GSCDays

R&D and Innovation Ecosystem of Turkey: Your next destination for excelling in R&D and innovation

2016-12-15T10:36:37Z

The R&D, innovation, and entrepreneurship ecosystem of Turkey is currently on track to meet two key targets for the year 2023. These targets are to raise gross expenditure on R&D (GERD) to 3% of GDP, up from its current level of 1%, and increase the number of researchers to 300,000 full-time equivalents (FTE), up from 115,000 of today. The Turkish government aims to realize these goals through the institution of new R&D Reform Packages they started at the beginning of 2016.

Their end goal is for a structural transformation of Turkey to a more tech-driven economy. It is their hope, that this transformation will increase the competitiveness of vital industries in Turkey, strengthen university-industry cooperation, and increase overall R&D spending.

Learn more about the Turkish Reform Package and what some of the key highlights from it are in our latest Newsletter.

Interview: Arda Ermut of ISPAT speaks about investment opportunities in Turkey and more

2016-12-01T08:27:49Z

The Republic of Turkey Prime Ministry Investment Support and Promotion Agency (ISPAT) is the official organization for promoting Turkey's investment opportunities to the global business community and for providing assistance to investors before, during, and after their entry into Turkey. Directly reporting to the Prime Minister, ISPAT is in charge of encouraging investments that are needed for the further economic development of Turkey. To this end, ISPAT supports high-technology, value-added, and employment-generating investments with its facilitation and follow-up services during whole processes of relevant investments.

At the upcoming Turkish-German Innovation Summit in Istanbul, the Global Success Club is proud to welcome Arda Ermut, President of ISPAT, as a participator of the summit. There he will gladly give some insight into the attractiveness of Turkey for investments and the future of the country in light of Industrie 4.0. To give all Summit participants a little taste of what is to come at the event, Mr. Ermut was kind enough to answer a few questions about ISPAT and the industry of Tukey for us. Please enjoy the interview and be sure to find out more at the Summit on the 15th-16th of March.

GSC: According to your website, in 2015 there were 46,756 companies with foreign capital in Turkey. Could you please tell us how important it is for Turkey, and the world as a whole, that companies continue to invest in Turkey?

Mr. Ermut: Turkey has implemented a comprehensive reform agenda to improve its investment environment in the leadership of H.E. President Recep Tayyip Erdoğan. As the first directly elected President of Turkey, H.E. Erdoğan is giving the upmost importance to the investors to foster the role of private sector and international investors in the economy. He is the person, actually, who established the Investment Support and Promotion Agency of Turkey in 2006 and directly attached this Agency to Prime Minister, as a sign of the importance given for Foreign Direct Investments (FDI). H.E President even make us to use the term "international investors" rather than "foreign investors" underlining the fact that these investors will never be treated as foreigners in Turkey.

Concrete results of this reform agenda can be seen through the following figures. Number of companies with international capital has increased from 5.000 to more than 50.000. Turkey attracted 170 billion US Dollars of FDI over the period of 2003 and 2016. It is obvious that there is an increasing confidence of global investors in the Turkish economy.

GSC: Having dealt with many companies that have decided to invest in Turkey, what is the one piece of advice, something that many companies struggle with when setting up in Turkey, which you would offer to future investors?

Mr. Ermut: Of course, we welcome all opportunities and all investors in Turkey. Besides, we would rather propose a set of priorities. The main objective of Turkey is to provide a sustainable growth path and make it more inclusive while saving the macroeconomic stability and maintaining the decline in current account deficit. Increasing domestic savings, encouraging the transformation in industrial sector and private investment reliant growth structure, enhancing the competitiveness and efficiency of the economy are the main priorities.

In this context, increasing high value-added goods and services, reducing dependence on imports of domestic production, improving R&D environment, technology transfer, diversification of financial market products, increasing the workforce skills and productivity, improving energy efficiency, and the completion of structural transformations and reforms initiated in the area of local government and regional development are important priorities for us. So, we welcome all investors who make contribution to these goals.

GSC: With a new revolution for industry on the horizon, Industry 4.0, what sort of measures is ISPAT taking to attract manufacturers to set up their new "connected" factories in Turkey?

Mr. Ermut: Fifty years after the start of the information age, we are once again in the midst of a sharp tranformation, the likely effects of which will be a period of more automation, higher productivity and higher return. The fourth industrial revolution, referring to the advent of economy-changing technologies, will also affect Turkey and we will more than likely attract new investments that will improve R&D activities and provide transfer of technology. Therefore, we put great emphasis on sectors that will help us to implement Industry 4.0 in Turkey. In this sense, Germany, a country that ushers in Industry 4.0, and Turkey have lots of bilateral opportunities to offer eachother.

GSC: In a recent article by the Frankfurter Allgemeine Zeitung, the article argues that the current business partnerships and collaborations between Turkey and Germany companies must be fostered and continue on into the future, no matter what. What would ISPAT say to this statement, and how does it feel about such partnerships?

Mr. Ermut: Turkey and Germany have perfect bilateral trade relations in all terms. In 2015, Germany took top honors as Turkey's main partner country for exports with a volume of USD 13.4 billion. In the same year, our exports to Germany had 9.3 percent share in our total exports. Not only in 2015, Germany is our top export market, but also in the last decade. With regard to FDI, in the first eight months of 2016, Germany was the highest fourth country to invest in Turkey with an FDI amount of USD 284 million. The most recent example of German origin FDI is the second factory investment of the automotive supply industry giant ElringKlinger, which will commence production on November 18, in our Bursa province. Moreover, Germany is a prominent country for our top priority sectors such as automotive, chemicals and energy. For all the above reasons, Germany is an important trade partner of Turkey.

GSC: At the upcoming Turkish-German Innovation Summit in Istanbul, ISPAT is set to be one of the main sponsors. Could you please tell us how important it is for ISPAT that summits, like the upcoming one in March, are held between the countries of Turkey and Germany?

Mr. Ermut: Turkey have some unique characteristics which are expected to make any country an attractive investment destination. First of all, robust economy of the country, which is the 17th largest in the world, has been growing with an average rate of 4.7% since 2002. It is also expected to be the fastest growing economy among OECD members.

Turkey's location provides access to European, Middle Eastern, North African, Central Asian and Gulf markets covering 1.6 billion people with 28 trillion USD total GDP. Besides, businesses in Turkey have seamless access to European Union and other 20+ countries, where approximately 1 billion people live, through customs union and free trade agreements.

In terms of human capital, Turkey has a dynamic population structure with an average age of 30 and low dependency ratio. In the last 10 years, working age population and number of employed people increased by 10 million which kept unemployment rate almost the same. There are more than 600,000 university graduates each year. Skilled and cost competitive labour force is easily available in Turkey.

Furthermore, Turkey's one of the most important assets to attract FDI is its liberal investment climate. As a result of structural reforms put into practice in the last 13 years, Turkey has improved its position in OECD FDI Regulatory Restrictiveness Index and World Bank's Ease of Doing Business index. On top of it, Turkey offers a lucrative incentive scheme for manufacturing and R&D projects.

In the light of this information, Turkey lays more emphasis on such summits and events after the July 15 failed coup attempt. We appreciate all kinds of support to the democratic institutions and business environment in Turkey. As of today, we have more than 6,600 companies with German capital and in the last few years some of the top foreign direct investments came from Germany. Thus, we really care about their interests and we would be happy to collaborate with them to enhance investments from Germany and worldwide, to prove that the business life continues as usual and Turkey recovered soon and came out to be ever stronger.

GSC: We thank you for your taking time out of your busy day to speak with us and look forward to seeing you soon in Istanbul.

Interview: Dr. Çetin Nazikkol of ThyssenKrupp AG speaks about the company and Industrie 4.0

2016-11-30T16:56:50Z

The company of ThyssenKrupp is one of the European multinational conglomerates in the world consisting of 670 companies. The company came about from the merger of two of Germany's largest companies, Thyssen AG and Krupp, in the late 90's. Between both compnaies is over 200 years of knowledge and business success. Since the merger of the two, the conglomerate has become one of the largest producers of steel in the world, and also provides components for the automotive industry, elevators, escalators, material trading and industrial services.

The Global Success Club is proud to have one of the company's distinguished executives with us as a panel speaker at the upcoming 2. Turkish-German Innovation Summit. Dr. Çetin Nazikkol, CEO of Thyssenkrupp RHQ Middle East & Africa, will join us to speak about chances for German firms and R&D efforts in Turkey. Please enjoy now a short interview we did with him in preparation for his panel, and be sure to join us at the upcoming Summit in March to hear more from Dr. Nazikkol.

GSC: The ThyssenKrupp website proudly displays the slogan "engineering.tomorrow.together." at the top of its homepage. What does this mean to the company and what sort of efforts has it taken to ensure that the slogan is followed?

Dr. Çetin Nazikkol: “engineering. tomorrow. together” are the three words that describe who we are, what we do and how we do it.

Our claim condenses our strategy and our brand promises which stands at the very center of everything we do at thyssenkrupp: we advance our customers. That is to say understanding current and future customer needs and delivering competitive products, services, and solutions.

GSC: During your panel at the upcoming Turkish-German Innovation Summit, you will be specifically talking about investment opportunities for German firms in Turkey. If someone from a German company were to come to you right now and ask about investing in Turkey, what is the one biggest piece of advice you would offer them before they start?

Dr. Çetin Nazikkol: This is an amazing country with a young and dynamic population. Turkey is well connected to Europe, Middle East and Africa. This is partially due to its geopolitical location but what is even more important is that the country is like a melting pot of all these cultures as well. You can see and live that in your daily business life. There is a high quality standard when it comes to manufacturing which makes Turkey an important supplier to Europe for several industries. Automotive for instance is one of those industries. Turkish suppliers are providing high quality parts & components to major brands producing in Germany as well as in other countries in Europe. On the other hand however, personal relationships are highly determinant on business relations. Emotions play an important role and Turks generally seek to build trust before making a deal. My biggest piece of advice therefore would be to try to understand the culture and the way of doing business here. Good communication can open doors.

GSC: Being such a large company, I'm sure that ThyssenKrupp has taken some efforts in order to implement Industrie 4.0 applications in their manufacturing facilities. Since the Turkish-German summit you will attend soon will have Industrie 4.0 as it's main topic, can you please share your company's stance on the topic and give an example where you implemented an application of it?

Dr. Çetin Nazikkol: Industry 4.0 is high on our innovation agenda. We are working hard to ensure that in the future thyssenkrupp stands for sustainable products produced in a sustainable way. We are spending around 2.5 percent of our turnover annually on research and development. For this we not only need lots of good ideas, but also have to define the entire path from idea to successful product. Our Product Lifecycle Management system describes the stages of product development. Our TechCenters play an important role in this. They can develop ideas very quickly to the point where we can make an informed decision about a market launch. Current studies show that cooperation across traditional sector and technology boundaries is becoming increasingly important. With its diverse technologies, this is one of thyssenkrupp’s major strengths.

For instance, in our Ilsenburg plant, camshafts and the machines used to produce them are in active dialogue. Each camshaft has its own unique ID and passes through the production process almost as if it had a first and last name. And it carries a large amount of data, such as the customer for which it is being produced, its current processing status, and in what condition it left the previous process step. This dialogue between product and production is based on interfaces to the Internet.

Special rates for Summit participants at the Le Meridien Hotel in Istanbul

2016-11-14T09:09:59Z

To all participants of the 2nd Turish-German Innovation Summit coming soon in December, we at the Global Success Club would like to inform you we have secured special rates for you at the luxurious Le Meridien Hotel Istanbul Etiler. Rates are 85, -EUR for single rooms or 100,- EUR for double rooms excl. VAT, and breakfast is included. We have secured a good number of rooms for all participants, but they will not last long, so contact us at the GSC today to receive more information about reserving a room.

Tel.: 069 / 45 00 44 30
Fax: 069 / 45 00 44 29
E-Mail: contact@globalsuccess.de
Web: www.globalsuccess.de

Interview excerpt: Dr. Jan Bredau & Dr.-Ing.Axel Gomeringer speak about Festo's future

2016-11-30T16:56:20Z

Check out an excerpt from the interview we made with Dr. Jan Bredau & Dr.-Ing.Axel Gomeringer of Festo about Turkey and the future of Festo in light of Industrie 4.0. Full interview to come in the newsletter coming soon!

GSC: Since the start of Festo back in the beginning of the 20th century, Festo has been a company that strives for excelence in everything it does. They do this by always keeping up-to-date with technological advances, and even helping the advancement of such technologies themselves. Can you please tell us a little more about Festo's stance on Industrie 4.0, and what the company is doing to help it thrive in the world?

Festo takes a holistic view from different perspectives of the changes in the production world, which are being discussed under the heading ‘Industry 4.0’, and besides technology also takes other points of view into account, such as the interaction between humans and machinery or the issue of training and qualification. Together with partners from science and industry, Festo is researching new solutions and technologies for the production of the future and is involved in various research projects funded by the German government. The requirements of Industry 4.0 have now been accommodated in products for the first time, and are also being realised in the company’s own production at the Scharnhausen Technology Plant.

GSC: In your session at the upcoming Turkish-German Innovation Summit in Istanbul, you will be discussing what’s called smart manufacturing for the future. Could you please just give an overview for us now what you mean by smart manufacturing?

Dr.-Ing. Gomeringer: Alongside mass production, which will continue to be very important, there is also a trend in industrial production towards the individualisation of products. That is why more flexible production facilities are needed. By using components that are independently networked in an intelligent way, configure themselves and are therefore capable of ‘plug and produce’, production facilities are able to meet the steadily growing requirements immediately.

GSC: In your session at the upcoming Turkish-German Innovation Summit, you will be talking about predictive maintenance in manufacturing processes. Can you please describe the idea behind this, and why it is so important for manufacturing companies today?

Dr. Bredau: The objective of every manufacturing company is the produce goods in the best quality at the optimal cost level. Manufacturing companies therefore have established continuous improvement processes to enable an always better productivity, quality and cost of their manufacturing lines. While in the past this has worked very well we observe that new approaches are needed to further optimize the production. Condition monitoring, which has been discussed already for many years can help identify problems in production lines based on appropriate sensors and help increase transparency of the relevant factors for improvements. Predictive maintenance is a further development which combines current sensor data – e.g. consumption of a pneumatic cylinder – with its expected lifespan (from the testing phase) and other relevant sensor data of the production process (vibration, speed, ...). Based on this it is possible to predict product failure in time before it actually occurs and enable the repair during regular maintenance cycles of the machine. This increases total quality of the produced goods as well as improves productivity and reduces costs as unplanned downtime of the machine is reduced.

A message from the CEO of GSC regarding the 2. Turkish-German Summit coming December 2016

2016-11-14T16:14:26Z

This year the Global Success Club is proud to host the 2^nd Turkish-German Innovation Summit in the beautiful country of Turkey. The 1^st Turkish-German Innovation Summit we organized was held in Frankfurt, Germany, as a platform for innovation opportunities between the two countries. With generous support of the German Federal Ministry of Education, we now have the honor organizing the event in Turkey’s own Istanbul, a city reaching out and bridging the gap between Europe and Asia. It is our hope that this event will help to highlight the importance of collaborative partnerships between two countries who have such a rich history in business relations.

Despite turbulent times, we have chosen Istanbul for our second Summit, because we believe that these relationships should be cherished and held dear. We should not stop trying to strengthen the bonds that have held for so many years and are mutually beneficial for both countries. German Chancellor Angela Merkel said: “There is a lot that binds Germany to Turkey and even if we have a difference of opinion on an individual matter, the breadth of our links, our friendship, our strategic ties, is great.”

We have organized this event so that executives from each country can join together in a forum for teaching and learning about various business topics as well as the potential opportunities of each individual’s home land. It is our opinion that both countries have a great deal to learn from one another. A transnational cooperation between perfectly complementary German and Turkish companies brings decisive competitive advantages out of new innovations for both sides. To highlight these innovations and encourage more like them, the very first Turkish-German Innovation award will be given in acknowledgement of an innovative product resulting from the joint development of a Turkish and German cooperation.

We look forward to seeing all of you at the summit this year in Istanbul and next year back in Germany, for what we believe will become a traditional series of summits for both countries.

Yours sincerely,

Işınay Kemmler

Founder & CEO

Global Success Club

2nd Turkish - German Innovation Summit on December 6th - 7th, 2016 in Istanbul

2016-10-21T15:32:25Z

Global Success Club (GSC) is happy to announce that the 2nd Turkish - German Innovation Summit will take place on December 6th - 7th, 2016 in Istanbul, Turkey. GSC invites senior executives from both Turkish and German innovative manufacturing companies to join our exclusive two-day summit sponsored by the German Federal Ministry of Education and Research. Click to register.

Interview: Dr. Detlef Houdeau about Infineon's challenges in the face of Industrie 4.0

2016-11-23T11:52:06Z

Since its founding back in 1999, Infineon AG has quite quickly become a world leader in delivering high quality semiconductors for various industry sectors. Currently, they rank as the top producer of semiconductors in Germany, and among the top 20 semiconductor sales leaders in the world, beating out many companies in Asia and the United States. We recently spoke to a representative of Infineon AG, Dr. Detlef Houdeau, about his take on how a company like Infineon has managed to stay on top of the market when it comes to R&D and innovation. We also asked him about how Infineon is embracing the future of the industrial manufacturing sector in the face of Industrie 4.0. In this interview you will find his answers to a few questions we asked him, however if you would like to know more about the topics we covered, be sure to check out Dr. Houdeau’s panel, Safety first – Data & IT Security for Industrie 4.0, at the upcoming Turkish-German Innovation Summit in Istanbul.

GSC: Infineon Technologies is a very large company, employing over 35,000 employees in facilities all over the world. They currently run R&D facilities in countries like France, Singapore, Taiwan, UK, India, etc. While running these facilities all around the world, how important is it to Infineon to collaborate with local businesses, research institutes and organizations in order to innovate?

Dr. Detlef Houdeau: This is very important as each region has specific market requirements. For example when it comes to security, there are for example regional differences on certification procedures for products, componets and processes.

GSC: Being a company that has built itself around technology, Infineon has to stay up-to-date with all the latest advancements. That said, how has the company embraced Industrie 4.0 in the last years, and what are they currently doing about it?

Dr. Detlef Houdeau: Infineon is an Industry 4.0 expert – both as user and supplier. Our own manufacturing sites are already applying many of the technologies and methods of Industry 4.0 already today. As a supplier, Infineon provides products and solutions that are established prerequisites for the fourth Industrial Revolution: from sensors and microcontrollers to power management and security - All these components make factories smart, secure and power-efficient.

GSC: At the upcoming Turkish-German Innovation Summit in Istanbul, you will be participating in a discussion on data and IT security for Industrie 4.0 applications. Can you please tell us quick what the biggest threat to these systems are in your opinion, and what is the best way to deal with this threat?

Dr. Detlef Houdeau: With the rapid adoption of Industrie 4.0, the risk of security breaches is increasing significantly. The greater the volume of sensitive data we transfer over the Industrial Internet, the greater the risk of data and identity theft, device manipulation, data falsification, IP theft and even server/network manipulation. Therefore, the key challenge is to prevent sensitive information (such as Intellectual Property, process know how, identities) from being stolen or manipulated. The challenge therefore is not the security technology as it is available – but business and manufacturers have to understand the risks of increasing connectivity and learn how to properly deploy the technologies.

Video: The best of the Strategic Investment Summit: USA

2015-11-11T16:46:26Z

Whether you missed the Strategic Investment Summit: USA or simply want to relive your experience with us, the official impressions video is now available on YouTube! Head on over and enjoy some of our favorite moments from the executive forum!

In addition to the impressions video, on the GSC YouTube channel you can also find full-length videos of each of the panel sessions. If you're looking for strategies to enter or expand R&D and/or manufacturing operations in the U.S., practical recommendations for successful investing, or strategies for achieving success in the U.S. market – these videos are a great place to start!

The SIS: USA Playlist

“Innovations – Made in the U.S.” featuring Dr. Joachim Hasenmaier (Boehringer Ingelheim), Mr. Rolf Najork (Heraeus Holding GmbH), and Mr. Siegfried Schabel
“Protecting your innovations” featuring Mr. Jason Cooper (Alston & Bird LLP), Dr. Stefan Horstmann (Merck KGaA), Dr. Michael Pcolinski (BASF Corporation), and Mr. Paolo Trevisan (U.S. Patent & Trademark Office)
“All about money” featuring Ms. Narbeli Galindo (EDCKC), Prof. Dr. Johann Grabenweger (KHS GmbH), and Dr. Heike Wenzel (WENZEL Group)
“Higher gains with higher education” featuring Prof. Dr. Michael Heuken (AIXTRON SE), Mr. Charles Vaillant (MANN+HUMMEL), and Prof. Dr. Robert Wilhelm (Charlotte Research Institute)
“Location, location, location” featuring Dr. Thomas Becker (BMW Group), Mr. Ed Fantasia (SelectUSA), and Mr. Andreas Fobbe (ifm electronic gmbh)

While you're on the YouTube channel, why not check out some of our exclusive executive interviews with several of these renowned speakers? And before you leave – don't forget to subscribe!

Filing for a U.S. business visa? Here's some advice from the U.S. government for your successful application!

2015-11-05T08:11:51Z

For many, applying for a business visa for the United States may seem like a daunting task. Though the matter is quite complex at first glance, the staff members working in the Consular Services departments at U.S. Embassies and Consulates around the world are ready and willing to help. In the aftermath of the recent Strategic Investment Summit: USA, we turned to Peter Kaestner, Consular Section Chief at the Consulate General of the United States in Frankfurt am Main, with some of our questions regarding the main business visa categories foreign companies should know about before establishing a subsidiary in the U.S.

GSC: For a German company looking to establish itself on American soil for the first time, which type of visa would you recommend for the executives or specialized knowledge employees transferring from the foreign parent office?

Peter Kaestner: Although we cannot make specific recommendations regarding the type of nonimmigrant visa (NIV) for which a company’s individual employee may qualify, there are two visa options that are generally available:

The L-1 visa: for intracompany transferees. This NIV classification was created to permit international companies to temporarily transfer qualified employees to the United States for the purpose of improving management effectiveness, expanding U.S. exports, and enhancing competitiveness in markets abroad. The U.S. company will have to file an L-1 petition with U.S. Citizenship and Immigration Services (USCIS) in the United States, providing documentation regarding the qualifying corporate relationship between the two entities, such as a branch, affiliate, subsidiary, parent or joint venture relationship, as well as documentation to establish the employee’s eligibility for an L-1 visa as an executive, manager or specialized knowledge employee. Once USCIS approves the L-1 petition, the beneficiary may apply for his or her L-1 visa at a U.S. Embassy or Consulate abroad. USCIS requires additional documentation from new offices (an office that has being doing business in the United States for less than one year), and any initial L-1 petition will only be valid for one year. Subsequent L-1 petitions may be extended in two-year increments, for a total of five years of status as an L-1B specialized knowledge employee and seven years for an L-1A manager or executive. Accompanying spouses and children under the age of 21 may apply for L-2 visas. Spouses may also apply for employment authorization with USCIS after entering the United States.

The E-1 or E-2 Visa. This NIV classification was created to enhance or facilitate economic and commercial interaction between the United States and the treaty country, in this case Germany. The E-1 treaty trader visa is possible for the owners and employees of companies engaging in substantial trade principally between the United States and Germany. The E-2 treaty investor visa permits the owners and employees of companies that have made a substantial investment in the United States to operate there. The treaty trader or investor must possess German “nationality,” meaning that the company is more than 50% owned by German nationals. Employees of these companies seeking to travel to the United States on an E-visa must also possess German nationality. To qualify for E-visa classification, the German company must first register the U.S. company at the U.S. Consulate General in Frankfurt, the sole E-visa processing post in Germany. After the company is registered, eligible individuals may apply for E-1 or E-2 visas to serve as executives, supervisors and employees with essential skills at the U.S. company. E-visas are generally valid for an initial period of five years, and extensions are available. Comprehensive information regarding the application process and required documents for first-time registration is contained at the U.S. Embassy’s website: http://germany.usembassy.gov/visa/niv/visacategories/e1e2/. Accompanying spouses and children under the age of 21 may apply for E-1 or E-2 visas. Spouses may also apply for employment authorization with USCIS after entering the United States.

GSC: If an H-1B petition filed with USCIS on behalf of an employee is not approved due to the fact that H1B visas are numerically limited, is it possible for employers to apply for another type of visa after receiving a notice of rejection for a candidate? If so, which type of visa would you recommend?

Peter Kaestner: The H-1B visa is a visa for individuals who are coming temporarily to the United States to perform services in a “specialty occupation,” i.e. an occupation requiring the attainment of a Bachelor’s or higher degree in the specific specialty (or its equivalent) for entry into the occupation. In some instances, as long as all of the necessary requirements are met, it may be possible to pursue classification in one of the following categories of visa:

The L-1 visa. If the employee has been employed for a foreign company in the international group of organizations for at least one year in the past three years as a manager, executive or specialized knowledge employee and is traveling to assume a position as a manager, executive or specialized knowledge employee for a qualifying U.S. organization, i.e. a subsidiary, affiliate, parent, branch or joint venture, the U.S. employer may file an L-1 visa petition with USCIS.

The E-1/E-2 visa. If both the company and the employee hold German nationality (or both hold another nationality that qualifies him/her for an E-visa) and the U.S. company has been registered as an E-visa company at the U.S. Consulate General in Frankfurt, an employee that qualifies either as a supervisor, executive, or essential employee may apply for an E-1 or E-2 visa.

The O-1 visa. If the beneficiary is able to demonstrate “extraordinary ability” in the sciences, arts, education, business, or athletics, or extraordinary achievement in motion picture and television production, and who is coming temporarily to the United States to continue work in the area of extraordinary ability, the U.S. employer may file an O-1 visa petition with USCIS on behalf of the employee.

GSC: What advice can the U.S. Consulate provide to applicants seeking to obtain L-1B visas to assist them in establishing their qualifications?

Peter Kaestner: Please make sure that the applicant applying for an L-1B visa at a U.S. Embassy or Consulate is qualified for this visa before advising him/her to apply.

The L-1B visa is for individuals who have “specialized knowledge,” meaning special knowledge possessed by an individual of the petitioning organization’s product, service, research, equipment, techniques, management, or other interests, and its application in international markets, or an advanced level of knowledge or expertise in the organization’s processes and procedures.

If an applicant is applying under an approved Blanket L visa petition, the applicant must also qualify as a “specialized knowledge professional,” meaning that he or she has specialized knowledge as defined above and is a member of the professions as specified in INA 101(a)(32). The term “professions” includes, but is not limited to, “architects, engineers, lawyers, physicians, surgeons, and teachers in elementary or secondary schools, colleges, academies, or seminaries.” Furthermore, petitions to accord L status may be approved for persons with specialized knowledge, but not for persons who are merely skilled workers.

Thus, if the employee does not have a four-year university degree, the employer should carefully consider the applicant’s possible qualification for the L-1B visa. Please note that L-1B beneficiaries are not required to establish their professional qualifications when the employer files an individual L-1 petition on his/her behalf with USCIS in the United States. Filing an individual L-1B petition may therefore be the better option for non-professional specialized employees.

It is also important to remember that there has to be an “employer-employee” relationship between the petitioning U.S. company and the beneficiary. The key to this concept is the right of control; that is, the right of the employer to order and control the employee in the performance of his or her work. A beneficiary who will be employed in the United States directly by a foreign company and who will not be controlled in any way by (and thus, in fact, not have any employment relationship to) the foreign company’s office in the United States does not qualify as an intra-company transferee.

If the beneficiary is able to meet the necessary qualifications for an L-1B visa under U.S. laws and regulations, it is likely his or her L-1 visa application will be approved.

Exclusive Video Interview: Dr. Robert Wilhelm, Executive Director, Charlotte Research Institute

2015-10-20T14:52:34Z

Dr. Robert Wilhelm is the Executive Director of the Charlotte Research Institute, as well as the Vice Chancellor for Research and Economic Development at the University of North Carolina at Charlotte. Dr. Wilhelm joined us at the Strategic Investment Summit: USA to share his experience working at the interface between higher education and industry and to help executives learn about conducting innovation processes in a university-setting. Head on over to YouTube to listen to our conversation with Dr. Wilhelm about the potential for collaboration between industry and university and what companies should take into consideration before deciding on a university-alliance or research park.

Dr. Wilhelm’s full panel session, “Higher gains with higher education”, will be available soon!

Moving forward with TTIP

2015-10-20T08:25:21Z

In 2015, two years after the opening round of negotiations for the Transatlantic Trade and Investment Partnership (TTIP), the discussion in the media seems to revolve around how the proposed free trade agreement between the United States and the European Union will affect consumer products. But how will TTIP impact the B2B manufacturing sectors?

At the Strategic Investment Summit: USA on September 29^th, 2015, we invited representatives from some of Germany’s industry associations to present their stances on TTIP, share their predictions on how the controversial agreement may affect industry in Europe, and discuss possibilities moving forward in the negotiations.

Moderated by Dr. Stormy-Annika Mildner from the BDI (Federation of German Industries), this interesting discussion included representatives of the ZVEI (Electrical and Electronic Manufacturers’ Association), the VDA (German Association of the Automotive Industry), and the VCI (German Chemical Industry Association). For those of you who missed the session, enjoy the protocol!

Johannes Kirsch - ZVEI (Electrical and Electronic Manufacturers’ Association)

Mr. Kirsch outlined the potential for a reduction of bureaucratic costs in electronic manufacturing when it comes to transatlantic trade. He describes the different technical standards in the U.S.-market compared to the EU for machinery of all kinds. One root cause for these differences is that in Europe companies produce according to IEC-standards (International Electrotechnical Commission) whereas in the U.S. several standards are applicable for one product, mostly not in compliance with IEC rules. The IEC motto is “One standard, one test accepted everywhere” – that is up to this point not consistent with the market access conditions in the U.S. market.

According to Mr. Kirsch, policymakers can facilitate transatlantic trade through mutual recognition of certification procedures, provided the standards have been harmonized in advance.

Without prior harmonization, mutual recognition is not acceptable for European industry. In the United States, the mandatory certification of electrical and electronic products is de facto monopolized in one laboratory. Therefore, ZVEI has developed a proposal to modernize the U.S. system of mandatory certification. Thus, innovations can be introduced into the market at a faster pace. However, Mr. Kirsch agrees with the other panelists that a prerequisite for a mutual recognition regime is the harmonization of standards. Based on that, regulatory cooperation between the U.S. and EU could become the next transatlantic endeavor.

Finally, Mr. Kirsch regards customs duties as a "piece of bureaucracy" and suggests their elimination.

More on the ZVEI's position (download PDF)

Dr. Martin Koers - VDA (German Association of the Automotive Industry)

Dr. Koers agrees with Mr. Kirsch on the eradication of tariffs. In his eyes, a removal of tariffs would increase car sales on both sides of the Atlantic. Currently imposed tariffs would represent additional costs which are often translated into higher consumer prices.

However, the regulatory aspects of TTIP have a much stronger impact on trade for the automotive industry. Dr. Koers emphasizes that regulators in both jurisdictions aim for largely the same goals. In first place, these goals comprise car safety and environmental protection. Together with its counterparts in the United States, VDA offers its expertise to regulators by analyzing where U.S. and EU regulations pursue similar objectives and lead to comparable results. In such cases, the automobile industry in both areas would recommend a mutual recognition of regulation.

Dr. Koers identifies new markets, such as the digitalization of mobility, as areas where common ground in future automotive regulation could be found. The purpose of TTIP should not be to achieve regulatory consensus on all issues. Going forward, TTIP should rather require regulators to collaborate wherever possible. Such an approach would strive predominantly for joint regulations on innovations. As older technologies may fade out over time, the regulatory gap between the EU and the U.S. might be narrowed over the long term. Dr. Koers emphasizes that such regulatory cooperation will only take place if policymakers oblige regulators to consult with their equivalents overseas. TTIP could serve as an institutional vehicle to manifest such a political will.

More on the VDA's position (download PDF)

Prof. Dr. Reinhard Quick - VCI (German Chemical Industry Association)

Prof. Quick points out that a broad regulatory harmonization appears unfeasible in the chemicals industry. It appears unlikely that the EU would cede from its REACH approach which requires companies to demonstrate their ability to manage risks associated to the introduction of chemicals. Likewise, the United States is not about to give up on the Toxic Substances and Control Act (TSCA) which allows government agencies to take action when chemicals have proven to be hazardous for consumers.

Room for improved harmonization can be found when it comes to the categorization of chemicals. The United States' and the European Union's different categorization schemes require producers to change pictograms for the same chemicals when exported to the respective other market. Such an agreement on harmonized classifications should be in reach.

Furthermore, Prof. Quick questions whether more harmonization is feasible within the U.S. since U.S. safety standards and procedures vary across states. TTIP could set incentives to work towards common rules and safety procedures for chemicals. Such rules would reduce administrative costs for multinational chemical producers. He argues, however, that such transatlantic convergence is a much larger project. In any case, he pledges for TTIP as a "living agreement", i.e. regulators should practice a mandatory exchange when drafting new rules. TTIP should not require regulators to reach an agreement in every case. However, a permanent dialog should be established to find common ground.

Lastly, Prof. Quick agrees with Dr. Koers and Mr. Kirsch that tariffs can be eliminated. According to his view, tariffs shield the chemicals industry while no protection is necessary.

Exclusive Video Interview: Andreas Fobbe, Export Sales Manager N. & S. America, ifm electronic gmbh

2015-10-13T10:41:38Z

Andreas Fobbe is the Managing Director of ifm electronic Chile and the Export Sales Manager for North and South America at ifm electronic gmbh, a family-run business that has gained recognition for its development and production of quality sensors, controllers, and systems for industrial automation processes around the world. Mr. Fobbe joined us at the Strategic Investment Summit: USA to discuss which factors led the company to invest in the U.S. and how locations were chosen. Head over to YouTube to listen in on our chat with Mr. Fobbe at the event for a better understanding of the considerations made before the company enters a new market.

Mr. Fobbe’s full panel session, “Location, location, location”, which also features representatives of BMW and SelectUSA, will be available soon!

Would you like to learn more about ifm electronic gmbh’s strategy for entering new markets? Take a look at our blog interview with Mr. Fobbe!

Exclusive Video Interview: Jason Cooper, Partner & Co-coordinator of the IP Practice, Alston & Bird LLP

2015-10-13T09:28:55Z

Jason Cooper is a Partner at Alston & Bird LLP and the Co-coordinator of the firm’s Intellectual Property Practice. Mr. Cooper joined us at the Strategic Investment Summit: USA to share his knowledge of the American Intellectual Property landscape with German executives. Head over to YouTube to watch our exclusive interview with Mr. Cooper for tips on how mid-sized foreign companies can protect the products of their innovations in the U.S. and monetize their patent portfolios.

Keep an eye out for Mr. Cooper's full panel session, “Protecting your innovations”, which also features representatives of the U.S. Patent & Trademark Office, BASF Corporation, and Merck KGaA!

Exclusive Video Interview: Charles Vaillant, Vice President Innovation & Corporate Strategy, MANN+HUMMEL

2015-10-13T09:31:15Z

Charles Vaillant, the Vice President of Innovation & Corporate Strategy at MANN+HUMMEL, joined us as a panelist at the recent Strategic Investment Summit: USA to discuss his experience setting up an innovation center on a university campus in the U.S. We had the chance to speak with Mr. Vaillant at the event to get his take on the advantages of industry – university collaborations. Head over to YouTube to check out this exclusive interview.

Mr. Vaillant’s full panel session, “Higher gains with higher education”, which also features representatives of AIXTRON SE and the Charlotte Research Institute, will be available soon!

Would you like to learn more about M+H’s approach to innovation? Visit our detailed blog interview with Mr. Vaillant!

Exclusive Video Interview: Dr. Joachim Hasenmaier, Member of the Board of Managing Directors, Boehringer Ingelheim

2015-10-13T09:33:13Z

Dr. Joachim Hasenmaier, a Member of the Board of Managing Directors at the pharmaceutical company Boehringer Ingelheim, joined us as a panelist at the Strategic Investment Summit: USA in Frankfurt to discuss the German firm’s innovative processes in the United States. We sat down with Dr. Hasenmaier at the event to learn more about the research-driven company’s approach to R&D and their innovations in the U.S. market. Head over to YouTube to check out this exclusive interview.

Dr. Hasenmaier's full panel session, "Innovations - Made in the USA", which also features senior executives from Heraeus Holding and MEC Holding GmbH, will be available soon!

Did you happen to miss our blog interview with Dr. Hasenmaier back in September? It’s still available here!

Strategic Investment Summit: USA photo gallery up & running!

2015-10-09T07:36:04Z

After going through all of the photos from the Strategic Investment Summit: USA, we are happy to announce that our favorites are now available here in the event photo gallery!

For those of you who were speakers or participants at the event and are in need of high-resolution photos – either to reminisce on your time in Frankfurt or to share with your followers – please send a quick e-mail with your request.

Be sure to check back soon for more exciting updates, and keep an eye on our YouTube channel here!

Top executives gathered in Frankfurt for the Strategic Investment Summit: USA

2015-10-08T16:08:13Z

The Strategic Investment Summit: USA – Insights for growth in R&D and manufacturing took place on September 29, 2015 in the Grandhotel Hessischer Hof in Frankfurt am Main, Germany.

We would like to sincerely thank our celebrated speakers, our event partners and sponsors, as well as the conference participants for joining us at the Summit. We hope that you enjoyed exchanging business experiences and ideas with your peers regarding business in the U.S., and that the connections made at the event will continue to develop in the years to come.

For those of you who were unable to attend the event – you will soon be able to gain insights from the panel discussions and more!

Visit our YouTube channel in the coming days for videos featuring top executives from some of Germany’s most innovative manufacturing firms as they discuss strategies for achieving success in the U.S., experiences entering the market or expanding R&D and/or manufacturing operations, and practical recommendations for successful investing.

Besides the full-length panel sessions, the official photos from the event and exclusive interviews with some of our distinguished guests will be available shortly. Check back soon!

Did you know that the United States has been selected as the partner country of the 2016 Hannover Messe? We hope to see you there, too!

Interview: JobsOhio explains what the business-oriented state has to offer manufacturers

2015-09-22T10:38:09Z

Over the years, the State of Ohio has gained a reputation for being one of the most popular business locations in the United States for foreign companies due, in part, to the state’s Top 5 business climate ranking. We recently spoke to representatives of JobsOhio, the lead economic development organization for the state, to find out more about why so many international firms have chosen Ohio. In this interview, JobsOhio tells us more about the state’s highly-educated labor force, its business-friendly tax structure, and how the organization assists companies looking to relocate, expand, and prosper. JobsOhio looks forward to discussing the benefits, opportunities, and ways to cooperate with you at the upcoming Strategic Investment Summit: USA!

GSC: Ohio boasts one of the Top 5 business climates in the United States, and represents one of the most popular business locations for foreign companies in the nation, with an impressive 3,818 international firms documented in 2015. For foreign manufacturing firms looking to invest in R&D or production facilities, which business conditions make the state of Ohio one of the most attractive places to set-up shop in the U.S.?

JobsOhio: Ohio offers companies versatile, educated employees – from seasoned executives to skilled trade professionals. The state’s world-class colleges and universities continue to meet the changing workforce demands of the global market. Ohio is home to more than 200 post-secondary education institutions with diverse programs that range from agriculture to engineering that graduate more than 167,000 annually, ensuring companies in Ohio have access to a well-educated labor force. Industry-academic partnerships across the state promote a skilled workforce to meet company-specific needs. These companies, such as GoJo, Siemens Healthcare USA, CareSource, and others, use this foundation to launch the innovative products of the future.

A balanced State budget and a $2 billion surplus, low taxes, and a common sense regulatory environment bolster Ohio’s diverse economic climate.

Ohio’s business friendly tax-structure:

No tax on machinery and equipment investments
No tax on R&D investments
No inventory tax
No corporate profits or income tax
No tax on products sold outside of Ohio

Ohio also offers convenient access to automotive suppliers and customers both north and south. While the state provides the advantage of close proximity to the automotive hub in Detroit, it offers lower operating and labor costs. A network of R&D assets, such as the Transportation Research Center, The Ohio State University’s Center for Automotive Research, and IBM’s Advanced Analytics Center, supports the industry.

In Aerospace & Aviation, Ohio has six core competencies: Unmanned Aerial Systems, Propulsion, Materials Science, Flexible electronics, Energy Storage, Advanced Communications, and Sensors.

GSC: In which ways can JobsOhio help foreign companies that decide to invest in the state, and what does Ohio have to offer German manufacturers specifically?

JobsOhio: JobsOhio, the lead economic development organization for Ohio, is dedicated to providing foreign companies with the support they need to grow. JobsOhio quickly provides many services, including site selection support, detailed research, incentive programs, and industry introductions. JobsOhio may consider offering refundable tax credits, reimbursable workforce training grants, loan interest loans, or infrastructure grants. In addition to these business incentives, JobsOhio can assist the company by providing recommendations on legal advice through experienced law firms.

JobsOhio’s mission is designed to help businesses relocate, expand, and prosper in Ohio. At this event, we hope to connect with business leaders looking for opportunities to grow their companies in the U.S. and assist in making that endeavor a reality in Ohio. Germany is the third largest investor country in Ohio and the strong presence of German culture in the state reflects that long-term partnership. Diverse lifestyle offerings, from major cities to lush nature preserves, complement the hard-working, Midwestern U.S. work ethic that companies count on to continuously deliver the quality products your customers expect.

Speaker Introductions: Dr. Joachim Hasenmaier, Member of the Board of Managing Directors, Boehringer Ingelheim

2015-09-15T12:53:26Z

With 146 affiliates around the world in 103 different countries, Boehringer Ingelheim (BI) has become a truly global enterprise. Founded in 1885, the research-driven pharmaceutical company has remained committed to innovation over the years, proven by its continued investment in research and development (R&D) – for example, around 20% of net sales in 2014 were re-invested in R&D. We recently spoke with Dr. Joachim Hasenmaier, a Member of the Board of Managing Directors at BI, to learn more about the company’s operations in the United States – “the biggest pharmaceutical market”.

Dr. Hasenmaier will offer up business advice at the Strategic Investment Summit: USA on September 29, 2015 in Frankfurt am Main, Germany to other German executives based on his experience at BI. Register today to reserve your spot and learn from some of the leading German manufacturers about how they achieved success in the United States!

GSC: Boehringer Ingelheim Pharmaceuticals, Inc., the American subsidiary of BI, was founded in 1971 and later expanded to become the company’s North American R&D center – the only one outside of Europe. As you will appear as a panelist at the upcoming U.S.-focused event, Dr. Hasenmaier, can you please explain to us what it is about the U.S. market that makes it so conducive for the company’s R&D activities?

Dr. Joachim Hasenmaier: It is by far the biggest pharmaceutical market and the place to be to access emerging life science innovation. Our future global company success depends on a successful U.S. business both on the commercial as well as on the R&D side. The U.S. pharmaceutical industry and our subsidiary, BIPI, are undergoing significant change to adjust to a more challenging environment. We are confident that we will master these challenges and that our U.S. business will continue to be the key pillar of our global pharmaceutical business.

GSC: After nearly 45 years of experience in the U.S. market, can you offer up any lessons learned by Boehringer Ingelheim to German companies that are just getting started across the pond?

Dr. Joachim Hasenmaier: Build a strong local team through which you work. Don’t try micromanaging the U.S. from the German Headquarters!