Survey shows how cooperation between established companies and start-ups acts as an innovation driver for the industry

Established companies and start-ups can work together to significantly advance the major developments and future fields in the automotive industry – including, for example, electromobility, autonomous driving and measures for greater sustainability. This is a key finding of the report „Innovation through Cooperation“, which the German Economic Institute (IW) has published in cooperation with the Association of the Automotive Industry (VDA). For the first time, it examines not only the perspective of established companies, but also of the cooperating start-ups. The report shows the added value in various areas that both companies gain from working together.

„The results clearly show that partnerships between medium-sized companies and start-ups not only accelerate innovation, but can also help to drive and expand the competitiveness of the German automotive industry in an international context“, says VDA President Hildegard Müller.

Access to new technologies, innovation capacity and crisis resilience

86% of the companies surveyed, predominantly medium-sized enterprises, perceived the access to new technologies through cooperation as at least „partially achieved“, and 41% even see it as „largely to fully achieved“. 82% say they have increased their ability to innovate, with 26% rating this goal as „largely to fully achieved“. 77% see their resilience to crises as strengthened, with almost half of them seeing it as "largely to fully achieved".

Start-ups see synergies as the main success of the collaboration: 80% rate these as „partially achieved“, and 36% even as „largely fully achieved“. In addition, 72% see the improvement in reputation and market access as at least „partially achieved“, with 32% and 24%, respectively, rating these goals as „largely to fully achieved“.

Long-term partnerships are increasing

Compared to previous years, the type of cooperation has changed. Working together on projects and prototypes has become the most common form of cooperation and is now used by 76% of established companies. The sheer purchase of products and services from start-ups is increasingly taking a back seat: a sign that companies are increasingly relying on long-term and strategic partnerships to jointly drive innovation.

Biggest challenge: lack of human resources

In the collaboration between established companies and start-ups, there are still challenges and problem areas that can be overcome. In order to address the right issues, the report has examined precisely these areas.

The results show that obstacles to any cooperation primarily arise from a lack of human resources. This limits the ability to establish contact and carry out joint projects. This is reported by 82% of medium-sized companies and around 72% of start-ups. In addition, different expectations regarding the speed of project implementation are often mentioned, which makes coordination between partners more difficult. In order to promote cooperation between established companies and start-ups, the report states that digital platforms and AI-supported tools can help to initiate contact. Association pitches and industry-specific networks can also make it easier to find partners.

*82 companies took part in the online survey in the automotive industry from June to August 2024. The majority of respondents (61 companies) were manufacturers of parts, accessories or software in the automotive supply industry; 11 companies produce trailers, bodies or buses. 4 companies assigned themselves to the „car ecosystem“ as an element of the mobility economy and a further 4 companies saw their role as both suppliers and part of the car ecosystem. Most start-ups came from the field of autonomous driving and vehicle networking, followed by drive and vehicle with four start-ups. Others came from the areas of infrastructure, mobility and logistics concepts, cybersecurity as well as circular economy/recycling, production, software development, anonymization of video data, sustainable energy supply or commercial vehicle design with project management.