Markets Germany 2/18
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GERMANY 2/18 THE CLUSTER REPUBLIC Germany’s strong economy is built on its network of “clusters” – groups of firms and research institutions with a common focus that use their regional proximity to support each other and to innovate. This striking pavilion in the court- yard of the University of Stuttgart was made from carbon fiber- reinforced composites by SGL Group, part of the MAI Carbon Cluster. Automotive: Entertainment: Technology: The electric vehicle (EV) Gaming in Germany is Platform development industry gets ready for experiencing a period of for the Internet of Things mass market penetration exponential growth reaches the next level page 20 page 16 page 19 FOCUS Welcome to the Cluster Republic From Bavaria’s medtech hub to Munich’s auto engineering hub, to Silicon Saxony, Germany has a cluster-based ecosystem Photo: Illing & Vossbeck Fotografie Illing & Vossbeck Photo: page 4 »This issue introduces Germany’s leading clus- ters; foreign entrepre- neurs share their experi- ences and offer tips.« ENTERTAINMENT TECHNOLOGY Dear Reader, Smart Thinking Are you looking to develop – or redevelop – your products, work closely with top scientists, join Leipzig and Dresden’s new digital hub, a network of highly innovative companies, or with a focus on smart infrastructure and smart systems, is coming of age perhaps even find the ideal partner or buyer? All page 14 this is possible in one of Germany’s top clusters. In this issue’s “Focus” story, Markets Germany introduces Germany’s leading clusters, while foreign entrepreneurs share their experiences AUTOMOTIVE and give tips on how to benefit from the “Cluster Republic.” Game On You can’t hope to earn money just by playing With multiple niches and a growing in Germany’s gaming industry, where competi- “middle- youth” user base, the virtual tion is extremely fierce. But with games sales of gaming industry is offering real returns €2.13 billion, Germany is Europe’s largest mar- page 16 ket. That alone would be reason enough to be present in the industry there, but there are also highly trained game developers, outstanding in- frastructure and moderate overall costs making MORE ARTICLES IN THIS ISSUE: an investment worth looking at more closely. In Brief: mini satellites, sharing sunshine, e-shuttles, Vive La e-Volution! Finally, with big plans, massive investments and urban farming and Dr. Smartphone ......... page 12 a market worth billions, e-mobility in Germany From energy charging stations to battery is gaining momentum. Markets Germany looks CEBIT 2018: Europe’s major IT fair has reinvented life improvements, the e-mobility at how international investors can best benefit itself to be more relevant than ever ...... page 18 industry is ramping up for 2020 from the “Auto-transition.” Machines in Flow: has there ever been a more page 20 exciting time to invest in IoT? ............... page 19 Free GTAI Publications: information Dr. Robert Hermann, CEO INVESTORS for your success .................................. page 22 Email: [email protected] Hello to Hydrogen: the HYPOS cluster shows the benefits of H2 as a clean energy carrier ... page 23 Collaboration Northern Highlights: how Finland, Latvia, Estonia on Campus and Lithuania can invest in Germany ..... page 26 How the Technical University of Munich Germany’s Image in the U.S.: by Omar Oweiss, cooperates with the corporate sector GTAI’s man in Washington, D.C. ............. page 27 page 24 Photo: Gordon Welters/laif Gordon Photo: Matan Beery, CEO of Akvola Technologies While working on a research project for his water cycle – the answer is either desalina- Based in Berlin, Akvola now serves the oil PhD in chemical engineering at the Techni- tion or reuse.” The question of how to reuse and gas, metalworking and refinery markets cal University (TU) of Berlin, Matan Beery wastewater in an energy-efficient way is one in central Europe and boasts clients such as hit upon an idea that he thought had great of the biggest challenges of the 21st century. ThyssenKrupp, Siemens, Daimler and BP. commercial potential. “We were looking Making use of the TU’s business inno- The next territories to break into will be Chi- into techniques for seawater pre-treatment vation center, Beery and his MA assistant na and India, where they are “20 years be- because desalination is so expensive,” he were able to pull together a business plan, hind” in wastewater management. Beery’s recalls. “We developed a low energy tech- which helped them secure pre-seed govern- passion for discovery, which began as a nology for cleaning seawater.” Coming from ment funding to develop a pilot using wa- child playing in his grandmother’s chemis- Israel (Haifa), where water engineering is ter from the River Spree. “The technology, try lab, and his undergraduate preoccupa- key to the country’s survival, Beery is “sen- which is based on a ceramic membrane, is tion with finding environmental solutions, sitive to the topic of wastewater and conser- chemically and thermally robust, so we be- have brought him a long way. vation.” He goes on: “Freshwater resources gan to focus on industrial wastewater”. The are draining out. The planet has a closed AkvoFloat™ was born. www.akvola.com 4 MARKETS GERMANY | Focus Photo: ©ICD/ITKE Universität Stuttgart Universität ©ICD/ITKE Photo: Welcome to the Cluster Republic Clusters are groups of firms and research institutions with a common focus that use their proximity to provide mutual support and work towards shared aims. These high-tech hubs are ideal entry points for foreign companies that want to innovate. MARKETS GERMANY | Focus 5 Fabrication of a pavilion made from carbon fiber-reinforced composites is underway, using fiber-winding robotic arms and an autonomous drone “weaver.” For this commission for the University of Stuttgart’s Institute for Computer-Based Design, SGL Group was tasked with delivering 104 kms of SIGRAFIL® 50k carbon fiber. The design technology was modeled on the larvae of the apple leaf moth, which spins its cocoon on apple tree leaves using long threads. t all began with beer and pretzels. Jim »The Medical for Interfacial Engineering and Biotechnol- Walls, CEO of OrthoMedex, a young ogy, a renowned German research hub, who I U.S.-based orthopedic implant compa- Valley cluster is was traveling with a delegation of the Medical ny, had traveled to Cambridge, Massachu- not only profes- Valley medtech cluster from southern Germa- setts, to attend a gala evening for a delegation ny. “I left the discussion thinking Ms. Walles of German scientists and entrepreneurs who sionally equipped, seemed very interested in what OrthoMedex were visiting the area’s Life Science Cluster it also has an en- was attempting to accomplish; or was that in an effort to encourage high-tech U.S./Ger- simply my entrepreneurial exuberance?” man collaboration. trepreneurial vibe “The evening proved well worth my trav- to it that I enjoy Bavaria's innovative medtech hub el,” says Walls, who was looking for partners Eighteen months later, Jim Walls is himself and a suitable location for his company to when on site.« a member of the Medical Valley cluster. Or- develop a new bioactive glass for orthopedic thoMedex’s German subsidiary will begin Jim Walls, applications. Over beer and pretzels, he met work on a research project with the Fraun- CEO of U.S.-based medtech Heike Walles from the Fraunhofer Institute startup Orthomedex LLC hofer Institute for Silicate Research in spring 6 MARKETS GERMANY | Focus FACTS & FIGURES 2018 with other medtech companies from the ambiance”, says Walls. “A small, manageable cluster and researchers from Yale University academic community with lots of young peo- Medical School. “At the same time, we use ple doing exciting things.” the facility and location within the Medical Valley cluster for launching new implants in Investment opportunities in clusters Germany and the EU,” explains Walls. “The Throughout Germany there are numerous cluster is not only professionally equipped, regional networks that bring together large it also has an entrepreneurial vibe to it that 58% companies, SMEs and startups, which then I enjoy when on-site.” The cluster, which is of companies in German pool resources with local research institutes situated in northern Bavaria, has world-class clusters say that their economic and universities toward a common goal: to academic and research institutions nearby, situation is better than the develop innovative products and services sector average. lots of early-stage medtech startups as well as for the global market. “The diverse research established medium-sized companies. The and development infrastructure these in- global headquarters of Siemens’ healthcare novation ecosystems offer in Germany is business is just down the street. “To me, the unique,” says Gabriel Flemming, Senior cluster possesses a small-town Boston-like Source: Clustermonitor Germany Manager in the Chemicals and Healthcare Thomas Mader, Head of Automation and Controls at GEA Group »We couldn’t have done it by ourselves.« Thomas Mader, Head of Automation and Controls at GEA How does the technology work? Group, talks about the leading-edge cluster “It’s OWL”, which The system collects data about the condition of the separator is revolutionizing food production processes using intelligent through sensors. If the system detects certain abnormal patterns, technology. Since 1893, German technology supplier GEA has it intervenes without the assistance of an engineer. The AI-based been building food processing machines for the food industry, system also ensures process security in future. The intelligent sep- and now serves several industries including pharmaceutical, arator is currently a first-of-its-kind prototype. We believe there is chemical and marine. Three years ago the company’s engi- huge market potential. neers joined forces with its cluster partner Fraunhofer IEM to develop a system based on machine learning. How did you collaborate with cluster partner Fraunhofer IEM? We shared both the coordination of the project and the imple- Mr.