Western investors can't be faulted for presuming there to be a bureaucratic maze to navigate when establishing operations in the former German Democratic Republic. But they would be pleasantly surprised to find the opposite is the case, at least in the federal state of Saxony- Anhalt. Much like in Osterweddingen, where Burgermeister Wasserthal expedites investment projects by eliminating roadblocks, the Economic Development Corporation of Saxony- Anhalt (WiSA is its German abbreviation) facilitates investment in three ways. It provides location research, government financial aid resources on the federal and state levels and administrative assistance in terms of permits and applications.
   "We have good relations with industry sectors and service providers – construction companies, tax consultants, human resource managers and so forth – and we transfer that network at no charge to the investor," says Arvid Friebe, a senior consultant at WiSA (www.wisa.de). Friebe says investors are more likely to encounter bureaucratic slowdowns in western Germany than in the east.
   "We are very proactive here. Rather than lots of lawyers and administrators, here you will find former engineers working with industry," he points out. "That is a great advantage in terms of environmental applications, for instance, because if the engineer of the company talks to a former lawyer in the administration, it's a very different discussion than one he would have with a former engineer, where they are speaking the same language."
   Friebe's office is a good place to learn the latest on financial aid options on the state, federal and European Union levels, because differences exist from state to state, and how the region is benefiting from EU subsidies is not a constant. In fact, as Friebe will explain, an eastern German location, including the Magdeburg region, does have clear financial benefits on the EU level. But those advantages will not last forever.
   Eastern Germany remains a Target 1 area of the European Union, and the individual states differ on how they allocate EU subsidies geographically and industrially. Sorting out the details in a given state can be complicated, but "in Saxony- Anhalt since the first of January, we have a really lean, smart system in place," says Friebe.
   In general terms, as of the beginning of 2007, large companies can be reimbursed up to 30 percent of their capital expenses; medium- sized companies – those with fewer than 250 employees – will get up to 40 percent of their investment back, and small companies – up to 50 employees – can be reimbursed up to 50 percent.
   Financial assistance takes lots of different forms across the EU, but in eastern Germany, investors must first invest the money and present receipts before they can take advantage of the reimbursements. After reunification, all companies enjoyed the 50 percent expense- reimbursement plan, but over time the funding has been reduced.

The Port of Science Will Benefit From Proximity to Several Higher Education and Research Centers

Otto- von- Guericke University of Magdeburg www.uni- magdeburg.de • Founded in 1993 by combining three of the city's colleges • 11,000 students; 12 percent international • Best known for technical studies • Close association with other centers listed here • Main topics of research: neurosciences, immunology and inflammation research, nonlinear systems, information and communications, micro- and nanosystems, culture and education • Medical faculty with 29 institutes and 22 clinics • Center of applied neurosciences research; IFN Leibniz Institute for Neurobiology Hochschule Magdeburg- Stendal (FH) University of Applied Sciences (across the River Elbe) www.hs- magdeburg.de • 4,600 students in Magdeburg, 1,000 in Stendal • Graduates have practical experience in technical fields • Areas of study: civil engineering, chemistry & pharmaceutical engineering, mechanical and electrical engineering, technical communication, industrial design, public health and social sciences and water management Fraunhofer Institute for Factory Operation and Automation (IFF) www.iff.fhg.de • One of Fraunhofer- Gesellschaft's 58 research institutes • Key link between academic research and industrial application • Delivers high- end R&D services to industry • Part of a global research network of business and academic experts • Built the Virtual Development and Training Center at the Port of Science • Areas of expertise include logistics systems and networks, virtual development and training, information logistics, automation and production and plant management IFF Virtual Development and Training Center www.iff.fraunhofer.de • Center of virtual reality- based technical research • Reduces development time and costs • Collaboration with external partners • Other features: support of virtual development throughout the research process; product documentation, virtual training for technical personnel; remote training capabilities

Max Planck Institute for Dynamics of Complex Technical Systems www.mpi- magdeburg.mpg.de • Links research in engineering science and industrial application • Conducts research in areas not typically done at universities • Breadth of scientific disciplines • Main emphasis: analysis, synthesis, design and control of processes in chemical and bioengineering The Experimental Factory Magdeburg www.exfa.de • A center of research in: product development, materials and manufacturing optimization, coating and layer technologies, micro- production technologies, management systems and operational business planning • Incubator of new product ideas • Strategies for reducing production cycles • Key resource for entrepreneurs and start- ups FEZ Center of Research and Development www.fez- magdeburg.de • Promotes the connection between science and technology- based businesses • Linked to the University of Applied Sciences • Hosts a Center for Technology Transfer • Provides affordable office and lab space • Conference room, consulting and other resources Leibniz Institute for Neurobiology (IfN) www.ifn- magdeburg.de • Site of the first European 7- Tesla magnetic resonance tomography machine • Six active research groups: neurogenetics; visual development and plasticity; neuropharmacology, visual attention and perceptual learning, neuroprostheses and cell biology • Third- party- funded research projects in informatics, electron and laser- scanning microscopy, behavioral pharmacology, non- invasive brain imaging and other areas