Austria is the country of Hidden Champions

The term "hidden champions" was first coined in 1990 by Hermann Simon, a German economics professor and management consultant, and published in a German business magazine. The concept refers to highly successful companies that are often market leaders in their respective fields and are not known to the wider public. According to Simon, three criteria must be met to be considered a hidden champion:

1. companies with an annual turnover of less than 3 billion euro,
2. the company must either be one of the three largest in a market segment in Europe or in the global market,
3. the company is generally not listed on the stock exchange, but is owner-managed. As such, it is largely unknown.

Simon also found that these companies have a high vertical range of manufacturing, focus on niche markets and demonstrate a high willingness and ability to globalize in these markets.

The focus on premium and niche markets means that hidden champions are not in a price war with corporations or large companies, as their market volume is too small. As a result, these small and medium-sized companies can grow in a segment without being forced to compete on price, volume and cost leadership due to intense competition.

In summary, the remarkable success of hidden champions can be attributed to a variety of factors: a strong focus on manufacturing and production or strong internal research and innovation capabilities, but also a highly qualified workforce due to Austria's dual system of apprenticeships and vocational training.