The German federal state of Baden-Württemberg is well known for its strong health care industry. In 2013, there were over 1,000 companies generating over 22 billion euros of taxable revenues in the health care industry, with start-ups and SME’s producing almost half of the gross value added. The Fraunhofer Gesellschaft is an industry-near public research organization focused on the translation of innovation into products and services.  The startup framework and funding mechanisms by which the Fraunhofer Gesellschaft promotes entrepreneurship and creates cutting edge spinouts will be a main topic of discussion as well as a number of examples of successful spinouts from public institutes in Germany, including Baden-Württemberg.