Data collection template and questionnaire

Sachsen (Saxony)

NUTS 1: DED SACHSEN

NUTS 2: DED 1 Chemnitz^464 DED 2 Dresden^465 DED 3 Leipzig^466

GDP per head (2000)

DED SACHSEN⁴⁶⁷: 16.283€ (average of new Länder incl. Berlin: 17.424 € and excl. Berlin: 16.216 €)⁴⁶⁸

Germany⁴⁶⁹ 24.700 €

EU-15 = 100; DEC =70,4; DEC1 = 65,9; DEC2 = 71,6; DEC3 = 75,0⁴⁷⁰

GDP at current prices/in Million €

DED SACHSEN⁴⁷¹: 72.340

Germany⁴⁷² (mio €): 2.030.000

EU-15⁴⁷³ (mio €): 8.524.371
Employment rate (2000)⁴⁷⁴

DED SACHSEN 64,7 % (German average = 68,8%)

DED 1 Chemnitz 63,9 %

DED 2 Dresden 65,4 %

DED 3 Leipzig 64,7 %
Unemployment rate (2002)

DED SACHSEN: 17,8 %⁴⁷⁵ (German average: 9,8%; West 7,9%, East: 18,0%)

DED 1 Chemnitz: 148.900 persons

DED 2 Dresden: 169.900 persons

DED 3 Leipzig: 112.500 persons
Technological standing (5 point scale): 3,3
Strengths [short description]⁴⁷⁶

Sachsen, one of the “new” German territorial states, has a population of 4.426.000 (in 2002) inhabitants and covers an area of 18.413 km². It has three completely modernised inland ports in Dresden, Riesa and Torgau, which increased their trans-shipment between 1992 and 1998 (from 884.233 t to 1.865.629 t). Moreover, the Dresden airport, the Leipzig-Halle international airport (connected with the logistics centre of Leipzig), and 17 other regional airstrips provide air services and transportation opportunities. A new terminal with an integrated railway station (incl. Inter-City-Express connection) as well as a new motorway approach is to be built.

Saxony’s economic structure is strongly influenced by mechanical engineering (average annual growth rates since 1996: turnover: 9%; exports: 19%; productivity: 9%). Besides traditional sectors like the electronics and automotive industries, also new high-technologies, including microelectronics, telematics, biotechnology, new materials, and processing engineering are relevant business sectors. Nevertheless, also the tertiary sector (financial and business services, trade, hotels and restaurants, transport, public and private services) is growing. Another traditional sector is the textile industry.

Like before the existence of the GDR, the region occupies a leading position in the automobile industry (380 companies; 1991: 19.000 EUR/employee, 2001: 381.000 EUR/employee; annual turnover rose: 1991: 0.4 bill. €; 2001: 7 bill. €). The sites of Volkswagen (Zwickau (Golf, Passat), Chemnitz (engines), Dresden (Phaeton)), Porsche and BMW are supplied by some 500 small and medium-sized firms within Saxony. The processing industry is another core industry (contributing 16% to the state’s domestic gross output). The building and construction sector is twice higher than the German average in terms of its contribution to the domestic gross output. Even the contribution by mining, energy, and water supply is 1% point higher than the German average.

The financial and business services sector became the first in the state’s service sector (since 1992 real growth in this sector has always been above Saxony’s real growth of GDP). The service sector has kept up with the German average (Saxony: 67.9 % contribution to the gross output; Germany: 68.9), while tourism, trade and transportation have lost in importance.

Saxony’s telecommunication network ranks next to worldwide developments. The Schkeuditz teleport (one of Europe’s largest network nodes) was established in 1997. ISDN and DSL are standard and available throughout the state as well as GSM-technology, covering the whole Saxon area. Almost 700 access lines link the state’s universities and research centres with the newly launched science network “Internet 2” (2.5 gigabit). In July 2000, the most modern television broadcasting station in Europe (completely digitalised image and sound equipment) was established at Leipzig.

International companies like AMD, Infineon and DuPont have turned Saxony into a spot for microelectronics, the second important industrial branch of the state. Other new flourishing branches include also biotechnology (biomedicine, molecular biotechnology, bio-material science and environmental biotechnology). Currently, bio-innovation centres are set up in Dresden and Leipzig with financial assistance from the state. The Dresden University of Technology hosts 16 biotechnological faculties (research from foodstuff biotechnology to medical technology). 20 research institutions are dealing with environmental biotechnology and 18 research institutions with medical biotechnology. Also the fluid dynamics and material research by method of electromagnetic forces is a prominent sector. The Dresden University of Technology and at the Chemnitz University of Technology high-performance training and research institutions are established. 20 research institutions throughout the state provide for product, process and material research.

As to the energy industry the first German power exchange, Leipzig Power Exchange (LPX) has been established in Saxony and according to Saxony’s government is the most successful in Europe. It will join with the Frankfurt European Energy Exchange (EEX), to set up a common energy exchange with headquarters in Leipzig.

According to Saxony’s government the rate of absenteeism from the workplace is below the German average. Also overtime, shift-work and timekeeping were never an issue.

4 universities, 16 public institutes of higher education (senior technical colleges; art academies), 22 research institutes, over 50 non-university research facilities, 1 Helmholtz Center for Environmental Research, 6 Max-Planck institutes, 7 Leibniz institutes and 10 Fraunhofer installations are located here. Dresden University of Technology and / other institutes are engaged in training IT-specialists.

In 1999 the state held rank 5 in investment per employee in the processing industry.⁴⁷⁷
Companies: AMD, BMW, Freiberger Compound Materials, Gläserne Manufaktur, Görlitz Fleece, Gruppo Antolin, Infineon Technologies AG, Johnson Controls, Malden Mills Industries, Neoplan, Porsche, Southwall Technologies Inc., TAKATA, Tower Automotive, Toyota, UNION Werkzeugmaschinen GmbH Chemnitz, VW, Wacker Siltronic AG Freiberg
Weaknesses [short description]

Like Brandenburg, Mecklenburg-Vorpommern, Berlin (East), Sachsen-Anhalt, and Thüringen the state still belongs to the "priority 1" regions (regions with maximum subsidization possibilities) supported by the EU structural funds (over 4.8 billion € are at the disposal of the Free State for the subsidization period from 2000 to 2006. Together with public and private resources this makes a total of 11.2 billion €).

Evolution in last decade [short description]

Employment has been decreasing (1992: 1.950.200, 2002: 1.925.100) while the GDP/per capita increased (1992: 9.399 €, 2002: 17.358 €).⁴⁷⁸ The economic growth of 11% in 1994 decreased over the past years to 2% in 1997. This severely hinders the economic catch-up process of the eastern Länder and of the state itself. Unemployment – like in all eastern Länder - is one of the biggest problems for the economic upturn, even if the rate in Sachsen was slightly below the new Länder average.

The capacity for entrepreneurship quickly recovered in Saxony after the socialist period with a growing relevance of SME. The number of companies rose from 1990 to 1996 around 216.500 (incl. 50.000 craft firms). Due to its location, Saxony became an important location for trans-border business with Poland and the Czech Republic. This will increase after their access to the EU and once the state will realise its infrastructure programme in 2012 (extension of the traffic and telecommunication network throughout the state).

Saxony has a growing industrial structure with the manufacturing sector as a motor of growth. The gross value added in this sector 2001 increased by 7.8 % over 2000. Turnover in industry grew by 10.1 %. Also, the research potential of the industry and service sector has increased by 5% per year since 1994 and the high-tech as well as the service sector is becoming more relevant.

Further indicators
Public revenue and spending (€)⁴⁷⁹

	2001	2002	2003
Revenue	15.395.600	15.902.000	17.586.500
Spending	15.908.991,20	16.081.046,60	17.977.671,9

Employment (at workplace) per sector

	Agriculture, forestry, fishery:	Industry (including processing industry without building and construction trade):	Building and construction trade:	Trade, tourism, transportation:	Public and private services:^480
DED Sachsen^481	2000: 55.300 2001: 52.600 2002: 49.700	2000: 353.800 2001: 357.000 2002: 363.400	2000: 260.700 2001: 229.500 2002: 204.800	2000: 460.600 2001: 460.400 2002: 457.000	2000: 842.800 2001: 847.400 2002: 850.300
DED 1 Chemnitz^482	2000: 20.900	2000: 152.000	2000: 98.300	2000: 162.900	2000: 269.800
DED 2 Dresden^483	2000: 22.400	2000: 135.300	2000: 97.500	2000: 178.100	2000: 341.200
DED 3 Leipzig^484	2000: 11.300	2000: 64.000	2000: 64.800	2000: 117.900	2000: 233.900

Industrial Structure

Branches of processing industry

Branch	Persons employed 2000^485	Persons employed 2001^486
Mining	DED 1 Chemnitz: 98.348 DED 2 Dresden: 82.212 DED 3 Leipzig: 38.417	DED 1 Chemnitz: 101.626 DED 2 Dresden: 84.003 DED 3 Leipzig: 39.062
Intermediate goods industry	DED 1 Chemnitz: 40.931 DED 2 Dresden: 36.558 DED 3 Leipzig: 16.859	DED 1 Chemnitz: 43.426 DED 2 Dresden: 38.945 DED 3 Leipzig: 16.947
Capital goods industry	DED 1 Chemnitz: 36.228 DED 2 Dresden: 25.189 DED 3 Leipzig: 12.831	DED 1 Chemnitz: 36.856 DED 2 Dresden: 25.306 DED 3 Leipzig: 182
Durable goods industry	DED 1 Chemnitz: 3.495 DED 2 Dresden: 2.863 DED 3 Leipzig: 689	DED 1 Chemnitz: 4.061 DED 2 Dresden: 3.078 DED 3 Leipzig: 695
Non-durable goods industry	DED 1 Chemnitz: 17.693 DED 2 Dresden: 17.603 DED 3 Leipzig. 8.038	DED 1 Chemnitz: 17.282 DED 2 Dresden: 16.774 DED 3 Leipzig: 8.219

Research base

Employment in education, higher education and research⁴⁸⁷

2001/02

69.911

Public expenditure on science and research (mio. €)⁴⁸⁸

2001	4.119,6
2002	4.325,9
2003	4.333,0

Students at universities⁴⁸⁹

Year	Beginners (included in total number)	Total number of
1999	16.985	80.171
2000	18.013	84.516
2001	19.158	90.162

Support infrastructure

Infrastructure 2001 (categories of streets) ⁴⁹⁰

Category	Motorway (Autobahn)	Federal Road network	State Road network	County Roads	Total
Kilometres	452 km	2.421 km	4.731 km	5.946 km	13.550 km

Vehicles DED Sachsen⁴⁹¹

1999	2.500.826
2000	2.551.545
2001	2.610.153
2002	2.622.529
2003^492	2.630.844

Vehicles NUTS 2 level

	2000^493	1.1.2002^494
DED1 Chemnitz	1.009.280	1.015.966
DED2 Dresden	1.002.790	1.006.514
DED3 Leipzig	598.083	600.049

Doctors and dentist

	1999^495	2001^496
DED Sachsen^497	Doctors: 13.775 Dentists: 3.748	Doctors: 13.825 Dentists: 3.771
DED1 Chemnitz	Doctors: 4.428 Dentists: 1.283	Doctors: 4.418 Dentists: 1.305
DED2 Dresden	Doctors: 5.503 Dentists: 1.533	Doctors: 5.518 Dentists: 1.538
DED3 Leipzig	Doctors: 3.894 Dentists: 932	Doctors: 3.897 Dentists: 934

Designation for principal domestic policy support instruments (5 point scale): 4,5

Territorial Policy	5
Public sector transfer	5
Employment policy	4
Technology policy	3,5

Sachsen⁴⁹⁸

SN	Fiscal resources before SHES (in Mio. DM)	Divergence from national average (balance measurement) (= 100)	Contribution / assignment within SHES (in Mio. DM)	Fiscal resources after SHES (in Mio. DM)	Divergence from national average (balance measurement) (= 100)	Supplementary federal grants (in Mio. DM)						Fiscal resources after SHES and Gap-filling grants (in Mio. DM)	Divergence from national average (balance measurement) (= 100)
						Gap-filling grants	Compensations for special political costs	Compensations for special burdens (east Germany)	Transitional grants (west Germany)	Rehabilitational grants Bremen and Saarland	SFH total
1995	15.938	85.5	1.773	17.711	95.0	839	0	3.658	0	0	4.497	18.550	99.5
1996	15.890	84.6	1.965	17.855	95.0	846	0	3.658	0	0	4.504	18.700	99.5
1997	15.714	84.7	1.918	17.632	95.0	835	0	3.658	0	0	4.493	18.467	99.5
1998	16.436	84.7	1.994	18.430	95.0	873	0	3.658	0	0	4.531	19.303	99.5
1999*	17.053	84.4	2.149	19.202	95.0	910	0	3.658	0	0	4.568	20.112	99.5
2000*	17.344	83.8	2.328	19.672	95.0	932	0	3.658	0	0	4.590	20.604	99.5
2001	16.234	84.5	2.026	18.260	95.0	965	0	3.658	0	0	4.623	19.125	99.5

*) preliminary

Impact on ex-ante divergence from national average of support from EU funds (7 point scale): 6,7

		2000-2006 (mio €)
				ERDF		ESF		EAGGF
		Total	EU contribution	EU contribution	%	EU contribution	%	EU contribution	%
Objetive 1	Saxony	11240.40	4858.610	3057.598	62.93%	1098.191	22.60%	702.821	14.47%

Impact on ex-ante divergence from national average of domestic policies (7 point scale): 6,5

Change in standing of region relative to national average in last five and ten years⁴⁹⁹

	1991	1996	2001
GDP/capita (€)	7.379	15.278	16.855
Population	4.721.600	4.556.200	4.404.700
Employment (persons)	2.240.500	1.997.600	1.946.800
Unemployment (persons)	241.227	322.322	399.328
Unemployment rate	9,1	15,9	19,0

	1995	1997	1999
R+D expenditure (mio €)^500	1.312	1.533	1.743

Estimated effect on regional circumstances of different domestic policies:

	Strongly positive	Slightly positive	Neutral	Slightly negative	Strongly negative
Territorial Policy	X
Public sector transfer	X
Employment policy	X
Technology policy	X