Economic Development of the German Federal State of Hessen

1
Economic Development of the German Federal State
of Hessen
2
Types ofEconomic Development

• Monetary Economic Development
• Loans
• - setting up new businesses
• - investment
• - working capital
• - research and development
• liable products
• - guarantees
• - release from liability
• participations
• - dormant participations
• - open participations
• grants
• - investment grants
• - grants for research and development
• - promotion of business consulting

3
Types ofEconomic Development

• Non-monetary Economic Development
• locating advicing
• advice on funding programs
• location marketing
• foreign trade fairs
• delegation trips
• assistance with the development of foreign
  markets
• cooperation services
• technology transfer (EEN)
• technology centers and incubators
• founder contests
• state initiatives

4
Incentives in the State of Hessen

• Guidelines
• The European Union carefully monitors all
  incentives in their member states in general,
  the type and amount of incentives are linked to
  the economic wealth and development of regions
• Hessen offers less incentives than other regions
  mainly due to the outstanding performance of
  the larger Frankfurt area, the so-called
  Rhein-Main Region
• according to EU legislation most state
  incentives in Hessen are targeted to small and
  medium-sized enterprises

5
Incentives in the State of Hessen

• Federal Research Programs
• The Federal Ministry of Education and Research
  (BMBF) supports a wide variety of research
  activities in most cases these incentives are
  offered as grants
• Example
• Program Optical Technologies offers a maximum
  grant of 50 percent of all costs for basic
  research and 25 percent of all costs for product
  development

6
Incentives in the State of Hessen

• Federal Research Programs
• Selected research areas supported by the BMBF
• - biotechnology
• - nanotechnology
• - new materials
• - microsystems technology
• - optical technology
• - microelectronics
• - mobility traffic
• - display technology
• - R D in medical sciences

7
Incentives in the State of Hessen

• European Research Programs
• The European Union offers various research
  programs with a focus on transnational
  cooperation, companies have to work together with
  other European partners in most cases these
  incentives are offered as grants
• currently active
• The Seventh Framework Program of the European
  Union, covering in particular the following
  areas
• Health
• Food Agriculture and Fisheries, Biotechnology
• Information communication technologies
• Nanosciences, nanotechnologies, materials new
  production technologies
• Energy
• Environment (including Climate Change)
• Transport (including aeronautics)
• Socio-economic Sciences and Humanities
• Space
• Security

8
Target Groups for Economic Development
1) Companies Which Set up Businesses financial
promotion by - seed money (KfW-StartGeld) -
seed and growth financing - capital for
setting up new businesses - loan guarantee
certificates - investment grants in designated
development regions
9
Target Groups for Economic Development

• 1) Companies Which Set up Businesses
• Consultancy Services
• information seminars for entrepreneurs and
  newly establishing firms (www.hessen-agentur.de)
• supervised consulting (www.rkw-hessen.de )
• KfW-Gründercoaching (www.kfw-mittelstandsbank.de)
  (promotion of advisory services)
• contact for equity financing (participations in
  small technology companies)
• (www.bmh-hessen.de )
• infrastructure and services of technology
  centers and incubators
• (www.tgz-hessen.de )

10
Target Groups for Economic Development

• 2) Companies Which Expand and Invest
• Advising on financial promotion for
  the establishment or expansion of business
• location advising for the setting-up,
• relocation or expansion of business

11
Target Groups for Economic Development

• 2) Companies Which Expand and Invest
• Financial promotion of investment projects
• - seed and growth financing
• - entrepreneur capital for labour and
  investment
• - entrepreneur loan
• - loans for environmental and energy saving
  projects
• - state guarantees for investment and working
  capital loans
• - participations of the IBH Beteiligungsmanagemen
  tgesellschaft Hessen mbh (BMH)
• - IFD HessenFonds participations for growth
• - investment grants in designated development
  regions

12
Target Groups for Economic Development

• 3) Companies Which Research and Develop
• ERP Start Fund (KfW) - equity to young,
  technological enterprises of up to ten years
  along with a private co-investor
• High Tech Founders fund - equity to young,
  technological
• enterprises of up to one year
• participations of the IBH Beteiligungsmanagementg
  esellschaft Hessen mbh (BMH) i. e. Hessen
  Kapital for growth and innovation as well
• as the phase of market introduction of new
  products
• RegioMIT regional fund central Hessen
  participations for firms in the city and
  district of Giessen and Wetzlar
• ERP Innovation Program (KfW) - loans and
  participations for RD and commercialization

13
Target Groups for Economic Development

• 3) Companies Which Research and Develop
• ERP Participation Program (KfW) refinancing
  of participations
• promotion of pre-operating studies and PRO INNO
  II - grants for cooperations in
• sophisticated RD projects
• promotion of innovation assistants grants for
  the employment of graduates from universities
  and universities of applied sciences

14
Institutions ofEconomic Development

• Selected Federal Institutions
• KfW-bank group
• - loans for the financing of commercial
  investment and business start-ups
• - participations for newly founded and small
  technology firms
• Bundesministerium fuer Wirtschaft und
  Technologie (BMWT)
• (Federal Ministry for Economics and Technology)
• - data base for funding programs
  (www.foerderdatenbank.de)
• - web-sites for founders of a new business
  (www.existenzgruender.de)
• Bundesamt fuer Wirtschaft und Ausfuhrkontrolle
  (BAFA)
• - promotion of advisory services for firms
• - promotion in the field of energy

15
Institutions ofEconomic Development

• Selected Institutions on a State Level
  
• Hessian Ministry of Economics, Transport, Urban
  and Regional Development
• - infrastructural measures
• - access to foreign markets
• HA Hessen Agentur GmbH
• International Affairs
• - location advising and foreign trade promotion
• - EU consultation centers
• Hessen Marketing
• - tourism marketing
• technology advising
• - technology-intensive industries state
  initiatives,hessen-biotech, hessen-it,
  hessen-media, hessen- nanotech
• - promotion of innovations and technology
  transfer
• - advising on monetary promotion programs (e.g.
  loans, grants)
• innovation, education, media
• - Media/IT
• site development
• - applied economic research

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Institutions ofEconomic Development

• Selected Institutions on a State Level
  
• Investitionsbank Hessen A.ö.R. (IBH)
• - processing of monetary promotion programs such
  as credits, grants, state guarantees und
  participations - design of new programs in
  cooperation with the state government
• Buergschaftsbank Hessen (guarantees)
• RKW Hessen GmbH (promotion of advisory services
  for firms)
• chambers of industry and commerce (IHK)
• chambers of skilled crafts (HWK)
• IBH Beteiligungsmanagementgesellschaft Hessen
  mbh ( BMH)
• Landestreuhandstelle Hessen (LHT)