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The role of the Stuttgart Region Ecomomic Development Corporation in creating an

attractive business climate

Bertram GaiserCoordination Agency Stuttgart Region Competence Centres

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ion Table of contents

Stuttgart Region and its Economic Development Corporation11

PUSH! – Entrepreneurship / start-up activities12

Competence Centres of the Stuttgart Region13

The Stuttgart Model on Early Stage Financing14

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ion The Stuttgart Region – general overview

Stuttgart Region in the middle of Europe

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• Founded in 1995 by ‘Verband Region Stuttgart’

• Budget 2005: ca. 5 Mio. €

• Location marketing

• Location management

• Location development

Stuttgart Region Economic Development Corporation

The Stuttgart Region comprises...

• ... City of Stuttgart and 5 surrounding

• ... 179 cities and municipalities

• ... 2.6 Mio. inhabitants

• ... 3.654 km2

• ... ca. 93 billion € gross regional product

The Stuttgart Region – general overview

Location development

Let‘s talk about this

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ion Table of contents

Stuttgart Region and its Economic Development Corporation11

PUSH! – Entrepreneurship / start-up activities12

Competence Centres of the Stuttgart Region13

The Stuttgart Model on Early Stage Financing14

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ion PUSH! – Entrepreneurship / start-up activities

PUSH! Objectives:

• Enhance start-up activities at universities

• Increase awareness and motivation for start-up and entrepreneurship

through events and contests

• Motivate professors to support entrepreneur-ship education and start-

up activities

• Develop and implement entrepreneurial courses at universities

PUSH! Initiative:

• PUSH! – Partner network for start-up’s from

universities in the Stuttgart Region

• Programme started in 1998

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Locations Contacts

Financing

Grants /EXIST SeedInitial advise Coaching

Customer campaigns

Guidance Trade fairs

Market entry

University Further

training

PUSH! – Entrepreneurship / start-up activities

PUSH! - Entrepreneurs‘ Mall

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ion PUSH! – Entrepreneurship / start-up activities

PUSH! - Partners

• Higher education institutions

• Research Institutions

• Banks and Savings & Loan Associations

• Public investors

• Private businesses

• Government Agencies

• PUSH!-Campus Agencies

PUSH!Education

PUSH!Corporate

Development

PUSH!Incubator

PUSH!Association

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PUSH! – (Intermediate) Results

• Three university incubators established (one stop

agencies for start-up’s)

• Area-wide entrepreneurship qualification at universities

established

• More than 640 start-ups from universities and research

institutes supervised by PUSH! since 1998

• „Spirit of Entrepreneurship“ in higher education integrated

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ion Table of contents

Stuttgart Region and its Economic Development Corporation11

PUSH! – Entrepreneurship / start-up activities12

Competence Centres of the Stuttgart Region13

The Stuttgart Model on Early Stage Financing14

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Challenges.... • Steady increase of the R&D quota

• Steady increase of the innovation‘s intensity

• Steady decrease of product life cycles

• 96 % of all companies are SMEs

Current situation of SME: An emerging challenge

....& restraints • Limited R&D capacities available at SMEs

• Restraints of SMEs concerning the diffusion of product innovations and research results

• Only a few companies have solid relationships to universities and research facilities

(Source: DIW, Fraunhofer-IAO, OECD, Roland Berger)

R&

D

LC

invest

time

Competence Centres of the Stuttgart Region

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Regional Competence Centres establish well organised regional

networks by integrating possibly all regional companies,

universities, research facilities etc. working in the same

technology field.

Basic idea of Regional Competence Centers:

Competence Centres of the Stuttgart Region

Competence and Innovation Centre Initiative Stuttgart Region:

• 1999: Start of regional contribution programme

• since 2ooo: Competence Center Support Unit at WRS (coordination

office)

• 2000-2oo2: Implementation of „Regional Competence and Innovation

Centres“ with a contribution programme (2 Mio. €)

• Since 2oo3: Project-based support of innovative projects initiated by

Regional Competence Centres

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Speech Technology

Vaihingen/EnzMarbach

Kornwestheim

Landeshaupt-stadt

Stuttgart

Backnang

Welzheim

Weinstadt

Esslingen

Göppingen

Geislingen/Steige

Nürtingen

Kirchheim/Teck

Denkendorf

OstfildernLeinfelden-

EchterdingenFilderstadt Kreis GöppingenKreis Böblingen

Kreis Ludwigsburg

Rems-Murr-Kreis

Technical Textiles

Customer Care

Environmental Engineering

Logistics

Facility Management

Fuel Cell Technology

Installed Regional Competence Centers

Telecommunication

Mechatronics

Solar Technologies and Energy Services

Print, publishing, communication and media

Telematics and Mobile Computing

Application Services

Virtual Dimension Center

Competence Centres of the Stuttgart Region

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Some Results of the Regional Competence Centre Initiative

• 14 Competence Centers in different technology areas

• High level of participation:

> 350 companies (90% SME)

> 50 university institutes and research facilities

• Extensive private investments could be triggered with little

public money (2 Mill. €)

(private investments ca. 20 Mill. €)

• Many co-operation and/or research projects initiated

(private and public funded)

• Significiant improvements of Private-Public-Partnership

• Requests for additional Competence Centers (in and

outside the Stuttgart Region)

Competence Centres of the Stuttgart Region

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ion Table of contents

Stuttgart Region and its Economic Development Corporation11

PUSH! – Entrepreneurship / start-up activities12

Competence Centres of the Stuttgart Region13

The Stuttgart Model on Early Stage Financing14

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Business Chance – The objectives:

The Stuttgart Model on Early Stage Financing

• Creating a new investment culture

• Creating an integrated investment-platform for informal and

institutional investors (e.g. Technology Fund Southwest)

• Bundling know-how of regional partners and Business Angels

• Regional focus

fast, direct and personal !!

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NTBFsNTBFs

S1S1

S3S3

S4S4

S5S5

S6S6

S7S7

S2S2

......

Intermediary

Business Angel Forum Region

Stuttgart

Business Angel Forum Region

Stuttgart

Technology Fund

Southwest

Technology Fund

Southwest

Investors

private investorsprivate

investors

Business Angel poolBusiness

Angel pool

BanksBanks

VCVC

CompaniesCompanies

Contacts

Equity

EquityCo-Investment

The Stuttgart Model on Early Stage Financing

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Business Angel Forum Region Stuttgart – Services offered:

The Stuttgart Model on Early Stage Financing

• Pre-selection of high potential “New Technology-Based Firms”

(NTBFs)

• Preparation of exposés for investors (private and institutional)

• Establishment of contacts (get-together)

• Support of the due diligence process

• Support of syndicated investments with the Technology Funds

Southwest (TFS)

• Supply of utilities and resources

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Organization and rules:

The Stuttgart Model on Early Stage Financing

• Foundation of business angel association

• Fairness standards (Fairness Kodex)

• Privacy (Declaration of privacy)

• Commitment to a fund investment of 50.000 Euro minimum

First results:

• Business Angel Forum Region Stuttgart established in 2003 as

joint initiative of WRS, City of Stuttgart and i.con. GmbH

• Investment activities started (end of 2003)

• Investment Model Technology Fund Southwest developed

• Business Angels agreed in “basket investments” and own fund

activities (based on PE only)

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Thank you for your kind attention !!

Questions welcome

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Stuttgart Region Economic Development Corporation

Wirtschaftsförderung Region Stuttgart GmbH (WRS)

Friedrichstrasse 10

70174 Stuttgart

Germany

http://www.wrs-gmbh.de/

http://www.rekiz.de

Bertram Gaiser

Fon: 0049 (0)711 22835 - 69

Fax: 0049 (0)711 22835 - 55

bertram.gaiser@region-stuttgart.de