President of the German Association for Information Technology, Telecommunications and New Media (BITKOM)
CeBIT 2008, 4 to 9 March
Madam Chancellor,
Your Excellency President Barroso,
Monsieur le Président de la République,
Premier Wulff,
Your Excellencies,
Mr. Ballmer
Government Ministers and Members of Parliament,
Ladies and Gentlemen,
I, too, would like to welcome you to this fascinating event. I have been associated with CeBIT since its inception in 1986. In fact, my own company has grown together with CeBIT.
Yesterday's CeBIT has virtually nothing in common with the CeBIT we know today. As a mirror to the developments sweeping through the world of ICT, CeBIT has been evolving at the same tremendous speed as the markets it reflects.
Countries that used to serve only as extended workbenches for highly developed nations have long since joined the ranks of major-league players in R&D and manufacturing.
Against this background, the shutdown of Germany's last remaining mobile phone factory and its relocation to Romania has attracted an extraordinary amount of attention in both public and political circles.
However, this merely represents the outcome of a trend which has been going on for many years, now. Much larger production locations than this have previously been closed - and workforces slashed from 20,000 to 2,000 - without any alarm bells being rung by political or media observers.
Perhaps this should be taken as a resounding reminder that we need to finally focus attention on Germany's role as an ICT nation - something that BITKOM has been demanding for many years, now.
Today in particular, the eyes of the high-tech world are all on Germany. Not only do we need to uphold the reputation of CeBIT's traditional home base; we must also reaffirm our strengths as a nation marked by innovation, business success and rich ICT opportunities.
Germany is indeed the world's leading exporter. In net terms, however, our imports of ICT and consumer electronics outweigh exports by 11 billion euros. We share this fate with almost all European countries. Only three out of 30 European states can claim to have a positive trade balance: Sweden, Finland and the Republic of Ireland.
Three out of 30!
For many of those assembled here this evening, Germany rates among the Top 3 markets. Sales of 144 billion euros and sustained growth rates of two to three percent put Germany in second place behind the USA and Japan.
We are glad to be a sales market, yet need to - and want to - achieve more. We also need to boost our appeal as an R&D location. By making Germany more attractive, we automatically make Europe more attractive.
The prevailing conditions are favorable.
Germany remains strong in basic and applied research. The recent Nobel Prizes are an impressive testimony to this fact.
With around 5,600 European patent applications in the ICT sector alone, Germany leads the rest of Europe. A quarter of all patent applications filed in Germany are from the ICT sector.
However, patents are only relevant to the extent that they end up generating new products and jobs. There are no official statistics on this.
We lead the world in the business software market, with SAP being a case in point. Major players such as IBM and HP maintain large development centers here in Germany. We hold a good position in security technology and biometrics.
We are strong in the field of embedded systems - a market that is worth 135 billion euros worldwide and is annually growing by nine percent. We have good opportunities with regard to IT utility services and SOA - a market that is expected to reach 146 billion euros by 2010. IPTV, mobile TV, RFID, auto ID, microelectronics, traffic telematics and eHealth: The markets for these cutting-edge technologies are all booming. We have a lot to offer in these sectors, provided we can effectively pool and capitalize on our strengths.
Enough opportunities are available. On the one hand, we are promoting Germany as the 'Land of Ideas'. On the other hand, we are demonstrating an inability to translate these ideas into economic success and jobs.
What we need is a concerted, holistic approach - and we need it soon.
I therefore propose a five-point program:
1. We should commit ourselves to becoming Europe's No. 1 ICT nation, and moving up to fifth place on the global market.
Aiming to become No. 1 in Europe does not mean we are intent on dominating the continent. Instead, we wish to join forces with our neighbors and put Europe on a par with other high-tech leaders. We must assert our leadership by excelling in R&D, education and the public sector. We must take stock and see how we measure up. Only by knowing where we stand can we gauge improvement. Then we will be in a position to chart out and discuss our progress at annual IT summits.
2. ICT must be the pivotal hinge pin of our R&D and economic policies.
Known for its interdisciplinary importance, ICT is mission-critical for the success of diverse industries such as car-making, mechanical engineering and medical technology. It is essential for high-tech research and economic policies to be closely synchronized. It is not enough to only produce good research; the fruits of that research must also seed new products and new jobs. Technology parks have been set up all over Germany, some regionally and some locally.
In many cases these well-intentioned projects are too small and serve merely to enhance the prestige of their respective communities. Comparisons with Silicon Valley or Bangalore reveal these efforts to be seriously flawed. Our motto should be 'If you're going do it, do it right.' What we need are clusters of excellence that can hold their own against the international competition.
3. Regarding education, we must leverage our resources and not squander them.
German IT graduates certainly have the knowledge it takes. It is the numbers that just don't add up. Throughout Europe, no other nation has such a low percentage of engineering graduates. And we need to lower our university drop-out rates. We also need to encourage more women to take up careers in ICT. The solution lies in smaller learning groups and individual coaching.
Instead of universities just handing over degrees and saying 'goodbye' to their students, diplomas should become tickets to a whole new world of post-graduate learning opportunities. We need to redefine our public education system as a lifelong knowledge service provider for all - regardless of whether someone is a 20-year-old student or an accomplished engineer at the age of 60.
4. We need policies to ensure that research findings and bright ideas generated by start-ups translate into successful products and market growth.
Promoting new businesses is indeed commendable. But when talented start-ups end up in the bankruptcy statistics, nothing is gained. We need energetic entrepreneurs and managers. They should met with encouragement and respect. They are the fuel that can boost many more companies into global market orbits. To this end we must make good use of our international networks - for example, embassies, consulates, chambers of commerce and Goethe Institutes. Trips by political delegations should be used to promote start-ups across national borders.
The state should serve as a catalyst for innovation in the ICT industry.
Every year, the state spends more than 10 billion euros on ICT products, thus actively influencing the market. The state should launch special procurement programs aimed at promoting innovation. This can give rise to beacon projects, not only in academic research but also in applied R&D. What we need is not bureaucratic rules and formalistic procurement procedures; what we need are ground-breaking products - also in the area of eGovernment.
Such a program is challenging and cannot be implemented single-handedly. It requires a concerted effort on the part of government, business and science - regionally, nationally and throughout the EU.
We at BITKOM seek close collaboration with our Partner Countries. This year's Partner Country is France. It is a great honor to welcome you here this evening, President Sarkozy. Your presence serves to underscore the spirit of partnership which exists between our two nations - also in the field of high-tech.
Many times in the past, France and Germany have demonstrated that a lot can be achieved by close cooperation. Europe's aerospace industry had nearly been written off. Today it leads the world. For years, I had dreamed of a project like the Airbus for the European ICT industry. The GSM standard was just such a project. This standard has made global players out of companies like Nokia and Ericsson. Galileo could have been another Airbus. Let me be quite frank: I very much regret that we were unable to speedily reach an agreement. Even so, it is still not too late!
Ladies and Gentlemen:
An Airbus for the European ICT industry - this is what we need. But we first need to do our homework. Let me outline five key points:
Clear goals.
Holistic R&D and economic policies.
Investment in education.
Policies geared to business start-ups and growth.
The state as a catalyst for innovation.
With over a thousand members, BITKOM is ready to serve as a launching pad for these visions. I invite you to join us so these visions can become reality and send Germany's ICT industry skyrocketing into the future.
CeBIT can play a pivotal role in making this happen. Every year, this is where the world's leading ICT and consumer electronics enterprises get together at the heart of Europe, soon to be joined by the world's top digital media companies, as well. Nowhere else is so much IT power concentrated at a single time and place. Let us make good use of this power to energize high-tech business in Germany, Europe and beyond.
May the upcoming CeBIT lead to lots of interesting dialogue, fruitful business and success for all concerned.
- Deutsche Messe - also photos
