It's well known that digitalization in Germany is a slow process. E-prescriptions have been around for a while, but they don't work particularly smoothly. A nationwide 5G network will probably take a while. And the whole electronic signature thing—well...
In fact, the Federal Republic of Germany is doing rather mediocre in international comparisons of digitalisation. According to the Digital Economy and Society Index (DESI), which tracks the progress of the 27 EU member states in five key areas, Germany ranks midfield. In 2022, it only managed 13th place with an overall score of 52.9 points, compared to an average of 52.3.
Germany performed particularly poorly in the DESI ranking in the "Digital Public Services" category, despite several initiatives by the federal government to accelerate these efforts. The share of German internet users using electronic government services ranked 24th in 2022 at 55 percent, putting them behind most EU countries.
Why do we need a smart state?
The inadequate digitalization of administration is immediately apparent when you have an appointment at the Citizens' Registration Office. Applications and documents often have to be completed on paper and then submitted to the office on-site. This is not only incredibly stressful, but also time-consuming and costly for everyone involved.
The goal of digital transformation in the public sector is therefore to make government services not only more efficient but also more easily accessible to all citizens. Digitalization is the key to modernizing the administrative apparatus. Federal, state, and local governments need technologies that make administrative processes and citizen services more user-friendly and transparent. Furthermore, a functioning digital administration is also an important location factor for international companies and skilled workers.
Startups as drivers of innovation
Govtech – that means startups and political decision-makers come together. The digitalization of public structures is a challenge that the government cannot handle alone. Administrative structures and processes are not designed to integrate risky new solutions. Therefore, technology-oriented companies and startups are a key driver behind digital transformation. The inventiveness and strong user focus of startups make them suitable partners on the path to a digital state. Innovations from the fields of artificial intelligence, cloud technology, data analytics, and blockchain are often used in this process.
The application areas in which Govtech startups are active include:
- Digital citizen platforms where citizens can obtain information and communicate with authorities in real time
- Artificial intelligence for automatic text analysis when processing applications and documents
- Improved data collection and analysis to optimize decision-making processes
- Smart city technologies to improve urban infrastructure, traffic control and environmental protection
Munich startups from the Govtech sector
When it comes to government tech, Munich's startup ecosystem certainly has nothing to hide. Numerous local startups are doing their part to make the government sector more efficient, transparent, and user-friendly. These include:
Convaise: The startup supports organizations and public administration in converting their communication with customers and citizens to a chat-based system. Even complex processes can be handled on Convaise's no-code platform using an AI-supported messenger. This allows municipalities and cities to transform their processes into self-service solutions. The digital assistant guides citizens through bureaucratic procedures and provides them with information for further processing.
GovradarGovradar has taken on public procurement. Its AI-powered software-as-a-service solution enables the creation of tender documents without requiring government or municipal employees to manually create them. The Govtech also ensures that specifications are legally compliant, clear, and unambiguous, allowing potential suppliers to submit tailored bids. An AI-powered assistant also helps optimize procurement.
GovshareGovshare offers a solution platform for municipal climate protection. It centrally collects practical examples of successful climate protection measures at the municipal level. This allows municipalities and their municipal companies to find practical solutions without having to start from scratch. Commercial solution providers, as well as non-profit organizations and social enterprises, can also list themselves on the Govtech platform.
LocabooFounded in 2021, the company's mission is to help municipalities manage public buildings such as sports facilities, community centers, and cultural and event venues. To this end, Locaboo has developed software that allows municipalities to rent out the spaces directly via their respective websites. The software optimizes and analyzes occupancy and handles the entire rental process. This is intended to increase the efficiency and sustainability of resource use and support the data basis for future urban development.
