Baden-Württemberg remains a popular investment location for companies from abroad, even during the corona crisis. According to the state-owned location promotion agency Baden-Württemberg International (BW_i), the German Southwest attracted 398 foreign settlement projects last year, well above the level in 2019 (365 projects). A total of about 5,800 international companies are currently based in Baden-Württemberg. "The very good result shows that Baden-Württemberg is very popular, even in times of crisis. The state scores highly with international investors thanks to its innovative strength in future-oriented topics such as artificial intelligence, quantum technology and fuel cell development, its business-oriented research institutions, well-trained specialists and, last but not least, its high quality of life," said Minister of Economic Affairs Dr. Nicole Hoffmeister-Kraut.
In 2020, as in previous years, Switzerland - traditionally a close economic partner of the German Southwest due to its proximity to the border - ranked top among the countries of origin of foreign investments with 129 projects (2019: 111). The USA followed with 42 (2019: 38), Austria with 29 (2019: 22), France with 28 (2019: 19), the Netherlands with 25 projects (2019:15) and the UK with 19 projects (2019: 17). While the investment activity of European countries has increased compared to the previous year, investments from China have decreased by about one third with 15 projects (2019: 22).
Regarding the industries most attractive to foreign investors, mechanical engineering is in the lead with 57 projects, followed by information and telecommunications technology (56) and the healthcare industry (46). "Foreign investors are taking notice of Baden-Württemberg's strengths - as the No. 1 innovation location in Europe, we are interesting for all those companies that want to shape the future and are enthusiastic about new perspectives," said Dr. Christian Herzog, Managing Director of Baden-Württemberg International. In addition to the 398 settlements in the past year, BW_i also recorded 49 company takeovers and 15 minority shareholdings in Baden-Württemberg in the area of foreign investments.
Among the last year’s foreign direct investments in the German Southwest is a state-of-the-art European development centre of robotics and automation specialist Fanuc in Neuhausen near Stuttgart. The investment amounts to 20 million euros. The Japanese company employs more than 7,000 people worldwide and has been based in Baden-Württemberg for 30 years, where it is growing steadily. In the past three years, the number of employees at the site has increased by around 100 to approximately 400.
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Foreign Direct Investment 2020 by industry
