10 years gacc west - AHK San Francisco

10 YEARS
2004 – 2014
GACC WEST
German American Chamber of Commerce
German Entrepreneurship
in the Bay Area & Beyond
10 YEARS GACC WEST
2004 – 2014
NEW YORK - WASHINGTON, D.C. - SAN FRANCISCO
www.paramount-group.com
212.237.3100
Our Trophy Investment Portfolio - Over 16.5 million SF
Owner/Operator - For over 40 years
Disciplined Class A Office Strategy for 18 years
Debt/Equity Investor
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Contents
CONTENTS
Words of Welcome
5
A Brief History of San Francisco
9
German Pioneers of the Past
10
The Making of a City: Banks, Blue Jeans and Brewing Beer
12
Landmarks and Legacies
18
10 Years GACC West: An Anchor for German-American Businesses
Our Services
20
23
GACC West 2004 – 2014
24
German Pioneers of the Present
28
IT & Technology
28
Biotech & Renewable Energies
33
Deutsche Gaumenfreuden in the Bay
36
German Business in the Bay Area – A Large and Growing Presence
38
Opportunities for German Companies in the Bay Area
42
Thank You
44
Sources
46
Register of Illustrations
47
10 YEARS GACC WEST
5
Beijing

Böblingen

Hong Kong

Los Angeles

Sacramento

San Francisco
Words of Welcome
Dear Members and Friends of the German
American Chambers of Commerce,
For more than ten years now the GACC West has served as a
facilitator for transatlantic trade on the U.S. West Coast and as an
important point of contact for German companies invested or
looking to invest in this region and for regional companies looking
to serve the German market and / or to invest there as well.
The Western States play a vital role for the U.S. economy, significantly contributing to the national GDP. California and the San
Francisco Bay Area in specific are nationwide leaders in sectors
like high tech, renewable energy and venture capital activities.
Therefore, the German American Chamber of Commerce, New
York’s decision to open a branch office in San Francisco a decade
ago was an important step in accessing untapped business
potential and enhancing transatlantic ties.
During the course of history, the western region of the United States
Caroll H. Neubauer
Chairman
Chairman & CEO
B. Braun Medical, Inc.
has been characterized by innovation and growth. From the first
gold rush settlers to the latest start up founders, German entrepreneurs have always held a big stake in the economic landscape of
this region as well. The ties between Germany and the U.S. West
Coast, particularly in the Bay Area, keep growing and the German
American Chamber of Commerce, New York and West have
created instrumental anchors for companies venturing in the United
States by providing in depth knowledge of the regions and their
markets. In my role as an industrial representative and Chairman
of the Board of the German American Chamber of Commerce,
New York and together with my 39 colleagues on our board from
diversified U.S. and German businesses, I am proud and enthusiastic
to support the German American Chambers of Commerce and its
members in facilitating and growing transatlantic business ties and
opportunities.
We at the GACC are at your service; and, if not yet, we hope to
serve you soon!
Best wishes,
Caroll H. Neubauer
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7
Words of Welcome
Greetings from the German Consulate
General in San Francisco
Since the 19th century people have strived to explore America’s
Wild West and still today “Go West” is a popular slogan since the
West Coast is not only an important and big market, it is also a
social and economic innovation hub.
So it should not come as a surprise that Germany and our most
important and enterprising economic players have joined the
bandwagon and that the Office for the Western United States of
the German American Chamber of Commerce (GACC West) is
now celebrating its 10th anniversary.
German Chambers of Commerce abroad have been a crucial
element of German foreign trade and especially of the German
“Mittelstand” (small and midsize companies). For over 100 years
this international network with 130 locations in 90 countries has
supported German companies venturing abroad.
Stefan Schlueter
German Consul General
San Francisco
Being part of this international network, the GACC West has
facilitated trade between Germany and the U.S. West Coast. The
two economies are inextricably linked, since the United States
is Germany’s first export market outside of Europe, as well as a
primary location for German investment. Especially the U.S. West
Coast with its most advanced high-tech industry offers great potential for German businesses and innovation. The German American
Chamber of Commerce is the first and most important point of
contact for German companies seeking to enter the U.S. market or
develop business relations in the United States. Smaller companies
in particular benefit from this longstanding, local network and the
excellent services the German Chambers of Commerce provide.
Considering the opportunities the Transatlantic Trade and Investment Partnership (TTIP) will offer, I am looking forward to a continued
and even expanding role the GACC West will play for our transatlantic ties and trade. On behalf of the German Consulate General,
I would like to congratulate the GACC West on its achievements
and look forward to a bright future for German-American trade.
Stefan Schlueter
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Words of Welcome
Edwin M. Lee
Mayor
San Francisco
Greetings from the Mayor of San Francisco
On behalf of the City and County of San Francisco, it is a pleasure
to welcome the Board of Directors of the German American
Chambers of Commerce to San Francisco. We are honored that
you are in our city and will be celebrating the tenth anniversary of
your office in San Francisco and the Bay Area. We recognize and
thank you for your leadership role in building strong commercial,
cultural and academic ties between the San Francisco Bay Area
and Germany.
The ties between San Francisco and Germany have a long history
and permeate every aspect of our city’s life. We thank the
Chamber for your support and dedication to ensuring that the
special ties we have with Germany are consistently enhanced
and expanded thus providing mutual benefit for citizens on both
sides of the Atlantic. We look forward to working closely with you
throughout 2014 and into the future.
With Warmest Regards,
Edwin M. Lee
10 YEARS GACC WEST
9
German map of the San Francisco Bay Area, 1893 – 1897
A Brief History of San Francisco
A BRIEF HISTORY OF SAN FRANCISCO
The Bay Area in Northern
California is a major economic
region in the U.S. and one of the
most unique innovation centers
in the world. It offers the perfect
breeding ground for trailblazing
ideas, strong-selling products
and services, and is home to
the largest and fastest growing
companies in North America.
One seventh of all U.S. patents are granted
and over 40 % of all global venture capital is
invested in the Bay Area. In true Silicon Valley
tradition, the area welcomes entrepreneurs
and unconventional thinkers from all over
the world. German pioneers in particular
have shaped the spirit and character of the
Bay Area - from banks to breweries, some of
California’s first big corporations were established by Germans and are still successfully
operating today. But this economic relationship is by no means one-sided. Germany also
benefits from the region’s fast-paced growth
and inventiveness, especially when it comes
to the IT and technology sectors.
Starting out as tent camps, then growing into
a gold mining town, and later a trading and
financial metropolis: Over time, San Francisco
became the global center for innovation.
Europeans had explored the area since the
1500s, but the first permanent European post
was established in the late 1700s when Spanish missionaries built a chapel and residency.
After Mexican independence in 1821 and
joining the United States, the city experienced
several waves of significant economic growth.
San Francisco’s population doubled every ten
days after gold was discovered and became
a military base during the Spanish-American
War (1898), slowly turning into the “Paris of the
Pacific.” Even when the devastating earthquake of 1906 hit the city, its residents rebuilt
it in time to celebrate the famous Pan-Pacific
Exhibition in 1915. Also during the stock market
crash in the 1920s, San Francisco exhibited
strength and resilience and its local banks
were hardly affected by the crisis. The era of
World War II brought about more economic
growth and renewal, triggering cultural and
social movements that branded the city as
one of the most open-minded and tolerant
places in the world. The 1967 “Summer of
Marked by extreme events and eclectic
Love” spurred not only cultural, but also
personalities, the city of San Francisco keeps
scientific inventiveness at local colleges and
on reinventing itself while retaining the unshak-
universities that still exert a great influence on
able entrepreneurial spirit that makes
the world economy today.
it the American paragon of opportunity for
prosperity and success.
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11
German Pioneers of the Past
GERMAN PIONEERS OF THE PAST
From their earliest days, German
pioneers have shaped the
economic, political and cultural
landscape of California, helping
to set the stage for one of the
most vivid, innovative and industrious areas in the world.
Looking back, there were several large immigration waves that motivated German settlers
for diverse reasons to journey to the United
States. After the conclusion of the Napoleonic
Wars followed by a great famine and the
failed revolution in 1848, many Germans
decided to try their luck in North America.
Soon, the number of German refugees grew
even higher due to Prussian antisocialist
laws, the prevalent religious oppression in
the “Vaterland” and fantastic stories about
finding gold in California. A large group was
formed by thousands of German Jews who
were escaping economic and social discrimi-
“Ein Auswanderer nach Californien”
A gold hunter on his way to California, ca. 1849
nation – before and during the Holocaust,
fleeing to another country sometimes was the
only way to secure survival.
12
the industriousness of German immigrants
– who were mostly craftsmen, tradesmen and
Around the nineteenth century, Germans – as
professionals – and their aptitude to build
the third-largest ethnic group after the British
houses and quickly accumulate wealth by
and Chinese – influenced California in a most
setting up successful businesses. Even the
remarkable way. The first breweries were
German diplomats sent over from abroad had
established by Germans and for the longest
less political motives but rather commercial
time German master brewers dominated Cali-
ones. Next to holding a monopoly on brewing
fornian beer culture. Many reports describe
beer and selling cigars, German immigrants
10 YEARS GACC WEST
German Pioneers of the Past
were also widely appreciated for their musical
social and cultural exchange were the Ger-
talent. Especially in San Francisco, singing
man “Turnvereine” which supported political
groups emerged which would perform in front
freedom and welcomed liberal thought. An
of large audiences. Germans also organized
important center of the cultural life in San
other leisure activities in groups called
Francisco established itself as “The German
“Vereine” – next to music and theater, they
Benevolent Society” which, together with the
concentrated on sports, benevolent activities
German-Jewish Eureka Society, founded the
and games like target shooting. The heart of
first German hospital in 1857.
Hospital of the German Benevolent Society, San Francisco, 1857
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13
German Pioneers of the Past
THE MAKING OF A CITY:
BANKS, BLUE JEANS AND BREWING BEER
During the Gold Rush in the
nineteenth century, extensive
reports by writers like Alexander
von Humboldt inspired
adventurous men and women
to undergo strenuous journeys in
search of wealth, political
freedom and new opportunities
in a fertile land.
In only one year, from 1848 to 1849, San Francisco’s population grew from 1,000 to 20,000
residents. Since the mining of gold was usually
accompanied by great hardship and meager
outcomes, German newcomers took fate into
their own hands and drew from their entre-
14
preneurial skills to develop enterprises and
Johann August Sutter, 1850
entire industries in the area. In 1839, Johann
as one of the first settlers to the peninsula,
August Sutter (born in Baden to Swiss-German
he established a trading center located in
parents) established the New Helvetia Colony
what is today’s Chinatown of San Francisco.
near Sacramento where gold was discovered
Shortly thereafter, the area surrounding his
in 1848. Sutter’s contributions to the local
store turned into the first “downtown” of the
agriculture, government and industry were
ever-growing village Yerba Buena – today’s
beyond compare and lead to the “American-
San Francisco. Notably, the first American
ization of California.” Today, he is considered
child born in this city happened to be Leese’s
the first pioneer of the Golden State.
daughter, Rosalie.
Fellow countrymen who were just as deter-
Many more examples of successful German
mined, opened the first brick companies
pioneers can be named: The Stockton
or salt works and built up a reputation as
Mining Company and the first bank in the
blacksmiths, shoemakers and fruit growers. An
San Joaquin Valley were founded by Karl
important figure to the Bay Area is the son of
M. Weber of Homburg (in Rhenish Bavaria).
German immigrants Jacob P. Leese. In 1836,
Moreover, the first savings bank can be
10 YEARS GACC WEST
German Pioneers of the Past
Stagecoaches stopped at the Levy Brothers store, also the town’s post office and the Wells Fargo express office, Pescadero, California, ca. 1890
credited to German immigrants who formed
Soon after arriving in Los Angeles in 1859, the
Bavarian-born Isaias W. Hellman established himself
as a prominent businessman, banker and community
figure. After great success in creating the Farmers
and Merchants Bank, Hellman oversaw the merging
businesses and banks to provide financial
services. Among the many banking entities
which are part of today’s Wells Fargo &
Company, nineteen financial institutions have
German roots, spreading across eleven states.
of Nevada Bank of San Francisco into Wells Fargo in
Another German tie to Wells Fargo can be
1905, and subsequently served as Wells Fargo’s ninth
found when looking closer at the life of
president until his death in 1920. Another Hellman
industrialist Claus Spreckels. Born in Lamstedt,
institution, The Union Trust Company of San Francisco,
Germany, in 1828, he established the Mer-
was the first bona fide trust institution on the West
cantile Trust Company of San Francisco that
Coast. At the end of 1923, it too merged with Wells
Fargo Bank. Hellman’s wife Esther was active in a
number of philanthropic organizations in Los Angeles
and San Francisco, including the German Ladies’
Benevolent Society. She was also a charter member
joined in forming the American Trust Company
in 1926 – now part of the Wells Fargo family. Spreckels played a major role in shaping
various industries of California. Next to found-
of the Kindergarten Association, established in 1884,
which advocated early childhood education following educational models developed in Germany.
10 YEARS GACC WEST
15
German Pioneers of the Past
ing the Independent Electric Light and Power
Company and being the point man in the
railroad industry, he is best remembered for his
“Spreckels Sugar Company”, which today is
located in Mendota, California.
A large number of other German entrepreneurs
actively participated in transforming California
and its Bay Area into one of America’s most
significant innovation hubs.
A native of Thuringia, Emanuel Russ, who
initially had started out on the East Coast,
became the largest real estate owner in
San Francisco and founded the famous Russ
Garden near today’s Mission Street in 1852 –
The Great Seal of the State of California
one of the first parks in the city and a popular
However, the most unprecedented success
playground for the German residents, espe-
story of a German immigrant in California fea-
cially during their “Mayfest Celebrations.”
tures the world-famous Levi Strauss.
Born in Hume, Germany, Joseph Brandenstein
enjoyed great popularity within the German
and Jewish communities in San Francisco.
Brandenstein moved to the City by the Bay
around 1850 and soon after established a
wholesale leaf tobacco and cigar business.
Twenty years later, the philanthropist became
president of the German Benevolent Society,
chose the site for the German hospital and
founded the German Altenheim in Oakland.
Skilled German goldsmith Albrecht Kuner (born
in Lindau, Bavaria, in 1810), who had come to
San Francisco in the hope for gold, literally left
a mark on the history of California. Thanks to his
outstanding craftsmanship, he was assigned
to design and engrave the California Seal
in 1849. Today, it is still in official use by the
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10 YEARS GACC WEST
Levi Strauss (1829 – 1902)
governor.
German Pioneers of the Past
Check from 1864: Merchant C.T.H. Palmer sending $1,000.00 for an order to Levi Strauss.
Levi Strauss, the inventor of the quintessential American garment – the blue jean – was born
in Buttenheim, Bavaria, on February 26, 1829. When news of the California Gold Rush made
its way east, Levi immigrated to San Francisco. He arrived in bustling, noisy San Francisco
in early March 1853, establishing a wholesale dry goods business under his own name and
also serving as the West Coast representative of the family’s New York firm. His new company imported dry goods – clothing, underwear, fabric – and sold them to the small stores
that were springing up all over California and the West. It was these stores that helped
outfit the miners of the Gold Rush and, eventually, the new families that began to populate
the western regions. In 1872, Levi received a letter from Jacob Davis, a tailor from Reno,
Nevada. Davis was one of Levi Strauss’ regular customers; he purchased bolts of cloth for
his own business. In his letter, he told the prosperous merchant about the interesting way he
made pants for his customers: He placed metal rivets at the points of strain – pocket corners
and at the base of the button fly. He did this in order to make the pants stronger for the
laboring men who were his customers. He wanted to patent this new idea but needed a
business partner to get the idea off the ground. So he suggested that the two men take out
the patent together (sharing the costs, as well). Levi was enthusiastic about the idea and
the patent was granted to both men on May 20, 1873. The blue jean was born.
10 YEARS GACC WEST
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German Pioneers of the Past
Sutro Baths, ca. 1896
The German immigrant Adolph Sutro accumu-
Sutro Heights, the Cliff House, Sutro Forest
lated great wealth in Northern California after
and the Sutro Baths which included six public
he had left his hometown Aachen in 1850. As
indoor saltwater and spring water pools.
the first German-American Jewish mayor of
San Francisco, he very successfully operated
in real estate and mining enterprises.
His passionate engagement in civic projects –
concert halls, museums, a restaurant, an
aquarium, a zoo and a skating rink – is still
reflected by the city’s landmarks today:
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For an entire year, the Bavarian immigrant
Jacob Gundlach had sailed across the
Atlantic to finally arrive in San Francisco where
he opened the Bavaria Brewery. Eager to
expand his business, he then created a wine
empire, today carrying the well-known name
Gundlach Bundschu.
German Pioneers of the Past
The rich history of Anchor Brewing can be traced all the way back to the California Gold
Rush, when German brewer Gottlieb Brekle arrived in San Francisco with his family.
Gottlieb bought an old beer-and-billiards saloon on Pacific Street near Russian Hill for $3,500,
transforming it into the brewery that twenty-five years later would be renamed Anchor.
In 1896, German brewer Ernst F. Baruth and his son-in-law, Otto Schinkel, Jr., bought the old
brewery on Pacific Street (the first of six Anchor locations around the city over the years)
and named it Anchor. No one knows why Baruth and Schinkel chose the name Anchor,
except, perhaps, for its indirect but powerful allusion to the booming Port of San Francisco.
Due to a series of very unfortunate events like the death of Baruth, the earthquake and
then later the death of Schinkel followed by the prohibition years, the brewery seemed to
be doomed. However, in 1933, the German brewer Joe Kraus, who had taken over the business, brought back the happy days. Over the years, ownership changed and the resilient
business went through multiple ups and downs. Today, Anchor Brewing remains one of the
most traditional breweries in America, a pioneer of the craft brewing movement. Though
its beers – especially Anchor Steam® beer – are known throughout the world, they are still
handmade in Anchor’s copper brewhouse in San Francisco.
Anchor Brewery Russian Hill, 1871
Ten years after he had planted his first vine
on his Rhinefarm in Sonoma, California, the
winegrower met Charles Bundschu, a bright
businessman from Mannheim, Germany.
Charles had worked in the produce industry
before joining the winery in 1868 and later
on the Gundlach family by marrying Jacob
Gundlach’s eldest daughter.
There are several examples of Germans using
their expertise as brewers and vintners to start
new business ventures in San Francisco. One
of them is Otto Schinkel, a German immigrant
who, in 1896, bought a brewery from his father
in-law to start the famous Anchor Brewing
Company.
10 YEARS GACC WEST
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German Pioneers of the Past
LANDMARKS AND LEGACIES
Taking a closer look at the
urban image of San Francisco,
a couple of German-American
architects left very visible marks
in their lifetime.
The engineer and son of a Bavarian painter,
Joseph Baermann Strauss took one of the lead
roles in the visualization and construction of
the world’s most famous object of Art Deco
design: The Golden Gate Bridge. Completed
in 1937 and linking San Francisco with Marin
County, it is probably one of the most remarkable and iconic traces that a GermanAmerican has ever left on Californian soil.
Timothy L. Pflueger – son of a German immigrant – designed the famous Castro Theatre
located in the Castro district of San Francisco.
The movie palace is characterized by a dis-
Joseph B. Strauss (1870-1938) standing on the Golden Gate Bridge
tinct pre-Art Deco ambience that the architect
freely mixed with other historical styles.
Another famous landmark, The Palace of Fine
Arts, was designed by German architect
Bernard Maybeck on the occasion of the 1915
Panama-Pacific International Exposition. This
highly treasured example of Beaux-Arts was
home to the science museum Exploratorium
until 2013, before it moved to Pier 15.
The museum was founded in 1969 by German
nuclear physicist, Dr. Frank Oppenheimer, who
aspired to create an interactive experience of
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10 YEARS GACC WEST
Palace of Fine Arts, 1978
science.
German Pioneers of the Past
Castro Theatre, 1948
During times of war, persecuted German artists
centuries. Especially after each of the two
not only found a new home but also a new
world wars, German neighborhoods, street
source of inspiration in San Francisco. Examples
names and family names were altered in
are photographer John Gutmann (1905–1998)
order to disassociate from the gruesome
and the photographer couple Hansel Mieth
happenings in Europe.
and Otto Nagel who fled to San Francisco at
With time passing, German-Americans have
the advent of World War II. Later on, Mieth
tried to reestablish their German connection
worked as a photojournalist for LIFE magazine.
by reanimating the German choir culture and
The traces of German heritage starting with
the Gold Rush had been fading over the
in particular by celebrating German art and
cuisine.
10 YEARS GACC WEST
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10 Years GACC West
10 YEARS GACC WEST:
AN ANCHOR FOR GERMAN-AMERICAN BUSINESSES
Similar to the first German
pioneers of the Gold Rush times,
who paved the way for all
following German settlers and
merchants with experience and
an established network, the
German American Chambers
of Commerce provide support
for German companies entering
the U.S. market today.
Even though the history of the GACC West is
fairly young, the network of German American
Chambers of Commerce dates back decades
and has been vital for the success of many
trade and came to be the first and most
important point of contact for German
companies seeking to enter the U.S. market.
With the ever-growing importance of the
Silicon Valley to the U.S. economy, it was decided to establish an office in San Francisco to
help promote transatlantic trade on the West
Coast and focus on innovative industries, such
as IT, biotech and renewable energies.
The decision to open up a new branch office
in San Francisco was a joint effort by several
institutions including the Deutscher Industrieund Handelskammertag (DIHK), the umbrella
organization of all German Chambers of
Commerce located in Germany and abroad,
companies in the Bay Area and the rest of the
United States.
The German American Chambers of
Commerce are part of a global network of
130 chambers in 90 countries, offering an
extensive membership network and providing
support for German small and mid-size companies trying to venture abroad.
The first German American Chamber of
Commerce was founded in 1947 in New York.
In the midst of post-war Germany, the goal of
the first German American Chamber of Commerce was to promote German products and
attract American investors.
Throughout the years, the GACC in New York
turned itself into one of the most innovative
providers of services for German-American
22
10 YEARS GACC WEST
San Francisco
GACC
West
10 Years GACC West
the then German Federal Ministry of Economics and Labor and the German American
Chamber of Commerce in New York.
In July 2004, the doors of the new GACC West
office opened at 201 California Street in San
Francisco. A special opening ceremony was
held in October 2004, celebrating the first
office worldwide to combine a chamber of
commerce and two additional federal trade
and investment agencies from Germany: bfai
and Invest in Germany. This marked the first
time in history that German and American
companies were able to obtain all information needed for venturing abroad from one
Manfred Dransfeld, Mark Chandler, Martin Wansleben, Rene Gurka, Reinhard Krause
(f.l.t.r.)
joint office. The opening ceremony was held
Chicago
Detroit
New York
Philadelphia
RGIT Washington
States covered by GACC West
Alaska
Nevada
Arizona
New Mexico
Hawaii
Oregon
Idaho
Utah
California
Washington
Montana
Wyoming
Atlanta
Houston
10 YEARS GACC WEST
23
10 Years GACC West
at City Hall in San Francisco where Mark
Over the years, the GACC West has con-
Chandler (Director, International Affairs of the
stantly extended its service portfolio, offering
City of San Francisco) handed over a Certifi-
market entry services such as market analysis,
cate of Honor to Manfred Dransfeld (former
business representations and business partner
CEO of the GACC in New York) and Rene
searches. Moreover, in 2013, the GACC West
Gurka (first Managing Director of the GACC
established an Advisory Circle, consisting of
in San Francisco). Martin Wansleben from the
industry experts who support the Chamber
DIHK and Reinhard Krause from the German
with detailed insights in their respective fields.
Ministry of Economics (BMWi) specially came
from Germany to partake in the opening of
the GACC office on the West Coast.
in the first year, the GACC West together with
its New York headquarters count over 800
In the following years, Rene Gurka and his
members today. Not only did the number
team of only 2 employees had the mission to
of members grow but also the number of
build the Chamber and foster transatlantic ties
services, inquiries and industry specific events.
on the West Coast. In the first years, the GACC
In 2013 alone, the Chamber organized and
West welcomed mainly business delegations
supported 21 events, as many as in the first
and managed to establish a successful event
three years of its existence. In the last 10 years,
format, the Germany California Solar Day – a
the GACC West has established a network
one day conference and business delegation.
of 15,000 contacts in the German-American
With this federally-funded project, the Cham-
business community. With its three signature
ber gave the California solar industry a boost
events (German American Business Outlook
by bringing over German solar companies of
on the West Coast, White Asparagus Gala Din-
which some could later successfully establish
ner and GACC Oktoberfest), the GACC West
a branch in California. Since 2008, the GACC
also keeps on fostering cultural exchange
West has also supported Intersolar North
between Germany and America. On the
America, the most-attended solar trade show
whole, the GACC West can look into a bright
in North America.
future with a growing office, reflecting the
Always on the lookout for innovative industries
which are attractive to German companies,
the GACC West has not only supported the
solar industry but also other cleantech sectors,
as well as the ICT and design industry.
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Starting out with only a handful of members
10 YEARS GACC WEST
growth of transatlantic trade and relations.
10 Years GACC West
OUR SERVICES
One of the primary roles of the
GACC West is to advise German
companies in their market entry
into the Western region of the
United States.
of regional focus. Key industries on which we
focus include: renewable energies, energy
efficiency, smart grid, energy storage, ICT and
design.
The GACCs in San Francisco and New York
have a comprehensive membership network
Our DEinternational Consulting department
of German and American companies
provides a wide range of services designed
involved in transatlantic business. With over
to assist with your U.S. market entry activities.
800 members representing diverse industries
These services can be custom tailored to
and sizes in more than 24 states on the East
meet your individual requirements.
and West Coast, we support our members in
Our team has extensive market expertise and
building important business relationships. Due
thorough knowledge of the U.S. market, as we
to the variety of member companies, the
communicate directly with decision makers
GACC member network offers contacts and
at leading American companies. Our services
business opportunities on various levels.
cover the entire U.S. market with the possibility
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10 YEARS GACC WEST
25
GACC WEST 2004 – 2014
2006
January
New Year’s Dinner with Senator
Dick Ackerman
2005
May
April
SPD Parliamentary Group
Delegation
First Wine and Solar Business
Delegation of Rheinland-Pfalz
2004
July
Opening of GACC West Office
2007
headed by Managing Director
Rene Gurka
November
October
First Germany California Solar Day
January
Prime Minister Althaus Delegation
Delegation and Conference
Opening Ceremony at City Hall
San Francisco
July
New Managing Director
Johannes Buchholz
26
10 YEARS GACC WEST
2008
March
First Energy Efficiency Symposium
2010
September
July
First Intersolar North America,
New Managing Director
Rene van den Hoevel
2011
Trade Show & Solar Symposium
July
German Night at Intersolar
December
Making E-Mobility Work, Conference
2009
March
November
First German American Energy
First J-1 visa roundtable
Conference, Berlin
10 YEARS GACC WEST
27
2013
May
Venture Workshop with Federal
Minister of Economics and
Technology Philipp Rösler, Palo Alto
2012
February
dasHAUS,
White Asparagus Gala Dinner and
introduction of GACC West
Advisory Circle
German Energy Efficiency Pavilion
August
“German Design - The Future of Mo-
May
bility” Conference, Los Angeles
First Annual White Asparagus
Gala Dinner
October
“german design - shaping the future
today” Conference
October
First GACC Oktoberfest
Solar Night at Greens Restaurant
28
10 YEARS GACC WEST
December
GACC West supporting the German
school (GISSV) at their Christmas
Market, Mountain View
September
GACC Oktoberfest
2014
January
First German American Business
Outlook on the West Coast
Oktober
10 Years GACC West
German Innovation Symposium
May
White Asparagus Gala Dinner
10 YEARS GACC WEST
29
German Pioneers of the Present
GERMAN PIONEERS OF THE PRESENT
IT & TECHNOLOGY
From Johann August Sutter to
Adolph Sutro – with a thirst for
adventure and the belief in fantasies, German pioneers of the
past came to San Francisco in
search of gold and established
the economic and cultural
foundation of the Bay Area.
In San Francisco, business turned
into the new gold mining, and
entrepreneurs like Levi Strauss
created whole empires almost
overnight. The fearless entrepreneurial spirit from back then and
the city’s great location by one
of the most important harbors
in the U.S., have shaped its
economy today which keeps attracting the most intelligent and
innovative minds from all over
the world, including Germany.
Other key industries are retail and wholesale
trade, agribusiness and food processing. The
technology boom was initiated by the hardware giant Hewlett Packard who launched
its business in a garage in 1939 by producing
precise electronic test equipment. As the
symbolic founder of Silicon Valley, HP laid
the groundwork for companies such as the
software company Sun Microsystems which
was co-founded by Bavarian Andreas “Andy“
Bechtolsheim in 1982. Before becoming the
company’s chief hardware designer, Andy
(born near Ammersee, Germany in 1955) had
worked for semiconductor chip maker Intel
(founded in Mountain View, CA in 1968) and
also designed a powerful computer called
“workstation” during his time as a Ph.D. student
at Stanford University. Later, he became
one of the first major investors of Google Inc.
(founded in Menlo Park, CA in 1998). In 2010,
Sun Microsystems merged with the hardware
and enterprise software company Oracle
USA, Inc. to become Oracle America, Inc.
Since it has always been the West Coast’s
financial center, the Bay Area kept growing in
the early 1900s and went through an economic explosion in the 1940s.
San Francisco is the hotbed of the technologybased economy and therefore ringleader in
Starting out with a team of 11 employees, LinkedIn
was launched with minimal features on May 3, 2003
just by inviting a few hundred of contacts. A few
thousand members joined after the first week without
computers and electronics, telecommunica-
doing any kind of PR or marketing. For the initial year,
tions, energy, bioscience and health.
the number of members doubled every six weeks. A
year after launch and many additional features, the
team celebrated its 500 thousandth member.
30
10 YEARS GACC WEST
German Pioneers of the Present
At age 25, Hartmut Esslinger founded Frog Design in Germany and brought the company to
the Bay Area in 1982. Together with his partner
and wife Patricia Roller he expanded the
company into the world’s most prominent and
successful strategic design agency. In 2005,
Flextronics acquired the majority of Frog and
since 2006 Frog is a business unit of Aricent,
owned by prestigious private equity pioneer
KKR. Today, frog design employs about 600
strategists, designers and technology specialHartmut Esslinger
ists in nine studios around the world. During
the last 45 years, Hartmut worked with some of
the most prestigious global companies and in
some cases such as Sony, Apple, Louis Vuitton,
SAP, Microsoft and Lufthansa he helped them
to convert their technological competences
and entrepreneurial desire into global brands.
After leaving Frog, he now advises several
SAP Bay Area was established in 1996 and has grown
to over 4,000 employees across multiple Bay Area locations including Dublin, Palo Alto, San Francisco, South
San Francisco and Sunnyvale. With innovation at its
core, the SAP Bay Area’s mission is to inspire innovation
for customers, the community and its employees.
Also home to breakthrough innovations such as SAP
HANA, SAP Bay Area’s core technology focus is on
CEOs of global companies on humanistic
design and innovation strategies. In the past,
the GACC West has worked closely with
Hartmut. In 2012, he was one of the keynote
speakers at the GACC’s design conference
“german design: shaping the future today” in
San Francisco.
database, mobility, cloud, user experience design, and
With 272,312 talented professionals employed
sustainability for the enrichment of customers’ busi-
by over 6,706 IT companies, the IT and software
nesses around the world. In 2013, SAP Bay Area hosted
sector represents the fastest-growing industry
over 1,300 meetings in its Executive Briefing Center, was
ranked the most sustainable company in the software
and services industry for the seventh consecutive year,
has been recognized as a Top Workplace for four years
in a row, and is one of the most diverse SAP locations
with 40+ nationalities and languages spoken.
of the Bay Area. Local research universities
and public research institutions are training
more Ph.D. engineers and scientists than any
other region in the U.S. In 2013 alone, venture
capital firms invested over $950 million in the
IT sector. With more and more tech companies settling in the Bay Area, there has been a
10 YEARS GACC WEST
31
German Pioneers of the Present
The success of Munich-based software producer InLoox GmbH shows how the GACC West
can support German companies with an effective U.S. market expansion. Founded in 1999,
InLoox quickly established its brand within the German-speaking market. Its professional
project management solution, which simplifies the daily project routine, soon attracted
over 30,000 customers in 40 countries. The company decided to expand into the U.S.
market in 2011. “The North American market offers a tremendous potential, especially for IT
companies. We knew that we had to be present on-site to support our existing customers
adequately and expand our client base,” says Dr. Andreas Tremel, CEO and Co-Founder.
To help execute this market entry, InLoox sought the support of the GACC West. By setting
up a business representation at the GACC West office, InLoox succeeded in overcoming
obstacles such as time difference and cultural barriers, as well as achieving significant cost
savings. The proximity of GACC’s San Francisco office to the Silicon Valley was an important
factor in Inloox’s decision. “The business representation of the GACC West was the right first
step and also necessary to enhance our sales network and establish our own location,”
stated Dr. Andreas Tremel. In September 2013, InLoox opened its own office in San Francisco with a sales team to handle relations with North American customers, as well as customers in Latin America, Australia and Oceana.
high influx of educated workers who are not
Another world-famous startup with German
only attracted by appealing job opportunities
roots is PayPal. Frankfurt am Main-born Peter
but also by the region’s vibrant culture and
Thiel, launched the e-commerce business
highly praised quality of life. In 2003, a group
together with his three colleagues in 1999.
of savvy entrepreneurs founded the professional networking platform LinkedIn. Among
the founders was German architect of social
innovation, Konstantin Guericke, who then
became the LinkedIn Vice President of Sales &
Marketing. In 1997, he also established his successful venture capital firm Earlybird Venture
Capital. Due to his wealth of knowledge in
growing early-stage companies, he mentors
engineers at Stanford University, his alma
mater, and serves on the boards of several
startups.
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10 YEARS GACC WEST
And with the rise of the IT sector came the rise
of social & digital media: From YouTube – with
German-born co-founder Jawed Karim – to
Twitter and Pixar, the Bay Area has been a
magnet for creative thinkers from art and
entertainment fields also offering non-profit
media producers a diverse playground. One
of the most interesting and respected personalities in the software technology industry is
the German 3D-legend Rolf Herken who has
recently founded the Berlin and San Francisco
based incubator MINE.
German Pioneers of the Present
MINE, with its investment arm Reality Ventures, provides a unique, efficient and
sustainable funding model for start-ups that benefits both innovators and investors.
With main research and development operations in Berlin and San Francisco, MINE
provides the corporate and financial framework so that scientists and engineers are
freed up to put their talent to work on innovative technologies without distraction. The targeted innovation at MINE aims to create startup companies with relevant products that are biased toward high growth
and a lower investment risk. In turn, Reality Ventures offers strategic and financial investors cost-effective,
lower risk technology innovation with higher ROI than traditional venture funding.
MINE engineering projects are dedicated to creating technologies that either constitute a global innovation breakthrough and/or potentially matter to a billion or more people. Key areas of interest include
scalable platform solutions for cloud computing and related cloud-based consumer and professional
applications. Innovation engineering projects may also be focused on application-specific processor logic
design, artificial intelligence, neural computing, robotics, energy, life sciences and medical technologies.
MINE and Reality Ventures were founded by Rolf Herken together with Dassault Systèmes as a founding
partner and incorporated in Berlin in 2013. Rolf is one of the most respected and connected visionaries
in the software technology industry, specifically in the computer graphics software component and
Cloud platform technology fields. In 1986, Rolf founded the company mental images GmbH in Berlin and
turned it into the recognized international leader in providing
component and platform software for the creation, manipulation and visualization of 3D content. In 1999, he founded the
company incremental images Inc. in San Francisco to develop
the world’s first cloud-based, scalable software platform for
interactive 3D content accessible from any device. After selling
the subsequently merged companies, he left mental images in
2011 to create MINE and Reality Ventures.
Dassault Systèmes, the 3DEXPERIENCE Company, is Reality
Ventures’ founding partner and first strategic investor. Dassault
Systèmes, listed by Forbes as one of the most innovative software companies in the world, provides customers worldwide
with collaborative industry solution experiences that foster
social innovation and expand possibilities for the virtual world
to improve the real world.
The leadership team of MINE includes well respected entrepreneurs, technologists and business professionals. In addition to
Rolf Herken, Founder, CEO & CTO of MINE, the company’s core
team of seasoned executives and engineers also includes Larry
Tesler, Chief Experience Officer of MINE, Peter Mehlstaeubler,
COO and Managing Director of MINE, Berlin, and Gary Yost, VP
Engineering Management of MINE, San Francisco.
Rolf Herken
10 YEARS GACC WEST
33
German Pioneers of the Present
The leading global mobile RTB ad exchange
(SMX) Smaato, founded in Hamburg
Carl Zeiss Meditec, Inc. is the U.S. subsidiary of the
ZEISS Medical Technology Business Unit, which aims
to contribute to progress in medical technology and
help healthcare professionals improve their patients’
quality of life. Zeiss provides cutting-edge innovations
and clinically-relevant software solutions that support
healthcare professionals in setting new standards of
care in ophthalmology/optometry; neuro, ENT, spine,
dental and gynecologic surgery; and intraoperative
radiotherapy. Carl Zeiss Meditec, Inc. was originally
founded in the early 1970’s as Humphrey Instruments.
The company was also originally located in San Leandro, California. Carl Zeiss AG acquired Humphrey
Instruments in 1991 – and became ZEISS Humphrey.
In 1998 the company relocated to Dublin, California.
In 2002, ZEISS Humphrey became Carl Zeiss Meditec,
Inc., and the first public entity of the Carl Zeiss Group
(traded only on the German stock exchange).
(2005), has its global headquarters in San
Francisco. As an industry pioneer and leader, Smaato operates the leading mobile
RTB ad exchange and Supply Side Platform
across 78,000+ mobile app developers
and mobile publishers. On the demand
side, Smaato globally connects 100+ ad
networks and 170+ DSPs.
Smaato is an initial member of the
OpenRTB Mobile subcommittee and an
active member of the Mobile Marketing
Association, Mobile Entertainment Forum
(MEF), Singapore Infocomm Industry (SITF),
Singapore IT Federation and the German
Digital Media Association BVDW. The company received a Top 100 Private Company
Award by AlwaysOn Media (2013, 2012,
2011, 2009 & 2007), is one of the AlwaysOn
Global 250 winners in the Mobile category
(2013, 2012 & 2011) and was named a
“company to watch in 2010″ by the financial analyst company GP Bullhound.
In California, The Bosch Group has more than 500 associates in 7 cities, including Irvine,
which is the regional headquarters for BSH Home Appliances; Palo Alto, which is the regional
headquarters for Bosch Research and Technology Center and the Healthcare Telemedicine
division; Anaheim; Fountain Valley; Ontario; Pleasanton; and Santa Barbara.
In 1999, Bosch established its Research and Technology Center in North America (RTC), part of
Bosch’s global Corporate Research organization. Bosch RTC focuses on various topics including Autonomous Technologies including Robotics and Automated Driving, Batteries, Data
Mining, Energy conversion and storage technologies, Integrated Circuit design, micro-electromechanical (MEMS) technology, User Interaction and Wireless Technologies. Its engineers
connect Bosch research with cutting-edge technology and the innovative environment in the
U.S., working in close collaboration with leading U.S. universities and industry partners.
34
10 YEARS GACC WEST
German Pioneers of the Present
BIOTECH & RENEWABLE ENERGIES
During a Gold Rush of a different
kind it was not only the dot-com
businesses that appeared in the
Bay Area but also other clusters
like cleantech and life sciences
took on a distinct form.
more and more biotech companies started
With the Bay Area’s reputable educational
personnel from all over the world and provid-
institutions like Stanford, UC San Francisco and
ing over 90,000 direct and 160,000 indirect
UC Berkeley and the rise in gene research,
workplaces.
settling in the region over the years – 1,377
businesses up to date – forming world-leading
public and private life sciences and biotech
research and innovation centers. Every year,
around 30 new bioscience companies are
established in the region, attracting talented
biotechnology firms boomed in the 1970s:
The contemporary biotech sector was born
and still resides in the Bay Area. Due to global
players in the academic research arena,
The Cutter Laboratory in Berkeley, ca. 1908
10 YEARS GACC WEST
35
German Pioneers of the Present
In 1903, a small family business known as Cutter Analytical Laboratory, which was founded
in 1897 in Fresno, California, moved to a 3-acre lot on Berkeley’s west side. Cutter started
with a black leg vaccine for cattle and soon developed a range of human medicines,
including snake bite kits, small pox vaccine following the San Francisco earthquake in
1906, and an active tetanus vaccine based on horse serum. During World War II, Cutter
became a major penicillin supplier for American troops stationed abroad.
As Cutter expanded into the treatment of hemophilia (with Konyne-Hemophilia B in 1969,
and Koate-Hemophilia A in 1974), the German conglomerate Bayer AG bought the
company in 1974. In the mid-1980s, the company began to focus on the emerging field
of biotechnology. The Berkeley team achieved an important breakthrough producing a
recombinant human coagulation Factor VIII using baby hamster kidney cells. This product,
called Kogenate® was introduced into the market for the treatment of hemophilia A in
1993, and today, Kogenate® FS has grown to be one of Bayer’s top-selling products.
With the opening of the research-focused U.S. Innovation Center in the Mission Bay area
of San Francisco, Bayer has further underlined its long-term commitment to the Bay Area,
recognizing the opportunity for collaboration with world-class academic institutions,
hospitals, research labs and more than 900 life sciences companies in the close vicinity.
The number of business opportunities for clean
technology companies in San Francisco and
the Silicon Valley is also unprecedented. The
city, which offers big tax exemptions for clean
technology businesses, is currently home
to 225 cleantech enterprises. The overall
environmentally-conscious attitude and great
enthusiasm in regards to green innovation
attract not only the tech-savvy but also the
environmentally-friendly minds from all over
the world and the largest number of cleantech investors in the U.S.
Cutter Laboratories selling animal and human vaccine, ca. 1908
36
10 YEARS GACC WEST
German Pioneers of the Present
With government incentives for renewable
energy at both the federal and state level, the
installation of solar energy capacity has been
In 1980, Siemens founded its biggest single facility at
the West Coast in Sacramento, California. With 850
employees to date, it has been at the forefront of
sustainable technology and green manufacturing.
spurred in recent years. German companies
Siemens’ rail manufacturing plant is a leader in pro-
have found attractive markets in California to
viding rolling stock and related services. Its portfolio
expand their businesses and share their knowl-
covers the full range of vehicles – from light rail
edge. Since the existence of the GACC West,
vehicles to locomotives and street cars, all built right
solar energy has been one of its main focuses:
here in the United States at a manufacturing plant
The Chamber has successfully supported
powered almost entirely by a 2 MW solar installation.
trade shows like “Intersolar Nort America” and
supported companies like Mounting Systems,
Q-Cells, KACO, SMA and SolarWorld.
In recent years other sectors have also come
into focus, such as energy storage, and smart
grid. The growing need for energy security,
the steady growth of renewable energy, as
well as state regulations and subsidies have
created promising business opportunities for
German companies interested in entering
the Western U.S. market – an endeavor that
the GACC West facilitates with its expert
knowledge.
Mounting Systems Inc. - Installation Training SIGMA II, 2012
Mounting Systems, an ISO-certified company, is one of the largest manufacturers of racking
systems for photovoltaic and solar-thermal power plants worldwide. Founded in 1993, Mounting
Systems GmbH moved to Rangsdorf near Berlin in 2004. In 2010, the company opened a
sales office in Lyon, France. In early 2011, Mounting Systems, Inc. a full-capability subsidiary of
Mounting Systems GmbH began operations in West Sacramento, California with approximately
56,000 sq.ft. of production and warehouse space. As a U.S. manufacturer, MSI is now able to
offer customized solutions with market-leading technologies, professional project support and
flexible production capabilities in aluminum processing to their American customers. Mounting
Systems also maintains contract manufacturing facilities in Toronto, Canada.
10 YEARS GACC WEST
37
German Pioneers of the Present
DEUTSCHE GAUMENFREUDEN IN THE BAY
Not only the German business
world but also the German food
and drinking culture is flourishing
in the Bay Area.
Restaurants like “Suppenküche”, “Schroeder’s”,
“Walzwerk”, “Die Speisekammer”, “Schmidts”
or “Rosamunde” are either German-owned
or celebrate German cuisine. For some time
now, Deutsche Gaumenfreuden like German
bread, sausages, beer and also Oktoberfests –
including the GACC Oktoberfest – have been
attracting the “in-crowd” of the Bay Area.
Weekly markets and popular “Off the Grid”
events usually feature at least one authentic
German food truck. And along with German
food becoming more and more popular,
German language schools have also experienced a high influx of students over the past
Germans celebrating their soccer World Cup triumph at the Biergarten in Hayes Valley, 2014
years.
Since the seventeenth century, GermanAmericans have been the largest ethnic
group in America and their strong impact
not only on the American finance industry,
Suppenküche owner Fabrizio Wiest came to San Francisco in 1993 with the concept of opening a traditional
German Wirtshaus to tell Americans about German beer,
as well as convey the warmth of the atmosphere from
agriculture and labor but also on philosophy,
his home. Fabrizio was born in Heidelberg and raised in
music, literature and art are indisputable and
Mengkofen, a region approximately 100 miles east of
unparalleled.
Munich near the Bavarian Forest. His grandfather had a
small country brewery which delivered beer to several
dozen Wirtshäuser in the small region of Mengkofen
until 1970. Fabrizio has fond memories of being at the
old beer spots with the local people, eating, drinking,
talking, and being raised in an environment with farm
people. Together with their sister bar and restaurant
“Biergarten”, “Suppenküche” has made a name for itself
within the San Francisco gastronomy.
38
10 YEARS GACC WEST
German Pioneers of the Present
The Guckenheimer Sour Kraut Band plays on the deck of the ferryboat “San Leandro”, 1958
German traditional dancers at GACC Oktoberfest, 2013
In our generation, the role assumed by German culture in America is well-nigh impossible
to analyze, so much has it become part of the very woof and fabric of that life.
Edwin Zeydel, translator of German classic literature, (1893-1973)
10 YEARS GACC WEST
39
German Business in the Bay Area
GERMAN BUSINESS IN THE BAY AREA –
A LARGE AND GROWING PRESENCE
One of the key aspects of the
San Francisco Bay Area’s economy is its cosmopolitan nature.
Since the Gold Rush era of the 1850s, enterprising people from around the world have
come here seeking fortune and opportunity.
That is no less true today, as the region is
home to large communities from Asia, Europe
and other parts of the globe, numbering in
the tens and hundreds of thousands.
The draw today is not gold, in the literal
sense, but figuratively speaking the attraction
hasn’t changed. The new gold is technology,
spurred by the drivers of innovation and
entrepreneurship, and a market that is large
and open to new ideas and products. Some
key facts reflect this:
The region accounts for 15 percent of all
U.S. patent registrations, up from 5 percent
in 1990, and leads all other regions of the
country (notably New York, Los Angeles,
Seattle, Austin, San Diego, Minneapolis
and Boston) by a wide margin, in both the
total number of patents generated as well
as in patents generated per inhabitant.
The region created venture capital industry, and remains its global center. Currently, the concentration of venture capital in
the Bay Area relative to the United States
as a whole is growing: In 2013, 41.5 percent
of venture investment (31.4 percent of
40
10 YEARS GACC WEST
deals) in the United States took place in
the region. While quarterly numbers vary,
in the second quarter of 2014 the number
was 55 percent (33.2 percent of deals).
The region’s research complex is the largest in the United States. Stanford, Berkeley,
UC San Francisco, UC Davis, five federal
laboratories, and a host of independent
and corporate laboratories provide a
dense foundation for research that attracts
talented faculty and students as well as
federal and corporate investment.
Companies in the region tend to be firstadopters, providing a rich environment for
partnerships and opportunities for younger
companies to test their products and in
some cases to be acquired.
Europe is a key global partner for the region,
participating in its economy across a range
of industries. Its historical presence dates
back to the region’s Gold Rush origins and to
companies founded by German immigrants
that are still in operation and that in many
cases remain industry leaders: Levi Strauss,
Anchor Brewing, and wineries such as Charles
Krug, Beringer, and Gundlach Bundschu.
Since then, generations of leading German
companies in a range of industries have
established a footprint in the region, including
Bayer, Siemens, SAP Labs, and Boehringer
Ingelheim. Like other major companies from
around the world, they are active participants
German Business in the Bay Area
and contributors to the region’s technology
SAP and Bosch also operate their own corpo-
and innovation economy, through R&D and
rate venture funds.
manufacturing, employing thousands of Bay
Area residents. This presence of large companies includes technology outposts that look for
partnerships with large Bay Area companies
and also scan for startup and early-stage
companies with innovative business models.
Examples include Deutsche Telekom and
Siemens’ Technology-to-Business Center in
Berkeley. Automotive companies such as
Volkswagen, Mercedes and BMW have established a research presence to be leaders
in how developments in information technology will influence the design of the cars of the
future. German companies such as Siemens,
This presence of larger companies reflects
an important reality that is often overlooked.
While Europe is the region’s third-largest trading partner, accounting for 9.2 percent of the
region’s exports, following Asia (42 percent)
and NAFTA (14 percent), it is by a considerable margin the Bay Area’s largest investment
partner. European companies have more than
1,000 affiliates in the region, and account for
one third of all foreign firms in the Bay Area.
Germany has 150 affiliates, making it the
second-largest European investor, and is
home to the second-largest concentration of
From identifying new technologies and trends to incorporating them into stunning products and
ultimately into the latest car series, the vibrant and innovative BMW Group Technology Office can be
found in Mountain View, in the heart of the Silicon Valley. Founded in 1998, the BMW Group Technology Office currently employs 30 automotive enthusiasts whose background and experience mirror the
vehicle itself, drawing from diverse expertise in the electronics, automotive and software industries.
Here, they dream up and design products that are changing the ways we drive and experience cars.
Which better environment to thrive in than the Silicon Valley with its world leading companies, outstanding universities, innovative start-ups and venture capital firms? Short ways of communication,
intensive networking and continuous exchange of information are characteristics for this highly dynamic
and vibrant environment where innovations along the trends of tomorrow are being developed
making driving safer and just more fun.
10 YEARS GACC WEST
41
German Business in the Bay Area
Bay Area company affiliates in Europe (450).
1999 represent 39 percent of the total 33,133
In both directions, this activity is concentrated
patents registered with all foreign co-inventors
in professional, scientific and technical ser-
over the same period. Since 2000, the number
vices, manufacturing and information.
of European co-patents has grown nearly 300
As the scale of this activity suggests, innovation is a prime connector. This can be seen in
patterns of co-patenting: The co-registration
of patents (co-invention) between Bay Area
residents and overseas collaborators. By this
measure again, Europe is the most significant
partner. The 12,789 patents registered with
a Bay Area and European co-inventor since
EUROPEAN BUSINESS PRESENCE
percent, from two to four percent of all Bay
Area patents registered.
Here again, Germany holds the number two
position among European partners, with
sharply rising numbers (particularly since 1999)
and nearly 3,000 registered patents. Not
surprisingly, the major areas of activity are in
computers, data processing and information
European Affiliates in the Bay Area and Bay Area Affiliates in Europe
42
10 YEARS GACC WEST
German Business in the Bay Area
Blending German engineering with American ingenuity, the Volkswagen Group Electronics
Research Laboratory (ERL) accelerates automotive innovation in Silicon Valley.
The ERL was established in August 1988 with three employees. Today, the lab is the
Volkswagen Group’s largest advanced technology research and development facility of its
kind outside of Germany, employing more than 140 engineers, social scientists, researchers,
and product designers. Supporting Volkswagen Group brands such as Audi, VW, Bentley,
Bugatti, Ducati, and Lamborghini, the ERL’s prime Silicon Valley location enables the team
to successfully bridge the gap between the Group’s comprehensive engineering resources
and Silicon Valley imagination.
The design and technical solutions the company develops for its vehicles assist drivers in
making safe, convenient, and intelligent interactions with in-vehicle information.
storage; communications; chemical com-
parallels the support network provided by
pounds and materials; health; and measuring,
more broadly based accelerators that also
testing, and precision equipment.
support large numbers of early-stage compa-
Finally, it is important to call out the role that
nies from Germany and other countries.
the region plays as a magnet for startup
German business in the region is also actively
and early-stage companies from around the
supported by a dynamic network of business
world. Most often they are attracted by the
and government organizations. They provide
opportunity to source venture capital, to tap
an important infrastructure for what has been
into the region’s diverse talent pool, and to
a historic, deep and important business rela-
scale up globally. Several hundred European
tionship for the last 150 years.
companies of this kind may be present in the
region at any time, and those that succeed
tend to become bi-national, with employees
and a footprint in both the Bay Area and
By Sean Randolph, Bay Area Council Economic
Institute, San Francisco
their home country. This is also the case with
Germany, where the German Accelerator
provides a platform for emerging German
companies, connecting them to potential
partners in the region. This dedicated support
10 YEARS GACC WEST
43
Opportunities for German Companies
OPPORTUNITIES FOR GERMAN COMPANIES
IN THE BAY AREA
California, and specifically the
San Francisco Bay Area, have
a lot of unique opportunities
to offer to German companies.
In the brochure “Business Opportunities in
the Western United States” Germany Trade
& Invest, together with the GACC West has
analyzed several industries that are currently
especially attractive on the West Coast
for trade or for market entry. In California,
information and communications technology
(ICT), renewable energy, energy storage,
alternative fuel vehicles, and water management and purification are among them.
With respect to international trade,
California’s imports from Germany amounted
to $13.0 billion in 2013; California’s exports
to Germany amounted to $5.6 billion. In the
country rankings, Germany was California’s
sixth largest supplier and eighth largest buyer.
more by tapping the region’s strong engineering potential.
When it comes to commercializing an invention by launching a startup, the Bay Area is
the place to be. The rate of business creation
at the individual owner level is measured by
the Kauffman Index of Entrepreneurial Activity
(KIEA). According to this indicator, in 2013, an
average of 280 out of 100,000 adults in the
U.S. created new businesses each month. By
contrast, in the Metropolitan Statistical Area
San Francisco–Oakland–Fremont the ratio was
570 out of 100,000 adults.
The vibrant startup activity in the Bay Area
is sustained by a well-developed network of
venture capital firms and related organizations. Total venture capital investments in
the U.S. in 2013 amounted to $29.5 billion,
according to the National Venture Capital
Association (NVCA). Of these investments,
In addition to trade opportunities, the Bay
$12.2 billion, or 41.4%, went to companies in
Area has several outstanding location advan-
the Bay Area. This already large share has also
tages that can benefit German companies.
grown slightly in the last few years.
Among them are a world-class research and
development (R&D) infrastructure, a vibrant
startup community and a globally unique
network of venture capital (VC) firms.
A number of large German companies,
representing a variety of industries such as ICT,
automotive industry and biotech, are already
in the Bay Area with their own R&D labs. Yet
44
the German “Mittelstand” could benefit even
10 YEARS GACC WEST
From a German perspective, the Bay Area’s
startup community and VC industry are interesting in two respects:
First, the Bay Area provides valuable insights
into creating the right business conditions for
startups. While startup activity has increased
and VC funding has become somewhat
more available in Germany over the past few
Opportunities for German Companies
years, the Bay Area ecosystem is still the prime
of attracting more funding from Silicon Valley
benchmark and Germany can learn from this.
to German companies. These activities have
In fact, in 2013 Germany Trade & Invest sup-
ranged from bringing startups from Germany
ported a fact-finding delegation comprised of
to the Bay Area, to introducing local Venture
German startup companies and high ranking
Capitalists to German investors, to presenting
politicians, including Parliamentarians and the
the latest innovations from Germany.
Vice-Chancellor, for just this purpose.
Secondly, the Bay Area has the investors. Germany Trade & Invest has organized a number
of events in the past few years with the goal
By Oliver Hoeflinger and Angelika Geiger,
Germany Trade & Invest (GTAI) in San Francisco
Back in 2004, history was made in San Francisco. It was the first location, worldwide,
where three German agencies (Invest in Germany, the GACC West and the German
Office of Foreign Trade) were to share one office. The goal was to take advantage of
the synergies between the work of these agencies, all of which involved international
trade and investment, but each with a different focus.
In 2009, Invest in Germany merged with the German Office of Foreign Trade to become Germany Trade & Invest. Ten years after arriving in San Francisco, this agency
continues to provide information about trade opportunities in the U.S. to German
companies (Trade) as well as information and hands-on assistance to U.S. companies
considering to establish a presence in Germany (Invest). Due to its vibrant and varied
economy, the Bay Area has proven to be a particularly rich source of investors for
Germany. Companies such as Twitter, Mozilla, Aeria Games, Zep Solar, Uber, UniEnergy
Technologies, and many others, have all established operations in Germany in the past
few years. Germany Trade & Invest supports U.S. companies with industry-specific information as well as practical information on legal, tax and financing matters. In addition,
the agency helps companies identify specific opportunities, such as R&D and pilot
programs, potential partners and investment incentives.
This shared office has been judged such a resounding success by the German Ministry
of Economics and Energy that it has since become the model for all of its foreign
offices worldwide.
10 YEARS GACC WEST
45
Thank You
THANK YOU
The GACC West would like to thank its sponsors and supporting organizations
for making this anniversary book and celebration possible.
Thank you for supporting the GACC West over the past 10 years!
46
10 YEARS GACC WEST
Simplicity is the new luxury.
On behalf of Bosch Home Appliances, congratulations to GACC West on their 10
year anniversary. With North American headquarters in California, Bosch is proud
to introduce the 2014 Bosch kitchen. It’s an appreciation for a higher standard.
It’s about not compromising either form or function. And it’s about being willing to
rethink perfection, to make the best even better. This is the Bosch kitchen. It’s the
realization of pure and purposeful European design. For life on your terms.
boschappliances.com
© 2014 BSH Home Appliances.
Sources
SOURCES
Miller Madden, Henry. (1958). German travelers in California. San Francisco: The Roxburghe Club of California
Clyde, Monika. (Winter 2013). Building a Civil Society in San Francisco: The German Contribution from 1850 to World War I.
The Argonaut. Volume 24, no. 2. San Francisco, CA: The San Francisco Museum and the Historical Society
San Francisco Center for Economic Development. (2014, September 17). Case for Business. Retrieved from the SFCED
website: http://sfced.org/case-for-business
San Francisco (Calif.). Office of the Mayor (2002). The San Francisco Bay Area: the nation’s laboratory for new ideas.
Volume II. Kirkland, Wash.: Wyndham Publications
Tolzmann, Don. H. (1976). America’s German Heritage: Bicentennial Minutes. Spirits of 1776 - 1976, pp. 99-103. Cleveland:
German-American National Congress, Chapter of Greater Cleveland
Höflinger, Oliver et al (2014). Germany Trade and Invest (2014). Geschäftschancen im Westen der USA. Bonn, Germany:
Germany Trade and Invest
Suppenküche San Francisco. (2014, September 17). Tradition. Retrieved from the Suppenküche website: http://www.suppenkuche.com/tradition.html
Goethe Institut San Francisco. (2014, September 17). Everywhere you look. German sites in San Francisco. Retrieved from
the Goethe Institut website: http://www.goethe.de/ins/us/lp/kul/mag/deu/saf/deindex.htm
Company profiles, courtesy of: Wells Fargo, Levis, Anchor Brewing, LinkedIn, SAP, Inloox, MINE, Carl Zeiss Meditec, Smaato,
Bosch Research and Technology Center, Bayer, Siemens, Mounting Systems, Suppenküche.
48
10 YEARS GACC WEST
Register of Illustrations
REGISTER OF ILLUSTRATIONS
p. 8 German map of San Francisco Bay Area, 1893 – 1897, Scan by Aaron Brick, F.A. Brockhaus’s Geogr.- artist. Anstalt, Leipzig
p. 10 A gold hunter on his way to California, ca. 1849, Courtesy of The Bancroft Library, University of California, Berkeley
p. 11 Hospital of the German Benevolent Society, San Francisco, 1857, Courtesy of The Bancroft Library, UC Berkeley
p. 12 Johann August Sutter, 1850, unattributed, Courtesy of Online Archive of California
p. 13 Stagecoaches, Pescadero, California, ca. 1890, Courtesy of Wells Fargo Corporate Archives
p. 14 The Great Seal of the State of California, The pioneers of ’49. A history excursion of California pioneer of New England
from Boston to the leading cities of the golden state, April 10 - May 17, 1890. Ball, Nicholas (1891)
p. 14 Levi Strauss (1829 – 1902), Courtesy of Levi Strauss & Co. Archives
p. 15 Check from 1864, Courtesy of Wells Fargo Corporate Archives
p. 16 Sutro Baths, ca 1896, Courtesy of The Bancroft Library, University of California, Berkeley
p. 17 Anchor Brewery Russian Hill, 1871, Courtesy of Anchor Brewing
p. 18 Joseph B. Strauss standing on the Golden Gate Bridge, San Francisco History Center, San Francisco Public Library
p. 18 Palace of Fine Arts, 1978, Courtesy of The Bancroft Library, University of California, Berkeley
p. 19 Castro Theater, 1948, Courtesy of Chris Rooney
p. 21 Manfred Dransfeld, Mark Chandler, Martin Wansleben, Rene Gurka, Reinhard Krause (f.l.t.r.), Courtesy of German
American Chamber of Commerce, Inc.
p. 29 Hartmut Esslinger, Courtesy of Hartmut Esslinger
p. 31 Rolf Herken, Courtesy of Rolf Herken
p. 33 Cutter Laboratories selling animal and human vaccine, ca. 1908, Courtesy of Bayer HealthCare AG
p. 34 Cutter Laboratories, Berkeley, ca. 1908, Courtesy of Bayer HealthCare AG
p. 35 Mounting Systems Inc. - Installation Training SIGMA II, 2012, Courtesy of Mounting Systems Inc.
p. 36 Celebrating the World Cup: Biergarten, San Francisco, 2014, Courtesy of Julia Prestel
p. 37 The Guckenheimer Sour Kraut Band plays on the deck of the ferryboat “San Leandro”, 1958, San Francisco History
Center, San Francisco Public Library
p. 37 GACC Oktoberfest, 2013, Courtesy of German American Chamber of Commerce, Inc.
p. 40 European Business Presence, 2013, Courtesy of Bay Area Council Economic Institute
10 YEARS GACC WEST
49
IMPRINT
Publisher
German American Chamber of Commerce, Inc.
Office for the Western United States
One Embarcadero Center, Suite 1060
San Francisco, CA 94111
[email protected]
www.gaccwest.com
Managing Director
Rene van den Hoevel
Text
Veronika Schmidt, Simone Friese
Layout
Julia Prestel
Published October 2014
Supported by the Federal Ministry of Economics and Energy on the basis of a decision by the German Bundestag.