Welcome to Bavaria Europes leading innovation hub Folie

Welcome to Bavaria: Europe‘s leading innovation hub. Folie 1

Invest in Bavaria - Team Folie 2

Bavaria – Key Figures Bavaria in Germany Area : Germany‘s biggest Federal State (70, 550 km 2) Population (2017): 12. 9 Mio. Inhabitants No. 9 in EU GDP (2016): € 568 bn No. 7 in EU Unemployment rate (Dec. 2018): 2. 9% Folie 3

From agriculture to high-tech Bavarian economy from 1945 to the present.

From agriculture to high-tech Initial position after the 2 nd World War • A typical agricultural state • Due to war the industry was destroyed • Position at the Iron Curtain – isolated by many markets • Insufficient energy base and no sources of raw materials • Lowest GDP per capita in Germany • Highest unemployment among all West German states • Integration of 2 Millions displaced persons

From agriculture to high-tech Postwar Revival 1945 - 1960 Rebuilding the Industry in Bavaria after the war (e. g. BMW plants) Companies moving from destroyed Areas or East Germany (GDR) to Bavaria (Siemens, Allianz) NEW INDUSTRY WORKPLACES Skilled refugees and Foreigners move to Bavaria to work or start an business. And more People move to urban areas PURCHASING POWER

From agriculture to high-tech High Value Specialisation 1960 - 1990 • Spending on defense and aerospace sector > rise in investments in microelectronics industry • Federal Fundings in R & D: headquarters of the Max Plank Society, German Aerospace Centre Oberpfaffenhofen, Research Reactor Munich • The 1972 Olympic Games triggerd significant physical development • Munich became a magnet for talents Bavaria in the late 50 s – agriculture in the front and nuclear high-tech research in the background

From agriculture to high-tech Internationalisation + ICT 1990 -2006 Challenges: Reunification, end of Cold War, new global competition, economic crisis New innovation and policy strategies • New international airport • • Linked together The Future of Bavaria Initiative (1994 – 1999) and called: High. Tech Offensive High Tech Initiative (1999 – 2006) Bavaria • Cluster Initiative (2006 – today)

From agriculture to high-tech The High – Tech Initiative (1999) • • • 4, 4 Billion € (1994 until 2006) Support of key Technologies (ICT, Life-Science, Environmental Technology and Mechatronics) World class R&D-Centers (e. g. research center Garching) Internationalisation of the High-Tech Industry: establishment of regional agencies, e. g. Invest in Bavaria & Bayern International Expanded support for Start Ups (e. g. assist in the search for cooperation partners, patenting and financing advise)

Bavarian economy today

Munich is #1 in all indicators out of the 1303 EU regions observed Source: Studie „European ICT Poles of Excellence“ (EIPE )

Bavarian Economy Today Bavaria is a strong economic engine 8 out of the 30 German blue-chip companies are located in Bavaria 1 st place Bavaria has the best balance of business formations of all German area states in 2016 in Germany With 32. 7 % of all patent applications in 2016, Bavaria is the innovation leader in Germany With a positive net migration, Munich is continually attracting new talent

Bavarian Economy Today National & Global Players in Munich Industrial Tech Life Sciences Media

Bavarian Economy Today. National & Global Players within a 3 Hour Drive

Bavarian Economy Today Hidden champions - The backbone of the German & Bavarian economy. Hidden Champions are relatively unknown medium-sized companies that are European or international market leaders in niche market segments. Internationality: A significant number of hidden champions employ more than 1, 000 employees worldwide 1, 500 Hidden champions in Germany Secure and well-paid jobs Long-term business orientation Strong export performance Almost 70% of the international market leaders from Germany are not listed on the stock exchange and completely Family-owned (managed by the owner) Distinctive ability to innovate: Per 1, 000 employees , they are granted five times as many patents as large companies Valued employers: Proximity to customers: The states of Bavaria, Baden. Württemberg and North Rhine. Westphalia account for just over 70% of all German international market leaders. 38% of employees are regularly in contact with customers

There are hidden champions everywhere in Bavaria. Eight examples. Upper Franconia Lower Franconia Würzbur g Company headquarters Administrative district Point of reference Cobur g Upper Palatinate Nuremberg Central Franconia Roth Regensburg Neutraublin g Lower Bavaria Gersthofen Augsbur g Swabia Vilsbibur g Bad Windach Munich Rosenheim Upper Bavaria

Bavarian Economy Today Successful start-ups from Bavaria Life Sciences Lifestyle Industrial service providers Development of industrial precision machinery for the UV lithography of printed circuit boards Automation Manufacturer of mobile, intelligent robots for the true-to-quantity logistics of Industry 4. 0 Development of antibody treatments for psychiatric disorders and depression Development of treatments based on proprietary platform technologies Wearable Tech ICT World’s first interconnected, completely wireless headphones for listening, localisation and communication Solutions for improved mapping, navigation and virtual interaction indoors Software and Internet-supported fitness equipment for highly modern, effective machine training Intelligent forecasts, analyses and tools as decision-making aids for various industry sectors Manufacturer of smart control elements for heating and airconditioning Sensor systems for industrial companies to digitalise manual measurements and data evaluation

Bavarian Economy Today Industry convergence The broad diversity of highly innovative firms from all different branches provides new opportunities for existing as well as newly found firms to develop cutting edge cross sectoral new business models and solutions: • Partnership between IBM and German automotive supplier Schaffler. Goal of the co-operation is to use cloud based Io. T technology and innovative mechatronic solutions to accelerate the digital transformation in manufacturing. • Adidas and Siemens teamed up to develop a “digital twin” of the existing Speedfactory where Adidas produces sporting shoes from 3 D printers. The new technology allows to test, simulate and optimize Folie 18 production in an digital environment

Bavarian Economy Today Industry convergence • Lilium, an enterprise developing a autonomous allelectric vertical take-off and landing jet using experiences from employees formerly working in aerospace, IT and automotive sector. • Allianz Real Estate works together with Munich based Start-up FAirfleet. The company offers a network of over 1. 200 drone pilots that can be hired for examples for inspections of commercial estates Allianz considers to buy. Folie 19

State of the Art Infrastructure Universities and research institutes Bavaria has numerous Universities including the Technical University Munich and the Ludwig-Maximilians University Munich, two of the leading universities in Germany. 9 State universities 6 Other universities 17 Universities of applied sciences 13 Max Planck institutes 8 Fraunhofer institutes 11 3 10 Fraunhofer project groups Helmholtz institutes Other research centers

Bavaria - Digitalization Initiative “Bayern Digital” (2015 -2022) • Goal: Make Bavaria a leading region of digitization – Creating jobs of tomorrow • 2. 5 bn €: Investments in infrastructure for high speed broadband expansion 3 bn €: Support for business-related projects • • • Entrepreneurship centers for digital solutions Cybersecurity Digital Education Digital Mobility E-Health Agriculture and Forestry 4. 0

Challenges Peter Englert, Country Manager UK Employees of the year Folie 22