Using synergies: Why medium-sized companies and start-ups should cooperate

In today's business world, innovation is no longer developed in isolation – it is created at the interface between established companies and start-ups. SMEs have an in-depth understanding of the market, proven production capabilities and strong networks. Start-ups, on the other hand, bring fresh ideas, unconventional solutions and disruptive technologies. But why should companies seek synergies instead of isolated efforts? Quite simply, the innovation process becomes faster, more efficient and more creative when both sides combine their expertise and resources. Together, they can overcome challenges faster, tap into new markets and create sustainable competitive advantages.

This is precisely where our innovation networks, managed by EurA AG, come into play. They connect companies with start-ups, scientists and research institutions, creating the basis for successful partnerships. Strategic networking gives rise to new collaborations that not only generate ideas but are also transformed into specific projects.

The advantages of working with start-ups

There is a long list of advantages for companies that work with start-ups. Through targeted co-operation, medium-sized companies can:

• Shorten innovation cycles with new methods, ways of working and ways of thinking
• Get product improvements to market faster
• Optimise manufacturing processes using digital solutions
• Increase customer benefit through external impulses
• Gain access to new technologies and digital know-how

• Create completely new products and services for customers
• Identify market trends and disruptive technologies at an early stage
• Further develop business models or completely rethink them
• Gain new markets and thus increase growth potential
• Increase attractiveness for skilled workers through ‘start-up spirit’
  
  

Start-ups also benefit from cooperation

During their development and growth phase, start-ups need support to scale their production and penetrate the market. Established SMEs are suitable for this. Working with them also gives start-ups greater credibility in the market. But how do SMEs find suitable start-ups – and vice versa?

At this point, we at EurA rely on the network idea. We integrate start-ups into suitable innovation networks and establish contact with network partners to develop collaborations with established companies. We already manage numerous networks or set up new ones on a regular basis for popular topics and relevant technology trends.

On the other hand, we use technology scouting to find potential technology providers for specific challenges. Technology scouting is part of trend research and deals with the systematic screening of technological developments and the early identification and evaluation of disruptive technologies. It supports the open innovation approach, in which the company's internal product development and innovation process is opened up. Thanks to our networking, we are familiar with current issues, technological innovations and their providers, and are therefore better able to identify new technologies. However, we also use challenges in scouting. It is particularly effective for SMEs to let start-ups and solution providers approach them – for example, by relying on an attractive competition format and calling for participation in a challenge.

A transformation challenge as a success story

The 'Transformation Challenge Ostwürttemberg 2024' is an excellent example of how cooperation between medium-sized companies and start-ups can produce innovative solutions. Initiated by the 'Transformationsnetzwerk Ostwürttemberg' and technically supported by EurA AG, it was launched to network regional companies with innovative start-ups. The aim was to jointly overcome challenges in areas such as electrification, digitalisation, medical technology, precision machining and additive manufacturing and to develop innovations. Five companies cooperated with selected start-ups: Robert Bosch Automotive Steering, Wilhelm Stolz, Weisser Spulenkörper, ams OSRAM (with OndoSense and Puray) and Gesenkschmiede Schneider Aalen.

The role of EurA

EurA played a central role as coordinator and innovation consultant. The company supported the entire process under the leadership of Michael Lober, innovation commercialisation consultant, from defining the challenges and matchmaking to facilitating the collaboration between companies and start-ups. Thanks to this structured approach, tailor-made partnerships were formed and the development of marketable solutions was promoted in a targeted manner.

The challenge process

The challenge began with a call for applications, in which start-ups could register for one of five company challenges. These challenges were defined by established companies looking for new technologies and fresh ideas. After a careful pre-selection process, the most promising start-ups competed in the Pitch Days in virtual break-out sessions to present their solutions. This gave the companies the opportunity to select suitable partners for long-term cooperation.

After the partners had been selected, an intensive cooperation phase began. Over a period of several months, the start-ups worked together with the companies to develop and implement their solutions. A special highlight were the Challenge Days, which took place at Aalen University. Companies, start-ups and scientific partners came together to work on specific innovation projects in a creative atmosphere. The university provided the ideal setting for developing new approaches outside of the usual corporate structures.

Highlight: Result Day

After several months of intensive collaboration, the teams presented their results at Result Day at Aalen University. The event provided a platform for presenting the developed solutions to the public, making valuable contacts and initiating possible follow-up projects. In addition to the project presentations, inspiring keynotes and discussion rounds took place, which further emphasised the potential of cooperation between start-ups and established companies.

Successful cooperation and innovative solutions

The Ostwürttemberg 2024 transformation challenge has shown how promising innovation through cooperation can be. The partnerships that have been formed have not only produced concrete solutions for specific challenges. The positive experiences and the great popularity among participants and companies have also led to the challenge being continued in 2025.

Your next step towards an innovation partnership

Whether you are a start-up or a medium-sized company, the key to successful innovation lies in targeted cooperation. We support you in finding suitable partners, assist you in developing an R&D roadmap and help you in securing financing.

Our innovation networks give us access to the latest technology trends and we can connect you to a suitable network. Alternatively, you can use our customised technology scouting service to find the right solution for your company. Contact us and let's drive innovation forward together!

Text: Michael Lober