Why a German robotics firm left China | DW News

When David Reger founded Neura Robotics, China seemed like an obvious place to grow his business. Now he’s returned to Germany – where he says the appetite for industrial robots has grown. We speak to Reger about what didn’t work in China and why he’s confident he can succeed at home.

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it would be easier for me to found my company in us and Silicon Valley for example and get money for the first but ready for the long-term success to win I do believe the only way is actually founding the company here in metsing you’ve probably never heard of neuro robotics it used to be known as Hans robot Germany that’s when it was partnered with a Chinese firm here in shenen but now it’s headquartered here in the southern German Town of mezan with which you’ve also probably never heard of David rager is CEO and founder he showed me how one of its products Works hey Myra hi what can I do for you Davi Greger CEO and founder of noil Robotics thank you for joining me you have said that you are focusing here on Germany you are moving production from China here to Germany at a time when there are frankly fewer industrial orders in Germany right now there are higher energy prices there is an ongoing problem which many companies complain about with bureaucracy why choose this region instead of China where everything seems to be much more to your advantage in terms of production costs it was actually also the first thought when I started nura I had actually the plan uh to produce everything in China as Apple does it or any other companies or so the idea was actually inventing here the cool stuff and then actually having a production part partner and scaling partner somewhere in other countries in Asia for example and uh but today the time the time simply changed or like we if you look the borders are growing so it’s not that we have more more barriers of of really let’s say be as as how you I’m missing right now the word like as International as possible in the field of production I’m talking so and the other thing I need to correct because we are not focused on on Germany at all we we always focus on the world because the task we solve is actually um it’s say we solving issues for the whole world but the production we move back uh to Germany because of certain reasons like um all the the core Technologies are anyways made here because there is some thoughts in different ways like IPS protection and stuff like that but and we did not see also the big economical let’s say impact because they also have a margin on uh to produce the the products and uh everything else and you’re not let’s say in my opinion you’re not fast enough to adapt to changes or to adapt to partner needs and that was needed in my opinion that’s why we moved also back here uh close to the headquarter everything okay so you’re saying production cost the savings aren’t so significant there as you may have thought but also you mentioned you touched on this is it fair to say this is somewhat about controlling IP our viewers know of course that in China technology transfer a big concern for many Western companies you have to have a partner often times to go in what can you tell us about that M um I I do not think that that China is just looking for for IPs from other countries it’s mainly I think even IP protection inside of China is always difficult so I had as all situations of my partners I’m I’m trusting my partners in China for example which I I really still have a good relationship with um the the thing like the the overall structure inside of China was was not prepared for that even they say they will take more more now let’s say focus on the IP protection and everything I did not really feel it and you can just open next to the street the next company and they’re doing exactly the same because they quit their job and just open a new company and you can Pro mostly not even do anything about it so it was kind of difficult there so um and and that’s why in Germany I think it’s just more structured it’s very clear like who the IPS are belonging to in the same time also um it’s more protected nura is aiming for 50 million in sales this year to an international customer base it sees strong potential in the European market and it believes the industry itself is now ready to grow in Europe after years of neglect that’s why I thought Corporation in the beginning when I started new Ram with China was very important for us because they they had less barriers and the willingness like to really adapt in in the robotics field and really use robots for something while the barrier in Germany is complete is it very difficult because people are first doubting it it has to be first good enough and whatever it’s a complete different mindset and uh but we see actually the pressure we have today in Germany of yes hey we are losing somehow um Market size everywhere um we need to adapt faster and you see the pressure is good for us right you believe that plays to your advantage now that Germany is in this catchup mode yes it is and you feel actually that that even the companies are more open for Innovation more open for really like new techn Oles which um which is not a typical German thing MH so you pulled production out of China yet you’re going to compete with China more and more in this area is that not a concern for you um yeah I think it’s good I I think the competition is always good for the market or like and and I’m not really the person which is fearing and I think everyone knows me that’s that way that’s also what I believe that we today we will get more pressure on that and like because our country is in the situation um and we just need to run faster and and and find new ways where we are good or even better than them in different kind of and we are in many ways and that’s the the interesting part one criticism of the European startup ecosystem is that getting money especially late stage funding has been difficult neuro robotics now has investors out of Europe and America but Greger said it hasn’t been easy uh super difficult like it is actually I I complained a lot about this but in the same time I I actually realized that the solution is actually coming like in a natural way so if we are performing better than others the money will come here you know like so this is the the way of like I I just hear recently like hey uh we should actually change our mindset in in a like in an investor world I said no we should change our mindset in the world of startups because we are freaking we cannot rely on let’s say 35h hour week or 40 hour week and say hey that’s how it is and that’s our rule in Germany and that’s how whatever and you’re still expecting that in country where where startups are really working day and night and doing much more than we do like in this time or like and really bring all their lives in I think it’s it’s a different mindset it’s a different way of how we do things and we should adapt to that it’s interesting because talking to some other startup Founders they acknowledge they may have to go where the money is we know that some for example will go to the US because that’s where not just the money but also these kind of hubs these kind of collaborative environments are you’re confident that it will come here yes I’m confident it will come here and I do see yes it is easier it would be easier for me to found my company in Yas and Silicon Valley for example and get money for the first but really for the longterm success to win I do believe the only way is actually founding the company here in metsing nura is also opening an engineering and research Hub in Munich the southern German city has become something of a hub for Germany’s Tech startups what’s the biggest hurdle you face right now in Germany you say this is a German problem that if this thing were solved it could make things easier uh imen mindset the only like I I don’t think uh anything else because we like everything what I like if you would ask me two years before or three years before I would have a lot of a huge list of things uh which I would point it out today I see this list it was mainly uh also dependency on me myself and my team on on what we doing or but uh today I do see the biggest issue we have is the mindset of and we don’t have a vision so our country has zero vision and this is actually also our why we are in this situation where we are right now and this is a horrible situation so the people always talk like there is some good things and hey guys it’s not that bad I said it’s the worst situation we can be as a country but it’s maybe helpful to finally start listening to let’s say some some also younger Generations which are just coming up and having some new ideas um but yes the mindset and the country has no vision we have no lead conversely I have to ask what’s the biggest advantage that Germany has the biggest Advantage is um actually the infrastructures we have um the like we are our education which people are now critic um like having a lot of Critics on I I say there is almost no better education in many fields and we do have some strength which others don’t have and you can also ask like for example some some some um Chinese companies or you can ask also some American companies i’ say um what is the the strength of Germany and they will tell very precisely um how good we are and where we are not replaceable and this is also the part where we should just take more Care on David Greer founder and CEO of neuro robotics thank you so much thank you so much