The large scale study which surveyed nearly 600 firms finds that German high tech young firms are typically more risk-averse than their UK counterparts. German technology entrepreneurs start with larger founder teams, they internationalise more rapidly but primarily to neighbouring countries within the European community. Their primary focus remains the German domestic market and their strongest trading partners tend to be large, international German firms to which they sell customised products and services. German firms are less likely to have persistent skill shortages over time as the educational and training infrastructure corrects for labour market weaknesses particularly in the supply of qualified technical personnel UK high tech young firms appear to be more international in scope selling more of their total production to a wider compass of customers in foreign markets. They have a stronger presence in most international markets including their traditional partners of the British Commonwealth countries.
British firms start with stronger marketing and managerial skills.
The stronger entrepreneurial management style of UK firms meant that the most successful UK firms were more likely grow faster than their German counterparts. A quarter of the sample internationalised in their first year - a remarkable managerial challenge for the new firms. International firms have a higher performance than domestic-only firms when measured by either sales or employment growth. The degree of internationalisation is positively influenced by the firm's level of experience of internationalisation, and by the intensity of co-operation with foreign partners. Simply put, firms with greater experience of international sales have greater levels of international sales.