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Steffen Bartschat
Innovation Meets Scale
Steffen Bartschat is a Course Facilitator for the LEAD Program at the Stanford University Graduate School of Business. He is also associated with Hill88, where he serves as an innovation advisor, focusing on business development and mentoring. His professional background includes extensive experience in advising large corporations on innovation strategies, and he is recognized for his role as a mentor and angel investor in various ventures.1
On LinkedIn, he shares insights about his projects and activities, including updates on innovation studies he is involved in.2
Highlights
Germany has far less venture capital available than the US, resulting in a profusion of small to medium enterprises, many of them privately owned.
Is that all bad?
This week four, I wrapped up my study trip sponsored by the American Council on Germany. I spent time in Meẞstetten, Offenburg, Stuttgart, and Lauda-Königshofen.
This week I learned:
1. The mindset of the CEO is the key to continuously driving innovation into a Mittelstand company, especially with smaller companies that can’t afford to run a separate innovation program.
- Each business I studied had plenty of cool new ideas, but most either came from the CEO/founder family or employees. There were exceptions to this, but on the whole the Mittelstand needs to open up more – get ideas from the outside and work on partnerships to get truly disruptive.
3. Last week I mentioned the Idea->Startup->Company virtuous circle for enterprise formation. This week I came across a Family Office that seeks to do the same for the Mittelstand – i.e. previous Mittelstand company family owners that helped make their own company huge now help smaller Mittelstand companies with potential to grow big by giving out advice and investment capital. Mittelstand leaders are loathe to take money from investors, but they might have an easier time accepting it from someone who’s been in their shoes..
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I started and ended my trip in the state of Baden-Würtemberg, and there is a lot going on here. I revisited Heilbronn this week and noted that the construction projects here are very different. Everywhere else in Germany it’s mostly about fixing old infrastructure, but in Heilbronn they are building entire new city blocks for office and resident space. It reminded me of my summer in Shanghai 2008 - ok, definitely a smaller version - no skyscrapers are being built, and no half-dozen new subway lines either. But - it’s interesting to see a city in Germany so focused on expanding its population – and attracting new residents from all of Europe and beyond.
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And finally, I had a chance to meet the "legendary" Gunther Wobser in person. His book, “Neu Erfinden”, where he describes his experiences as a Mittelstand CEO living in Silicon Valley for a year, was really what inspired this study trip! Gunther is a real innovation evangelist in his region, his latest project involves founding Futurelabs gGmbH, a project to educate the local youth on the latest Maker methodologies - and hopefully seeding an entrepreneurial spirit.
6. ProTip #1: If you’re on a daytime flight to/from Europe and want to sleep (?) or watch a movie, fly United. If you like daylight in the cabin, or want to watch the scenery outside without disturbing the whole cabin, fly Lufthansa!
- ProTip #2: If you find yourself needing to kill an hour or two at JFK Airport, take the Airtrain to Terminal 5 and follow signs to the TWA Hotel (the restored TWA terminal). Cool 1962 vibes here. This may be the only cool part about JFK, come to think of it.
Robert Fenstermacher Helmut Link Richard Grohe Bernd Kussmaul Claus Paal Veit Haug Dr. Alexander von Niessen Wolfgang Braun Oliver Hanisch

