Comments on: Hidden Champions-Europe’s hidden contribution to the globalized world Hans Stoisser

By: Hans Stoisser

Hans Stoisser — Fri, 20 Sep 2013 12:40:22 +0000

I agree, hidden champions can be found principally in the German speaking world. But there are also signs that countries like the Czech Republic, Slovakia or Slovenia have a similar type of companies. So I suggest to speak of a Central-European economic model.

However, this Central-European model could become an European one in case

– you want to tackle seriously the economic problems in countries like France, Italy, Spain, etc., where the competitiveness of local industries is a big issue, and

– Europe wants to contribute to and be part of the dynamics of the ongoing globalization and booming emerging world.

I do see the problems with poor demography but wouldn’t take “excessive reliance on exports” as problem in itself. Rather it is the consequence of the poor dynamics at home which come from very basic structural problems and which is a different topic. In any case, excessive exports are also a result of the success stories of hidden champions, up to now have very much helped us out of our structural problems at home and are a general sign of success in a more and more globalized world.

By: S Pichler

S Pichler — Sat, 14 Sep 2013 15:00:54 +0000

The model of hidden champions is not a European wide phanomen, it is rather limited to certain regions/countries/or industries, which under specific economic circumstances have developed especially Germany. Where are the hidden champions in the other big countries such as France, Spain, Italy? – they are not apparent to the extend as in Germany. This may be too much for one country to carry.

A recent study undermines this: “A mix of poor demography, excessive reliance on exports, low productivity growth and too many low-paid jobs has led the OECD, a rich-country think-tank, to rank Germany joint last, with Luxembourg, in its growth projections for the next 50 years.” (Economist Sep 14th 2013).

If the hidden champions may be the answer for bringing Europe back to relevance depends by economical and business preconditions enabled through political ambitions to boost this development (not only in Germany). This is to be hoped for in times of political incapability for big reforms.

An additional threat is the high amount of industrial espionage and patent infringement for which the reluctance and cultural understanding is much lower in other parts of the world and what Europe’s answer will be.