Since German reunification in 1990, Eastern Germany has attracted high levels of foreign direct investment (FDI). In eastern Germany, investors benefit from both the buying power of the western European market and the dynamic growth of eastern Europe. Discover what Eastern Germany has in store for you.
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- State-of-the-Art Infrastructure
- Attractive Funding
- Highly Qualified and Motivated Workforce
- High Productivity and Low Costs
- Excellent Research and Development
State-of-the-Art Infrastructure
After reunification, the swift expansion and rebuilding of transportation routes became the main priority of infrastructure policy in Eastern Germany. More than EUR 67 billion was invested in completing a large number of highways, the rail system, and telecommunications networks. A state-of-the-art logistics and communications network has since developed in the new federal states, ensuring quick access to suppliers, service providers, and many exemplary industry parks. Last but not least, the creation of the new Berlin Brandenburg International Airport (BER), joining the existing major cargo airport Leipzig-Halle (LEJ), will further increase Eastern Germany’s international network capacity and provide enormous growth and new business location opportunities.
Attractive Funding
Attractive funding and a number of grant options including low-interest loans, bank guarantees, and cash allowances are made available to investors in Eastern Germany. Labor, training, and R&D subsidies are also available in order to further reduce personnel and material costs.
As well as EU Structural Funds, prominent investment promotion position is taken by the Join Task for the Improvement of Regional Economic Structures (GRW) investment grant facility. Companies who intend to invest in the manufacturing, production-oriented services, and other related sectors can also expect support in the new EU funding period.
Highly Qualified and Motivated Workforce
A highly qualified workforce is key to economic competitiveness, as it helps secure the wealth of a society. The new federal states in Eastern Germany have a highly motivated, qualified and reliable workforce – with many workers qualified to carry out more than one job. As such, they belong to one of most flexible and best trained workforces worldwide.
Eighty-seven percent of the available labor pool in the new federal states have completed formal vocational training. Specific industry requirements are met by vocational colleges who work closely with business. Each year, around 80 thousand students successfully complete their studies in Eastern Germany.
High Productivity and Low Costs
The new federal states in East Germany are playing a crucial part in the German market. As a breeding ground for hundreds of new start-ups, the region is attracting more investors than ever.
Workers in the area are dedicated to their craft, providing a strong foundation for many developing and established businesses. Labor productivity in the eastern German federal states has doubled since 1991 with an average economic output at around EUR 50,000 per employee.
Productivity remains significantly lower in other eastern European countries which have undergone a similar transformation process to that of Eastern Germany.
The high productivity of these employees contributed to a GDP of nearly EUR 350 billion in 2016. US companies in particular count their eastern German sites as being among the most productive worldwide.
Economic considerations play an imperative role in the decision-making process behind selecting a business location. While productivity in the eastern German federal states is extremely high, attractive rental and property prices as well as low associated costs make a compelling case for locating your business in the eastern German federal states.
Excellent Research and Development
A number of excellent universities, research and development centers, and business partnerships has significantly increased the attractiveness of the new federal states for international investors. A broad range of industry clusters – covering everything from renewable energies, optics, biotechnology, chemicals and electronics to nanotechnology, aerospace, and automobile assembly – provide promising opportunities.
Investors can profit from the know-how of more than 40 Leibniz Association institutions, 22 Max-Planck Institutes, 26 Fraunhofer Institutes, and 4 Helmholz Association institutions. The 23 universities and 36 colleges located in Eastern Germany also play an important role in training the region’s highly qualified workforce as well as in research.
Germany’s Fundamental and Applied Research Institutes
Fraunhofer-Gesellschaft
The Fraunhofer-Gesellschaft is Europe’s largest application-oriented research organization. Founded in 1949, the research organization undertakes applied research that drives economic development and serves the wider benefit of society. Its services are solicited by customers and contractual partners in industry, the service sector and public administration. More
Helmholtz Association
Established in 1995 as a successor organization to the Arbeitsgemeinschaft der Großforschungseinrichtungen (“syndicate of large-scale research institutes”), the Helmholtz Association is dedicated to pursuing the long-term research goals of society, and to maintaining and improving the quality of life of the population. More
Leibniz Association
The Leibniz Association is a non-profit association made up of 89 basic and applied science and research institutions. Non-profit organized in nature, the Leibniz Association promotes science and research objectives among its member institutions with specific significance accorded their scientific, legal and economic independence. More
Max Planck Society
The Max Planck Society (MPG) is an independent, publicly funded research organization focused on basic research. Established in 1948 as the successor organization to the Kaiser Wilhelm Society (founded in 1911), the Max Planck Society consists of 83 institutes and research facilities (including four institutes in other European countries and one Max Planck Institute in the USA). Each institute is assigned to one of three designated research areas: Chemistry, Physics and Technology; Biology and Medicine; and the Humanities. More
