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We can do everything, except speak standard German” is Baden-Württemberg’s advert campaign slogan. It’s not an idle boast. The region’s workers, who speak dialects such as Schwäbisch and Alemannisch, undoubtedly have a talent for technical innovation and quality craftsmanship. Poor in natural resources, the southwestern German region has long relied on the ingenuity and diligence of its people to fuel its economy. Home to companies such as Bosch, Carl Zeiss, Porsche, and Mercedes-Benz, the state now enjoys global renown for its automobile industry and engineering.
Although Baden-Württemberg is perhaps best known for the luxury cars produced there, the highly industrialized region is also a hotbed of medical technology. “Our state is traditionally a land of hard workers and inventors—regardless of the field,” says Verena Bohnhorst, marketing manager for injection mould maker Braunform GmbH (Bahlingen). “Many companies in Baden-Württemberg are involved in medical technology,” Bohnhorst notes. “They range in size from the very small to the so-called global players.” In fact, no other area in Europe has such a high concentration of firms involved in the medical market. While 54% of Europe’s medical products were produced in Germany in 2003, more than half of those were made in Baden-Württemberg, according to data from the region’s economic development agency, Baden-Württemberg International GmbH (Stuttgart). The organization counts more than 600 medical engineering companies in the state that employ more than 200,000 people.
“There is a tradition in Baden-Württemberg in medical technology and related fields such as mechanical engineering,” explains Michael Lauk, managing director of Seleon GmbH, a firm that began as a spin-off at Freiburg University in 1998. While the company initially specialized in developing software and hardware for diagnostic systems, it has responded to the varied needs of medical device OEMs by branching out to offer services such as contract manufacturing and clinical trials.
The region is also home to many companies active in the medical market with roots in traditional industries such as clock making. That is the case with Schmidt Technology (St. Georgen), which initially produced clock components when it was founded in 1938 but now specializes in precision engineering and electronics. Applications of the firm’s sensors include cleanroom monitoring and medical devices.
Another reason for the state’s success in the medical arena is its dense network of high-tech suppliers. “The region has a lot of companies with unique selling propositions for the med-tech industry,” says Ulrich Mürrle, head of marketing and sales for nitinol tubing manufacturer Vascotube GmbH (Birkenfeld). Because of this network, companies in the region often are able to source their products locally. For instance, Vascotube takes advantage of nearby firms with specialties that complement its own talents. “Services such as maintenance and toolmaking for tubing and machinery are just around the corner,” says Mürrle. “The network of high-tech companies surrounding us contributes to our flexibility.”
Tapping Educational Resources
Baden-Württemberg’s strength in medical technology can also be linked to its workforce. “In our region, there are many highly qualified, skilled workers in the high-technology fields,” says Walter Hölsch, sales manager for Schmidt Technology. “It is not difficult to find skilled employees and engineers in the region.” Renowned for their diligence and commitment to quality, Baden-Württemberg’s workers are among the best educated in Europe. A full one-fifth of the state’s industrial employees are engineers. “The professional base here is very strong on all levels,” observes Mürrle. “Skills useful to the medical device industry such as tool- and die making are taught on a formal basis,” he adds.
Many companies themselves contribute to the state’s technical expertise by offering apprenticeship and training programmes. For instance, Braunform GmbH offers a variety of sales and technical training programmes. About 16% of its workforce is currently at the apprenticeship stage, says Bohnhorst. Once trainees complete the programme, most of them remain with the company to become full-time employees, she notes.
Baden-Württemberg’s educational establishments have also recognized the importance of the medical device manufacturing industry and work to ensure its future strength by supplying a continuous stream of qualified employees. Baden-Württemberg has more universities offering technical programmes than any other German state, and many of these institutions have research facilities dedicated to the medical device industry. With about 20% of Germany’s R&D activity concentrated in the region, the state’s research institutions often partner with industry, helping companies supplement their R&D efforts.
“Universities and materials research institutes provide a great deal of help with our product development and materials investigations,” says Mürrle.
Investing in Technology
Baden-Württemberg’s state government also helps to sustain the region’s technical prowess, investing more than any other German state in research and development. In all, 7% of the region’s revenue is invested in R&D, according to BioPro Baden-Württemberg GmbH (Stuttgart), a state-funded organization that supports the life science industries. Allocating ?60 million to the creation of life science clusters in Baden-Württemberg, the government founded the organization as a central coordinator for biotech regions. “Med-tech companies in Baden-Württemberg receive support from a variety of government programmes,” says Lauk from Seleon. Much of the state-sponsored research is focused on topics of interest to the pharmaceutical and medical device industry.
In 2003, the state launched measures to boost the area’s involvement in the life sciences. The first clusters to be established are located in Ulm, Freiburg, the Rhein-Neckar-Dreieck, and the region stretching from Stuttgart southward to the Neckar Alb. Most recently, the state has worked to create a cluster centred in Constance near the Swiss border.
Located not far from Constance is Tuttlingen—a small city perched high on the Swabian Alb that has attracted medical technology companies for more than 130 years. With a population of only 35,000, the city is home to 560 medical technology companies, according to a study by the University of Stuttgart. Deeming itself the “world capital of medical technology,” the city and surrounding area produce approximately 50% of the world’s surgical equipment. In addition, a number of firms in the region offer products and services to medical device firms.
Data for Germany as a whole suggest that Baden-Württemberg’s med-tech industry will remain strong in the future. The German med-tech industry had a record year in 2006 with turnover up 11% over the previous year. A surge in regional exports, which were already the highest in Germany, made the record economic growth possible.
A recent study supported by the Landesbank Baden-Württemberg (Stuttgart) forecasts long-term growth in the German med-tech sector. With Baden-Württemberg’s highly competitive position in medical technology and related fields, it is likely that the state will remain a popular spot for medical device OEMs to source products and services. The accompanying section contains more information about firms from Baden-Württemberg that offer everything from automation equipment to nitinol tubing.
