Market > Germany > Facts
In the following are some of the reasons given that make Germany such an attractive location to investors:
Single European Market:
- more than half of all German exports are destined for other EU countries (1999: 56.4%), while 52 percent (1999) of all German imports come from EU partner nations. Germany is the most important trade partner for most EU member states. This status also extends to its trade relations with Russia and other CIS nations. As a result, Germany is already present on the most important and promising markets in Eastern Europe and beyond
International Trade Fairs:
- Germany's ongoing & increasing attractiveness as a leading venue for Trade & Industry Fairs also documents the country's strength as an industrial location and buyer's market - which is further underscored by the substantial increase in foreign exhibitors at major German trade fairs in past years. Last year Germany hosted the world Exposition Expo 2000 in Hanover.
Productivity:
- Germany's standing as one of the world's most productive economies is also evidenced by the fact that its gross domestic product (GDP) is DM 3,732 billion (1999), the third largest in the world. At $25,470, its GDP per capita is the second highest among the world's seven leading industrialized nations, after Japan.
Transport Infrastructure:
- The largest segment of Germany's transport network is its road system with 228,860 kilometers of roads which include 11,190 kilometers of autobahn. Germany's railroad system covers 42,751 kilometers; its waterways extend over 7,467 kilometers. Lufthansa is the world's leading air cargo company, a fact that speaks for the strength of Germany's air cargo sector. Frankfurt's Rhine-Main Airport is the largest in continental Europe. Other major airports are located in Düsseldorf, Munich, Berlin and Hamburg.
Telecommunications:
- Germany currently boasts one of the most competitive telecommunications markets in the world: it has the densest cable network and a large number of services. As a result, high technical standards are ensured when handling information streams. Digital transmission, satellite communications, fiber optic cable, broadband transmission, ISDN - all the options that modern telecommunications technology has to offer are used. A comprehensive ISDN network was already installed throughout Germany's new federal states by 1995. The number of ISDN users will soar in the near future as ISDN networks are set up throughout Europe and the world. The privatization of Germany's telecommunications services will not only add a number of new services and innovations, but will also lead to a noticeable drop in rates.
Education and research:
- Germany's dense network of universities and equivalent institutions guarantee the nation a pool of highly qualified managerial personnel. Much the same can be said of its vocational training system. Considered exemplary by international standards, Germany's "dual" vocational training system closely links classroom learning with practical in-plant experience - and is one reason why German employees are so highly qualified.
- Germany's education and research systems a fundamental reason why Germany is Europe's most important technology producer by far, and has one of the world's highest patent rates. Germany is the third largest exporter of high-tech goods in the world, following Japan and the USA. In Germany, research and development-intensive branches account for 13.5 percent of the country s gross domestic product, making them just as important for the economy as they are in Japan and even outperforming R&D-intensive branches in the USA.
- The closely-knit network of collaboration and cooperation between universities, research institutes and private research facilities is one of the major strengths of the German research and development sector. Germany allocates more than one third of the monies spent on R&D by EU member states. Measured in terms of gross domestic product, Germany is ranked third in the EU for R&D spending, after Sweden and France.
Advanced technologies:
- One of the most important fields in which Germany is a world leader is environmental technology, where it is outperformed only by the USA. Environmental protection has been a high priority at both political level and throughout the public for many years now. As a result, German industry began investing in the development of new, cost-saving processes at an early stage. The growing worldwide demand for environmentally friendly technologies in both industrial and developing nations has made Germany a leading exporter of environmental technologies.
Biotechnology:
- One of the most important of today's advanced technologies - Germany lagged behind the leaders during the early 1990s. However, the country's genetic engineering law was amended in 1993, making it possible to increase the competitive strength of German companies working in this sector. Germany intends to be Europe s leader in the field of biotechnology by the year 2000. Efforts made in this direction have already produced positive results: Germany had 150 biotech companies in 1996, up 100 percent over 1995. By 1999 there were 430 companies specialising, partially or entirely in the biotechnology field. Well-aimed assistance measures and a large number of new start-ups underpin predictions that the number of biotech firms in Germany will double again in the near future.
Software:
- Is a special strength of Germany's computer industry, with companies in this branch reporting double-digit growth rates. Their programs are used in a wide variety of areas which include industrial robots, computer-aided integrated manufacturing and automated machine tools.
High-tech research and manufacturing:
- Germany has more hi-tech intensive regions than any country in Europe; it has more companies and workers in this sector than any of its European competitors. Focusing on the development of new materials, aerospace engineering and laser research. In the field of laser light sources, considerable progress has been made on the road from tube technology to semiconductor lasers in the course of joint projects being conducted by the industrial and science sectors as part of the government s Laser 2000 program. Ground-breaking laser-application projects deal primarily with material processing, laser-induced manufacturing processes, and laser-optic measurement and testing methods.
Automobile, machine and plant engineering:
- Chemical, and electronics industries are among Germany's most important industries. Modern technologies, rational, cost-effective production methods and efficient operational organization methods are the reason why the words "Made in Germany" continue to command high respect throughout the world.
Social stability:
- Germany's strong political and social stability & standard of living enables a large degree of long-term planning & reliability. Widespread environmental awareness has contributed greatly to the creation of the large number of recreational opportunities and leisure activities in cities and non-urban areas. A broad range of cultural events documents Germany s cultural wealth. The regional distribution of the country s various cultural institutions and activities evidences the diversity of cultural offerings available. Berlin, Cologne, Düsseldorf, Kassel, Hamburg, Munich and Frankfurt are internationally recognized art centers. Berlin has the most theaters in the country. Hamburg, Düsseldorf and Bochum also have leading theaters. Typical of Germany's cultural scene however are its many smaller cultural centers - testimony of past times when Germany was divided into a large number of principalities.
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