Determinants of Hidden Champions: Evidence from Germany

This chapter explores the factors that affect the likelihood of German companies to be a hidden champion. Based on an econometric estimation model we could confirm prior research findings that specific enterprise characteristics such as research and development, international business activities and the great ambition to maximise market shares have significant positive effects on the likelihood to belong to the group of hidden champions. Drawing on the empirical finding that hidden champions do notplace great value on the use of public promotional funds, governments are advised to apply other support measures in order to foster the development of hidden champions. The starting-point should be the improvement of framework conditions.