Hidden Champions and the Development of Regions

Abstract

Global market leadership is most often associated with large corporations. But in reality, there are thousands of medium-sized global market leaders who are hardly known, the so-called Hidden Champions. This is simply because the number of niche markets is far greater than the number of large markets. Hidden champions are more likely to be located in rural locations than in large cities and in this respect gain outstanding importance for the development of regions. Using the example of German hidden champions, the article shows why these companies are successful and what role their regional roots play. They make decisive contributions to the development of their home regions, not only in terms of economic power and jobs, but also for culture, education and infrastructure. The hidden champions concept can serve as a model for regional development and decentralization of the economy for many countries. This is particularly true for emerging countries, which should seek their future not in a few large corporations, but in numerous internationally competitive SMEs.