 domestic ports at Rhine and Main River Europe s busiest highway intersection A3/A5 Europe s internet hub No 3: Frankfurt

6 Global Marketplace Hessen Hessen is home to Global players in industry and services such as ABB, Amazon, Canon, Dunlop, General Motors, Ferrero, Nestlé, Nikon and Philips more international headquarters than anywhere else in Germany: No 1 location for American and Korean companies the continents prime financial centre in Frankfurt biggest Futures - International Stock Exchange worldwide: EUREX in Frankfurt Germany s top Stock Exchange and No 3 in Europe European Central Bank (ECB) based in Frankfurt European Space Operations Center (ESOC) is based in Darmstadt world class trade fairs such as the International Car Show IAA

7 The Districts in Hessen [2004] The Biggest Cities by Population Size Kassel Frankfurt am Main 646,889 Wiesbaden 274,076 Kassel 194,464 Darmstadt 140,078 Offenbach am Main 119,527 Marburg Hanau 88,772 Marburg 78,701 Wetzlar Giessen Fulda Giessen 73,648 Fulda 63,782 Ruesselsheim 59,576 Wetzlar 52,545 Bad Homburg Bad Homburg 52,162 Frankfurt Hanau Wiesbaden Offenbach Ruesselsheim Main Darmstadt Rhine District of Kassel Giessen Darmstadt Source: Accessdatenbank / HSL

8 Hessen - economic facts & figures Area: Population 2006: 21,115 km² 6.1 Mio. Unemployment rate 2006: 10.4 % GDP per capita (2006): 33,000 GDP per employee (2006): 67,000

9 Trading Partners Hessen's top trading partner in Billion Exports Imports Hessen s major trading partners are not only countries of the European Union but countries from all over the world. 0 USA France UK Netherlands Belgium Italy PR China Korea Japan Spain Source: Hessisches Statistisches Landesamt, calculation of Hessen Agentur

10 New EU-Member-States as trading partners EXPORTS to the New EU-Member States in Mill. [1996 and 2006] Czech Republic Poland Hungary Slovakia Romania Slovenia Bulgaria Lithuania Latvia Estonia Cyprus Malta

11 New EU-Member-States as trading partners IMPORTS from the New EU-Member States in Mill. [1996 and 2006] Hungary Czech Republic Poland Slovakia Romania Slovenia Bulgaria Estonia Lithuania Latvia Malta Cyprus Wide disparities between single states Imports from the New EU-Member-States see Hungary as No 1 trading partner of Hessen

12 State Comparison: GDP per Employee GDP per employee in 1,000 Euro [2006] Hamburg HESSEN Bremen Bayern Baden-Wuerttemberg North Rhine-Westphalia Germany Schleswig-Holstein Rhineland-Palatinate Lo wer Saxony Saarland Berlin Saxo ny-anhalt Brandenburg Saxony Thuringia M ecklenburg-western Pomerania

13 The 10 largest employers in Hessen Employees in 1,000 [2007] Deutsche Lufthansa AG* Deutsche Post Gruppe Deutsche Bahn AG Adam Opel GmbH Fraport AG* Deutsche Telekom AG** Continental AG*** Rewe-Gruppe **** Volkswagen AG Allianz Gruppe * employees only at headquater location and surroundings ** in full time equipollent *** incl. press declaration for Siemens VDO (reduction of jobs to be dued) **** only strategic business units full product range and discount

14 Important Branches in Hessen the service industry is particularly strong in Hessen: 76 % of the gross value added the most important service industries are financial services, insurances, transport and communication as well as business service industries Frankfurt in Hessen is Germany s financial center and the most important financial center on the continent numerous headquarters of foreign companies are located in Hessen major manufacturing industries in Hessen: - chemicals and pharmaceuticals, motor vehicles, electrical engineering, machinery the manufacturing industry is globally active: the export quota is 42 % Hessen is a location for trade and expos with a long tradition

15 Share of small and medium-sized enterprises SME's market share in per cent Enterprises Turnover Employees Total 99,7 34,4 64,6 Industry 98,9 22,8 49,7 chemical 92,2 5,8 26,7 machine constr. 98,4 41,7 64,1 Construction 100,0 89,5 92,5 Services 99,8 42,9 62,1

16 European targets of business development Main target: Creation and maintenance of jobs which are sustainable, competitive and suitable to generate high incomes, by increasing the competitiveness of enterprises Improvement of the innovation potential of companies Formation and growth of companies Utilization of regional potentials for development Cross-section targets: equal opportunities for women and men environmentally adequate development sustainable development of the cities

17 Framework for business development Focus of industry: all businesses Focus of size: Small and medium-sized companies (SME) EU-Commission: ME (SE) have less than 250 (50) employees and a turnover of not more than 50 (10) Mio. or a balance sheet total of not more than 43 (10) Mio., and a corporate integration under 25 % EU subsidies law (Art. 87 para. 1-3, Art. 88 para. 3 EC treaty): limits for governmental intervention Assumption: market failure Important exceptions to the general prohibition for state intervention Promotion of SME Promotion with small amounts Promotion of technologies Promotion of regions

18 Federal institutions KfW-Group Credits for SME s and formations Private equity for technology-oriented formations and small technology companies Grants for consulting services Federal Ministry of Economics and Technology Database for funding programmes Website for founders Federal Office of Economics and Export Control Promotion for business consultants Promotion of Renewable Energies

19 Institutions in Hessen Hessen Agency GmbH (HA) Investmentbank Hessen A.ö.R. (IBH) IBH-Private Equity Management-Company mbh (BMH) Bürgschaftsbank Hessen GmbH (BBH) RKW Hessen GmbH Hessian Ministery for Economics, Transport and Development (HMWVL) Chambers of Industry and Commerce (IHK) Chambers of Crafts (HWK) Business Development Agencies in the regions and cities Enterprise Europe Network (EEN)

20 HA Hessen Agentur GmbH % daughter company of the Federal state of Hessen Mission: Promote Hessen locally and internationally as a premium business & living location Economy Development and Technology Transfer Serve domestic companies and foreign investors as a full-service-provider Think tank: Identify new technologies and promote technology for new products and markets

21 Hessen Agentur business segments Location Development Economic research / State development Hessen Marketing Marketing for the business and tourist location International Dpt. Enterprise Europe Network / partner regions Management of international delegations and trade fairs Location counselling Technology / Innovation / Learning Bio-, nano-, and ecology technologies Technology transfer / Cluster / R & D promotion Information and communication technology / lifelong learning

22 Consulting center for business development / Beratungszentrum Qualified scouts for all questions concerning the field of business development by order of HMWVL Individual, independent and free advisory service for funding programmes of the state of Hessen, the Federal Republic of Germany, and the European Union: Grants, Credits, Guarantees, Private equity Information about the non-monetary submissions for promotion in Hessen: consultants, cooperations, facts and figures, marketing Social network with Investitionsbank Hessen, KfW- Mittelstandsbank, regional business development agencies, RKW, Bürgschaftsbank Hessen, ministry of economics, chambers of commerce, chambers of crafts, business angel networks, universities, and non-profit associations

23 Main focus and tools Instruments Main focus Regional / sectoral prom Ecology Innovation / R & D Formation Grants GA-Förderung Dorferneuerung Biorohstoffe Modellprojekte PRO INNO II RKW-Beratungprogramm Credits GuW Hessen ERP-Innovationsprogramm KfW-Umweltprogramm ERP-EKH Startgeld Guarantees Landesbürgschaften Bürgschaft ohne Bank Private equity Film-Finanzierungs-Fonds HTGründerfonds MBGH TFH II

24 Grants IBH HA Recipient Advice and audit of the application Application before project start Issue of Notification Payment and supervision for 5 years Application at promotional institute

25 . Promotion of regions

26 Hessian Promotion of R & D-activities Recipient SMEs with cooperation partners in SMEs or universities Grants for Development of innovative technical products and processes on a high level (different technologies, pilot plant) Pre-market period (pre-production model) but can be commercialized Cooperation with network and cluster activities Amount 30 up to 49 % of expenses for personnel, material, and depreciation (no investment goods)

27 Credits Refunding loan, partially indemnification clauses IB H KfW issue of the notification HA advice Commercial bank advice and audit of the application Recipient / SME application bankable securities

28 Guarantees receives the credit Bürgschaftsbank up to 1 Mill. Debtor Commercial bank Guarantor Contract over duration and provision Public guarantee substitutes bankable securities State guarantee over 1 Mill. via IB H

29 Bürgschaftsbank Hessen (BBH) Debtor Founders / Start-ups / SMEs Guarantees for Investment goods (real estate, machinery, vehicles) Working capital (personnel, rental) Guaranteed credit Amount max. 80 % for investments max. 60 % for working capital max Duration Depending on the credit s duration Securities all available securities

30 Silent partnership MBG H Hessen Kapital Donor Recipient SME no inscription in trade register fixed terms of condition for entire duration no securities liability like private equity participation fee periodical information for the donor free advice for the recipient

31 Consulting center for business development Contact Wiesbaden: Ulrich Lohrmann, Phone: Christine Bischoff, Phone: Wetzlar: Thomas Peter, Phone: Kassel: Rainer Bong, Phone: / Beratungszentrum

32 Thank you for your attention!