Transcript Kein Folientitel

Regional Diversities and Modern Technologies
Business Development Policies in Lower Saxony
Dr. Arnd Kölling
Presentation at the Open Days 2006
Brussels, Oct. 11th 2006
Regional Diversities and Modern Technologies

Content

Strategic targets in the new period of structural funds (2007 – 2013).

Characteristics of the Economy of Lower Saxony.

Promotion Strategies in Lower Saxony.

The Keyrole of NBank as Central Instrument of Promotion.

Outcome of Structural Changes in Regional Development Strategies

Conclusion
Seite 2
Strategic Targets 2007 - 2013

Operational goals:

Use of innovative instruments in business promotion:
 Introduction of revolving structures like funds instead of grants to
use the ressources several times and increase the effects and
reduce the costs of promotion programs.
 Use of private capital for the co-financing of EU programs.
 Creation of regional budgets to give space for regional activities
and fit regional needs of development.

(Detailed information about the use of instruments available in autumn)
Seite 3
Strategic Targets 2007 - 2013

Economic goals:

Sustainable economic growth and structures.

Increase of the Competetiveness of SME incl. the agricultural sector.

Creation of sustainable work places, Qualifikation of employees.

Use of existing advantages, like transportation infrastructure,
advantageous location within EU or large trade fairs.

Support of R&D intensive industries and knowledge based services.

Strengthening of rural areas, protection of Environment.
Seite 4
Economy of Lower Saxony

Key indicators (2005):

2nd largest state in Germany

Population: 8 mill.

workforce: 3,5 mill.

rate of self employed (non-agricultural): 9.8% (Germany: 10.6%).

rate of unemployment: 11.6% (Germany: 11.7%).

GDP p.c.(nom.): 23,534 € (Germany: 27,229 €).

GDP growth 0.9% (2005) resp. 9.1% (1995 – 2005) (Germany: 0.9% resp. 14.5%).

Sectors in % of GDP: agriculture 1.6% (Western Germany: 0.8%); industries 30.6%
(W.-G.: 30.4%); services 67.7% (W.-G.: 68.8%)
Seite 5
Economy of Lower Saxony

Regional disparities:
Region (NUTS II)
Braunschweig
Hannover Lüneburg Weser-Ems
Size in km²
8099
9047
15508
14970
Pop. in mill. (2005)
1,65
2,16
1,70
2,48
Pop. p. km² (2005)
203,8
239,2
109,9
165,4
Workforce in mill. (2004)
0,77
1,02
0,65
1,11
14,09%
13,97%
12,45%
13,25%
GDP p.c. in € (2003)
24848
25015
19111
22446
Growth of GDP (2003)
3,0%
1,6%
0,5%
0,7%
Growth of GDP (1997 - 2003)
18,0%
7,0%
11,2%
15,6%
Rate of Unemployment (Mar. 2006)
Seite 6
Economy of Lower Saxony

Economy show large regional diversities within Lower Saxony

Regional concentration and domination of vehicle construction industries (i.e. VW)
whereas large regions are affected by rural structures and very small enterprises.

The western part of Lower Saxony show a strong increase in the number of newly
founded firms and employees whereas southern areas exhibit a loss in employment.

The population in the northern and the western part increase whereas there is a
migration movement away from rural areas in the south and east of Lower Saxony.

The „ResearchRegion Braunschweig“ exhibit one of the highest R&D intesities (7.1%)
and proportion of people employed in R&D industries (4.0%) within the EU whereas
the share of knowledge intensive services in Lower Saxony is only 80% of the
German average.

Also, the Lüneburg area (NUTS II) is the only region in Western Germany that is
applied to the convergence criteria in the next period of EU structural funds.
Seite 7
Promotion Strategies

Emphasised innovational technologies:

Biotechnology

Biophotonics

Gas Cells

Micro System Engineering

New Materials

Telematics
Seite 8
Promotion Strategies



Realisation of large infrastructure projects (“Lighthouse Projects“):

Research airport Braunschweig

Jade-Weser-Port (deep water harbour)

Offshore based wind energy platform / CuxPort (Cuxhaven)

Building of new Motorways (Weser tunnel, A31, A22)
Creation of regional Clusters:

ResearchRegion Braunschweig

Metropol regions (i.e. Hannover/Braunschweig/Göttingen)
Support of modern technologies:

Establishment of an “Energy Research Center“

Introduction of an „Innovation Support Funds“
Seite 9
Promotion Strategies

Initiation of PPP

Support of SME

Support of qualificational and educational efforts.

Reform of administration in Lower Saxony
Seite 10
Keyrole of NBank: Focus

NBank started to work in
2004

2005: more than 10,500
allowances with a volume of
about 0.5 billion €

ca. 170 employees

3 local offices and the main
office in Hanover
Seite 11
Keyrole of NBank: Focus

Central Intitution for assistance and promotion of the economy in Lower
Saxony.

Fortification of the regional businesses.

Concentration of know how in business development, corporate finance
and local markets.

Responsible and fair distribution of assigned financial ressources.

Collaboration with chambers of commerce and crafts; regional
organisations and promotion agencies; local commercial banks.
Seite 12
Keyrole of NBank: Focus
chambers of com.
development
NBank
NBank
local business
products
european business
policy organization
coaching
national and
politics
development
agencies
Politik
enterprises
Seite 13
Keyrole of NBank: Promotion
Assistance
(loans and grants)
business
development
Coaching
 Niedersachsen-Loan
 Formation Coaching
 NiedersachsenSmallLoan
 KfW-Coaching for
Founders
 NiedersachsenInnovationLoan
 Investment Coaching
 Grants for Infrastructure
 Finance Coaching
 Tourist Development Prog.
 Succession Coaching
 Strategy Coaching
promotion of the
labour market
 Allowances for
qualifications
 Allowances for the
formation of new of
work places
individual
education
 Loans for tuition fees
 Allowances to receive
a degree as a master
crafts or industries
(Meister BaFöG)
 Innovation Support Prog.
 Utilisation of Patents
 Transfer of Employees
 Support of Trade fair
participations
Seite 14
Keyrole of NBank: Promotion

Guarantees for loans are provided by the specialised NBB (Lower
Saxony‘s Guarantee Bank)  therefore not a part of NBank‘s program.

Euro Info Centre Hannover (EIC); Innovation Relay Centre
Niedersachsen/Sachsen-Anhalt (IRC)

Part of NBank‘s international expertise

International Networks and Coachings

Innovation Audit (IRC)
Seite 15
Keyrole of NBank: Promotion

The next period of Structural Funds programmes and instruments (2007 –
2013):

NBank co-finances programmes and instruments in Lower Saxony
- regionalised budgets
- risk and venture capital funds
- credit funds

Extended use of revolving instruments to avoid wastage of resources and
market biases.
Seite 16
Outcome

Central contact persons („one-stop-assitance“)

Bundeling of competences in business development.

Standardised application processes and descisions about projects.

Modern IT system improve analytic abilities to evaluate promotion
programs.

Standardised communication structures via internet .

Use of regional and local expertise.

Establishment of co-operations and networks with local chambers,
business development agencies and organisations.
Seite 17
Conclusion

The NBank establishes a future-oriented struture of business
development in Lower Saxony.

As the time since NBank starts to work is rather short, the economic
oucome of the promotion strategies will be noticed in the future.

NBank is assigned with additional tasks in the near future like urban
development or housing support (2008).
Seite 18