CENTRAL HESSEN WHERE KNOWLEDGE CREATES VALUE. FROM NICHE KNOWLEDGE ENGINEERING OPTICAL TO KEY TECHNOLOGY When traditional skilled trade duction technology. New pro- Germany is 50 billion Euros, ac- and German engineering exper- ducts and processes are created, cording to industry association tise join forces to create a vision which change the value chains Spektaris. The heart of the Cen- for the future, something special of entire sectors. Experts say tral Hessian optics sector consists is born: a key technology with that this sector could grow by 25 of 93 companies with at least enormous innovative strength percent over the next five years. 50 employees each. The annual that influences almost This development is unexpected. turnover of companies all industry sectors. We in Central Hessen is 4.2 are talking about ‘Op- billion Euros. There are tical Engineering’ from CENTRAL HESSEN IN FIGURES approximately 22,275 Central Hessen. This re- employees in this sector. gion attracts worldwide What’s more, over 250 attention for its unique 1.040.091 companies in the elec- industry profile, includ- residents tronics and mechanics ing optics, electronics sector based in Central and mechanics. This is Hessen are closely as- where global brands like sociated with the optics Leica Camera AG, Lei- 67.062 companies industry and form a joint ca Microsystems, Zeiss, (according to IHK, the German cluster. The export ratio Bosch, and Pfeiffer Vac- Chamber of Industry and Commerce) of commercial enterpris- uum are headquartered, es in Central Hessen is and where new products at 42 percent, and here- and ground-breaking 12.216 by impressively exceeds partnerships are formed. skilled trade Germany’s overall ex- businesses port ratio of 32 percent. ENORMOUS POTENTIAL FOR GROWTH IDEAL CONDITIONS More than 70.000 FOR INVESTORS Optical engineering students has become indispen- Central Hessen has cre- sable in the modern Source: Hessian Statistical Office, as of 31 December 2015 ated ideal conditions industrial world. It has for local players and an enormous leverage foreign investors alike. effect on other industry sectors. Not long ago, optical technology The unique collaboration of busi- Optical technologies pave the was still an industrial niche sec- nesses from the optics, electron- way for ground-breaking devel- tor. Interdisciplinary links have ics, and mechanics sectors, is the opments – whether in the area substantially contributed to the key to success. The interdiscipli- of autonomous driving, sensor rise of optical technology to one nary teams from Central Hessen technology, mobile communi- of Germany’s most successful prove themselves as drivers of cation, or materials and pro- sectors. Annual turnover across innovation and create integrat- Page 2 TO KEY TECHNOLOGY ed, trans-technological solutions, which establish DR ANDREAS KAUFMANN: themselves on the market. Central Hessen can MISSION RED DOT draw from an abundance of resources here: sound entrepreneurship meets know-how developed over centuries, and a unique academic basis. This is Life still writes the best stories. This is also true in where businesses find new talent. The region has business, and in Central Hessen. The protagonists of the highest density of students in Germany. All our story are the global brand Leica and a teacher, three universities – Philipps University in Marburg, anthroposophist, and amateur photographer, who Justus Liebig University in Giessen and the Tech- was then unknown in the business world. In 2003, nical University of Central Hessen (THM) – have Dr Andreas Kaufmann bought his first, second-hand chairs for physics and chemistry. Essential players Leica camera in a gallery in Vienna. The Mannheim from industry and science have teamed up to cre- native was fascinated by the legend of the brand, a ate an optics centre for the region. This allows for passion shared by many Leica fans around the world. research and development activities of the compa- It was clear to him that there was much more to the nies to be further concentrated and expanded. For company than the ailing figures suggested. The lux- this purpose, the optics centre will be equipped ury brand had missed the boat of digital photogra- with cutting-edge technology, and is expected to phy and was almost bankrupt at the time. In 2004, explore new fields of research. This also includes Kaufmann bought his first shares of Leica Camera the development of a unique degree program in (27.2 percent) and in 2007 he became the sole own- ‘Optical Technology’ in Germany. The aim is to er. He turned the company around, put millions into further promote the knowledge transfer between research and development, and focused on its target business and science – a think tank that will sustain- groups. Kaufmann is considered an enthusiast and ably secure the significance of the location as an visionary who also takes unusual paths. As a young excellence cluster for optical technologies. An ap- man, he travelled around with famous artist Joseph proach that experts agree on. Precision, effective- Beuys and was one of the founders of the German ness, and the necessary degree of flexibility reflect Greens. As a staunch market economist, he left the the aspirations of the region and pave the way for party after a short time. “Capital represents an obli- foreign investors. gation to create something lasting”, says Kauf-mann, who now lives in Salzburg with his family. He was able to prove this credo in a convincing manner with Lei- ca Camera: today, the brand is once again a symbol OPTICAL TECHNOLOGIES – of European industrial know-how, a flagship brand. A DEFINITION The brand with the red dot has long since man- aged the turnaround and is making a profit. Kauf- Optical technologies define the essence of mann re-invests this capital, on the company’s path physical, chemical, and biological natural to becoming a global brand. The future is where the laws, and of technologies for the generation, action is. This is also why Kaufmann moved the Leica shaping, transfer, measurement, and utilisa- headquarters back to Wetzlar in Central Hessen. tion of light. 3 LONDON 01:25 PARIS 01:20 MADRID ROME THE CENTRE 02:50 01:45 CREATE THE CREATE INVESTORS FUTURE OF IT ALL Central Hessen – the cen- tre of the centre. This re- Satisfaction of companies in their location gion is located in the heart of Europe, in the centre of Germany and the state of Hessen. Short distances 2.3 2.1 are standard here, which offers unique opportuni- Germany not including The region of ties for a sustainable mar- the Central Hessen region Central Hessen ket entry in Europe. Investors are very satis- fied with their location in VERY DISSATISFIED VERY SATISFIED Central Hessen and give it top marks, above the Ger- man average. Source: WIK [2014] Corporate questionnaire in Germany (n=119) Location decisions of internationally operating compa- cooperation with the regional management of Central nies depend on important economic factors today: cen- Hessen, political decision-makers, and the economic tral location, existing infrastructure, and access to the players on site”, summarises Dr Rainer Waldschmidt, European Single Market are priorities for decision-makers. Chief Executive Officer of the economic development The German state of Hessen and the region of Central organisation Hessen Trade & Invest (HTAI). Hessen can shine in these regards, and convince with ‘hard facts’. 163 international companies invested in TARGET-ORIENTED COOPERATION Hessen in 2016 alone. The number of annual invest- ments has more than doubled since 2012. This is also Central Hessen offers the freedom businesses re- an indication of the successful economic policy of the quire, and hereby creates room for visions. Unique state and of the measures implemented for economic networks like the Wetzlar Network generate a sense development. of belonging across company borders, which adds a shared value. “All relevant stakeholders work to- The region of Central Hessen will play an important gether in Central Hessen, and create a close dia- role in future direct investments. It is one of the lead- logue between business, science, politics and ad- ing locations in Germany for optical engineering and ministration”, says Jens Ihle, managing director of has a high innovative capacity. The Wetzlar Network is the regional management of Central Hessen. Ac- a significant leader in this field. This top-level cluster is cording to Ihle, the target-oriented collaborative based on intelligent economic policy, a development atmosphere is also the foundation of the well-es- based on specialised networks that integrate business tablished culture of welcoming newcomers, a bene- and science, and economic development that has been fit for all involved. Which is why companies that are optimally adapted to market needs. “The positive de- already settled here give the location top marks. velopment regarding the relocation of international Location satisfaction is high, with German average companies to Hessen in recent years is the result of values exceeded (see illustration). both the excellent location conditions, and the unique Page 4 STOCKHOLM 02:05 MOSKAU 03:05 ROME 01:45 ISTANBUL 03:00 “A unique and very success- More and more international companies are coming to Hessen ful collaboration!” Innova- tion and Business promoter Dr. Rainer Waldschmidt (CEO HTAI, right) with his 163 Managing Director col- 156 league Jens Ihle (Regional- 144 management Mittelhessen) 119 Hessen has a global pull. The number of foreign direct investments has 77 more than doubled since 2012. For the first time, the majority of investors came from China in 2016 (44, ahead of the USA with 34 and the United Kingdom with 20). Source: Hessen Trade & Invest GmbH 2012 2013 2014 2015 2016 Central Hessen’s regional management has been working on the further pooling of resources, sup- CENTRAL HESSEN – EASY ACCESS TO porting cooperation and the development of THE EUROPEAN MARKET potential since 2003.