Top Investments 2018 in Bavaria

Digitalisation and research – two crucial factors for the future of businesses played a big part in many companies’ location decisions this year. Bavaria offers excellent location factors in these areas, both for established companies as well as innovative start-ups.

December, 2018

Top ICT location

Bavaria’s standing as a leading ICT hub in Europe again came to the fore this year as a range of large corporations, medium-sized companies and start-ups set up operations in Bavaria or expanded existing units here. Fujitsu Group opened a Digital Transformation Center (DTC) in Munich, its first worldwide outside Japan. The centre is to empower companies to meet the challenges of digital transformation. At the DTC’s co-creation platform, Fujitsu customers from a wide range of industries can leverage the know-how and skills of an extensive network of experts, creative minds and technologists. Munich, with its large cluster of corporates, wealth of specialist professionals and strong digital industry, offers the ideal ecosystem for DTC to succeed.

India’s Tech Mahindra Group also relies on Munich’s strength as a hub for the digital economy. Tech Mahindra opened  its so-called Software Factory of the Future in cooperation with Telefonica Germany. This primarily comprises an innovative, scalable delivery platform that completely digitises all business and development processes. A core associated R&D component is the Tech Mahindra Makers Lab, a regionally and cooperatively organised ideas and technology incubator. The aim is to develop and test innovative concepts in collaboration with start-ups and research institutes. Work is focussed on disruptive technologies such as artificial intelligence, the Internet of Things, robotics, AR/VR and transmission technology.

Opening ceremony of Tech Mahindra´s Software Factory of the Future: L to R: Dr. Wolfgang Hübschle (Director of Invest in Bavaria), Amit Kumar Jain (Vice President Tech Mahindra), Andrea Igl (Customer Projects Manager Tech Mahindra), Meike Saraswat (Investor Management, Invest in Bavaria)  © Invest in Bavaria

Bavaria: Rural areas attract major FDI projects

Bavaria also recorded some major investment projects outside its metropolitan areas. Family-run North American Science Associates Inc. (NAMSA) chose Obernburg in Lower Franconia to set up its first European test laboratory. There, NAMSA supports and assists pharmaceutical manufacturers in the development of medical devices from first idea to marketable product using various test methods. The choice of location was not least due to the availability of skilled personnel in chemistry in Lower Franconia.

Another case in point was the expansion of Yaskawa Electric Corporation’s robot manufacturing plant in Allershausen. The Japanese company established its robot production at Allershausen in 2012. The major expansion now is testimony to the site’s key location benefits: proximity to customers, ideal infrastructure, high market potential and easy access to European markets. Yaskawa Electric Corporation primarily serves industrial customers with its robots – focusing particularly on automation and Industry 4.0. Bavaria’s strong manufacturing sector, a large cluster of ICT companies and innovative start-ups, makes for a perfect environment for Yaskawa Electric Corporation.

Strong start-up ecosystem in Bavaria

Start-ups make a significant contribution to digitalisation with their disruptive business models and technologies. Traditional companies can benefit from such innovative solutions, whilst at the same time accelerating start-ups’ success and growth with their resources such as expertise, machinery or capital. An agile start-up ecosystem therefore is of key importance, not just in metropolitan areas. Throughout Bavaria more than 50 technology campuses, incubators and accelerators support national and international start-ups in the launch phase and beyond. Invest in Bavaria’s Ois Easy Landing Package also helps international start-ups enter the German and European market. In addition to free co-working or office space, the Ois Easy programme also offers coaching and contacts to partners and customers.

The Ois Easy Landing Package helps start-ups enter the German and European market. © Invest in Bavaria

Start-ups from the UK, USA and Mexico made use of the programme in 2018. Two of the participating companies subsequently founded a branch in Bavaria, Bulkhead Interactive (Gaming) and VoltalQ (battery technology). Two further start-ups, from Brazil and Belgium, are due to gain a foothold in Bavaria at the end of 2018 with the help of the Ois Easy program.

To promote the topics of digitalisation, disruptive technologies and industry, companies need the right conditions: infrastructure, specialist professionals, research – Bavaria offers all of these, not just in its metropolitan areas but right across the state.