What's coopetition? German lessons for Singapore's start-up scene

A university study trip offers insights into creating research and innovation hubs, and leveraging Al.

- Thomas Menkhoff and Kevin Cheong

In the greater Stuttgart area, the heart of Germany’s engineering prowess, there is a concept driving the region’s industrial sector: “coopetition”.

This is a strategic blend of cooperation and competition for its global homegrown brands including Mercedes-Benz, Porsche and Bosch.

When many firms in related sectors concentrate in one area, this provides an opportunity to share knowledge to grow together to have a stronger edge against global rivals.

In Stuttgart’s case, this has resulted in car manufacturers and automotive technology providers collaborating by pooling research and development (R&D) infrastructure, sharing best practices and participating in joint test-beds for innovation, even if they are competitors.

The goal is not to undercut each other, but to lift the entire ecosystem through collective progress. This has created a dense network linking government agencies, universities, startups and established firms.

Institutions like the University of Stuttgart and the Fraunhofer Institutes play a pivotal role, offering public research platforms that industry partners can readily access.

Besides Stuttgart, Berlin and Munich were also stops for undergraduates and faculty members from Singapore Management University during a study trip. The visit offered valuable lessons from the coopetition model, especially in terms of scaling up startups and strengthening the entrepreneurship ecosystem.

Startups, in these cities, are driving projects around smart mobility, robotics, artificial intelligence (AI) and machine learning and lightweight construction, among others.

One example is Cylib, a German sustainable end-to-end battery recycling startup backed by Porsche Ventures, World Fund, Bosch Ventures and other consortium partners. It is scaling up its recycling capacity at industrial levels aimed at decarbonising the battery value chain.