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Blog | 29. September 2016

HI-TECH COMPANIES ARE TURNING BERLIN INTO AN INDUSTRY 4.0 INNOVATION HUB – CREATIVE AND CLEVER

Berlin has long been more than “poor, but sexy.” Berlin is hip, modern and forward-looking – just like it’s companies. When it comes to innovative ideas and Industry 4.0, Berlin has established itself as an innovation hub, having emerged from the shadows of its competitors in Southern Germany to leave the rest of the Republic trailing in its wake. As average revenues from new product launches steadily fall across the rest of Germany, Berlin’s companies have been successfully innovating, not only increasing their own revenues, but also boosting the economy of Germany’s capital as a whole.

Two years ago, 51% of Berlin-based companies had launched new products or processes – already an impressive six per cent higher than the German average. And Berlin’s companies have been reaping the rewards. In 2014, they generated 12.2 billion euros from their forward-looking investments in Industry 4.0 – that’s around 16.3 per cent of their total revenues. Germany’s capital city is a locus of innovation.

START-UPS AND ESTABLISHED COMPANIES DRIVE INNOVATION IN BERLIN

Anyone who automatically thinks of Berlin’s start-up scene, which has attracted increasing numbers of cutting-edge companies and given a big boost to the economy, is on the right track, but not quite seeing the full picture. Yes, Berlin has become one of the leading cities in Europe for young company founders. Last year alone, more venture capital was pumped into Berlin then ever before: 2.1 billion euros. This was enough to dethrone London from its position as the top European city for start-ups.

Berlin’s economy has long thrived on innovation, and the current boom is fuelled by more than just the start-up scene. Berlin’s thriving SMEs and established large companies are also playing a valuable role. The city’s businesses are all pulling in the same direction: Companies that have weathered many storms, as well as those just starting out on their journeys. Altogether, Berlin’s companies invested roughly 3.1 billion euros in 2014, improving their production and assembly processes – just think of Industry 4.0 – and implementing a whole host of innovative ideas. 71 per cent of this impressive total can be attributed to Berlin’s biggest companies, with almost 32 per cent coming from the city’s chemical and pharmaceutical sector. The rest was contributed by the electrical and software industries.

UNITED FOR PROGRESS AND GROWTH

In terms of revenue, the electrical industry had the greatest number of production innovations in 2014 – more than 50 per cent. As a result, the sector is a major driver of economic growth and the forward march of Industry 4.0. Close behind, in second place, were the manufacturers of machinery and vehicles, who owed 42 per cent of their revenues to production innovations. Research and development (R&D) services achieved 34 percent and the software industry achieved 19 per cent.

In comparison to other German cities, Berlin’s companies have established stronger networks with regards to process innovation and R&D. 35 per cent of the capital’s industrial enterprises cooperate with one another (German average: 22 per cent), and 19 per cent of Berlin’s companies are engaged in active exchange with the city’s universities (German average: 15 per cent).

And Berlin’s entrepreneurs are clever in other respects: They are even more successful than their national competitors when it comes to securing public funds for their innovative activities. 31 per cent of Berlin’s actively innovating companies have benefited from federal, state or EU support; in contrast, the national average was a significantly lower 23 per cent. Berlin’s industrial enterprises were especially active, with 44 per cent receiving outside government finances (German average: 22 per cent). All of this is paying off for Berlin: Germany’s locus of innovation is enjoying economic growth that most other cities can only dream of.

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Blog | 29. September 2016

HI-TECH COMPANIES ARE TURNING BERLIN INTO AN INDUSTRY 4.0 INNOVATION HUB – CREATIVE AND CLEVER

Berlin has long been more than “poor, but sexy.” Berlin is hip, modern and forward-looking – just like it’s companies. When it comes to innovative ideas and Industry 4.0, Berlin has established itself as an innovation hub, having emerged from the shadows of its competitors in Southern Germany to leave the rest of the Republic trailing in its wake. As average revenues from new product launches steadily fall across the rest of Germany, Berlin’s companies have been successfully innovating, not only increasing their own revenues, but also boosting the economy of Germany’s capital as a whole.

Two years ago, 51% of Berlin-based companies had launched new products or processes – already an impressive six per cent higher than the German average. And Berlin’s companies have been reaping the rewards. In 2014, they generated 12.2 billion euros from their forward-looking investments in Industry 4.0 – that’s around 16.3 per cent of their total revenues. Germany’s capital city is a locus of innovation.

START-UPS AND ESTABLISHED COMPANIES DRIVE INNOVATION IN BERLIN

Anyone who automatically thinks of Berlin’s start-up scene, which has attracted increasing numbers of cutting-edge companies and given a big boost to the economy, is on the right track, but not quite seeing the full picture. Yes, Berlin has become one of the leading cities in Europe for young company founders. Last year alone, more venture capital was pumped into Berlin then ever before: 2.1 billion euros. This was enough to dethrone London from its position as the top European city for start-ups.

Berlin’s economy has long thrived on innovation, and the current boom is fuelled by more than just the start-up scene. Berlin’s thriving SMEs and established large companies are also playing a valuable role. The city’s businesses are all pulling in the same direction: Companies that have weathered many storms, as well as those just starting out on their journeys. Altogether, Berlin’s companies invested roughly 3.1 billion euros in 2014, improving their production and assembly processes – just think of Industry 4.0 – and implementing a whole host of innovative ideas. 71 per cent of this impressive total can be attributed to Berlin’s biggest companies, with almost 32 per cent coming from the city’s chemical and pharmaceutical sector. The rest was contributed by the electrical and software industries.

UNITED FOR PROGRESS AND GROWTH

In terms of revenue, the electrical industry had the greatest number of production innovations in 2014 – more than 50 per cent. As a result, the sector is a major driver of economic growth and the forward march of Industry 4.0. Close behind, in second place, were the manufacturers of machinery and vehicles, who owed 42 per cent of their revenues to production innovations. Research and development (R&D) services achieved 34 percent and the software industry achieved 19 per cent.

In comparison to other German cities, Berlin’s companies have established stronger networks with regards to process innovation and R&D. 35 per cent of the capital’s industrial enterprises cooperate with one another (German average: 22 per cent), and 19 per cent of Berlin’s companies are engaged in active exchange with the city’s universities (German average: 15 per cent).

And Berlin’s entrepreneurs are clever in other respects: They are even more successful than their national competitors when it comes to securing public funds for their innovative activities. 31 per cent of Berlin’s actively innovating companies have benefited from federal, state or EU support; in contrast, the national average was a significantly lower 23 per cent. Berlin’s industrial enterprises were especially active, with 44 per cent receiving outside government finances (German average: 22 per cent). All of this is paying off for Berlin: Germany’s locus of innovation is enjoying economic growth that most other cities can only dream of.

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