SPRING in Stuttgart Region: learning with strong partners through PAXIS

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SPRING in Stuttgart Region learning with strong
partners through PAXIS

• Dr. Rolf Reiner
• Wirtschaftsförderung Region Stuttgart GmbH (WRS)
• Stuttgart Region Economic Development Corporation

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SPRING exchange of good practices in innovation
policies and tools
Cambridge
Stockholm
Stuttgart
Madrid
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SPRING Thematic Priorities

• Mechanisms Fostering Entrepreneurship (led by
  Madrid)
• Spreading an Innovative and Entrepreneurial
  Culture in the Region (led by Cambridge)
• Regional Models of Early Stage Financing (led
  by Stuttgart)
• Intellectual Capital of Regions (led by
  Stockholm)

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Agenda

• Stuttgart Region Towards an integrated
  innovation strategy
• PUSH! Regional network supporting
  entrepreneurship and start-up activities
• The Stuttgart Region Competence Center Program
• The Stuttgart Model on Early Stage Financing
• (Intermediate) Results

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1. Stuttgart Region Towards an integrated
innovation strategy
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The Region - Facts and Fígures

• Population 2.7 million from 170 countries
• Area 3.654 km²
• Municipalities 179
• Active population 1,253,800
• Members of the Regional Assembly 93
• Hours of sunshine 1,754 per year
• Wine production 42 million litres per year
• Michelin stars 13
• Historic palaces and castles 68
• Awards of Excellence by the EC 3

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Economic data of Stuttgart Region

• 155.000 companies
• Gross domestic product 92 billion Euro (2002)
• Unemployment rate 6
• Most important industries Automotive,
  Engineering, Electrical, IT, Media.
• Headquarter of corporate groups such as
  DaimlerChrysler, Porsche, Bosch, Trumpf, Behr,
  IBM, HP, Alcatel-SEL etc.
• Extremely high research intensity and density

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One of Europes High-Tech Regions

• Percentage of people employed in hightech
  industries (selected regions, source Eurostat,
  2001)

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Economic Structure in Stuttgart Region
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RD in Stuttgart Region

• Expenditure on RD in the Stuttgart Region 6.2
  of GDP (5.5 business, 0.7 public)!
• Infrastructure
• 2 Max-Planck institutes
• 6 Fraunhofer institutes
• 4 institutes of the German Federation of
  Industrial Cooperative Research Associations
• German Aerospace Centre (DLR) (large-scale
  research centre)
• 88 Steinbeis transfer centres
• Numerous university research facilities
• Plenty private research institutes

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Wirtschaftsförderung Region Stuttgart GmbH
(WRS)- Stuttgart Region Economic Development
Corporation

• Founded 1995 as a GmbH (Ltd.)
• 20 full-time employees (10 publicly funded
  projects)
• Budget 2003 8 million Euro
• Tasks
• Supporting local businesses
• Active input for and support of co-operations
• Fostering innovation
• Recruiting and supporting businesses that are
  willing to move to the region
• Regional management of commercial estate
• Marketing of the Stuttgart Region

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Fostering Innovation -Steps towards an
Integrated Innovation Strategy
Centers of Competence
Managing networks / Clustermanagement
Initiation of projects
WRS activities started in 1996
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Stuttgart Region Economic Development - Overview
Marketing
Support for Investors
Cluster- and Network-management by WRS
Horizontal Networks and Measures
Competence Center Program
Network- and Clustermanagement
Branch 1
Competence Center 1
Financing
Branch ..
Education
Competence Center ..
Competence Center n
Employment
Branch n
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2. PUSH! Regional network supporting
entrepreneurship and start-up activities
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PUSH! Objectives

• Increase awareness and motivation through events
  and contests
• Enhance start-up activities at universities
• Motivate professors to support entrepreneur-ship
  education and start-up activities
• Initiate projects with practical applications
  like case-studies and business planning games
• Develop and implement entrepreneurial courses at
  universities

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PUSH!-Entrepreneurs Mall
Grants /EXIST Seed
Initial advise
Coaching
University
Locations
Contacts
Guidance
Trade fairs
Market entry
Financing
Customer campaigns
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PUSH! Partners

• Higher education institutions
• Research Institutions
• Banks and Savings Loan Associations
• Public investors
• Private businesses
• Government Agencies

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PUSH! - the model in brief
PUSH! Education

• Started in 1998
• EXIST region
• BMBF funding until 2004
• Re-organisation during 2004

PUSH! Association
PUSH! Corporate Development
PUSH! Incubator
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PUSH! Education

• Entrepreneurial qualification
• Start-up training
• Qualification of business successors
• Train the trainers
• Development and implementation of new courses at
  universities and academies
• Organisation of co-operation between universities
  (joint courses and exchange of teaching staff)

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Main academic partners

• Universität Stuttgart and the university
  incubator, TTI GmbH
• Universität Hohenheim with the endowed chair for
  entrepreneurship, the Center of Entrepreneurship
  and the university incubator, IBH GmbH
• The Applied Science Universities in Esslingen and
  Nürtingen und their incubator, CONTACT-AS e.V.
• The Applied Sciences University of New Media in
  Stuttgart
• The Film Academy of Baden-Württemberg, the
  Professional Academy of Stuttgart, The Applied
  Sciences University for Technology in Stuttgart

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PUSH! Incubator

• 3 incubators for university spin-offs
• Pre-incubation facilities
• Advise and mentoring
• PUSH! Campus agencies as one-stop shop for
  entrepreneurs
• Software Center Böblingen/Sindelfingen as
  public-private partnership

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PUSH! Campus Agencies

• PUSH! CampusAgentur
• Uni Stuttgart TTI GmbH
• Nobelstraße 15
• 70569 Stuttgart
• Tel. [phone]
• tti-agentur_at_push-stuttgart.de

PUSH! CampusAgentur Uni Hohenheim/HdM IBH
GmbH Wollgrasweg 49 70599 Stuttgart Tel. (0711)
451017-200 ibh-agentur_at_push-stuttgart.de
PUSH! CampusAgentur FHs Esslingen/Nürtingen
CONTACT-AS e.V. Kanalstrasse 33, 73728
Esslingen Tel. (0711)
397-3528 Neckarsteige 6-10, 72622 Nürtingen
Tel. [phone] contact-agentur_at_pus
h-stuttgart.de
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PUSH! Corporate Development

• Early stage financing
• Location development
• Networking start-ups with well established
  enterprises
• Support for internationalisation of start-ups

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PUSH! Association

• Overall planning and further development of
  strategy
• Network management
• Public relations
• Akquisition of funding for network activities

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Selected SPRING activities

• European Day of the Entrepreneur
• PrimeCup (business game contest for students)
• Interdisciplinary lectures and seminars (pre-test
  of business ideas, business plans, case studies,
  workshops)
• E-Learning E-entrepreneurship learning concepts,
  web based trainings
• Development and implementation of
  entrepreneurship related courses into curricula

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PUSH! contact

• Wirtschaftsförderung Region Stuttgart GmbH
• Stuttgart Region Economic Development Corporation
• Dr. Andreas Chatzis PUSH!
• Friedrichstr. 10
• 70174 Stuttgart
• Germany
• Phone [phone]
• E-Mail andreas.chatzis_at_region-stuttgart.de
• http//www.push-stuttgart.de

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3. The Stuttgart Region Competence Center Program
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Innovation and SMEs
Challenges....

• Steady increase of the RD quota concerning all
  business activities(until 2010 30 relative to
  1985)
• Steady increase of the innovations intensity
• Steady decrease of product life cycles (increase
  of the innovations acceleration)
• 96 of all companies are SMEs
• Limited RD capacities available at SMEs
• Restraints of SMEs regarding the diffusion of
  innovations resp. research results
• few companies have solid relationships to
  universities and research facilities

....and restraints
(Source DIW, Fraunhofer-IAO, OECD, Roland Berger)
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Framework and History of the Competence Center
Program

• 1999 Advertisement of a regional contribution
  program
• Regional Innovation and Competence Centres
• 2000 Installing Competence Center Support Unit
  at the WRS
• (coordination office)
• 2000-2002 Supporting the implementation of
  Regional Innovation
• and Competence Centres with a contribution of 2
  Mio.
• Since 2003 Supporting innovative projects
  initiated by the
• Regional Competence Centres dealing with
• the support of the access to national
  international contribution programmes
• the stimulation and support of business
  co-operations
• the support of innovative product or service
  development
• Budget for project contribution 250.000 per
  year

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Competence Centers in the Stuttgart Region
Telecommunication
Online Services
Environmental Technologies
Virtual Dimension Center Simulation and Virtual
Reality in Industrial Applications
E-Government
Fuelcell Technology
Mechatronics
Speech Technologies
Facility Management
Mediatechnologies
Technical Textiles
Mobile Computing
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Selected SPRING activities

• Good practice report in spreading an innovation
  culture
• Comparison of Enterprise Hub Model (EEDA) with
  Competence Center Program
• Improving cluster management support through
  joint bench learning (BeLCAR project - INNOV 6)

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Competence Centers contact

• Wirtschaftsförderung Region Stuttgart GmbH
• Stuttgart Region Economic Development Corporation
• Dr. Martin Zagermann
• Friedrichstr. 10
• 70174 Stuttgart
• Germany
• Phone [phone]
• E-Mail martin.zagermann_at_region-stuttgart.de
• http//www.rekiz.de/english/index.html

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4. The Stuttgart Model on Early Stage Financing
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Situation in early stage financing Retreat of
institutional VCs

• Gap in financing of young NTBFs
• Return to a realistic rating of NTBFs
• Increasing importance of private investors

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Our Objectives

• Creating a new investment culture
• Creating a integrated investment-platform for
  informal an institutional investors.
• Transparency, integrity and fairness as
  principles
• Bundling know-how of regional partners
• Regional focus --gt fast, direct and personal

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Stuttgart Model on Early Stage Financing
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BA Forum Region Stuttgart Organization and rules

• Organised as association
• Fairness standards (Fairness Kodex)
• Privacy (Declaration of privacy)
• Rules for liability (Exclusion of liability)
• Commitment to a fund investment of 50.000 Euro
  minimum

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TFS Technology Fund Southwest (TFS)

• Investors Business Angels,other private
  investors, Companies (CVC), institutional
  investors
• Target group technology and knowledge based
  firms, preferred research spin offs
• Emphases of investment
• engineering
• biotech and medical science
• Information technology

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Agency and Investment Process
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Selected SPRING activities

• Initiation and establishment of PAXIS X-network
  group on early stage financing
• Development of BAFRS model based on analyses of
  BA models in Oxford and Cambridge
• Transfer of BA practice to Madrid
• Further co-operation between Stuttgart Region and
  Cambridge in preparation

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BAFRS contact

• Wirtschaftsförderung Region Stuttgart GmbH
• Stuttgart Region Economic Development Corporation
• Veit Haug
• Friedrichstr. 10
• 70174 Stuttgart
• Germany
• Phone [phone]
• E-Mail veit.haug_at_region-stuttgart.de
• http//www.business-chance.de

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6. (Intermediate) Results

• Entrepreneurship and Innovation Culture
• Regional Competence Centers
• Early Stage Financing

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Results and Challenges Entrepreneurship

• Three university incubators established
• Area-wide entrepreneurship qualification at
  universities established
• Spirit of Entrepreneurship in higher education
  integrated
• More than 400 start-ups from universities and
  research institutes supervised by PUSH! since 1998

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Results of Regional Competence Centers Initiative

• 16 Competence Centers in different fields of
  technology
• Very high level of participation gt 300
  companies (80 SME) gt 45 institutes and
  research facilities
• Extensive private investments could be triggered
  with little public money (2 Mill. ) (private
  investments 20 Mill. )
• Many co-operation and/or research projects
  initiated (private and public funded) (gt 50)
• Significiant improvements of the
  Private-Public-Partnership
• Improved access to national and European funding
  programs for the members
• Requests for additional Competence Centers (in
  and outside the Stuttgart Region)

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Results and Challenges Early Stage Financing

• Business Angel Forum Region Stuttgart founded in
  2003 as joint initiative of WRS (Stuttgart Region
  Economic Development Corporation), City of
  Stuttgart and i.con. Innovation GmbH
• Investment activities started (end of 2003)
• Model Technology Fund Southwest developed
• Fund in fund investment application failed
  (meeting with EIF on March 15th, 2004)
• BAs are planning own fund activities (based on PE
  only)
• .....?

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Thank you for your attention!
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Contact

• Wirtschaftsförderung Region Stuttgart GmbH
• Stuttgart Region Economic Development Corporation
• Dr. Rolf Reiner SPRING project
• Friedrichstr. 10
• 70174 Stuttgart
• Germany
• Phone [phone]
• E-Mail rolf.reiner_at_region-stuttgart.de
• http//www.cordis.lu/paxis/src/preseed.htmhttp//
  www.wrs.region-stuttgart.de http//www.region-stu
  ttgart.de http//eu.region-stuttgart.de