Conditions for setting up a business: Start-up assistance for new high-tech companies

Young knowledge-based companies are closing the innovation gap between academic research and industrial applications and are often the guarantee for economic success. The Federal Government's High-Tech Strategy strongly supports the dynamism and growth of innovative young business start-ups.

The reform of legislation governing limited liability companies has improved the conditions for setting up a company. The legal form of a limited liability company has become more attractive because it is now easier to raise capital and an electronic register system speeds up company registration processes. Limited liability companies have become a competitive and very successful type of business in line with European trends.

The "University-based Start-ups" programme (EXIST) has become a model for success. Almost all universities and many universities of applied sciences in Germany have introduced schemes for people wishing to set up in business. EXIST has heightened people's motivation to set up their own companies in the vicinity of universities and research institutions and has thus significantly encouraged the development of a new start-up culture (www.existenzgruender.de, www.exist.de). The Power for Women Entrepreneurs plan of action focuses on the potential of highly qualified women. This initiative, which was introduced by the Federal Ministry of Education and Research (BMBF), sets out to develop and test innovative approaches to encourage more women to venture into self-employment.

The "GO-Bio" campaign to encourage biotech start-ups also provides additional stimulus for promoting young talent and start-ups in the field of biotechnology. The BMBF's contest offers young researchers the opportunity to develop and make commercial use of innovative research topics with their own research groups. The first spin-offs have already been founded with the assistance of subsidiary capital.

The BMBF's "Facilitation of Start-ups from the Research Sector (EEF)" pilot scheme under the Joint Initiative for Research and Innovation encourages spin-offs from non-university research institutions. The project is being continued by the Helmholtz Association ("Helmholtz-Enterprise Fund") and the Fraunhofer Society ("Fraunhofer supports start-ups"). The Max Planck Society (MGG) also has plans for similar activities. The BMBF's programme "Entrepreneurial Regions" also encourages spin-off concepts in the vicinity of research institutions in the new Länder ("Research for the Market", "ForMaT).