Influencing Entrepreneurship - Heidelberg

Structure and Key to Symbols

Motivation – "We are living in the age of the entrepreneur"

Summary

Key to Symbols

1 Quality of Life

2 Costs of Doing Business and Regulations

3 Infrastructure

4 Sources of Innovation – a Cluster

5 Business and Technology Park

6 Enterprise Culture and Creative Climate

7 Financial Support

8 Soft Support

9 Conclusion and Future

10 Appendices

11 References

Motivation – "We are living in the age of the entrepreneur"

"As traditional manufacturing sectors and regions fell into crisis"^{[1] [2]}, "new firms and entrepreneurialism have become the focus of business interest."^[3] Entrepreneurship is the "... pursuit of opportunity without regard to resources currently controlled..."^[4] or “... the process of creating something new with value..."^[5]. Entrepreneurs create jobs, facilitate productive change and vitalize competition^[6] and hence most cities support them ("Industry" analysis à Appendix 1).

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Figure 1 - Baden-Württemberg

The city Heidelberg of the German state Baden-Württemberg is located in the Rhein-Neckar Triangle (à Figure 1^[7] ) and said to be attractive for entrepreneurs in biotech, life-sciences and telecommunications.^[8] Highlights of the city's achievements are:

- The German magazine “Focus” chose Heidelberg as the Best City for Start-Ups (4/1999)^[9] and as "Germany's Number 2 in Future Potential and Economic Power" (12/2000).^[10]
- The RNT won the national BioRegio competition (1995)^[11].
- Heidelberg is the "[m]ost Important Research Place in Germany"^[12] (Centre for European Economic Research 2000/2001, Institute of Scientific Information in Philadelphia 5/2001^[13]).

- No. 4 in Germany in Future Economic Growth said the magazine "Capital" (4/2001, 9/2001)^[14].

Challenges for biotech companies “are the creation and protection of intellectual property, the effective use of enterprise technology to capture and share knowledge, and the increasing pressures of globalization, convergence and the regulatory environment."^[15] And “the experience of Route 128 and Silicon Valley ... suggests that there are important regional sources of competitive advantage."^[16] What are these sources for Heidelberg?

Summary

Graphical summary of the effect and importance of different factors in Heidelberg on entrepreneurship:

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Key to Symbols

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1 Quality of Life

"Often, the ability to attract and retain a qualified workforce is an important factor, while for many employees 'quality of life' issues ... determine their choice of place to life."^[17]

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2 Costs of Doing Business and Regulations

A "study by the Institute of Chartered Accountants ... revealed that ... the main barrier for growth ... for small businesses ... was compliance with UK regulations, and for medium-sized enterprises it was the impact of European legislation".^[29]

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3 Infrastructure

Traffic

A good location provides "proximity to the company’s target market"^[45] and partners. "If ... distribution is a critical element of your overall operation [, e.g. retailing], then geographical location is extremely important. If your business is information- or service-related, the actual location takes a back seat ...".^[46]

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Information Technology

"Broadband is a must for all companies"^[54]. "Many companies need no longer be located in the larger conurbations" (as Heidelberg is comparable small), "since access to information (and the delivery …) can be achieved more cost-effectively in cheaper and pleasanter locations."^[55]

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[...]

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^[1] HIRSICH (2002), p. 24.

^[2] SAXENIAN (1996), p.1.

^[3] BURNS (2001). p. 1.

^[4] STEVENSON (1989).

^[5] HIRSICH (2002), p. 24.

^[6] IHK STARTCENTER RHEIN-NECKAR (08/2002), p. 4.

^[7] Adapted from LAENDER (2002).

^[8] HEIDELBERG ONLINE (2003), p. http://www.heidelberg.de/stadtinf/stadtptn.htm.

^[9] FOCUS ONLINE (2002).

^[10] ASCENDAS (26.09.2001).

^[11] MEYER-LARSEN (17.10.1999).

^[12] ASCENDAS (26.09.2001).

^[13] IHK RHEIN-NECKAR (2003a).

^[14] ASCENDAS (26.09.2001).

^[15] CONTROLLEDRELEASE.ORG (2003).

^[16] SAXENIAN (1996), p. 5.

^[17] SOUTH WEST REGIONAL AUTHORITY (2003).

^[18] HEIDELBERG ONLINE (2003), p. http://www.heidelberg.de/stadtinf/stadinh.htm.

^[19] CONVENTION AND VISITORS BUREAU HEIDELBERG (2003).

^[20] STATISTIK BADEN-WÜRTTEMBERG (07/2002).

^[21] HEIDELBERG ONLINE (2003), p. http://www.heidelberg.de/stadtinf/stadtptn.htm.

^[22] HEIDELBERG ONLINE (02.10.2002).

^[23] STADT LUDWIGSHAFEN (9/2002), p. 11.

^[24] RING DEUTSCHER MAKLER (2002), p. http://ors.rdm.de/informationsforum/marktdaten-extern/168.htm

^[25] AOL.DE (2003).

^[26] MEINESTADT.DE (2002).

^[27] HEIDELBERG (2003), p. http://www.heidelberg.de/bildung/bildinh.htm.

^[28] STADT LUDWIGSHAFEN (9/2002), p. 11.

^[29] KIRBY (2003), p. 276.

^[30] BUNDESMINISTERIUM DER FINANZEN (2003), p. http://www.bundesfinanzministerium.de/Steuern-und-Zoelle/Lexikon-Steuern-A-Z-.701.1295/Grundsteuer.htm?abc=G.

^[31] STADT LUDWIGSHAFEN (9/2002).

^[32] HEIDELBERG ONLINE (2003), p. http://www.heidelberg.de/stadtblatt/stbl5202/titel.htm.

^[33] KOMMUNALPOLITISCHE VEREINIGUNG BILDUNGSWERK E.V. (6.3.2003).

^[34] HEIDELBERG ONLINE (2003), p. http://www.heidelberg.de/stadtblatt/stbl5202/titel.htm.

^[35] KOMMUNALPOLITISCHE VEREINIGUNG BILDUNGSWERK E.V. (6.3.2003).

^[36] HEIDELBERG ONLINE (02.10.2002).

^[37] http://www.bio-regio.de/news/mitteilung/ausgabe.php3?id=15

^[38] HEIDELBERG ONLINE (2003). p. http://www.heidelberg.de/stadtblatt/stbl4601/themadwo.htm.

^[39] MEINESTADT.DE (2002):

^[40] DW-WORLD.DE DEUTSCHE WELLE (04.03.2003).

^[41] BIOREGIO (4.2.2003).

^[42] FRAUENHOFER ISI (14.9.99).

^[43] DW-WORLD.DE DEUTSCHE WELLE (04.03.2003).

^[44] ACCESS EXCELLENCE (11/1999).

^[45] http://www.businessplansnow.com/resources/top10.asp#10

^[46] http://www.entrepreneur.com/Your_Business/YB_SegArticle/0,4621,265091,00.html

^[47] STADT LUDWIGSHAFEN (9/2002).

^[48] HEIDELBERG ONLINE (1999).

^[49] http://www.dooyoo.de/reisen_cityguide/cityguide/allgemeines_zu_heidelberg/_review/768034/

^[50] http://www.gal-heidelberg.de/debatte/strassenbahnen2.html

^[51] STADT LUDWIGSHAFEN (9/2002), p. 11.

^[52] MEINESTADT.DE (2002).

^[53] HEIDELBERG ONLINE (1999).

^[54] http://www.entrepreneur.com/Your_Business/YB_SegArticle/0,4621,301585,00.html

^[55] SOUTH WEST REGIONAL AUTHORITY (2003).

^[56] http://www.rektorat.uni-heidelberg.de/00_01/kapitel7.4.html

^[57] HEIDELBERG ONLINE (2003), p. http://www.heidelberg.de/kultur/sonstige.htm.

^[58] HEISE NEWS-TICKER (8.1.2003).

^[59] http://techupdate.zdnet.de/story/0,,t419-s2129755,00.html

^[60] http://techupdate.zdnet.de/story/0,,t419-s2129755,00.html