Advantages of Eastern Germany
Best of Both Worlds – Key Advantages of Eastern Germany
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.
Qualified and Motivated People
Investors will find highly motivated, qualified, and reliable people in eastern Germany. German vocational schools work in close cooperation with businesses in order to tailor their programs to the specific needs of various industries.
Many eastern German workers are trained for more than one profession, making them one of the most flexible, well-trained, and educated labor pools in the world. Seventy-two percent of the available workforce holds a "dual systems degree," which combines theoretical knowledge gained in vocational schools and practical training gained directly in the workplace.
Productivity and Labor Costs
Productivity in eastern Germany has more than doubled since 1991: each employee contributes more than EUR 47,000 to the overall GDP. This level of productivity is significantly higher than in many eastern European countries. US companies such as AMD, First Solar, and Allmetal cite their eastern German plants as being among their most productive.
Research & Development
The targeted development of several important clusters, universities, R&D facilities, and collaborative enterprises has helped eastern Germany become an attractive region for international investors.
The eastern German states are home to such internationally renowned scientific and research institutions as the Leibniz Association, the Max-Planck-Association, and the Helmholtz Association. 23 universities and 36 universities of applied sciences play a large part in training eastern Germany's qualified labor force.
In addition, there are numerous science clusters focusing on specific industries such as aerospace, automotive, biotechnology, chemical, electronics, nanotechnology, optics, and renewable energies.
Infrastructure
Thousands of miles of freeways and railways have been constructed in eastern Germany since 1991, thanks to public investments of over Euro 67 billion.
Germany boasts an excellent industrial infrastructure, with a large group of suppliers, maintenance services, and many developed industrial parks.
First-class flight connections provide efficient European and international transportation. Germany's highly advanced telecommunications network is 100 percent digitalized, with 87,000 miles of fiber optics and an ISDN density five times higher than in the US or UK.
Investment Incentives
Eastern Germany offers some of the most attractive federal and state investment support packages available in Europe. The many available incentive programs can reduce start-up costs.
These programs include below-market-rate loans, special bank guarantees, and cash grants to cover job-creation investments.
Special programs also help cover the cost of employee training and research and development costs. Current corporate and income tax rates also make Germany an attractive tax location.
