Berlin is looking ahead with confidence

The economy in Berlin is growing, even though the overall environment remains difficult and the economy is weakening nationwide. The positive trend in Berlin is also confirmed by the annual report figures of Berlin Partner für Wirtschaft und Technologie GmbH for the past year 2023.

The jobs that were created through settlements and company expansions with the support of Berlin Partner have developed extremely positively. At 10,124, they reached five figures for the first time since the economic development agency was founded – an increase of 21 percent compared to 2022. However, investments in research and development by the companies supported are also impressive: At 199.2 million euros, there was an increase of 42 percent (compared to 140.1 million euros in 2022).

The 269 projects supported by Berlin Partner in 2023 will provide important economic impetus for the entire Berlin economy: According to calculations by the economists at the Investitionsbank Berlin (IBB), the additional investment and employment effects triggered by economic development will support the gross domestic product by a total of 1.96 billion euros in the period 2023 to 2025. Public revenue will increase by a total of 250 million euros in the same period due to the additional value creation effects.

As a business promoter, Berlin Partner accompanies companies across all sectors, both when settling in Berlin and while growing there, networks them in the region, provides information about funding opportunities and advises them on the search for suitable personnel. Last year, 75 companies settled in Berlin, 42 of them from abroad. Most of these companies come from Europe (24 percent) and Africa, the Middle East, Asia and Oceania (also 24 percent). The proportion of settlements from North, Latin and South America is 6 percent.

In addition, companies will invest around 893 million euros in Berlin, with the ICT media and creative industries being by far the most favoured sectors (with a good 293 million euros).

New jobs

Statistically speaking, the number of employees subject to social insurance contributions in Berlin increased by around 1.6 percent last year.  The record result for business development also confirms this upward trend. Incidentally, the vast majority of new jobs (93 percent) managed by Berlin Partner are planned as part of expansion and relocation projects.

Science and research location Berlin

Science and research are the tradition and future of Berlin. Last year, the projects managed by Berlin Partner attracted 199 million euros in investment for research and development, of which 86 million euros came to Berlin from federal program and 29 million euros from European funds. The considerable 42% increase in investment in research and development is also due to the increased use of programs to support the economy in the wake of the pandemic. The science region of Berlin with its internationally renowned universities and research institutions is one of the largest in Europe and a source of inspiration for Berlin’s innovative economy. Here, there is intensive cooperation between science and business in a wide range of networks and close cooperation opportunities, including at the eleven Berlin future locations, which house a large part of Berlin’s technology and start-up centres. The proximity to colleges and universities is also an important argument for companies, as that is where the talents of tomorrow are trained.

Franziska Giffey, Mayor and Senator for Economic Affairs, Energy and Public Enterprises: “With a total of 269 investment projects managed and, as a result, over 10,000 new jobs, our economic developers from Berlin Partner have once again made a major contribution to the growth and prosperity in our city. 75 new settlements last year speak for themselves: We make Berlin a top location for investment and successfully attract companies from all over the world. Last year’s results underline the fact that Berlin is internationally competitive even in a generally difficult environment and remains one of Germany’s economic powerhouses. We are working consistently to make Berlin the number one location for innovation in Europe and are making targeted investments to ensure that companies and talented individuals in our city have the best conditions and the most modern infrastructure.”

Dr. Stefan Franzke, CEO of Berlin Partner: “Berlin companies are showing great dynamism and proving that they can deal with challenges. This also explains why Berlin is comparatively in a good position. The issue of worldwide deglobalisation and the relocation of production means that our economy is growing.  More than half of the settlements last year came from abroad. In order to continue to score points in international competition, we travelled a lot in 2023 to maintain our diverse contacts around the world and to make new ones. This is best done locally and through mutual exchange – and we will of course continue it in 2024.”

Travelling around the world

With the aim of bringing Berlin companies into contact with potential business partners, creating B2B meetings and networking opportunities and promoting the exchange of information, Berlin Partner travelled to 18 trade fairs and 11 delegations worldwide in 2023. The attractiveness of the business location and its adaptability continue to be good arguments for numerous companies to see their future on the Spree. In order to bring national and international companies and startups to Berlin and to network Berlin entrepreneurs worldwide, Berlin Partner organises delegation trips, trade fair visits and pitch events. In this way, the economic development agency promotes the city, connects international investors, potential customers and stakeholders with the Berlin economy and creates synergies. A large number of internationalisation measures are planned for this year.

Berlin Partner für Wirtschaft und Technologie – We work for innovation and growth!
The business development company Berlin Partner für Wirtschaft und Technologie is Berlin’s service provider for growth and innovation. Berlin Partner supports companies and investors in their move to Berlin and in their development in this city. Berlin Partner’s experts provide information on financing options, advise on finding suitable premises or qualified personnel and help build networks with partners from the world of science. The State of Berlin and more than 230 companies committed to promoting their city stand behind Berlin Partner für Wirtschaft und Technologie as a unique public/private partnership. Berlin Partner is also responsible for marketing the German capital worldwide. www.berlin-partner.de