An interview with economic development practitioner Reiner Lohse
The role of economic development agencies may appear to be clearly defined – they’re there to develop the economy, right? But the economy is a diverse beast, so there are many different ways of approaching this challenge. TRANSFER discussed this in an interview with Reiner Lohse, who is both managing director of WIF, the district of Göppingen’s agency for economic development and promoting innovation, and manager of the Göppingen-based Steinbeis Transfer Center for Technology and Innovation Management. He talks about how this dual role benefits businesses in the district and about the current day-to-day activities of WIF, as well as taking a look at the key future trends.
Mr. Lohse, you combine your position at Steinbeis with the role of managing director at WIF, the agency for economic development and promoting innovation in the district of Göppingen. What are the benefits and challenges of this dual role?
I should start by pointing out that both parties – the District of Göppingen and Steinbeis – took a conscious decision to establish this (dual) role when WIF was founded some 30 years ago, since they believed that this arrangement would benefit businesses in Göppingen. And so it has proven, right up to the present day.
In practical terms, Steinbeis has effectively delegated me to the district of Göppingen. In my endeavors to promote economic development at district level, my position as Managing Director of WIF identifies me more strongly with the Göppingen district, which means I’m accepted as a legitimate partner by local businesses. The same also applies to local policymakers, since WIF is a wholly-owned subsidiary of the District of Göppingen. As such, WIF is included in the district administration’s budget, and has rights and responsibilities such as reporting to the relevant district council committees and having its own supervisory board that is responsible for its operational management. All three pillars of WIF’s funders are represented on the supervisory board – the District of Göppingen council, the district savings bank, and the district’s towns and municipalities.
A further advantage is that businesses see me as a representative of the District of Göppingen council – someone who is impartial and independent and has no personal financial interest in supporting their business. If I was a consultant – and I don’t mean this at all negatively – then, rightly or wrongly, they might see it differently.
As far as the challenges are concerned, it’s fair to say there can be a certain amount of bureaucracy to deal with on both sides… (he laughs).
WIF celebrates its 30th anniversary in 2025. What do you regard as the key milestones since its establishment?
The most important milestone was the actual establishment of WIF. The district council’s decision makers had the political foresight to create an organization specifically devoted to supporting the district’s businesses. Right from the outset, WIF focused on providing businesses with individual consulting and support.
I should also mention that we have organized and run networking events for a range of different actors that reached beyond the district itself. The WIF team has worked with local partners such as the Göppingen mechanical engineering conference and the healthcare, higher education and food and drink fairs, along with many other ideas, to establish several outstanding events that have also attracted a lot of interest from outside of the district. The ambitious program has also featured special symposiums and numerous networking events.
Despite all the changes both in years gone by and in the current landscape, the essence of WIF’s mission has remained the same. Our fundamental role is to support a strong regional economy and promote local businesses, ensuring they are fit for the future.
Since 2009, there has been a growing focus on technology and innovation. A name change to the “district agency for economic development and promoting innovation” marked a new direction, reflecting people’s changing expectations of economic development agencies. WIF now has a stronger focus on targeted collaboration with enterprises and closer support for individual businesses. You could say we’ve “gone back to our roots” – even today, there’s still a lot of demand for more networking between higher education institutions and Steinbeis on the one hand and local businesses on the other, as well as for technology transfer and support to help companies deal with technological change.
What are the challenges currently facing businesses in the district of Göppingen and how is WIF supporting them?
The district is highly dependent on the automotive industry. Because of the rapid changes in this sector, the affected local businesses are increasingly looking for new areas of activity with better future prospects.
The entire economy is also affected by the ongoing phenomenon of digitalization, with all its opportunities and risks, and by sustainability-related issues. Another major challenge is the establishment of a startup ecosystem so that startups can help to modernize the economy. Every business is different, so individual technology and innovation consulting is key. Networks are also an important instrument for supporting companies as they negotiate the transition.
What role do these networks play in your work?
As well as providing individual consulting, WIF also organizes or supports concrete networking events. The main one is the “Unternehmerzirkel”, where the owners and managing directors of prestigious firms come together to discuss matters such as HR management, USP development, their business’s IT infrastructure and crisis management, to name but a few. The “Unternehmerzirkel” meets around six times a year, either in person or virtually. Aimed particularly at specialists and managers working in technical areas, the “Innovationszirkel” is another, more open networking instrument that nonetheless retains a very practical focus. Its many members hold regular meetings where they discuss technical questions, frequently leading to the establishment of new business partnerships focused on future challenges. The meetings kick off with a thought-provoking presentation by an external speaker. WIF organizes the meetings, which are hosted by one of the participating businesses – a site tour is a permanent fixture on the agenda.
Last but not least, a cluster focused on the healthcare sector in general and medical technology in particular has been an important part of our business networking activities for the past two decades.
What do you see as the key future trends in economic development and what role can WIF play in them?
The economic development sector is changing. In the future, there will be a greater focus on digitalization, sustainability and innovative ways of supporting businesses. But even in this brave new economic development world, WIF continues to see itself as the engine that drives projects.
Allow me to mention some of the individual areas where WIF is active. Firstly, in the future we will have to use AI to help generate customized support solutions tailored to the specific needs of individual businesses. Nowadays, the most you can use a one-size-fits-all approach for is to “set the bait” for the support solution. But that also means that economic development agencies need a broad-based network of experts in the background so they can provide a rapid, customized response. In WIF’s case, this is available at all times through Steinbeis and the local universities.
Our other focus is on sustainable businesses and the transition to a circular economy. Companies that have already done their homework in this area will benefit from easier access to support, not only in supply chains but also through the economic development agency. Startup ecosystems must also be strengthened. There is currently a need for public-private partnerships to finance startups, and WIF will be redoubling its efforts to bring the two sides together.
Promoting resilience in businesses will also be an important topic in years to come. Economic development agencies must ask themselves when they should take the initiative in helping businesses to become more resilient. In other words, we need to proactively identify where the risks are in relation to markets, customers, etc., and what, if anything, can be done to counteract them.
To deal with these future challenges, economic development agencies will become more agile, digital and sustainable, and will place greater emphasis on networking, data-driven decision-making and resilient business models. But one thing that won’t change is that businesses will still need to put the support we offer to good use. The public administration can’t and never could “do business” for them. But what it can do is create the optimal conditions and incentives for doing business.
Contact
Reiner Lohse (interviewee)
Steinbeis Transfer Center for Technology and Innovation Management in the district of Göppingen (Ulm)
Managing Director
WIF – Wirtschafts- und Innovationsförderungsgesellschaft für den Landkreis Göppingen mbH (Göppingen)
231462-28