It seems that German high-tech start-ups are very keen on conquering international markets. Many of them quickly extend their businesses beyond national borders. Within the first years after their foundation German start-ups already generate 31% of their turnover abroad. Those start-ups which engage in research and development (R&D) for themselves are particularly successful in conquering world markets and are able to benefit from their technological edge in the international arena as well. However, strategical preparation is a must. 59% of start-ups which wanted to engage in cross-border operations are not able to use their potential which is most of the time a consequence of insufficient planning of their going abroad.
The most important market for young German high-tech start-ups is Europe. However, the importance of Asian markets is growing as well. These are the findings of a recent study carried out by the Centre for European Economic Research (ZEW) in Mannheim in co-operation with Microsoft Germany.
The study shows that high-tech start-ups which operate internationally are more successful than those which did not or not yet venture onto international markets. Thus, exporting high-tech businesses generated more turnover and grow more rapidly. In their first year of operation, turnover of exporting high-tech businesses exceeds that of those not exporting by 75%. The annual growth rate in sales of such internationally operating businesses amounts to on average 66% which is 14 percent more than the growth of those which confine their operations to Germany only.
The findings of the above highly interesting study are available for free-of-charge download.