Information and communications technology in North -Westphalia Facts. Figures.

www.nrwinvest.com Information and communications technology in North Rhine-Westphalia data: as of October 2016 2

Information and communications technology in North Rhine-Westphalia

Facts & figures

In North Rhine-Westphalia (NRW), the lead market information and communica- tions technology (ICT) is both an important pillar and a powerful pacemaker for the economy. It offers new value-added and employment opportunities, as well as contributing in a major way to strengthening the state as an innovative tech- nology and service location. In the next few years the ICT sector will remain cru- cial for the competitiveness, innovativeness and economic power of the region, particularly because innovation is usually made possible by important develop- ments in advanced ICT and its application.

The dynamic process, and above all the increasing transfer of business pro- cesses to the internet, has already had a significant impact in recent years: 40 percent of productivity growth in the European Union is attributable to the produc- tion and use of information and communication technologies. In 2012 the increas- ing level of digitalisation in generated growth of around 145 billion eu- ros, exports increased by 49 billion euros and an additional 1.46 million people were employed (BITKOM 2014).

This potential is put to strategic use in NRW and has economic leverage effects: In 2014, the around 23,600 ICT companies in the state employed more than 206,000 people and generated sales of approx. 101 billion euros. This accounts for 16.2 percent of the gross domestic product in NRW. With sales of approx. 43 billion euros the information technology (IT) sector alone numbers more than 174,000 employees subject to social security contributions (2014). The Rhine-Ruhr region distinguishes itself in many areas of IT and software development. The IT companies based in the state include such international market leaders as Atos, HP, IBM, Itelligence, Materna and Toshiba. In addition, NRW is the top telecom- munications industry (TC) location in Germany. Four of the big players in the TC industry – Deutsche Telekom, Ericsson, Huawei Technologies and Vodafone – have their headquarters along the "Rhine axis". In 2014, the telecommunications sector in NRW generated sales of more than 57 billion euros with approx. 32,000 employees.

NRW therefore has a very strong ICT sector. In order for it to remain a competi- tive location in future, the integration of ICT and intelligent products as well as production and service processes has to be promoted – an area known today as “Cyber Physical Systems” (CPS). By interlinking information and communica- tion technologies and embedded systems in CPS, previously separated indus- tries, disciplines and social spheres are connected – Cyber Physical Systems are changing processes in industry and services companies fundamentally. It is al- ready evident that traditional industry boundaries are disappearing and estab- lished value chains are being broken up – and this will be even more so the case in future: it is expected that the number of mobile internet users will increase by

Information and communications technology in North Rhine-Westphalia data: as of October 2016 3

2020 to 3.8 billion people worldwide (GSMA 2014) and more than 25 billion net- worked devices will communicate with each other. The revenue that can be gen- erated with networking services alone is expected to increase from 70 billion dol- lars (2015) to 263 billion dollars by 2020 (Gartner 2014).

The degree of networking will range from the simple temperature sensor to the production system that monitors fully the entire production process, adapts to customer requirements and automatically sends information about its mainte- nance status to the company headquarters via cloud computing. It is expected that the digitalisation process started in the 1990s will speed up significantly and previously unaffected sectors will change disruptively: new markets and com- pletely new types of applications and services will rapidly emerge (see Accenture 2014; BITKOM 2014; Detecon 2013).

These processes and developments offer huge growth potential for NRW with its major strengths in ICT basic technologies and the economically-strong industrial sectors. NRW is still Germany’s number one state for industry, measured by abso- lute industrial output and the number of people employed in the manufacturing sec- tor. At the same time a highly productive and diverse ICT landscape has emerged that covers all of the skills required for the development of digital innovations.

In particular, the market for Industry 4.0 has great future potential for NRW. By 2025, the use of such applications can generate approx. 15.6 billion euros in gross value added alone in the core industries of the state. First and foremost, production will benefit from this momentum. The Big Data Market in particular has great future potential for NRW. Sales of 1.4 billion euros were already achieved in Germany in 2015. In 2020, sales of 3.75 billion euros are predicted and thus growth rates of around 20 percent per year. With its broad-based IT landscape, NRW can play a leading role in this growth market. It is of crucial im- portance that Big Data technologies are linked to Smart Data solutions.

In particular small and medium-sized enterprises (SMEs) and start-ups may benefit from the all-encompassing digitalisation. The concept of cloud computing will play an important role here: with IT services provided via the internet, tailored software systems and IT resources will also be affordable for SMEs and the use of compu- ting capacity and services can be adapted to the needs of the user. It is expected that the market for cloud computing will grow in Germany in 2016 by 34 percent to 11.8 billion euros. While nearly 70 percent of large corporations make use of the opportunities offered by this technology, the proportion of smaller companies with up to 99 employees is already over 50 percent, and over 60 percent in companies with 100 and more employees (2015). Three-quarters of companies place great im- portance on the location of the data center being in Germany.

NRW is the number one state in Germany for IT security: the Federal Office for Information Security is based in Bonn; the Horst-Görtz Institute at the Ruhr-Uni- versity Bochum is the largest institute in Europe (800 students, 100 researchers) specialising in the protection of digital technology. Companies such as Secusmart (Düsseldorf) and Secunet (Essen) help to protect among other things the data of government offices.

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The expansion of powerful and future-proof broadband networks is one of the most important requirements for NRW’S economy to remain competitive and inno- vative. Studies show that high-performance broadband connections and fast Next Generation Access/NGA networks have become a major location factor for many companies, in particular in the ICT sector. Companies in all sectors today face global competition, need remote access to systems and have to make home-office solutions possible. In addition, data-intensive cloud services, smart grid applica- tions and data exchange are becoming increasingly important. Here not only high data rates, but also fast reaction times and symmetrical connections are required. NRW is one of Germany’s top states for broadband coverage: more than 77 per- cent of households are provided with broadband with over 50 Mbit/s. In urban ar- eas this figure is up to 98 percent (e. g. Bonn, Cologne, Leverkusen). Compared to the rest of Germany, only the city states Hamburg, Berlin and Bremen have better broadband coverage (50 Mbit/s). NRW will invest around half a billion euros into the expansion of broadband by 2018 in order to ensure that it maintains its position among the top states. An interactive map showing the expansion status in the cities and districts can be found at www.breitband.nrw.de.

The wireless communication standard LTE (Long Term Evolution = 4G) has now been available since the end of 2010. In NRW, supply is almost comprehensive in its coverage at 98.6 percent, ranking fourth in a federal state comparison, directly behind the city states of Berlin, Bremen and Hamburg. The next stage of develop- ment that is required to meet the ever-growing demands for communications net- works with things communicating more and more with each other is called 5G. One of the leading companies in this field is Huawei, but numerous other scien- tific and business stakeholders in NRW have also recognized the relevance and potential of this new mobile standard. 5G promises very high data transfer speeds, high scalability for IoT services as well as real-time capability and reliabil- ity, which are especially important for developments in the area of Industry 4.0 or Connected Cars.

Foreign trade

ICT imports into Germany rose by 14.3 percent in 2015 compared to 2014 and to- talled 103 billion euros in 2015. Imports into NRW even rose in the same period by 11 percent to 20.4 billion euros, accounting for approx. 20 percent of Ger- many’s imports. China remains as expected the number one importer; its share is almost 50 percent, and its trading volume of 9.5 billion euros has once again in- creased considerably. Japan and the USA follow some way behind. Germany’s ICT exports also rose significantly in 2015 compared to 2014 by 8.7 percent and totalled 97.5 billion euros. NRW’s share was approx. 8 percent, which equates to almost 7.8 billion euros. The main buyer countries were France and the Nether- lands, but with a strong increase from 0.6 to 0.7 billion euros China moved up from last year's second place to first place for the first time.

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Customers (in %)

Suppliers (in %)

Source: IT.NRW, Foreign trade statistics for North Rhine-Westphalia; data: as of 2015

Regional concentration

The economic regions in NRW illustrate the wide range of expertise in the ICT sector:

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Aachen Region  IT and cloud computing for efficient business processes  Mobile computing and embedded systems  Big data and energy industry informatics

Aachen is an innovation center for ICT research and development: In the Ger- man ranking 2016/17, RWTH Aachen University occupies 1st place as the best university in the field of informatics and the adjacent disciplines industrial engi- neering and electrical engineering. In addition, the Aachen University of Applied Sciences is extremely well positioned in many ICT application areas. This know- how benefits not only the ICT industry, but also the entire economy in the region. The ICT sector makes a major contribution to gross value added in the services sector. The data-processing industry alone accounts for the fourth-largest group of companies in the region, following the B2B service providers, the insurance sector and the real estate and housing sector. In the Aachen region, the ICT in- dustry is linked to internationally renowned names and high-performance market leaders as well as top-level research facilities. Besides IT/cloud computing solu- tions for optimized business processes, economic focuses include automation, hardware, Internet and eCommerce. The concept of technology-oriented startup consulting pursued in the Aachen region leads to a concentration of innovative companies, which is also reflected in the good networking provided by REGINA (Regionaler Industrieclub Informatik Aachen e.V.).

Bergisches Staedtedreieck  Quality assurance and quality management systems  ICT for smart vehicles and energy grids

Bergisches Städtedreieck (city triangle) is one of Germany's oldest industrial re- gions and has always been a powerhouse for new ideas. In this innovative envi- ronment between the Ruhr Metropolis and the Rhine corridor, economic areas of expertise such as automotive, metal processing, healthcare, product develop- ment/design, tool-making and electronics have developed – areas which are sup- ported not least by IT service providers in their innovation processes and are therefore interesting areas of application for information and communication tech- nologies. In recent years, the patent density in Remscheid in particular, but also in Solingen and Wuppertal, was significantly higher than the NRW average.

Muensterland  IT applications and infrastructure for the strong regional insurance and finance sector  Center of competence for geoinformatics  E-health  E-business process and enterprise content management

Besides agriculture, the textile and cement industries once characterized the economic landscape of Münsterland. In the meantime, the region has developed

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into a dynamic industry and service location where the information and communi- cation sector is a key industry that carries great economic weight. In the IT area, the region is a trailblazer: Nearly 50 percent of all ICT companies provide infor- mation technology services. This strength is particularly evident in the city of Münster which is 10th in the top 25 IT locations in Germany and 3rd in NRW after Leverkusen and Bonn (Fraunhofer ISI). 4.2 percent of all employees subject to social insurance contributions in Münster work in the IT sector. In addition, three Münster-based companies are among the top 100 highest-grossing ICT compa- nies in Germany, with one even in 24th place (Computerwoche 2014).

Lower Rhine  Microelectronics and microsystems technology for networked systems  Cross-innovative ICT research and development

An outstanding logistics infrastructure, the proximity to the Netherlands and a tra- ditional link to the Ruhr Metropolis with the city of in the west ensure an industry mix in the Lower Rhine region which is especially interesting for the de- velopment of cross-innovations: In the areas chemicals, electrical engineering and mechanical engineering, energy generation, food/agribusiness and textiles, as well as in the rising logistics sector, the region is extremely well-positioned within NRW. In these areas, information and communication technologies, rang- ing from networked sensors and measuring systems to radio transmission tech- nologies and automation systems, play a fundamental role in maintaining innova- tive capacity and competitiveness. One example is the “Mönchengladbach bei eBay” project, in which the eWebResearch Center of the University of Applied Sciences Lower Rhine and Wirtschaftsförderung Mönchengladbach GmbH (Busi- ness Development Corporation Mönchengladbach) aim to combine the high- street retail with the supplementing opportunities of e-commerce.

Ostwestfalen-Lippe  Intelligent technical systems  Cloud computing, virtualization and social media for digital companies

More than any other region in NRW, Ostwestfalen-Lippe (OWL) is synonymous with the ICT-driven development of future industrial production and automation technology. Companies, universities and university-linked centers of competence work successfully in OWL on intelligent technologies for tomorrow's production. The general importance of information and communication technologies for the location is demonstrated by the share of employees subject to social insurance contributions working in the IT sector. With an employment share of nearly 4.5 percent, Paderborn occupies 16th place of the top 25 locations in Germany's soft- ware and IT service industry. Overall, a strong and diversified IT landscape has developed over many years in the region where innovative business ideas stem- ming from ICT-based products and services benefit from outstanding develop- ment possibilities.

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Düsseldorf and Cologne/Bonn Region  Telecommunications & mobile  Internet economy, cloud computing, big data  Strong ICT startup scene

In no other region in NRW has the “digital avant-garde” developed so success- fully as around the cities of Düsseldorf, Cologne and Bonn. They are the driving force behind Germany’s mobile business and internet economy and are an at- tractive location for international industry giants. Information and communication technologies are hugely important for the economy of both regions. The share of people employed in this sector is greater than in most of the other regions in NRW. In the Bonn region approx. 25,000 people are employed by around 1,000 companies in the ICT sector. The structure is characterised by major high-turno- ver companies such as Deutsche Telekom and Deutsche Post DHL. Düsseldorf is a leading location in the information and communication sector with 1,900 companies and over 30,000 jobs. If the media and advertising sector are in- cluded, over 40,000 people work in the ICT sector. Ericsson, Huawei, Vodafone and ZTE have their headquarters here. More than 30 network operators are rep- resented in Düsseldorf so that they can be close to the market and manage their regional or nationwide business from here. The German headquarters of the net- working equipment provider and mobile phone manufacturer Ericsson has been in Düsseldorf for over 12 years. Cologne has become the most important media city in Germany, with seven major TV networks (including RTL and WDR) and four radio stations broadcasting from here. The Rhine metropolis also hosts nu- merous film festivals and the world’s largest trade fair for interactive computer and video games – gamescom. In Cologne’s Mediapark and Düsseldorf’s Me- dienhafen (Media Harbour), the co-working space and incubator STARTPLATZ also offers ideal conditions for digital start-ups.

Ruhr Metropolis  IT services from security to eCommerce  Software engineering  Games

What was once Europe's largest mining industry region has developed into a ser- vice and high-tech location: The Ruhr Metropolis has long established itself as an important and aspiring region in the digital economy. Local companies are taking advantage of the opportunities of digitalisation to develop new business models and value chains. Over 6,100 small and medium-sized IT companies are based in the region, with this leading market accounting for 44,900 employed people making social security contributions. Particular strengths lie in the areas of data processing services and development of software. In the concentration of well- known companies, specialist medium-sized companies and numerous university and research institutions along the Ruhr, Industry 4.0 solutions are developed in the areas of IT security, production management and logistics. Central locations for IT development are Dortmund with its “Mittelstand 4.0-Kompetenzzentrum” (competence centre offering SMEs support in the area of digitalisation and Indus- try 4.0), Essen, Bochum and Mülheim an der Ruhr.

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Suedwestfalen  ICT for the manufacturing industry

Suedwestfalen is a prime example of the industrial strength of NRW: About 40 percent of the employees subject to social insurance contributions work in the man- ufacturing industry (2015). At first glance, information and communication technol- ogies play only a subordinated role here. However, upon closer examination it becomes apparent that an interesting ICT milieu has formed around the industry. Numerous companies develop tailored software which is geared precisely to the needs of their customers and designed in particular to optimize production pro- cesses. In addition, there are many service providers here offering IT training or consulting for the beneficial use of the Internet. The combination of high-perfor- mance ICT with the strong key industries such as mechanical engineering and automotive promises great potential for the location in terms of the future topic In- dustry 4.0.

Companies

Numerous top companies in the ICT sector come from NRW: An analysis of the top 100 ICT companies in Germany shows that more than 20 of the highest- grossing companies have their (German) headquarters in NRW (2014).

Information technology

 adesso AG, Dortmund: The adesso Group, with approx. 2,000 employees and an turnover of 196 million euros (2015) is one of Germany’s largest IT ser- vice companies and has excellent growth prospects. At its own sites in Ger- many, Great Britain, Austria, Switzerland, Turkey and the USA and on site at numerous customers, adesso optimises core business processes with consult- ing and software development and reduces operating costs. With the clever use of information technology, these are becoming more flexible and produc- tive for the success of important processes. For more standard tasks, adesso also offers ready-made software products. The development of its own indus- try-specific products provides additional growth and earnings opportunities and is a further core element of adesso’s strategy.

 Atos Information Technology GmbH, Essen: Atos is an internationally leading provider of IT services with annual sales of 12 billion euros and 100,000 employees in 72 countries (2015). In Germany, the company em- ploys approx. 12,000 people and generates sales of 1.6 billion euros (2015). The company's global customer base profits from an extensive portfolio which embraces transaction-based high-tech services, consulting and tech- nology services, systems integration and outsourcing services. The main fo- cus is on business technology. Atos was the IT partner of the Olympic Games 2012 in London, 2014 in Sotschi and 2016 in Rio. Furthermore, it is listed on the Paris Stock Exchange.

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 Computacenter AG & Co. oHG, Kerpen: The German subsidiary of Com- putacenter plc./UK is a service provider for the Internet and information tech- nology of large corporations. Computacenter has its German main branch of- fice in Kerpen. The heart of the company is the central supply chain services with the logistics center for commodities and spare parts, which has an easily accessible location near Cologne. In 2014, sales in Germany totaled 1.5 bil- lion euros and the number of people employed was around 4,600. Worldwide the company generated sales of 3.6 billion euros with 13,000 employees.

 Cumulocity GmbH, Düsseldorf: Open, application centric, free to entry: Cu- mulocity’s mission is to make mobile machine-to-machine applications profit- able for all businesses through ready-made, cloud subscription services. The Düsseldorf start-up company, which began as a spin-off of Nokia Siemens Networks, concentrates on innovative software solutions based on cloud computing and M2M (machine-to-machine). The solutions have set new in- dustry standards and received industry awards for their innovative concepts.

 Deutsche Post IT Services GmbH, Bonn: With more than 3,000 employees one of the largest service divisions of Global Business Services, the company operates in the fields IT consulting and systems integration, from process anal- ysis to the development and integration of IT solutions. The solutions can be used not only in the logistics industry, but are also transferable to other sectors. The company-wide improvement of the supply chain is the particular strength.

 G DATA Software AG, Bochum: G DATA Software AG is the antivirus pio- neer. Established in 1985, the Bochum company developed the first software offering protection against computer viruses more than 30 years ago. Today G DATA is one of the leading providers of internet security solutions and vi- rus protection with more than 400 employees worldwide and an annual turno- ver of 40 million euros (2014). In comparison tests conducted twice a year by “AV-Test”, G DATA has since 2007 regularly achieved the best virus detec- tion score of all products compared. The company’s security solutions protect millions of PCs worldwide and are available in over 90 countries – to private users, SMEs and large enterprises.

 Gemini Business Solutions GmbH, Aachen: GEMINI offers interdiscipli- nary strategy consulting services, requirements analysis, process (chain) de- velopment and process planning tailored for the manufacturing industry and associated industries and can provide the necessary software and hardware solutions. Its sustained expertise is characterised by its extensive strategic partnerships with companies in the electrical, IT and the engineering sectors. GEMINI offers expertise in the areas of consulting, facilitation and cross-sec- tor project management of development projects. Due to its close coopera- tion with the technical universities (RWTH Aachen, TU Bochum), Gemini can also always take the latest developments into consideration when it comes to research.

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 Itelligence AG, Bielefeld: The internationally leading IT full-service provider in the SAP environment with more than 4,700 employees, including 2,000 in Germany, is represented in 22 countries in 5 regions (America, Asia, West- ern Europe, Germany/Austria and Eastern Europe). With its comprehensive range of services the Bielefeld-based company recorded total sales of 700 million euros in 2015.

 Materna GmbH, Dortmund: As an IT service provider, Materna employs around 1,700 people across Europe and in 2015 generated a group turnover of 210 million euros. Materna covers the entire range of services provided by a full-service provider in the premium segment: from consulting to implemen- tation and operation. Its target group comprises IT organisations and special- ist departments in companies and public administration. Materna is organ- ised in six business lines: IT Factory, Digital Enterprise, Government, Com- munications, Mobility and the SAP consultancy company cbs in Heidelberg.

 Sirrix AG, Bochum: Sirrix, a company of the Rohde & Schwarz Group, of- fers comprehensive advice on all matters related to IT security. The core competences in the area of cryptography are underpinned by its own designs and developments and by highly innovative technologies based on the latest scientific results combined with established standards and systems. This en- ables the fast and cost-saving implementation of its security systems in exist- ing communication infrastructures.

 Toshiba Europe GmbH, Neuss: The company is part of the globally operat- ing Toshiba Corporation, which embraces approx. 590 other subsidiaries worldwide in the four different product areas, together generating sales of 58.5 billion euros with 199,000 employees (2015). The European headquar- ters for products from the fields computer systems, projectors, storage media and consumer electronics is located in Neuss. Copiers, fax machines and document management solutions are sold by Toshiba TEC Germany Imag- ing Systems GmbH, which is also based in Neuss. In 2014, around 700 em- ployees generated sales of approx. 1.7 billion euros. In Düsseldorf, Toshiba Electronics Europe with around 280 employees develops and sells semicon- ductors, displays and electronic components.

 Ubisense GmbH, Düsseldorf: Ubisense is a global leader in Enterprise Lo- cation Intelligence solutions. The company works with manufacturing, com- munications and utilities companies to improve their operational effective- ness, efficiency and profitability. Thanks to the latest location technology, the possibilities are endless. These may be in manufacturing or network opera- tions, customer service or asset management. Half of the 10 leading global automotive manufacturers, more than 40 telecommunications network opera- tors and a host of utilities companies around the world rely on solutions from Ubisense to redesign their business processes Ubisense was established in 2002 and employs more than 220 people in five countries.

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 Wincor Nixdorf International GmbH, Paderborn: Established in 1952, the company is now one of the world's leading providers of IT solutions and prod- ucts for commerce and banks. Wincor Nixdorf employs more than 9,100 peo- ple worldwide in approx. 130 countries, including approx. 3,800 in Germany, achieving sales of 2.4 billion euros in 2014/2015. The production sites are lo- cated in Paderborn, Singapore, Shanghai and Sao Paulo. In the summer of 2016, the 100,000th success model, the well-known ATM, was delivered to Thailand.

Telecommunications

 Deutsche Telekom AG, Bonn: With more than 156 million mobile custom- ers worldwide (including approx. 40 million in Germany) and 29 million fixed line and more than 18 million broadband connections, Deutsche Telekom is one of the world's leading integrated telecommunications companies (2015). It provides products and services in the areas fixed line, mobile phone, Inter- net and IPTV for private customers as well as ICT solutions in the areas cloud computing, big data, ICT security and Industry 4.0 for key account and business customers. Deutsche Telekom is represented in over 50 countries and employs more than 225,000 people worldwide. In the 2015 financial year the company recorded sales of 69.2 billion euros, of which nearly 47 billion euros were generated outside Germany.

 Ericsson GmbH, Düsseldorf: The company is regarded as a leading sup- plier of mobile and fixed-line systems, as well as corporate networks. In Her- zogenrath near Aachen it also operates an extensive research center (“Euro- lab”) which specializes in modern mobile and fixed-line systems and employs approx. 550 people. With a total of 1,400 employees, of which about half work in research and development, Ericsson GmbH is one of the largest em- ployers in NRW. In 2015, the 117,000 Group employees in 180 countries generated sales of more than 25.8 billion euros.

 Huawei Technologies Deutschland GmbH, Düsseldorf: Huawei is a world- wide leading provider of telecommunications solutions. Its portfolio embraces network infrastructure and software, as well as mobile terminal devices such as smartphones and tablet PCs. The Chinese company operates in over170 coun- tries and employs approx. 170,000 people, more than 70,000 of whom work in research and development. In 2015, the company generated sales of more than 54.4 billion euros. Huawei has been active in Germany for over 10 years and employs more than 1,800 staff at 18 locations, making it the biggest Chi- nese company in Germany. The European headquarters is based in Düssel- dorf. In June 2014, the company received the NRW.INVEST Award.

 QSC AG, Cologne: The company is active throughout Germany as a tele- communications provider with its own broadband network and offers compa- nies of all sizes and discerning private customers the entire range of high- grade broadband communications. QSC AG also offers products and solu- tions for cloud services and intelligent applications in the “Internet of Things” and consulting on matters relating to IT for businesses. In 2015, the company achieved sales of more than 402 million euros with around 1,450 employees.

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 Vodafone GmbH, Düsseldorf: Vodafone Deutschland is the first fully inte- grated communications corporation in Germany. The company provides pri- vate and business customers with products and services from the areas mo- bile, fixed line, data services and broadband Internet from a single source. It is part of the Vodafone Group, the largest mobile phone corporation in the world. The company employs around 14,000 people and with 30 million mo- bile phone customers occupies third place among the German telecommuni- cations corporations behind Telefónica and Deutsche Telekom. In 2015/16, sales totaled 11 billion euros.

 ZTE Deutschland GmbH, Düsseldorf: Germany is one of the most im- portant markets for the ZTE Corporation in Europe. It therefore established its own subsidiary here in 2005 – ZTE Deutschland GmbH with its German headquarters in Düsseldorf and several branches. With a total of eleven sites, around 1,200 employees and an annual turnover of 241 million euros (2014), ZTE Deutschland is one of the biggest representations of the ZTE Corporation in Europe. Since it was founded, the company has worked in the area of network infrastructure and mobile terminals with all of the network op- erators based in Germany and many MVNOs (Mobile Virtual Network Opera- tors) and service providers.

University & research landscape

Universities

Know-how and infrastructure for the digital innovations of tomorrow can be found in universities from the University of Paderborn in the north east of the state to RWTH Aachen University in the south west. In the 2015 WirtschaftsWoche1 uni- versity rankings, RWTH Aachen University came first in the areas of mechanical engineering, industrial engineering and natural sciences, second in electrical en- gineering, and third in computer science. Other North Rhine-Westphalian univer- sities also feature in the top 10: Dortmund with the subjects electrical engineering, computer science and industrial engineering, Cologne with natural sciences and business informatics and Münster also with business informatics.

NRW therefore provides an ideal environment for the training of specialist profes- sionals. The university landscape in the ICT-related subjects of informatics and electrical engineering has developed positively in recent years, and this is re- flected not least of all in the sharp rise in the number of students: In the winter se- mester 2015/2016 around 80,000 students were registered in these subjects in NRW, in 2011/2012 just over 58,000 were registered. The share of informatics students rose in the same period from around 60 percent to just under 75 per- cent. Important locations for training in the field of informatics are in particular the universities in Aachen, Bochum, Dortmund, Duisburg-Essen, Paderborn and the

1 In contrast to the CHE ranking, which measures and compares the universities according to objective criteria, in the annual WirtschaftsWoche ranking around 500 HR specialists from large corporations are asked to assess which German universities and universities of applied sciences prepare students opti- mally for their jobs and careers; in this respect the results are not comparable.

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University of Hagen. New degree programmes, like those offered for example by the newly-founded Ruhr Master School of Applied Engineering by combining ex- isting master degree courses of three universities in the Ruhr region in the fields of informatics and engineering, make the make the region more attractive as a centre of learning and increase the offering for students.

 RWTH Aachen University (43,600 students, including 2,600 studying computer science) Founded in 1986, with approx. 30 chairs and institutes, the Department of Computer Science in Faculty 1 (Mathematics, Computer Science, Natural Sciences) offers a very large range of courses in subjects ranging from IT Security and Computer-Aided Learning to Software Engineering. 1st place in the 2016/17 CHE university rankings as the best state university in the field of informatics, and the University is currently ranked among the top 100 uni- versities in the world for the first time in the Times Higher Education World University Ranking in 2016, occupying 78th place.

 Ruhr University Bochum (42,600 students, including 570 studying computer science) The Electronics and Information Technology Faculty offers bachelor and master degree courses in Applied Computer Science and IT Security. At the heart of IT security research and training in NRW is the internationally rec- ognized Horst Görtz Institute for IT Security in the Ruhr University which now has nine professorships. One of these, Prof. Christof Paar, has been awarded the Innovation Prize 2012 of the State of North Rhine-Westphalia, which comes with an endowment of 100,000 euros.

 Technical University Dortmund (32,900 students, including 3,800 studying computer science) The Faculty of Computer Science offers bachelor and master degree courses in Computer Science, Applied Computer Science and Teacher Training Computer Science.

 University of Duisburg-Essen (41,900 students, including 4,600 studying computer science) The Department of Computer Science and Applied Cognitive Science offers a variety of bachelor and master degree courses ranging from Computer Science Logistics and Information Systems to Theoretical Computer Sci- ence.

 University of Hagen (65,500 students, including 10,000 studying computer science) The Faculty of Mathematics and Computer Science offers distance students B.Sc./M.Sc. degrees in Informatics, Business Informatics, Computer Sci- ence and Electrical and Information Engineering.

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 University of Paderborn (19,400 students, including 2,000 studying computer science) At the "University of the Information Society" more than 15 computer sci- ence chairs offer a variety of specialization possibilities for the bachelor and master degree courses – from Didactics of Computer Science through Com- puter Networks to Codes and Cryptography.

Research institutes

In NRW there are, in addition to a number of university institutes that promote re- search and innovation in the field of ICT, numerous non-university research insti- tutes that cover the entire spectrum of information and communication technol- ogy. These include the R&D centres of ICT companies and institutes known worldwide and a number of applied research institutes.

 Bonn-Aachen International Center for Information Technology B-IT This association of the universities of Aachen and Bonn as well as the Bonn- Rhein-Sieg University of Applied Sciences and the Fraunhofer Society to form the B-IT is groundbreaking. In the future, the B-IT research school will train around 150 postgraduate students of applied computer science and life science informatics in a regional network comprising RWTH Aachen Univer- sity, the University of Bonn and three institutes of the Fraunhofer ICT Group in the area situated between concrete applications and scientific abstrac- tions.

 Fraunhofer Institutes In NRW there are eight Fraunhofer Institutes researching in the field of ICT alone. The main focus of ICT research is to be found in St. Augustin. The Fraunhofer Institutes for Applied Information Technology FIT, for Intelligent Analysis and Information Systems IAIS and for Algorithms and Scientific Computing SCAI located here analyze, research and develop user-oriented information, cooperation and simulation systems. In Dortmund, the Fraunho- fer Institute for Software and Systems Engineering ISST develops stand- ards, architectures and concepts for the establishment of long-term stable and complex systems, and the Institute for Material Flow and Logistics IML is regarded as the first address for all questions concerning holistic logistics. The Fraunhofer Institutes for Production Technology IPT in Aachen, for Communication, Information Processing and Ergonomics FKIE in Bonn and for Microelectronic Circuits and Systems IMS in Duisburg research into, de- velop and produce pilot products for users in all areas of commerce, industry and administration. Since the beginning of 2017 there is another Fraunhofer Institute in NRW: The focus of research at the Fraunhofer Institute for Mech- atronics IEM in Paderborn is on the development of intelligent products, pro- duction systems and services for Industry 4.0.

 European Microsoft Innovation Center, Aachen In May 2003, Microsoft opened the European Microsoft Innovation Center in Aachen, the first Microsoft research center in Germany. At the beginning of 2008, it was joined by the Embedded Systems Development Center

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(MESDC), which is being financed with a significant part of the 75 million dollar research investment made by Microsoft. Over 40 staff and around 100 partners from business and science are conducting research here into secu- rity, mobile technologies and web-based services, as well as the application of developments in eBusiness, eHealth, eLearning and eHome.

Cluster & key market

With its state clusters the State of North Rhine-Westphalia wants to strengthen the industries of the future. In the process of digitizing the economy, the focus is in- creasingly on information, networking, knowledge and technology transfer. To strengthen the North Rhine-Westphalian economy, the state supports local busi- ness in the key markets mechanical/plant/production engineering, mobility and lo- gistics, energy and environmental management, new materials, information and communication technology, healthcare, life sciences and media and creative indus- tries. The clusters support the key market strategy with the objective – also under the banner of the digital economy – of maintaining and expanding stable and fu- ture-oriented value chains in North Rhine-Westphalia. With information platforms, networking and events the state clusters make an important contribution to enhanc- ing the performance of North Rhine-Westphalia as a business location and leading competence region for innovation, intelligent production and services.

CPS.HUB NRW – Competence Center for Cyber Physical Systems – acts at the interface of research, development and business as a driver of innovation in CPS basic technologies and is helping to shape the start of the digital age. It is the central hub that connects experts from the worlds of business and science, devel- ops strategies for digital transformation and 4.0 concepts and identifies new busi- ness models. Its aim is to strengthen the innovation of SMEs, to make the devel- opment of CPS plannable and make it easier to assess risk. No matter whether it is energy, health or mobility – Cyber Physical Systems connect and penetrate all sectors and lead markets equally. In order to take advantage of the opportunities and overcome the challenges successfully, all of the players in the innovation system have to adapt quickly and effectively. In CPS.HUB NRW strong partners have joined forces: the consortium under the lead of the University of Wuppertal includes the University of Duisburg-Essen, the Technical University Dortmund and the University of Paderborn. Further information: www.cps-hub-nrw.de

Regional clusters & networks

In NRW there are numerous industry networks and clusters which cover a region thematically or are specialized in particular niches of ICT, as well as chambers of industry and commerce and economic development agencies. Here is a selection:

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 BIKONET e.V., www.bikonet.de Being a major IT location in NRW, the Bielefeld IT and software industry has a special status as a service provider for the regional and supraregional economy. Under the society name "Bielefelder IT-Kompetenznetzwerk e.V." (BIKONET) around 35 specialized IT companies have agreed on the goals and tasks of a network of enterprises. The purpose of the joint association is to promote Bielefeld as an IT location and to help the companies cope better with the regional and international challenges facing them. It offers IT solutions for small, medium-sized and large enterprises such as digital infor- mation systems, individual educational software and internet service provid- ers, IT security and IT infrastructure.

 BITKOM Network North Rhine-Westphalia; www.bitkom.org Germany's biggest high-tech association and NRW are jointly pushing the development of future-oriented ICT issues in NRW. Complex networked ICT systems, cyber-physical systems and their evolvement in, for example, In- dustry 4.0 and the smart grid, form the focal points of the joint activities of BITKOM and NRW. In addition, the focus will be on the establishment and expansion of intelligent infrastructures and the promotion of young compa- nies and prospective founders. The BITKOM Network North Rhine-West- phalia has around 300 members.

 Digitale Stadt Düsseldorf e.V., www.digitalestadtduesseldorf.de Digitale Stadt Düsseldorf connects the future-oriented information and tele- communication industries with traditional industries. More than 270 compa- nies in the Düsseldorf region and joined the network in recent years. The aim of the network is to develop Düsseldorf into a leading multimedia me- tropolis and initiate projects between government, training institutions and business. This goal is served by, among other things, the " Pitch 2016", a start-up event, i.e. a competition in which the winners of three pre- liminary rounds plus a wildcard participant from the IT sector present them- selves with their products publicly and are evaluated.

 eco – Verband der Internetwirtschaft e.V., www.eco.de With more than 900 member organisations, eco is the largest internet indus- try association in Europe. Since 1995, the Cologne-based association has been instrumental in the development of the internet in Germany, fostering new technologies, infrastructures and markets, and forming framework con- ditions. In the eco competence groups, all of the key experts and decision- makers of the Internet industry are represented, and current and future in- ternet themes are driven forward, together with a team of more than 60 staff.

 InnoZent OWL e.V., www.innozentowl.de The society InnoZent OWL e.V. (innovation center for Internet technology and multimedia expertise) is a network (founded in 1998) of innovative com- panies in the East Westphalia-Lippe region. The society bundles knowledge and expertise in the region and makes it available to all interested users. This creates a marketplace for providers and buyers of information and communication technology. Events and workshops, working groups and

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trade fairs provide all member companies with easier access to and entry into the new technologies. Contacts to approx. 300 medium-sized research partners and over 40 R&D institutions at regional, national and international level also contribute to this. InnoZent OWL e.V. supports promising technol- ogy projects. At the same time, this also strengthens the supraregional presence and visibility of the region. Currently around 70 members, consist- ing of companies, universities, research institutes and business-oriented or- ganizations are members of the innovation center.

 it’s OWL – Intelligente Technische Systeme OstWestfalenLippe; www.its-owl.de In the technology network Intelligente Technische Systeme OstWestfa- lenLippe (or “it's OWL” for short), 180 companies, universities, research in- stitutes and organisations have joined forced to shape the innovation leap from mechatronics to intelligent technology solutions. The Leading-Edge Cluster pools the resources of global market leaders in mechanical engi- neering and the electrical, electronics and automotive supply industries, as well as internationally renowned, cutting-edge research institutes. The ob- jective they share is to secure the OWL region a leading position among global competitors in the field of intelligent technical systems. At the begin- ning of 2012, this regional high-tech strategy was honored as one of the win- ners in the Leading Cluster Competition of the Federal Ministry of Research with a grant of 40 million euros. In a collaboration between industry and sci- ence, intelligent products and production systems are currently under devel- opment in 47 projects with a total volume of 100 million euros. The it's OWL cluster management has been awarded the Gold Label of the European Cluster Excellence Initiative. The quality label is independent, voluntary cer- tification of excellent cluster management and is recognized throughout Eu- rope.

 networker NRW, www.networker-nrw.de networker NRW was founded in 2000 by entrepreneurs in the IT sector and currently has more than 180 members. The association provides a network of personal contacts for entrepreneurs in the IT and media sectors and stands for information, cooperation, partnership, personal contact and good business. Currently there are the working groups BIG DATA / Cloud, Infor- mation Security, Social Media, softworker NRW and Entrepreneur Club. With five regional forums (Bergisches Land, Dortmund, Duisburg-Nieder- rhein, Essen and Ruhr-Mitte) networker NRW is the largest IT network in NRW. The entrepreneur association was founded in November 2000 as "ruhr networker" and renamed "networker NRW" in March 2011. The net- work currently has more than 175 members.

 nrw.uniTS, www.nrw-units.de . The network nrw.uniTS organises, coordinates and promotes contacts, knowledge, projects and activities in the area of IT security which are of use to individual companies and other IT players, but which they cannot obtain or realise on their own. The network forms the organisational nucleus for all IT security companies in NRW. The focus is on promoting cooperation. Co- operation between universities and business guarantees the combining of

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applied cutting-edge IT-security research with activity-oriented entrepre- neurial spirit. From mid-2015 up to 2018 the nrw.uniTS-Wiss project is being funded by the Ministry of Innovation, Science and Research of the State of North Rhine-Westphalia to the tune of around 600,000 euros. The project is thus seamlessly linked to the existing network and brings IT security stake- holders in NRW together while driving technology transfer forward in the state.

 REGINA e.V. – Regionaler Industrieclub Informatik Aachen, www.regina.rwth-aachen.de REGINA e.V. is an independent network for the ICT sector. Its various members from the worlds of business, education and research provide a re- gional platform for tangible dialogue between experienced parties. For more than 20 years Regionaler Industrieclub Informatik Aachen e.V. has com- bined I&C activities in the region – both in the university sector and enter- prises. Its aim is to strengthen this cooperation. It is supported by enter- prises, research and training institutes, Aachen Chamber of Industry and Commerce and the technology transfer institution AGIT. REGINA currently has over 100 members and includes around one third of the relevant enter- prises.

Trade fairs & events

 ANGA COM, Cologne; www.angacom.de; next dates: May 30-June 1, 2017 ANGA COM has been Europe's leading trade fair for cable, broadband and satellite for over 16 years. The exhibition and congress address network op- erators, manufacturers, service providers, content providers, consultants, authorities and other organizations in the telecommunications and media in- dustry. The 2016 event was attended by 450 exhibitors from 34 countries and 18,000 trade visitors from 89 countries. The accompanying congress was attended by 2,200 participants. The move to the modern northern sec- tion of the site in 2017 marks a further milestone in the history of the trade fair.

 dmexco, Cologne; www.dmexco.de; next dates: September 13-14, 2017 dmexco is the world’s leading trade fair and conference for the digital econ- omy. A unique combination of trade fair and conference, dmexco stands for innovative and future-oriented developments and trends. With its focus on marketing, media, advertising, technology and the Internet of Things, dmexco is the global platform for the effective transfer of knowledge and di- rect business transactions. In a variety of formats, it offers the greatest se- lection of current business trends, growth strategies, product innovations and creative diversity. More than 50,000 visitors, 18 BVDW seminars with 100 speakers and a total of approx. 5,000 spectators, 22 BVDW Guided Tours with more than 500 participants made this event the most successful event to date in its history. With its growth and incomparable dynamism, the success story of dmexco is a reflection of the digital economy.

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 EuroCIS, Düsseldorf; www.eurocis.com; next dates: March 5-9, 2017 EuroCIS 2016, Europe's leading trade fair for retail technology, once again concluded with a record result. The focus was on all solutions that support the retail industry in implementing its omni-channel strategies, i.e. the dialogue with the customer across all channels. These included, in particular, mobile solutions, whether to support the store staff, interact with the customer's smartphone, or implement mobile payment. In addition, trade visitors were in- terested in topics such as business analytics, cloud-based solutions and, as in the past, self-checkout and self-scanning. EuroCIS is on course for growth in all respects. On the three trade fair days there were around 10,400 trade visitors, which corresponds to a significant increase in visitors of 18 percent compared to the previous year. 411 exhibitors from 29 countries participated on 10,800 m² of net exhibition space (compared to 320 exhibitors in 2015). The international trade audience traveled to Düsseldorf from a total of 87 countries. The five top countries of origin to Germany were Benelux, the United Kingdom, Italy, Austria and Switzerland.

 Internet Security Days, Phantasialand Brühl; https://isd.eco.de; next dates: September 28-29, 2017 At the Internet Security Days 2016, experts on internet security met for the sixth time in Cologne in order to gain a deep insight into new developments and to exchange ideas. In addition to the ongoing topic of cyber attacks, the event focused this time in particular on "digital identities" and "cryptography for all". But security in the cloud and in the Internet of Things as well as le- gal developments were also explained and discussed in the extensive pro- gram. The Internet Security Days have grown steadily over the past years and have earned a good reputation. The conference is organized by the eco Association of the Internet Industry. At the last event, 650 visitors from more than 25 countries were welcomed at 30 exhibition stands.

 IT Security Day NRW; www.it-sicherheitstag-nrw.de; next dates: Dec. 2017 The IT Security Day is a platform where issues relating to science, business and initiatives can be discussed. With introductory speeches, specialist fo- rums and seminars, experts provide an overview of current issues and an opportunity to discuss issues relating to data, information and IT security. At the exhibition individual talks can be held with providers of digital security solutions. At the last IT Security Day NRW 2016 more than 400 visitors viewed the wide range of opportunities

 M2M Summit, Düsseldorf; www.m2m-summit.com; next dates: tba The M2M Summit in Düsseldorf is the biggest and most important event for machine-to-machine communication in Europe. The fascination for network- ing intelligent devices and systems brought around 700 participants from 30 countries to the stands of almost 60 exhibitors in 2016. The support pro- gramme offers presentations on topics from Industry 4.0 to big data and en- ables experts and visitors to exchange views in chaired panel discussions.

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Imprint

NRW.INVEST GmbH Economic Development Agency of the German State of North Rhine-Westphalia (NRW) Völklinger Straße 4 40219 Düsseldorf, Germany

Phone: +49 211 13000-0 Fax: +49 211 13000-154

E-Mail: [email protected] www.nrwinvest.com

in cooperation with:

CPS.HUB NRW SIKoM – Bergische Universität Wuppertal Campus Freudenberg Rainer-Gruenter-Str. 21 42119 Wuppertal, Germany

Phone: +49 202 439-1026 Fax: +49 202 439-1037

E-Mail: [email protected] www.cps-hub-nrw.de