This is a result of the “EU Software Cluster Benchmark 2013” (http://www.softwareclusterbenchmark.eu) published today. This study analyses 15 European hotspots of the software industry in-depth and highlights the identities of these European Silicon Valleys.
It reveals a division in two kinds of clusters: those that are big and those that are “hungry”, i.e. growing dynamically. The Silicon Valley in the US, however, manages to combine both attributes and be big and growing at the same time.
While several of the European clusters are internationally competitive in certain aspects, no European software cluster so far comes close to the original Silicon Valley as a whole. However, instead of only trying to replicate the Silicon Valley, European software clusters should also develop individual growth paths and build on peer learning, representatives of several clusters agreed upon in a press conference.
Other than in the US where the Silicon Valley is the main place where software innovations are created and distributed worldwide, the hotbeds of the European software industry are dispersed all over the continent. What are the individual strengths and weaknesses of the European software clusters, where do they stand in comparison to the Silicon Valley and which measures could be taken to improve their competitiveness? To answer these questions, the German Software-Cluster commissioned the “EU Software Cluster Benchmark 2013”.
The study ranks the European software clusters according to seven categories: employment, turnover, growth dynamics, human capital, company demographics, general factors, and industry specific factors. Of the 15 software clusters analyzed, only five achieve top scores in several of the categories: London, Berkshire, Buckinghamshire & Oxfordshire (BBO), Île-de-France, Stockholm and the German Software-Cluster. While the Software-Cluster is the cluster with the highest turnover, London achieves top scores in terms of human capital and general factors and is Europe’s global node for IT Services and venture capital.
Île-de-France is a still growing software giant with a strong R&D infrastructure, and Stockholm manages to be a well-balanced highly specialized cluster with a strong turnover. Even clusters that otherwise fall behind in comparison manage to outshine others in certain aspects: the Copenhagen Capital region (Hovedstaden) is especially strong in its industry-specific factors while Warsaw region (Mazowieckie) excels through its growth dynamics.
However, the study also notes that while several of the clusters are internationally competitive in certain aspects, no European software cluster so far comes close to the original Silicon Valley as a whole. European software cluster are unbalanced – either in the direction of being comparably big and saturated or rather small and dynamically growing.
As a result, the study helps to identify pathways to improving the competitiveness of European software clusters. During a press conference on November 25th, 2013, representatives of several clusters outlined further steps to be taken in that direction by policymakers and industry. They came to the joint assessment that an increased peer learning between the European software clusters could help to spread good practices that might be easier to implement than US practices due to the common EU political and cultural context. While the gap to the Silicon Valley is still very large, European software clusters should furthermore develop individual growth paths that build on local and regional assets, e.g. the industrial structure of each region.
Quotes from the speakers in the press conference:
Dr. Stephan Fischer, President of the Software-Cluster Strategy Board and Director TIP Strategic Innovation at SAP AG:
“The software sector is a key driver of the competitiveness of the EU and influences the innovation capabilities across all sectors. However, innovation today is collaborative. In the German Software-Cluster, large and medium-sized software companies together with renowned research institutions have joined their complementary competencies for a couple of years now to develop the foundations for tomorrow’s enterprise sector. In this spirit, we have also commissioned the “EU Software Cluster Benchmark 2013” to chart the profiles of European software clusters and find complementarities, so that coordinated actions and collaborations between clusters become possible.”
Karl-Heinz Streibich, CEO of Software AG, Germany
“The cluster benchmark clearly shows that we have made tremendous progress in recent years. The European software industry is an important catalyst of the European high-tech industry", said Karl-Heinz Streibich, CEO of Software AG. "However, the results also underline that - compared to global standards - all European clusters have to catch up. It must be our goal to achieve industrial strength on a global scale in order to remain competitive on the international stage. The clusters still need better framework conditions and the support from politics - on the national as well as the European level."
Bernhard-Louis Roques, CEO of Truffle Capital, France
"Truffle Capital publishes today also the latest edition of the Truffle 100 Europe, the ranking of the 100 biggest European software companies. It shows that the European software sector remains a force to be reckoned with, despite the current economic difficulties. Europe depends now more than ever on its innovative sectors in order to be competitive. However, we should stress out that profits of the 100 decreased by 8.7% due to more important challenges than ever. The entrepreneurs of this industry are optimistic regardless of the difficult economic time we are going through as they are planning on investing in manpower and R&D and forsee a 5 to 15% growth in 2014”, commented Truffle Capital co-founder and CEO Bernard-Louis Roques.
Glen Manchester, CEO of Thunderhead.com, UK
“The findings of this study are very encouraging for the European software industry, and an illuminating reminder of both the strength of innovation across the region as well as the real challenges that confront us in converting that innovation into sustainable global business outcomes,” said Glen Manchester, CEO of Thunderhead.com. “While the study points to the need and opportunities for greater collaboration and networking between clusters, the outstanding issue highlighted in my view is the problem of how we can improve the entrepreneurial climate in Europe.”
The following software clusters were included in the study: Berlin, Upper Bavaria, the German Software-Cluster around Darmstadt, Kaiserslautern, Karlsruhe and Saarbrücken; London, Berkshire, Buckinghamshire & Oxfordshire, Île de France, Copenhagen Capital Region, Helsinki Region, Stockholm, Madrid, Lombardia, Utrecht, Budapest region, Warsaw region, Prague.
The study was conducted by the Fraunhofer Institute for Systems and Innovation Research (ISI) in Karlsruhe, Germany.The full study, images and additional information can be downloaded at:
Bernd Hartmann | idw
Smart Data Transformation – Surfing the Big Wave
02.12.2016 | Fraunhofer-Institut für Angewandte Informationstechnik FIT
Climate change could outpace EPA Lake Champlain protections
18.11.2016 | University of Vermont
A multi-institutional research collaboration has created a novel approach for fabricating three-dimensional micro-optics through the shape-defined formation of porous silicon (PSi), with broad impacts in integrated optoelectronics, imaging, and photovoltaics.
Working with colleagues at Stanford and The Dow Chemical Company, researchers at the University of Illinois at Urbana-Champaign fabricated 3-D birefringent...
In experiments with magnetic atoms conducted at extremely low temperatures, scientists have demonstrated a unique phase of matter: The atoms form a new type of quantum liquid or quantum droplet state. These so called quantum droplets may preserve their form in absence of external confinement because of quantum effects. The joint team of experimental physicists from Innsbruck and theoretical physicists from Hannover report on their findings in the journal Physical Review X.
“Our Quantum droplets are in the gas phase but they still drop like a rock,” explains experimental physicist Francesca Ferlaino when talking about the...
The Max Planck Institute for Physics (MPP) is opening up a new research field. A workshop from November 21 - 22, 2016 will mark the start of activities for an innovative axion experiment. Axions are still only purely hypothetical particles. Their detection could solve two fundamental problems in particle physics: What dark matter consists of and why it has not yet been possible to directly observe a CP violation for the strong interaction.
The “MADMAX” project is the MPP’s commitment to axion research. Axions are so far only a theoretical prediction and are difficult to detect: on the one hand,...
Broadband rotational spectroscopy unravels structural reshaping of isolated molecules in the gas phase to accommodate water
In two recent publications in the Journal of Chemical Physics and in the Journal of Physical Chemistry Letters, researchers around Melanie Schnell from the Max...
The efficiency of power electronic systems is not solely dependent on electrical efficiency but also on weight, for example, in mobile systems. When the weight of relevant components and devices in airplanes, for instance, is reduced, fuel savings can be achieved and correspondingly greenhouse gas emissions decreased. New materials and components based on gallium nitride (GaN) can help to reduce weight and increase the efficiency. With these new materials, power electronic switches can be operated at higher switching frequency, resulting in higher power density and lower material costs.
Researchers at the Fraunhofer Institute for Solar Energy Systems ISE together with partners have investigated how these materials can be used to make power...
16.11.2016 | Event News
01.11.2016 | Event News
14.10.2016 | Event News
02.12.2016 | Medical Engineering
02.12.2016 | Agricultural and Forestry Science
02.12.2016 | Physics and Astronomy