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Saxony Leads Germany's Semis

Creating Europe's innovative technologies
10/16/2015 10:55 AM EDT
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Shinsakka
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More missing parts of the equation
Shinsakka   11/6/2015 8:32:50 AM
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Besides the lack of sufficient seed money for new startups as mentioned by dimopep there's another factor why talented engineers still leave Saxony (or don't want to go there in the first place): income. The average income per capita in Saxony in 2011 was only 86% of Germany's average income (rank 12 out of 16 states). Working hours are usually longer, benefits less. That's why many large companies produce in Saxony, but research and management is usually less present. 

"Of late, the industrial cities Chemnitz, Zwickau, and their suburbs have become Europe's highest region of per­ capita income": I doubt that. The purchasing power per-capita in Chemnitz and Zwickau is approx. 90% of Germany's.

I really hope, that Saxony's semicon industry will be competitive in the future. Research is still going strong thanks to huge Government and EU support.

For semicon companies, I'm not so sure about the future. Many companies (e.g., AMD, Infineon/Qimonda) went to Saxony because of subsidies and relatively cheap, qualified labor (after German Reunification). As soon as contracts with the government allowed (without risking the recovery of subsidies), workers and engineers got layed off, research centers were closed down. That happened and, unfortunately, happens over and over again.

On the other hand: startups and spin-offs. I'ld wish that more of these small companies would stay independant, grow, and contribute to something like a strong economic "foundation" for Silicon Saxony. Unfortunately, too many are founded (with subsidies and university support), bought by large, global companies, and later, the Saxon subsidiary is  closed down.

R_Colin_Johnson
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Re: The missing part of the equation
R_Colin_Johnson   10/18/2015 8:58:54 PM
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I did not realize you have attended! Yes the Innovation Village and  StartUp Presentations were strong, and the Russians seem to realize they have rejoin the scientific and engieering community despite politics--even the politicans, I think, understand this,

dimopep
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Re: The missing part of the equation
dimopep   10/18/2015 3:24:10 PM
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Yes, SEMICON'15 was an excellent event and many people were glad to see it back in Dresden. In addition to the "Innovation village" and the numerous startup presentations I was positively surprised by the strong Russian presence, despite of the current political turbulences.

R_Colin_Johnson
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Re: The missing part of the equation
R_Colin_Johnson   10/18/2015 1:56:42 PM
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You are so right, dimopep, in fact one of the themes of SEMCON Europa 2015 was attracting overseas venture capital. Called the "HighTech Venture Days," the four day event had 60 innovative startups present pitches to 75 mostly-overseas investors.

dimopep
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The missing part of the equation
dimopep   10/17/2015 7:18:08 PM
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The main obstacle in front of "Sillicon Saxony" is the lack of venture capital. The German government made the right steps in creating a more startup friendly environment, but the lack of seed money due to the very conservative spending culture in Europe when it comes to innovation will keep forcing the young engineeres from the excelent univercities in the region to leave the continental part of Europe or look for comfortable career paths in the BMWs and Infineons of the land. And while they offer a good perspective, this is not the way the creative and fruitful environment of "Sillicon Valley" is created.

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