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Germany Eyes A Technological Future
by William New
Germany is looking to information technology for a way out of its economic doldrums, according to Hilmar Kopper, the federal commissioner for foreign investment in Germany.
The highest growth in Germany is in the Internet and online services, he said Tuesday at the "Doing Business in Germany 2002" conference sponsored by the consulting firm EndeavorConnect.
Germany is "perhaps the most exciting market in Europe in the new economy sector," particularly information technology and communications, Kopper said. It is the European leader in business-to-business software and e-commerce, and a global leader in mobile phones. Germany has a 23 percent share of the total European IT and communications market, at well more than $100 billion in 2001.
Internet penetration is rising rapidly as well, Kopper said, with estimated growth of 20 percent from 2000, with 10 million users, to 2003, at which point half of Germany's 82 million people are expected to have access.
Robert Kimmitt, executive vice president for global and strategic policy at AOL Time Warner, called Germany a "very intriguing ... sometimes very difficult market." He said that for a business to be successful globally, it must be successful in Europe, and to be successful in Europe, it must be successful in Germany. Kimmitt served as U.S. ambassador to Germany from 1991-1993.
Kopper said Germany is achieving regulatory reform in little steps over time. With elections in the fall, Kopper took a shot at the current government for failing to enact more reforms and to increase employment.
James Sheaffer, senior vice president of communications, media and entertainment at the IT consulting firm American Management Systems, said in an interview that companies should take the "long-term view" toward Germany. He noted that regulations among European nations increasingly are being harmonized, giving less individual control to federal governments.
Sheaffer said that the "real force" for change in Germany comes from small companies and that firms might have to trust that changes are going to occur eventually. "Sometimes it's like a train barreling toward a canyon, hoping someone will build a bridge before they get there," he said.
Sheaffer also said that while Germany's labor force is highly skilled and hardworking, regulatory reforms could help businesses be more flexible in hiring and terminating employees. Workers there have more flexibility in their hours and in receiving high-priced overtime than in the United States.
At the conference, a U.S.-Germany virtual trade mission sponsored by the Software Information and Industry Association (SIIA) was announced. The June 11-28 online mission is a chance to meet business partners overseas. SIIA is planning physical trade missions to Japan in September, Europe in October and Mexico in November.
In other European news, the British income-tax authority last week announced that it has suspended the use of online tax forms until it investigates reported security problems, AP reported. As many as 70,000 people use the service per year, and bits of their information had become visible to users.
Bond To Meet With Russian Counterpart
Philip Bond, the Commerce Department's undersecretary for the Technology Administration, is scheduled to meet Thursday with Andre Fursenko, the Russian Federation's vice minister for industry, science and technology.
The meeting will build on the late-May summit in Moscow between presidents Bush and Vladimir Putin, and other bilateral meetings. Bush and Putin emphasized the need for more cooperation in science and technology.
Thursday's agenda includes a follow-up to a March seminar in Washington on venture-capital development in Russia. In addition, the officials will discuss how to collaborate to promote technology and innovation.
Also, at an IT roundtable two weeks ago in Moscow, Russia explained its plan to boost outsourcing and software development. Russia also has undertaken an ambitious program to boost online activity through its "e-Russia" plan.
Ukraine Talks The Talk On Intellectual Property
Still stinging from renewed sanctions against its exports to the United States for failure to improve its protection of intellectual property, Ukraine's leaders this week made a firm commitment to change.
After a meeting with Kamil Idris, who is the director general of the World Intellectual Property Organization, Ukrainian President Leonid Kuchma said the country is taking a series of measures, including improved domestic legislation and the active implementation of rigorous enforcement mechanisms, to combat counterfeiting and piracy.
Idris also received a commitment from Ukrainian Prime Minister Anatoliy Kinakh, who said better IP protection is in line with economic reform and the attraction of foreign investment. A cooperation agreement was signed by Idris and Ukrainian Vice Prime Minister Volodymyr Seminozhenko to provide assistance, including legal and technical advice, training programs, online IP services and support of small and medium-sized enterprises.
Hagel Links Asian Trade To Security
On a congressional trip to Asia last week, Sen. Chuck Hagel, R-Neb., told a meeting of security experts that security in region is tied to the U.S. trade relationship.
The conference "captures the essence of not just our defense issues in the Asia Pacific area. ... [I]t is very critical to our future diplomatic trade relationships, all the important linkages to our future, and we have been mindful of that in the U.S. Congress for some time," Hagel said in a press conference with Deputy Defense Secretary Paul Wolfowitz.
Sen. Jack Reed, D-R.I., co-chaired the trip. Sens. Fred Thompson, R-Tenn., and Reps. Jim Kolbe, R-Ariz., Ellen Tauscher, D-Calif., and Vic Snyder, D-Ark., also attended. Separately, Sen. Conrad Burns, R-Mont., scheduled a trip to Korea and Japan to promote free trade and evaluate progress of the region's high-tech industry.
APEC Trade Ministers Highlight IT Importance
In their meeting in Puerto Vallarta, Mexico last week, trade ministers from the nations of the Asia-Pacific Economic Cooperation (APEC) addressed e-commerce and trade policies for the new economy, with an eye toward fostering economic growth in the region.
Ministers at the May 29-30 meeting, including U.S. Trade Representative Robert Zoellick, backed the work of APEC senior officials on identifying key trade policies that support the new economy, according to the chair's statement released after the meeting. They also reiterated the October deadline for member countries to develop targets to discuss the policies.
Ministers also said countries should begin implementing an action plan on "trade facilitation," or easing movement of goods, services and people across borders. Canada, Hong Kong and Thailand will organize a workshop on customs, standards and e-commerce in Bangkok, Thailand, later this year.
The ministers also welcomed a cross-border paperless trading initiative led by Taiwan and co-sponsored by Australia, Hong Kong, Japan and Singapore. Also, China will hold an APEC e-commerce fair in Yantai, China, in April 2003. Furthermore, Taiwan reported to ministers on the progress on the second phase of a "digital divide" project to be implemented this year.
The officials also confirmed their commitment to the implementation of the so-called e-APEC strategy to increase the use of technology and the Internet.
In other Asian news, the Association of Southeast Asian Nations (ASEAN) and the U.S.-ASEAN Business Council last week unveiled an online database that will allow importers and exporters to check tariff rates for goods shipped within the 10-nation ASEAN Free Trade Area.
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