DEEP TECH location
A unique ecosystem for IT developers in Germany
Berlin has established itself as a leading hub for information and communications technologies in Germany and Europe. These technologies have become a key business sector that have transformed the capital into a much sought-after location for tech companies and start-ups. They drive innovation, boost productivity and help to secure economic growth, prosperity and jobs for the future.
As a cosmopolitan, young and dynamic city, Berlin also offers start-ups and software and development specialists in the ICT sector an unbeatable location for development. In addition to start-up incubators, the city is also home to a number of well-respected small and medium-sized companies with a long track record of success in the ICT sector.
Berlin’s ICT sector is currently experiencing above average growth. The Chamber of Commerce and Industry records show there were approximately 10,800 digital tech companies in Berlin in 2018. The companies had a combined revenue of € 13.7 billion, with a gross value added of € 6.4 billion (last available figures, 2018).
Sales have tripled since 2008. This corresponds to an annual increase of 12.7%. The turnover of the digital economy now exceeds that of the construction industry (€ 11.7 billion). Compared to the previous year alone, sales in the digital economy increased by 10.8%.
The ICT sector is a pioneer in digital transformation
Berlin is now a leading deep tech hub. In recent years, the capital has developed a strong reputation in the deep tech fields of artificial intelligence, blockchain, IT security and the Internet of Things.
Statistics confirm that Berlin has become a top location for the German tech industry: 75 out of 268 IoT companies are based in Berlin. In fact, 57% of all German IoT start-ups are situated here. (source: Technologiestiftung Berlin, 2017)
In 2016, the Berlin digital security sector comprised around 3,000 employees in just over 100 companies. (source: Senate Department for Economics, Energy and Public Enterprises).
Between 2012 and 2017, 48 per cent of all German AI start-ups were founded in Berlin. (source: KI Berlin)
Berlin has a huge blockchain community with over 180 start-ups, corporates, accelerators, research and innovation hubs and investors. (source: BerChain e.V., 2020)
The increasing demand for deep tech products and solutions can become an important growth driver for Berlin. However, the task of developing the right solutions and products also poses special challenges for companies such as long development processes, high innovation costs and significant risk due to the combination of hardware and software components.