Bavaria"s economy

A prospective business location

Bavaria"s profit from the economic change
By today"s standards it was undeniably a historical godsend that Bavaria was hardly stricken by heavy industrial mono-structures due to the late onset of the Industrialization. There was enough room to build today"s modern industrial structures without having to deal with past blunders. The inflow of refugees and expellees as well as the relocation of companies from Middle and Eastern Germany brought  additional well-trained workers and entrepreneurial potential to the country. Siemens, Osram, Agfa and Audi are some companies that relocated their headquarters to Bavaria due to the division of Germany. But it takes more than just luck. One has to grasp the opportunity.

Both Bavarian economy and politics did so, and it is exactly that foresightful and decisive grasping of the opportunity that makes aretrospect on 50 years of Bavarian economic policy not only the result of an impressive economic development, but also the story of a consistent and offensive realization of the chances brought by a sometimes difficult economic change. Bavaria, however, also had to undergo several structural breakdowns in mining, the textile and clothing industry and the porcelain sector. But we did not refuse these changes, we rather opened up to new developments, teamed up with progress and actively took up the new challenges of competition. The entrepreneurial spirit of world-renowned local companies combined with the Bavarian middle class, the excellent vocational knowledge and technical skill of Bavarian employees, has made this long-term future-oriented policy the basis of our macroeconomic success.

One of the strongest economies in Europe
Bavaria"s gross domestic product of 385.2 billion € exceeds that of 19 out of 25 EU member states. The economic output of 30.993 € per citizen is far beyond the German and European average (2004). Our purchasing power is one of the highest worldwide.
International comparative studies attest excellent location qualities to Bavaria, and Munich and its surrounding region can be found in top positions again and again.

The Free State of Bavaria, which used to be an agricultural state only 50 years ago, has now become the "European high-tech Mecca" (Microsoft boss Bill Gates referring to Bavaria), the center of the "New Economy" and an economic partner with a worldwide presence. The recent exporting record of 118 billion € in 2004 emphasizes the high international competitiveness of Bavaria"s economy.

A modern and efficient economy
1. Apart from global players such as Siemens, Audi, BMW, EADS, Adidas-Salomon and MAN, Bavaria"s economy is also characterized by a tight network of small and medium industrial companies, trading companies and service companies. Each investor will find a broad range of competitive suppliers, buyers and co-operation partners.

2. Bavaria has a national and international leading position in almost all new sectors of technology from information and communication through to biotechnology, gene technology, energy and environmental technology. The Free State of Bavaria is an attractive region for every high-tech company.

3. Service has first priority in Bavaria: Bavaria is the German number one location for insurance companies and number two for banks. Tourism is also on top position in Bavaria. The fairs in Munich and Nuremberg are internationally significant. Company-related services with high Economic Value Added (EVA) are developed above-average in the Free State.

The investment location Bavaria offers
1. A splendidly constructed infrastructure for traffic, telecommunication and energy that guarantees optimal supply and accessibility to international market places.

2. A high level of education and further education.

3. Full-scale support of research and technology, which contributed to Bavaria"s
international top positions with 2.7% of its BIP spent on research and development.

4. Modern Bavaria has also maintained its attractive natural and social location factors such as a wide variety of cultural offers, traditions, diverse recreational opportunities, intact nature and maximum internal security.

Groundbreaking Bavaria
The Bavarian government has ploughed back 4.2 billion € from privatization into the modernization of economy, state and society. This took place under two offensives named "Offensive Future Bavaria" and "High-Tech Offensive".

In doing so, Bavaria has specifically boosted its competences in future technology areas such as information and communication technology (ICT), life sciences, new materials, mechatronics, energy and environmental technology as well as nanotechnology.

Further steps will follow the successful launch of the European Galileo program to position the Free State as the competence center for Europe"s satellite navigation. The expansion of research and development (R&D) structures and the support of companies with information and communication technology (ICT) innovations is a constant task for Bavaria.

Future-oriented Bavaria
Apart from boosting our high-tech competence, we also focus on:

1. Pushing founder dynamics

2. Further internationalization of science and economy

3. Increasing the quality of our educational system

Cosmopolitan Bavaria
To date more than 1.200 foreign companies have located in Bavaria operating successful worldwide business from here.

If you have any questions, require information or intend to invest in Bavaria, do not hesitate to contact us.