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Attracting and Supporting International Start-Ups and Innovative Entrepreneurs in Germany Study by the German National Contact Point for the European Migration Network (EMN) Working Paper 88 Janne Grote in cooperation with: Ralf Sänger / Kareem Bayo Forschung Co-financed by the Asylum, Migration and Integration Fund of the European Union Attracting and Supporting International Start-Ups and Innovative Entrepreneurs in Germany Study by the German National Contact Point for the European Migration Network (EMN) Janne Grote in cooperation with: Ralf Sänger / Kareem Bayo Federal Office for Migration and Refugees, 2020 4 The European Migration Network The European Migration Network The European Migration Network (EMN) was launched In general, the National Contact Points do not conduct by the European Commission in 2003 due to an ini­ primary research but collect, analyse and present ex­ tiative of the European Council in order to satisfy the isting data. Exceptions might occur when existing data need of a regular exchange of reliable information and information are not sufficient. EMN studies are in the field of migration and asylum at the European elaborated in accordance with uniform specifications level. Since 2008, Council Decision 2008/381/EC forms valid for all EU Member States plus Norway in order the permanent legal basis of the EMN and National to achieve comparable EU­wide results. Furthermore, Contact Points have been established in the EU Mem­ the EMN has produced a Glossary, which ensures the ber States (with the exception of Denmark, which has application of comparable terms and definitions in all observer status) plus Norway. national reports and is available on the national and international EMN websites. The EMN’s role is to meet the information needs of European Union institutions, Member States’ authori­ Upon completion of national reports, the European ties and institutions as well as the wider public by pro­ Commission drafts a synthesis report with the support viding up­to­date, objective, reliable and comparable of a service provider. This report summarises the most information on migration and asylum, with a view to significant results of the individual national reports. In supporting policymaking in these areas. The National addition, topic­based policy briefs, so­called EMN In­ Contact Point for Germany is located at the Fed­ forms, are produced in order to present and compare eral Office for Migration and Refugees in Nuremberg. selected topics in a concise manner. The EMN Bulle­ Its main task is to implement the annual work pro­ tin, which is published quarterly, informs about cur­ gramme of the EMN. This includes the drafting of the rent developments in the EU and the Member States. annual policy report “Migration, Integration, Asylum” With the work programme of 2014, the Return Expert and of up to four topic specific studies, as well as an­ Group (REG) was created to address issues around vol­ swering Ad­Hoc Queries launched by other National untary return, reintegration and forced return. Contact Points or the European Commission. The Ger­ man National Contact Point also carries out visibil­ All EMN publications are available on the website of ity activities and networking in several forums, e.g. the European Commission Directorate­General for Mi­ through the organisation of conferences or the partici­ gration and Home Affairs. The national studies of the pation in conferences in Germany and abroad. Further­ German National Contact Point as well as the synthe­ more, the National Contact Points in each country set sis reports, Informs and the Glossary are also available up national networks consisting of organisations, insti­ on the national website: www.emn­germany.de. tutions and individuals working in the field of migra­ tion and asylum. Summary 5 Summary The number of start­ups in Germany has risen sub­ ingly being tailored to specific target groups, including stantially in recent years. 2019 witnessed 70,000 start­ female start­up entrepreneurs, young start­up entre­ ups in Germany, as compared to 54,000 three years preneurs, start­ups as spin­offs from higher education previously. This trend – against the backdrop of an institutions and start­ups by migrants who are already overall decline in the founder’s ratio – is attributable in resident in Germany and by Germans with a migrant part to the marked increase in the scope of public sup­ background. port facilities and a dynamically developing private­ sector support and funding scene for start­ups in All newly elected Land governments of recent years general. As no statistics are kept on start­up entrepre­ have also included the promotion of start­ups, inno­ neurs’ countries of origin and the official visa statis­ vation, digitalisation and technology in their coali­ tics relating to entry into Germany for the purpose of tion agreements or developed corresponding strategic self ­employment do not allow any distinction between projects. While the instruments applied by the Länder start­ups and taking up other forms of self­employ­ generally address issues in the given regional context ment, it is not possible to put a Figure on the number and are aimed at attracting start­ups and retaining of people who have entered Germany for the purpose them in the respective Länder, the federal instruments of establishing a start­up. focus on providing generally more favourable underly­ ing structural conditions for start­ups in Germany. This Sectors and ecosystems applies to start­up financing and counselling measures and equally to promoting the economic internationali­ The most important sectors for start­ups in Germany sation of Germany as a start­up country. are IT and software development, with industrial tech­ nology and hardware development, e­commerce and As the general start­up support instruments are online marketplaces also playing a leading role. In largely also available to non­European start­ups, they terms of the number of start­ups and investments in are also described in this study. In practice, indirect start­ups, Berlin has been the most important ‘start­ obstacles to these instruments are sometimes encoun­ up ecosystem’ in Germany for many years now. Ber­ tered, however, making it difficult for start­ups from lin also ranks among the top 10 ‘start­up ecosystems’ third countries to access support particularly in the demonstrating highly dynamic growth worldwide. seed stage. Other key start­up hubs are Brandenburg, the Rhine­ Ruhr metropolitan region in North Rhine­Westphalia, Measures to attract non-European start-ups Frankfurt, Munich, Stuttgart/Karlsruhe and Hamburg. The Federal Government supports the development of Measures designed explicitly to attract non­European start­up hubs by way of the ‘Digital Hub Initiative’, for start­ups by way of specific support programmes have example, which promotes twelve regions and 16 cities played only a minor role in the public support infra­ as digital ecosystems. structure in Germany to date. While there are indi­ vidual support instruments at federal and Land level General support for start-ups in Germany which are aimed directly or indirectly at attracting start­up entrepreneurs from third countries, these Since the millennium, all government coalitions at are generally restricted to a small number of partner federal level have set their sights on promoting start­ countries or specific start­up hubs in the world (such ups and the establishment of innovative companies in as the GISEP and GINSEP federal programmes with Germany. The public support instruments have been Israel and India respectively). A common business de­ stepped up substantially at federal level and also di­ velopment instrument to interest non­European en­ versified with regard to the different start­up stages, trepreneurs in Germany as a place to set up business is in particular for the seed stage, the early stage and the general locational marketing. growth stage, while international comparisons in rel­ evant studies show room for further development in Target group­specific start­up grants and international the field of public support programmes in Germany for start­up competitions are additional instruments the later stage. Support programmes are also increas­ which have been established in some Länder. There 6 Summary are also isolated examples of multi­lingual information ness prior to actually entering the country, at the and advisory services on the general conditions apply­ time of filing their visa applications, ing to entry into Germany and establishing a start­up the lack of standardised terminology for start­ups, here. rendering it difficult to measure the efficiency of corresponding support instruments and Government agencies often do not provide these sup­ complications of establishing or to expanding port measures alone, but rather in conjunction with start­ups across national borders within Europe, as other stakeholders from the private sector, higher this may entail new approval processes. education institutions, representatives of the regional business community and corresponding associations. In this context, the private business sector, the science Scientific establishments and universities play an im­ sector and those with practical experience of providing portant role in promoting innovative start­ups from advisory services bring forth various proposals on how non­EU countries through science­based spin­offs and to counter the given challenges and make it easier for technological research and applications.

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