Education and Migration of Entrepreneurial and Technical Skill Profiles of German University Graduates
David Blomeyer and Sebastian Köffer
This study examines the supply of entrepreneurial and technical talent from German universities and analyzes their migration patterns after graduation. Using LinkedIn alumni data for 43 universities, the research identifies key locations for talent production and evaluates how effectively different cities and federal states retain or attract these skilled workers.
Problem
Amidst a growing demand for skilled workers, particularly for startups, companies and policymakers lack clear data on talent distribution and mobility in Germany. This information gap makes it difficult to devise effective recruitment strategies, choose business locations, and create policies that foster regional talent retention and economic growth.
Outcome
- Universities in major cities, especially TU München and LMU München, produce the highest number of graduates with entrepreneurial and technical skills. - Talent retention varies significantly by location; universities in major metropolitan areas like Berlin, Munich, and Hamburg are most successful at keeping their graduates locally, with FU Berlin retaining 68.8% of its entrepreneurial alumni. - The tech hotspots of North Rhine-Westphalia (NRW), Bavaria, and Berlin retain an above-average number of their own graduates while also attracting a large share of talent from other regions. - Bavaria is strong in both educating and attracting talent, whereas NRW, the largest producer of talent, also loses a significant number of graduates to other hotspots. - The analysis reveals that hotspot regions are generally better at retaining entrepreneurial profiles than technical profiles, highlighting the influence of local startup ecosystems on talent mobility.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. In today's competitive landscape, finding the right talent can make or break a business. But where do you find them? Today, we're diving into a fascinating study titled "Education and Migration of Entrepreneurial and Technical Skill Profiles of German University Graduates." Host: In short, it examines where Germany's top entrepreneurial and tech talent comes from, and more importantly, where it goes after graduation. With me to break it all down is our analyst, Alex Ian Sutherland. Welcome, Alex. Expert: Great to be here, Anna. Host: So, Alex, let's start with the big picture. What's the real-world problem this study is trying to solve? Expert: The problem is a significant information gap. Germany has a huge demand for skilled workers, especially in STEM fields—we're talking a gap of over 300,000 specialists. Startups, in particular, need this talent to scale. But companies and even regional governments don't have clear data on where these graduates are concentrated and how they move around the country. Host: So they’re flying blind when it comes to recruitment or deciding where to set up a new office? Expert: Exactly. Without this data, it's hard to build effective recruitment strategies or create policies that help a region hold on to the talent it educates. This study gives us a map of Germany's brain circulation for the first time. Host: How did the researchers create this map? What was their approach? Expert: It was quite innovative. They used a massive and publicly available dataset: LinkedIn alumni pages. They analyzed over 2.4 million alumni profiles from 43 major German universities. Host: And how did they identify the specific talent they were looking for? Expert: They created two key profiles. First, the 'Entrepreneurial Profile,' using keywords like Founder, Startup, or Business Development. Second, the 'Technical Profile,' with keywords like IT, Engineering, or Digital. Then, they tracked the current location of these graduates to see who stays, who leaves, and where they go. Host: A digital breadcrumb trail for talent. So, what were the key findings? Where is the talent coming from? Expert: Unsurprisingly, universities in major cities are the biggest producers. The undisputed leader is Munich. The Technical University of Munich, TU München, produces the highest number of both entrepreneurial and technical graduates in the entire country. Host: So Munich is the top talent factory. But the crucial question is, does the talent stay there? Expert: That's where it gets interesting. The study found that talent retention varies massively. Again, the big metropolitan areas—Berlin, Munich, and Hamburg—are the most successful at keeping their graduates. Freie Universität Berlin, for example, retains nearly 69% of its entrepreneurial alumni right there in the city. That's an incredibly high rate. Host: That is high. And what about the bigger picture, at the state level? Are there specific regions that are winning the war for talent? Expert: Yes, the study identifies three clear hotspots: Bavaria, Berlin, and North Rhine-Westphalia, or NRW. They not only retain a high number of their own graduates, but they also act as magnets, pulling in talent from all over Germany. Host: And are these hotspots all the same? Expert: Not at all. Bavaria is a true powerhouse—it's strong in both educating and attracting talent. NRW is the largest producer of skilled graduates, but it also has a "brain drain" problem, losing a lot of its talent to the other two hotspots. And Berlin is a massive talent magnet, with almost half of its entrepreneurial workforce having migrated there from other states. Host: This is all fascinating, Alex, but let's get to the bottom line. Why does this matter for the business professionals listening to our show? Expert: This is a strategic roadmap for businesses. For recruitment, it means you can move beyond simple university rankings. This data tells you where specific talent pools are geographically concentrated. Need experienced engineers? The data points squarely to Munich. Looking for entrepreneurial thinkers? Berlin is a giant hub of attracted, not just homegrown, talent. Host: So it helps companies focus their hiring efforts. What about for bigger decisions, like choosing a business location? Expert: Absolutely. This study helps you understand the dynamics of a regional talent market. Bavaria offers a stable, locally-grown talent pool. Berlin is incredibly dynamic but relies on its power to attract people, which could be vulnerable to competition. A company in NRW needs to know it’s competing directly with Berlin and Munich for its best people. Host: So it's about understanding the long-term sustainability of the local talent pipeline. Expert: Precisely. It also has huge implications for investors and policymakers. It reveals which regions are getting the best return on their educational investments. It shows where to invest to build up a local startup ecosystem that can actually hold on to the bright minds it helps create. Host: So, to sum it up: we now have a much clearer picture of Germany's talent landscape. Universities in big cities are the incubators, but major hotspots like Berlin and Bavaria are the magnets that ultimately attract and retain them. Expert: That's right. It's not just about who has the best universities, but who has the best ecosystem to keep the graduates those universities produce. Host: A crucial insight for any business looking to grow. Alex, thank you so much for breaking that down for us. Expert: My pleasure, Anna. Host: And thank you for tuning in. Join us next time for more on A.I.S. Insights — powered by Living Knowledge.
