Innovative and international – with local personnel: Results of a survey of New Economy enterprises in Saxony and Thuringia
Cornelia Lang, Ralf Müller
Wirtschaft im Wandel,
No. 12,
2001
Abstract
BT and IT firms in Saxony and Thuringia were surveyed about their recruiting activities, the scope of their product markets and their R&D activities. The major findings are: The majority of firms engage in product and process development, their product markets are not predominantly local markets, and that they recruit their labor force in the local labor market. The latter fact is explained by the existence of the modern infrastructure in higher learning and research in the new Länder (which formerly constituted the GDR). Consequently the firms are optimistic to be also able to attract highly qualified personnel in the future.The recently enacted law, which grants a number of work permits for highly qualified jobs (green card) is therefore of no great significance to these firms.
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Productivity gap of East German industry: A summarizing evaluation
Joachim Ragnitz
Wirtschaft im Wandel,
No. 7,
2001
Abstract
Ten years after German unification labor productivity in the New Laender reaches only 70 per cent of West German levels. Further, in the second half of the 1990ies, convergence did not continue. Because productivity can be regarded as a key for wages, for competitiveness of firms and for future transfer payments, the reasons for low productivity in East Germany are of major importance. In this article, it is argued that the existing productivity gap reflects mainly structural differences between East and West Germany, that is the high share of small firms and the predominance of sectors with low value added per worker. Additionally, difficulties on product markets leading to insufficient selling prices are responsible for the comparative low productivity of East German firms. Differences in capital intensity or in human capital, however, do explain only a small part of the productivity gap.
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Does East Germany need a new technology policy? – Implications from the functioning of the R&D market after the transformation
Ralf Müller
IWH Discussion Papers,
No. 145,
2001
Abstract
Technology policy is a major part of government's efforts in contributing to East Ger-many's economic recovery. However, even a decade after unification East Germany does not produce sufficient technology goods. Thus, the question is whether technology policy is either not suitable or inefficient in tackling East Germany's deficits. A special technology policy for East Germany is justified by the lack of regional networks for technology firms; without a compensating policy East Germany would continue to lag behind West Germany also with respect to incomes. Yet only a few of the policy in-struments applied so far are efficiently dealing with these deficits. Thus, a future technology policy for East Germany should – mainly by the supply of R&D-infrastructure – support implementation of these kinds of networks.
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Evaluationsbericht: Das Internet strategisch richtig nutzen
Albrecht Kauffmann, P. J. J. Welfens, M. Vogelsang
Diskussionsbeiträge des Europäischen Instituts für Internationale Wirtschaftsbeziehungen (EIIW), Universität Potsdam, Nr. 79,
No. 79,
2001
Abstract
Using the internet and internetbased services is now common among medium and large firms in Germany. However, for smaller firms (SMEs) the use of internet application is a new challenge to which they still have to respond – this is crucial for remaining competitive. The project Adapt2 “Using the Internet in an adaquate and strategic way“ looks into the effects of SMEs' basic steps towards the internet. We focus on adequacy of government promotion of SME activities – specifically firms from the sector producing machinery and equipment are analysed. The project was led by ZENIT GmbH, Mülheim a.d. Ruhr; the whole project also involved participation of the European Institute for International Economic Relations (EIIW). As part of a broader evaluation EIIW also conducted surveys – both focussing on firms involved in the project and in other firms from the same sector. It turned out that specific measures of support indeed were helpful for SMEs; obviously, there is additional need for further practical support and research.
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Methodical limits of calculating productivity in the new Länder
Gerald Müller
IWH Discussion Papers,
No. 129,
2000
Abstract
The „Arbeitskreis Volkswirtschaftliche Gesamtrechnung der Länder“ now publishes figures concerning the value added in Germany. Formerly the Statistische Bundesamt had this assignment. Some corporations have plant locations in the new Länder as well as in the old Länder. The employed method for splitting-up the value added produce by these corporations might lead to an underestimation of the overall value added produced in the new Länder. However, an estimation using the firm panel of the IAB shows that the East German productivity gap for manufacturing is overestimated by maximally two percentage points. Still in sectors that are dominated by multi plant corporations this effect is stronger. All in all the East German productivity gab is overestimated by maximally three percentage points.
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Capital equipment of East German work stations: Do not overstate gaps
Joachim Ragnitz
Wirtschaft im Wandel,
No. 9,
2000
Abstract
New jobs depend heavily on productive investment. As nearly 800 bio DM were invested in the East German enterprise sector since 1990, most existing jobs can be regarded potentially competitive now. However, capital intensity is still much lower than in West Germany and reaches a level of only 75 per cent. In manufacturing, however, capital intensity is only slightly lower than in the old Laender.
There are mainly two reasons for the low capital intensity in the aggregate: The dominance of small firms producing regularly with a small capital stock per employee, and lower wages in East Germany compared with West Germany: Although capital prices are distorted by high subsidies, factor price relations favour labor to capital. This leads to the conclusion that low capital intensity reflects an optimum; convergence is therefore not necessarily to occur.
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