Upper Bavaria and Upper Franconia Have the Highest Number of Start-ups in Bavaria

The number of firms founded in the large-area federal states of Western Germany declined between 2000 and 2012, except two short-term interim highs. Bavaria is less affected by this trend than, for example, Baden-Württemberg or North Rhine-Westphalia. Since 2008, Bavaria has been ahead of the other large-area federal states of Western Germany concerning start-ups for all sectors taken as well as start-ups in the particularly important research- and knowledge-intensive sectors.

The administrative districts of Upper Bavaria, particularly the region south of Munich, and Upper Franconia, especially the cities of Bamberg, Coburg and Hof, have developed into Bavaria’s main start-up areas (see graphic 2 at the bottom of the press release). These are the results of a study conducted by the Centre for European Economic Research (ZEW) on behalf of the Bavarian Ministry of Economic Affairs and Media, Energy and Technology. The study is based on data provided by the Mannheim Enterprise Panel (MEP). Using data for 2012 that have become available, ZEW researchers have been able to update the findings on start-up activity.

The study shows that start-up intensity has been particularly high in Bavaria, compared to the other large-area federal states in Western Germany. The study also showed that a high share of start-ups in Bavaria is located in innovative industry sectors. Comparing the start-up intensity (i.e. the annual number of start-ups per 10,000 employable persons) in the Western German federal states regarding research- and knowledge-intensive sectors confirms Bavaria’s excellent position. The annual number of start-ups in the R&D-intensive industrial sector has been the second-highest throughout almost the entire period under investigation starting in 2000; Baden-Württemberg was the only federal state to perform better when it comes to start-up intensity in this sector. In the sector of knowledge-intensive service providers, Bavaria’s start-up intensity has continuously been on a significantly higher level than that of any other federal state covered by the study.

Comparing the start-up intensity in the seven Bavarian administrative districts of Upper Bavaria, Lower Bavaria, Upper Palatinate, Upper Franconia, Middle Franconia, Lower Franconia and Swabia shows that Upper Bavaria and Upper Franconia are well in the lead. Upper Bavaria has a stronghold in the sector of knowledge-intensive service providers, while Upper Franconia has the highest start-up intensity in the research-intensive industry.

For further information please contact

Jürgen Egeln,  Phone +49(0)621/1235-176, E-mail egeln@zew.de