Promotion of innovation and technology transfer in the New German Federal States

Abstract

Many small and medium–sized companies in the New Federal German State are facing extremely difficult conditions with the new economic upheaval in East Germany. The situation is characterised by an unfavourable economic climate, inadequate information and management deficiencies as well as financial and real estate problems. Many products and production processes are outdated and cannot withstand the new competition. On the basis of this complicated economic situation, the Federal Economic Ministry created an economic programme for the foundation of 23 agencies for the promotion of innovation and the transfer of technology in 1992. The Leipzig agency AGIL GmbH was founded for the Leipzig region. The promotion of innovation and technology transfer is the main objective of the agency. The central task is therefore to safeguard the productivity and competitiveness of small and medium–sized companies (SME) through extensive consultation and support, and to create a climate favourable to innovation and thereby speed up structural change in the economic region of Leipzig. The agency supports the activities of public and municipal institutions in establishing a demand–oriented technological infrastructure. Closely connected to this, and of high strategic significance, is the European Commission's decision in 1992 to integrate one of four German VALUE Relay Centres into the Leipzig agency.