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A recent Ernst & Young survey indicates that foreign investors are more interested in Baden-Württemberg than ever before.

The figures of this year's European Investment Monitor, which is published yearly by consultants Ernst & Young, show that Baden-Württemberg was Germany's most attractive destination for foreign direct investment in 2012.

According to the European Investment Monitor, Baden-Württemberg comes first as an investment location compared to other federal states, attracting 224 foreign direct investment projects. This is considerably more than North Rhine Westphalia (136), Hessen (68), Bavaria (44) and Berlin (34).  The German southwest recorded a 45 per cent increase in the number of projects compared to the preceding year (2011: 154), whereas North Rhine Westphalia suffered a significant decrease of 12 per cent (2011: 155). In terms of the number of jobs created in 2012 due to foreign direct investment (FDI), Baden-Württemberg also led the field with 3,480 new jobs, well ahead of North Rhine Westphalia (2,552) and Berlin (1,342).

The Ernst & Young survey, which only covers start-up companies and extensions of foreign enterprises already resident in a federal state, also looks at foreign direct investment in German cities. Frankfurt is the frontrunner with 53 projects, ahead of Düsseldorf (49) and Berlin (34). However, it is highly remarkable that three cities from Baden-Württemberg,  namely Stuttgart (24), Constance (13) und Mannheim (12), are among the top ten. This result shows that, in addition to Stuttgart the state capital, there are other regions that are also very attractive for foreign investors.  If the entire Stuttgart metropolitan area is compared to other large European conurbations such as Greater London or Paris/Ile-de-France, Stuttgart is in sixth place with 81 FDI projects. Freiburg comes eighth with 71. In contrast, the Berlin and Munich metropolitan regions do not even manage to be among the top ten.
For Ernst & Young, the most important foreign investors in Germany continue to be the US, Switzerland and Great Britain, as in the preceding year. When it comes to foreign direct investment, Baden-Württemberg mainly profits from Switzerland, which is the strongest foreign investor, for which 73 FDI projects are on the books. It is followed by the US (38), Great Britain (14) and China (7).

Jürgen Oswald, CEO of Baden-Württemberg International, the competence centre of the state of Baden-Württemberg for the internationalisation of industry and science, is pleased by the results of the survey: "The latest European  Investment Monitor confirms the considerably increased interest of foreign investors in Bade-Württemberg. We also see this in the daily work that we do". "For 2012, we recorded a total of 330 foreign investment projects . This means a rise of 32 per cent compared to the previous year", continued Oswald.

Unlike the survey conducted by Ernst & Young, bw-i  looks at all investments by foreign companies in Baden-Württemberg and not just start-up companies and extensions of already existing enterprises. These can also take the form of shareholdings in existing companies or company take-overs.

In the statistics compiled by bw-i regarding the countries of origin of foreign investment, Switzerland is in the lead with 95 projects (in 2011, a total of 70 investments came from Switzerland). It is followed at great distance by the US with 40 (2011: 34), Austria with 30 (2011: 22) and France with 25 (2011: 23) projects. As regards the most attractive branches of industry for foreign investors in 2012, information and telecommunications technologies are in the lead with 43 projects, closely pursued by mechanical engineering (40) and the service sector (38). These are followed by the electrical engineering, automotive parts-supply, medical technology and metal-working sectors, each with 14 projects.



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