1. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 1 The NIS Practices in Germany Presented by Dr. Moneim Issa on the Consultative Meeting on National Innovation Systems (NIS) of India 19-20 September 2006, New Delhi Eschersheimer Landstr.89 D-60322 Frankfurt Tel.: +49 (0) 171 931 3456 Fax: +49 (0) 69 955 30 337 E-Mail: aissa@t-online.de

2. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 2 The Technology and innovation Centres in Germany (2006) 167 Technology and Innovation Centres ca. 7.500 Enterprises in the Centres ca. 56.000 Employees ca. 16.000 successful Start Ups-Firms ca. 150.000 generated employments The survival quote in the centres ranged to about 90% Over 8.000 Enterprises from the Centres have successfully been established. These Firms have generated ca. 90.000 working places.. Source: ADT

3. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 3 DEVELOPMENT OF INNOVATION CENTRES IN GERMANY 1983-2000 Source: ADT

4. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 4 OBJECTIVES OF INNOVATION CENTRES Technical support to technology oriented start-ups Provision of infrastructure to be used by the companies Promotion of co-operation between science and economy Promotion of regional development potentials for technology oriented enterprises and start-ups Initiation of technology park projects and technological co-operation Support of regional economic development Provision of information on innovative technology Improvement of regional innovation framework Source: ZEW

5. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 5 ALLOCATION OF INNOVATION CENTRES ACCORDING TO SITE PREFERENCE Source: ADT

6. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 6 TECHNOLOGICAL FOCAL POINTS IN THE INNOVATION CENTRES General Services27 % Technological Services24 % Software23 % Information and Communication Technology22 % Multimedia16 % Environmental Technology16 % Consultancy16 % Electronic and Electrical Engineering11 % Instrumentation and Measurement Technology10 % Computer Technology 9 % Automation 8 % Machinery 6 % Source: ADT

7. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 7 TECHNICAL CONSULTANCY BY INNOVATION CENTRES Source: ADT Start-Up Consultancy Legal Issues Elaboration of Business Plans Technnology Advice Patent Finance Business promotion Programms Marketing Assistance Insurance Training

8. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 8 LOGISTIC SUPPORT BY INNOVATION CENTRES Source: ADT Office Services Reception Telephone services Photocoping Conference Rooms Internet Data Bank Book Keeping Organization of Exhibitions Company Cooperation Technology Transfer Laboratory Utilizaion

9. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 9 SUCCESSFUL COMPANIES MOVED OUT OF INNOVATION CENTRES AFTER ESTABLISHMENT OF THE CENTRES Source: ADT

10. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 10 The Structure of the German Innovation System Source: Prognos AG., Germany 2004

11. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 11 INNOVATION INFRASTRUCTURE IN GERMANY Natural Sciences, Technological and Engineering Institutions  81 Universities  90 Technical Universities  81 Max-Planck-Institutes  47 Frauenhofer-Institutes  16 Helmholz-Centres  51 „Blaue-Liste“ Institutes  24 Federal Research Institutions  47 Local Research Institutions in the federal states Source: Athene-Project

12. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 12 POTENTIAL OF TECHNOLOGICAL ORIENTED START-UPS Source: Athene-Project

13. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 13 Current Priorities of the National Innovation System Promotion of Education, Science and Technology and R&D - Innovation and Economic Growth - Facing International Competition through Globalization - Regain a Leading Role in Future Technology - Innovation Initiative and Structural Reforms

14. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 14 Share of World Regions to the Development of R&D-Capacities 1995-2003 GDP Expenditure on R&D at Current Prices R&D Expenditure of Private Sector at Current Prices Source: OECD, Main Science and Technology Indicators 2004; IMD World Competitiveness Year Book, NIW. Quoted in: BMBF: Zur technologischen Leistungsfähigkeit Deutschlands 2005, Bonn, Berlin 2005 STC (Selected Emerging Countries): CHN, KOR, IND, RUS, SIN, TWN, ISR Share of OECD+STC 1995 - 2002 Share of OECD+STC 1995

15. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 15 Innovation Activities of the German Industry  Research and Development  Human Resources in Business R&D  Patent Output

16. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 16 Source: Eurostart – CIS-III (New Cronos. September 2004). Götzfried et al. (2004). Arvantis et al (2004). Frenz (2003), unpublished data of CIS-III team.- ZEW calculations; Quoted in: BMB Innovation Quota 1) Production sector without constructionService sector* 1)Innovation Quota: Share of enterprises which released a new or significantly improved product in the market or implemented a new or signifcantly new procedure within the company, in % of all enterprises *)whole sale, logistics, IT, Software, insurance and loan sector, R&D services, technical services

17. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 17 GDP Share of R&D intensive industries and knowledge-intensive services in selected countries 2002 (in %) R&D intensive industries Knowledge-intensive services without real estate *) EU-15 without IRL and LUX Source: OECD, STAN-Database 2002. – Calculations and Estimations by DIW Berlin. Quoted in: BMB

18. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 18 Innovation Performance and R&D in industry and knowledge-intensive Services 1993-2003 (in % of all Enterprises) Source: ZEW, Mannheim. Quoted in: BMB. Industry and MiningKnowledge-intensive services Companies with irregular R&D Companies with continuous R&D Innovative companies without R&D

19. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 19 Source: OECD, STAN-Database 2002. – Calculations and Estimations by DIW Berlin. Quoted in: DIW, NIW: Marktergebnisse bei forschungs- Intensiven Waren und wissensintensiven Dienstleistungen: Außenhandel, Produktion und Beschäftigung, Berlin, Hannover 2003 Share of Employment in R&D intensive industries and knowledge-intensive services (in %) Real estate Knowledge-intensive services without real estate R&D intensive industries

20. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 20 Development of Employment in R&D-intensive Industries in Germany 1991- 2002 Professional Fields in companies 1995=100 Source: Federal Office for Statistics, ZEW. Quoted in: DIW, NIW. FE= R&D-intensive Industries ST= Sofisticated Technology HAT= Advanced Technology NFE= Not R&D-intensive industries

21. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 21 Patents quota 2002 and its change between 1991 to 2002 in selected countries Source: EPATENT.- WOPATENT.-OECD. Main Science and Technology Indicators. – Fraunhofer ISI Calculations. Quoted in: BMB. *) Patents relevant to the world market per 1 Mio. labour force Patent dispersion*) Annual average Change 1991 - 2002

22. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 22 Critical Assessment of NIS  Innovation Contribution of German SMEs is low  Several Regulatory Burdens on Private Sector  Lack of Venture Capital Market and Start-ups  Insufficient Supply of Highly Qualified Personnel

23. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 23 Graduates in engineering and natural sciences 1) Per 100.00 Labour Force, age 25 to 34 *) 2000 instead of 2002 Source: OECD, Online Labour Database – OECD Education Online Database – ZEW/HIS Calculations. Quoted in: BMB 1) Course of studies: bioscience, lifescience, physics, math/statistics, IT, engineering, construction

24. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 24 Challenges face the NIS in Germany  Demographic Factors  The Situation of the Educational System,  particularly the Tertiary  The Situation of High Qualified labour

25. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 25 Tertiary Education in the OECD-Countries in 2002 – Graduates between 25-34 years (in %) Source: OECD, FIBS, NIW. Quoted in: BMB.

26. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 26 Tertiary Education in the OECD-Countries in 2002 – Graduates between 55-64 years (in %) Source: OECD, FIBS, NIW. Quoted in: BMB

27. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 27 Sources of Innovation Processes in Germany (Fraunhofer Gesellschaft) Source:Fraunhofer Fraunhofer Gesellschaft: Deutschland innovative 2004

28. NIS Practices in Germany National Innovation Systems Consultative Meeting on National Innovation Systems 19–29 September 2006, New Delhi, India Page 28