Bavarian Policy for Development of Innovation Centres European Day of the Entrepreneur

1. Bavarian Policy for Development of Innovation Centres European Day of the Entrepreneur Sofia, 4th of November 2004 Andreas Lutz

2. GründerRegio M • Founded 1998 as an association of the key players in supporting young Entrepreneurs • Activities focused on the Munich Region but also in Bavaria and Europe • 30 members: Universities, Incubators, VCs, banks, Chamber of Commerce, City of Munich and private companies • Current projects: HOCHSPRUNG, EFFEKT!, PANEL, Bridge to the East, StartUp München

3. Andreas Lutz • 1986-1992 Studies ofIndustrial Engineering in Germany, France and Spain • 1993-1999 Management Consultant (D, F, E) • 1999-2003 StartPoint-Centre for Energy and ICT (Incubator) Managing Director • since 2004 Triebwerk Business Development Managing Director • CFO of Gründer Regio M e.V. and former member of the advisory board and the jury of Munich Business Plan Competition • deputy speaker of Bavarian Association of Business Incubators and co-founder of StartUp München

4. Triebwerk Business Development • powerful team with experts in business development, financing and internationalisation • StartUp consulting and financing - business and financial plan, strategy, marketing, sales- financing (banks, VC, seed capital, public funds) • International business development for German SMEs- market research, joint ventures, financing, public funding- spanish/french-speaking countries / Eastern Europe • Interim and project management for German SMEs/StartUps and international companies starting business in Bavaria

5. High-Tech-Policy in Bavaria • since 1994 Bavaria has invested huge sums of money from privatization in research and technology • “Offensive Zukunft Bayern/Future Initiative Bavaria”: 1,7 Mrd € • “High-Tech-Offensive/High-Tech-Initiative”: 1,4 Mrd € • objectif: creation of jobs in key technologies • life science, ICT and mechatronics • new materials, environmental and energy technologies • instruments: venture capital, interaction of public and private research, technology transfer, business plan competitions , creation of high-tech companies andhigh-tech innovation centres

6. Definition Innovation Centres arean instrument to support the creation and the development of innovative and technology oriented companies, which are developing, realising and selling new products and services from results of R&D in the marketas well as other business startups  IC are instruments of regional economic and cluster development

7. 3 main tasks • Stimulation and support of startups (see next slight) • Support of technology transfer- researchers  entrepreneur: direct technology transfer- common infrastructure for all companies- cooperation with universities and research institutes • Support of regional development - participation in regional initiatives of economical development- attraction of direct investments

8. 3 main offers • Consulting and Supportfor entrepreneurs and startups during the first steps of business development (management know how, contacts on a regional, national and international level, financing, …) • Services and Infrastructuree.g. conference and meeting rooms, technical equipment, phone, fax, internet access or laboratories, reception, … • Rooms offering suitable rooms with high flexibility in space, time and costs adapted to the development of the company •  highest effectiveness by an integrated offer of all part

9. Innovation Centres in Germany • 1st IC founded in 1983 • 380 ICs in 2004 • more than 20 years ofexperience • 8.000 companies / 60.000 jobs in 2004 • 16000 companies / 150.000 jobs since 1983 • 8.000 companies left the incubators • survival rate 90%

10. Innovation Centres in Bavaria • 23 high-tech-innovation centres • 100.000 m² • 420 companies • 200 Mio € turnover • 2000 jobs • 22 “normal” innovation centres • survival rate 90-95% • most of the ICs financed with public money

11. Six ICs in the Munich region • MTZ Munich Technology Centre, München • GATE, Garching software, mechatronics, close to Technical University • StartPoint, Brunnthal Energy and ICT technologies, close to EADS, BOSCH, etc. • IZB, Martinsriedred biotechnology, close to medical campus / hospital of LMU • IZB, Freising-Weihenstephangreen biotechnology, close to TU und FH Weihenstephan • GZM Gründerzentrum für Neue Medien, Unterföhringnew media, close to TV, production companies

12. Munich ICs are … • located close to universities/R&D institutes or large industrial companies with R&D activitites • participate in regional initiatives to foster technology oriented companies (MBPW, StartUp, …) or/and • strong partners in regional networks (GründerRegio M, VC, banks, R&D, Chamber of Industry ...) • have clear target groups  technological focus (biotechnology, ICT, energy, new media) • are managed by professional teams of at least 2/3 qualified persons  high personal costs • are financed with public money or have public owners  deficit funding in some cases

13. Example: • Phase I: temporary incubator in Moosach/Munich • 1.200 m2 useable floor space • Meeting rooms • Networking, Events • Not nearby Universities  you don‘t need a new building to start an incubator • Phase II: gate garching • New building: 4.800 m2 useable office space • 550 m² production and laboratory • 2 meeting rooms 110 ² and 50 ² • Excellent IT-infrastructure • Nearby TU München, faculty for computer science

14. Example:

15. Example: Owner of Estate State of Bavaria Owner of Building private investor Managing Company gate - Garchinger Technologie- und Gründer- Zentrum GmbH Technische Universität München State of Bavaria Advisory Board Software-Campus Manager

16. Example: • Reception • Visitors • Telephone • copy machine, fax, post office • Short term renting/flexibility • Coaching • Partners • Events, Workshops, Symposia • Marketing • Trade fairs (e.g. Systems)

17. Recommendations • look for regional partners and build a strong project team • develop a sustainable business concept • start small (2.000 – 4.000 m²)  enlarge if you are successful • location not too far away from university • look for a experienced management team  young networker with good contacts, experience in financing and business development • create a good atmosphere for startups  THE location for startups • no politics in daily business regional consensus

18. Experience / Support • 4 members GründerRegio M are regional ICs • GründerRegio M has his office in MTZ • GründerRegio M and his partners have large experience in planning and operating ICs • Building, technical and IT-equipment, • Organizational framework / financing • Services, contracts, rental conditions • Selection and training of management team

19. Thank you for your attention Kontakt GründerRegio M e.V. Andreas Lutz Frankfurter Ring 193a D-80807 Munich Tel.-No: +49 89/321978-10 Fax-No: +49 89/321978-15 E-mail: lutz@gr-m.de www.gr-m.de Triebwerk Business Development Andreas Lutz Schulstrasse 2 D-80634 Munich Tel.-No: +49 89/139 398 10 Fax-No: +49 89/139 398 12 E-mail: lutz@triebwerk-bd.de www.triebwerk-bd.de