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Abstract

Germany is at the edge of becoming one of the dominant players within the global water technology industry. With environmental protection being a focal point on the political agenda of the German government throughout the last 50 years, ambitious environmental policies have led to the creation of a strong national water technology cluster. This cluster is characterised by highly specialised SMEs of the German 'Mittelstand'. However the size of these companies makes it difficult to gain competitive advantage in the international market. In order to address this problem, Germany has started to implement measures, like the German Water Partnership, to transform the national industry into a leading international player. However, the effectiveness and sustainability of these measures is questionable. To assess whether the German water technology cluster is capable of gaining a leading position in the international market, this report analyses the strengths and weaknesses of the national cluster with regard to global growth. Looking at the factors that may harm the transformation process, it becomes clear that advanced measures need to be taken. This includes vertical integration to build more competitive companies as well as political measures to facilitate and enhance international operations.
Location:
Industry:
Size:
Large
Other setting(s):
2013

About

Abstract

Germany is at the edge of becoming one of the dominant players within the global water technology industry. With environmental protection being a focal point on the political agenda of the German government throughout the last 50 years, ambitious environmental policies have led to the creation of a strong national water technology cluster. This cluster is characterised by highly specialised SMEs of the German 'Mittelstand'. However the size of these companies makes it difficult to gain competitive advantage in the international market. In order to address this problem, Germany has started to implement measures, like the German Water Partnership, to transform the national industry into a leading international player. However, the effectiveness and sustainability of these measures is questionable. To assess whether the German water technology cluster is capable of gaining a leading position in the international market, this report analyses the strengths and weaknesses of the national cluster with regard to global growth. Looking at the factors that may harm the transformation process, it becomes clear that advanced measures need to be taken. This includes vertical integration to build more competitive companies as well as political measures to facilitate and enhance international operations.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
2013

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