Berlin’s economy
In the last 15 years, Berlin’s economy has undergone fundamental structural change.
The growth of the service sector has gone hand in hand with a decline in industry and construction. Today Berlin and the area surrounding it boast many strong companies. This development was assisted by significant funding from the European Structural Funds used to target the economy and infrastructure. We received almost €1.3 billion in the six-year funding period that ended in 2006, and roughly the same amount has been made available in the current funding period, which runs till 2013.
structure of economy
Our economic structure
Small and medium-size companies are key to Berlin’s economy. Exports, which grew by around 38 percent between 2000 and 2006, underscore the productivity of Berlin’s industry. Along with electrical engineering, food products, chemicals, mechanical engineering, and motor-vehicle manufacturing are some of Berlin’s traditionally strong sectors. In addition to construction and the skilled trades, which are usually organized in small businesses, trade and services also play a major role.
New businesses
The founding of new businesses continues unabated in Berlin. The difference in the number of businesses registered and those de-registered shows that the number of start-ups continued to grow in 2007, with a net total of 11,000 new businesses for that year. The private service sector has generated more than 100,000 new jobs in the last ten years. Including the areas of trade, banking, and insurance, as well as transportation and communications, more than 50% of the people employed in Berlin work in the private service sector. In this sector the overall total comes to around 890,000 (83%) .
© TU Berlin
The scientific and academic landscape
In order to secure its position over the long term as a location for business, Berlin will have to prioritize the acquisition of competence in forward-looking sectors. The prerequisites are already in place. One positive legacy of the city’s years of division is Berlin’s outstanding academic, scientific, research, and development landscape: for political reasons, both West German governments and the GDR had concentrated scientific and academic potential in Berlin. As a result, Berlin has a wide range of colleges and universities and many research institutions.
Politics and the economy
Bolstering the economy and creating an environment conducive to investment and economic expansion are among the state’s key tasks. Berlin is investing great effort in bringing modern, competitive industrial production facilities to the city, not least as an anchor for the growing sector of production-related services. The Senate provides support to promising new businesses and sector-specific technology and start-up centers. Policies promote both existing businesses and investment in the modernization of business-related infrastructure. Priorities include boosting innovative capacity by creating networks and disseminating technology, as well as assisting small and medium-sized businesses, since these play a key role in the creation of new jobs.
© TU Berlin
Support for investors
As part of its strategy, Berlin will be concentrating even more than in the past on promoting cooperation between business and science. Activities focus on transportation technology, biotechnology and medical technology, and information technology and media, all of which are fields of the future.
Berlin Partner GmbH offers potential investors all the services they need from a single source. It answers questions about the city as a business location, helps with the search for land and office space, provides competent information about foreign markets, and helps investors locate cooperation partners. Companies can also take advantage of the Investor Service Agency (ZAK) whenever they need help with permit or administrative procedures.
