Data collection template and questionnaire

Change in standing of region relative to national average in last five and ten years²⁰⁹

	1991	1996	2001
GDP/capita (€)	33.057	37.903	42.749
Population	1.660.700	1.708.400	1.721.000
Employment (persons)	1.024.400	1.009.800	1.052.600
Unemployment (persons)	63.013	83.942	70.648
Unemployment rate	8,7	11,7	9,3

	1995	1997	1999
R+D expenditure (mio €)^210	1.233	1.309	1.263

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

Hessen

NUTS 1: DE7 Hessen

NUTS 2: DE71 DARMSTADT DE72 GIEßEN DE73 KASSEL

GDP per head (2000)

DE7 Hessen²¹¹: 30.347 € (average of old Länder incl. Berlin: 26.426 € and excl. Berlin: 26.637 €)²¹²

Germany²¹³: 24.700 €

EU-15 = 100; DE7 = 129,4, DE71 = 148,8, DE72 = 95,0, DE 73 = 101,3²¹⁴

GDP at current prices/in Million €

DE7 Hessen²¹⁵ (mio €): 183.055 €

Germany²¹⁶ (mio €): 2.030.000

EU-15²¹⁷ (mio €): 8.524.371
Employment rate (2000)

DE7 Hessen: 72,5%²¹⁸ (2.992.800 persons employed²¹⁹) (German average = 68,8%)

DE71 Darmstadt 1.946.500²²⁰

DE72 Gießen 453.600²²¹

DE73 Kassel 588.300²²²
Unemployment rate (2002)

DE7 Hessen 7,8²²³ (6,9 % ²²⁴) (German average: 9,8%; West 7,9%, East: 18,0%)

DE71 Darmstadt 7,0 %²²⁵

DE72 Gießen 8,1 %²²⁶

DE73 Kassel 9,9 %²²⁷
Technological standing (5 point scale): 3,5 (2-3 in the north; 5 in the south)
Strengths²²⁸ [short description]

With a surface area of 21.114 km² and a population of 6.068.000 (in 2002), the State of Hessen is economically rather strong and has the highest GDP per employee among the German states in 2000 (over 60,000 €, a total GNP of about 185 bn € and a GNP per Capita of 30,347 €, GDP growth rate 1,5%). Almost a quarter (25,4%) of all foreign direct investments in Germany are made in Hessen. Behind Nordrhein-Westfalen with 30,6% of all foreign direct investments Hessen holds rank 2. Among foreign investors, the USA hold rank 1. Moreover, about 500 US companies have set up business sites here.

The four major industrial branches are chemical industry (rank 1 by turnover, 64,000 employees, high share of pharmaceutical companies), car manufacturing (rank 2, 68,000 employees), mechanical engineering (paper and printing equipment manufacturers as most important sub-sectors) (rank 3, 64,000 employees) and electronics/electrical engineering (expertise in precision measurement, control and information technology, aerospace technology, household appliances) (rank 4) (70% of the exports). Other sectors with relevance for the economic structure of Hessen are advanced transport engineering (ICE, Transrapid, ICEMUS (innovation centre for mobility and rail technology) in Kassel), biotechnology (chemical and pharmaceutical industry with 96,000 employees; Hessen is the most important location of the manufacturing biotechnology in Germany; over 330 biotechnology companies employ around 15,000 people), call centres (30,000 jobs (mostly parttime; recruitment largely among unemployed) have been created in - financial services - telecommunications - insurance companies - airlines and travel organizations - mail order business and tele shopping - technical services), environmental technology, media (33% of German’s economically strongest advertising agencies have headquarters or offices in the Frankfurt area, 400 book publishers, 60 newspaper publishers, 250 magazine publishers in Hessen, film and TV such as Hessischer Rundfunk, CNN, Bloomberg TV, n-tv Film), medical technology, software and IT (3.500 IT, software, electronic data processing, consulting and services companies, 3 of the 5 biggest German software companies (Software AG, Computer Associates, CSC Ploenzke); Frankfurt University: first chair for e-commerce in Germany).

Moreover, the service sector is strong (76% of the GDP) with financial services, insurances, business services and new media as lead sub-sectors. Moreover, besides London, New York and Tokyo, Frankfurt is one of the world's major financial markets (European Central Bank, Deutsche Bundesbank, Deutsche Boerse (German stock exchange with over 90% of the total turnover of German stock exchanges), over 400 banks). Over 75,000 employees work in Hessen’s financial service sector. Since the introduction of the EURO in 1999, the European monetary policy is agree on by the ECB from Frankfurt. The city, which is also Europe‘s second city of ‘internet traffic’ behind London (85% of German internet traffic; 35% of European internet traffic are channeled via Frankfurt). 200 telecommunication service firms have set up sites here (Deutsche Telekom, Arcor, Colt, BT Ignite and Worldcom).

The economic structure is characterised by a large number of SME (90% of all companies. Frankfurt, Hessen’s largest city, is furthermore an international centre of air, road and rail transport and holds a leading position in Europe. The city hosts also the world's largest consumer-goods trade fairs "Premiere" and "Ambiente" and the international book fair or the IAA international motor show. The Frankfurt Airport (60.000 employees) is one of the most important in the world (ca. 350,000 passengers per day, ca. 45 mio. passengers per year; nearly 160.000 connections to about 220 destinations). Frankfurt's main train station is Europe's largest. The "Frankfurter Kreuz" is Europe’s busiest motorway intersection.

The Rhine-Main region is furthermore the heart of the economic activities (leading financial centre, dense transport network, high GDP) and both rivers link Hessen to the North Sea and other major European ports. Due to its location, Hessen is a ideal location for logistic centres in Germany. Particularly in the Frankfurt Region, firms take advantage of Europe´s largest cargo airport and the up-to-date facilities in the CargoCity (over 80 airlines, over 100 shipping agencies and express services such as FedEx, UPS and Schenker). The north (Kassel and Bad Hersfeld) has good access to the federal motorway system so e.g. amazon.de, the German subsidiary of amazon.com or RS Components (UK headquartered distributor of electronic, electrical and mechanical components - European distribution centre), chose Bad Hersfeld for their central distribution facilities in Germany.

In Hessen many universities, polytechnics and research facilities have been set up. 5 universities, 2 art institutes, 5 universities of applied sciences (focus on practical training for engineers), 10 private institutions of higher education, 5 Max-Planck institutes and 6 Fraunhofer installations (e.g. Fraunhofer Institute for Graphic Data Processing (IGD)), 4 institutes of the Gottfried Wilhelm Leibnitz Scientific Community, 1 institute of the Helmholtz Community: heavy ion research centre, 3 federal institutes with research assignment and 5 further research institutions (e.g. GMD Research Institute for Information Technology, Darmstadt, Institute for Solar Power Kassel, Institute for Socio-ecological Research ISOE Frankfurt, Space Control Center of the European Space Agency ESA Darmstadt) are located here.

In 1999 the state held rank 2 in investment per employee in the processing industry.²²⁹

Companies: e.g. ABB, Abbott, Aventis, Biotest, Bombardier, Braun Melsungen,, Canon, Claraint, Commerzbank, Daewoo, Daimler-Chrysler, Danzas, Degussa, Deutsche Bank, Deutsche Lufthansa AG, Dresdner Bank, Dunlop, Emery Worldwide, Federal Mogul, Ferrero, Fraport, Fresenius, General Electric, General Motors Opel Division, German Post, German Parcel, Goldwell, Heraeus, Hoechst AG, Honda, Honeywell, ICI, ITT, Kühne & Nagel, Leybold Systems, Linde, Mannesmann, Merck, B. Motorola, Panalpina, Pepsi Cola, Philips, Pirelli, Proctor & Gamble, REWE, Röhm, Schenck, Siemens, Sirona, System Plus, Tenovis, Tyco, Volkswagen, Wella.

Weaknesses [short description] ²³⁰

More insolvencies than Bayern and Baden-Württemberg. Northern Hessen is the ‘looser’ of the structural changes concerning the economy. Migration has thus influenced this region especially. Today, the density of population is half lower than the state average. Concentration of financial sector activities in the Rhine-Main area, concentration of biotechnologies in the south and in the middle of Hessen (Frankfurt/Darmstadt and Marburg/Giessen: 3/4 of the companies are located here) and thus structural discrepancy. Call centres are concentrated in the Frankfurt area and in the north of Hessen (Kassel).
Evolution in last decade [short description] ²³¹

Evolution:

Employment has been growing (1992: 2.925.500, 2002:3.009.200) and the same holds true for the GDP/per capita (1992: 25.201 €, 2002: 31.496 €).²³²

The automotive industry underwent strong structural changes towards R&D. Moreover, one of the fastest growing industries in Hessen is the environmental technology sector (ca. 1,500 companies) with the development of techniques and plants for environmental and energy technology by Thyssen-Henschel, for catalyst technology by Degussa and Leybold and the centre for Environmental Technology and Recycling in Borken, the Institute for Solar Energy Supply Technology (ISET) in Kassel or the Institute for development methodology and production technologies for environmentally friendly products in Herborn-Seelbach.


Further indicators:
Public revenue and spending (mio €)²³³

	1999
Tax Revenue	14.343
Spending	17.930

DE7 Hessen

Employment per sector²³⁴

Agriculture: 1999: 47.500 2000: 47.700 2001: 48.000

Industry (without building and construction trade): 1999: 792.500 2000: 787.200 2001: 780.200

Building and construction trade: 1999: 64.329 2000: 62.714 2001: 59.116

Trade, tourism, transportation: 1999: 770.300 2000: 794.400 2001: 802.800

Public and private services:^235 1999: 1.315.500 2000: 1.363.600 2001: 1.391.700

DE71 DARMSTADT²³⁶

Total employment	1.975.700
Employment per sector 2001	1,0% Agriculture	22,9% Proceeding Industry (including building and construction trade)	76,0% Public and private services:^237

DE72 GIEßEN²³⁸

Employment per sector

Total employment	457.100
Employment per sector 2001	2,3% Agriculture	32,1% Proceeding Industry (including building and construction trade)	65,5% Public and private services:^239

DE73 KASSEL²⁴⁰

Employment per sector²⁴¹

Total employment	590.000
Employment per sector 2001	2,9% Agriculture	30,5% Proceeding Industry (including building and construction trade)	66,5% Public and private services:^242

Industrial Structure

DE7 Hessen

Branches of industry²⁴³

Branch	Employment figures
	1999	2000	2001	2002 (average of IV. quarter)
Food and tobacco	34.873	35.216	34.789	34.726
Paper, printing, publishing	30.438	31.166	31.844	29.204
Chemical industry	65.927	63.899	64.246	62.903
Rubber and synthetic material	35.535	35.858	36.148	34.925
Metal (production, working, ..)	51.844	51.253	51.904	50.705
Mechanical engineering	64.009	63.109	62.582	60.533
Production of office machines, ICT techniques, optical equipment,…	63.667	63.896	64.930	62.186
Vehicle production	72.003	70.647	69.766	67.207

DE7 Hessen

Investments²⁴⁴

Branch	Investments (1000€)
	2000	2001
Food and tobacco	277.510	239.511
Paper, printing, publishing	229.495	176.311
Chemical industry	862.362	926.161
Rubber and synthetic material	277.173	279.567
Metal (production, working, ..)	360.970	347.505
Mechanical engineering	275.637	259.344
Production of office machines, ICT techniques, optical equipment,…	337.388	391.866
Vehicle production	705.408	867.767

Research base

Employment in education, higher education and research²⁴⁵

2001/02

92.963

Public expenditure on science and research (mio €)²⁴⁶

1999

4.437

DE7 Hessen

Students at universities²⁴⁷

Wintersemester	Beginners	Total number of
1999/2000	18.039	149.046
2000/2001	19.549	150.868
2001/2002	21.971	156.414

DE7 Hessen

Computer equipment per 100 private household s²⁴⁸

1993	1998
24,6	44,3

DE7 Hessen

Internet access or online services per 100 private households²⁴⁹

1993	1998
-	8,5

DE7 Hessen

Telephone equipment per 100 private households²⁵⁰

	1993	1998
ISDN	-	6,6
Telefons	97,5	98,0
Mobil	-	11,9
Answering machines	-	37,9
Fax/PC fax cart	-	17,9

Support infrastructure

DE7 Hessen

Infrastructure (categories of streets)²⁵¹

Category	Motorway (Autobahn)	Federal road (Bundesstraße)	Provincial road (Landesstraße)	District road (Kreisstraße)	Total
Kilometres	1998: 950 1999: 956 2000: 957	1998: 3.387 1999: 3.403 2000: 3.419	1998: 7.219 1999: 7.231 2000: 7.229	1998: 5.083 1999: 5.056 2000: 5.048	1998: 16.639 1999: 16.646 2000:16.652

Vehicles

1998^252	3.919.120
1999^253	3.970.485
2000^254	4.095.245
2003^255	4.198.953

Doctors and dentists (2000)²⁵⁶

Doctors	22.509
Dentists	4.838

Designation for principal domestic policy support instruments (5 point scale): 1,8

Territorial Policy	2
Public sector transfer	0 (negative)
Employment policy	2,3
Technology policy	2,8

Hessen²⁵⁷

HE	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	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	27.444	112.2	-2.153	25.292	103.4	0	0	0	0	0	0	25.292	103.4
1996	29.122	117.2	-3.240	25.883	104.1	0	0	0	0	0	0	25.883	104.1
1997	28.897	116.9	-3.148	25.749	104.2	0	0	0	0	0	0	25.749	104.2
1998	30.589	117.6	-3.439	27.150	104.3	0	0	0	0	0	0	27.150	104.3
1999*	33.621	123.0	-4.744	28.877	105.6	0	0	0	0	0	0	28.877	105.6
2000*	35.254	125.3	-5.354	29.901	106.3	0	0	0	0	0	0	29.901	106.3
2001	33.266	125.7	-5.129	28.137	106.4	0	0	0	0	0	0	28.137	106.4

*) preliminary


Impact on ex-ante divergence from national average of support from EU funds (7 point scale): 3

		2000-2006 (mio €)
				ERDF		ESF		EAGGF
		Total	EU contribution	EU contribution	%	EU contribution	%	EU contribution	%
Objective 2	Hesse	542.379	183.519	183.519	100%	-	-	-	-

Impact on ex-ante divergence from national average of domestic policies (7 point scale): 3

Change in standing of region relative to national average in last five and ten years²⁵⁸

	1991	1996	2001
GDP/capita (€)	24.055	27.326	30.966
Population	5.795.700	6.017.900	6.072.900
Employment (persons)	2.890.800	2.870.900	3.022.800
Unemployment (persons)	123.264	254.050	200.533
Unemployment rate	5,1	9,3	7,4

	1995	1997	1999
R+D expenditure (mio €)^259	3631	3755	4482

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