Economic and technological prospects for state policy until 2020

Baden-Württemberg finds itself in a situation in which it is necessary to set the course for the future of work and prosperity in the state. In addition to the consequences of the financial and economic crisis, Baden-Württemberg is currently facing a number of challenges. Demographic change with an increasing shortage of skilled workers in various areas, advancing globalization with new competitive production locations, the emerging shift in the automotive sector towards electromobility, new opportunities in the field of environmental technologies and the transformation to a knowledge society are just some of the challenges that need to be mastered in the coming years.

In order to secure the state's competitiveness against this backdrop and further develop Baden-Württemberg as a business location, insights into the state's current situation and an analysis of its future potential are necessary. For this reason, the IAW, together with management consultants McKinsey & Company, prepared a report on the economic and technological prospects of the state up to 2020 on behalf of the Baden-Württemberg State Ministry. The project focused on the question of new growth markets, future-oriented technologies, promising fields of research and the networking of players in Baden-Württemberg. Based on these findings, recommendations for action were developed for state policy on how the optimal framework conditions for a competitive Baden-Württemberg can be shaped over the next ten years. Specific questions were addressed:

• Which economic sectors have the potential to provide Baden-Württemberg with a particularly high level of employment and added value?
• In which areas do new competitive, technological and production processes have a particular impact, and where could the innovative strength of the domestic economy be jeopardized by new developments? What developments are emerging and what political measures should be taken?
• Which areas of research and technology should be particularly promoted in order to secure the competitiveness of the economy and Baden-Württemberg as a business location as a whole?
• Which structural framework conditions are decisive for realizing the value creation potential in the state and ensuring competitiveness?
• What opportunities does the state government in particular have to contribute to securing value creation, employment and the competitiveness of companies in Baden-Württemberg? What should effective measures look like?

In order to be able to make well-founded and concrete economic policy recommendations to the state government, the current situation of Baden-Württemberg was analyzed in comparison with other federal states and in international competition. The results of the work of the Baden-Württemberg Innovation Council and the strategies of the federal government were also included in the study. Recent studies on Baden-Württemberg as a business and technology location, cluster and industry analyses and research studies were also taken into account. McKinsey & Company and the IAW used these findings to draw up recommendations for action for Baden-Württemberg state policy over the next ten years.

The full text of the report (in German) can be downloaded here (PDF format):
Technologies, inventors and talents. Economic and technological perspectives of Baden-Württemberg's state policy until 2020
Study by McKinsey & Company and IAW on behalf of the State Ministry of Baden-Württemberg, July, 2010 [2105 kB]