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Berlin to go, english edition, 01/2019

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PROSPECTS BRINGING ADDED

PROSPECTS BRINGING ADDED VALUE TO BERLIN’S ECONOMY Continuing growth – Berlin Partner for Business and Technology presents its 2018 annual report For the fifth consecutive year, Berlin’s economy and the world. With startups in the capital city grew at a rate faster than the national average. receiving a total of €2.64 billion in 247 rounds The most recent calculations for 2018 show a of financing in 2018, Berlin once again defended rate of 2.7%. This positive trend is also reflected in the balance sheet for Berlin Partner for more than every second euro was invested in its title as Germany’s startup capital. In 2018, Business and Technology GmbH. Alone the 323 Berlin companies and, at 113, even more companies relocated to Berlin projects completed with Berlin Partner support 8,810 than the previous year. will generate some 8,810 In addition, a record new jobs. These companies aim to invest roug- – received their residence number of people – 589 new jobs created hly €600 million in the permit through Berlin’s new jobs created 3,456 5,354 Berlin area. Business Immigration Relocations Portfolio Management 3,456 new new 5,354 jobs created Relocations Portfolio Management Service last year. In a response to the figures delivered by Berlin Partner, Berlin’s Senator for Economics, Energy and Public Enterprises Ramona Pop states: “These results speak for themselves: Both nationally and internationally, Berlin is known for being an attractive place to of companies, incubators, research facilities and 6 “All this goes to show that Berlin enjoys a strong reputation internationally. Around the world, Berlin is known for its cosmopolitan attitude, high quality of life, creativity and the freedom it offers. The activities we’ve undertaken globally 6 3,456 5,354 Relocations Portfolio Management 364 364 364 Energy Technologies Energy Technologies Energy Technologies 730 730 730 Healthcare Industries Healthcare Industries 357 Photonics 357 Photonics 357 Photonics 5,373 5,373 5,373 ICT I Media I Creative Industries ICT I Media I Creative Industries Healthcare Industries ICT I Media I Creative Industries Transport I Mobility I Logistics 282 282 282 Manufacturing Industries * Manufacturing Industries * Manufacturing Industries * 397 397 397 Transport I Mobility I Logistics Transport I Mobility I Logistics 1,307 Service Industries * 1,307 Service Industries * 1,307 Service Industries * Outside of the * cluster do business. The city offers 6 a close-knit network since 2008 in cities * Outside of the cluster like New York, Paris, Shanghai and Los Angeles have helped enhance Ber- investors – creating an invaluable advantage for lin’s international reputation as a great place to innovative projects. With Berlin Partner, we have live and as a forward-thinking business location an economic development agency that cultivates relations with all stakeholders, offers advited in our Annual Report are proof positive of bursting with opportunity. “The figures presensory services, fosters networks, initiates joint the ongoing success achieved by entrepreneurs projects, and markets these advantages. Investors have considerable confidence in Berlin as a CEO. Berlin continues to attract skilled labor from in Berlin,” says Dr. Stefan Franzke, Berlin Partner location. We must work together to insure this abroad. In fact, the number of residency permits confidence continues.” Berlin’s success attracts issued through the Business Immigration Service talented individuals, entrepreneurs and investors from all four corners of Germany, Europe of 589 in 2018. And since having moved to (BIS) increased by 15% year-on-year for a total its * Outside of the cluster €1.6 €1.6 26

offices in the Ludwig Erhard House in 2017, the Berlin (IBB), nearly 3% of all private investment BIS has registered more than 1,000 businesses. in Berlin can be attributed to investments made 323 In 2017, it provided visa and residency support by companies that have received Berlin Partner for managers and qualified specialists (including support. The direct effects in terms of investment and employment this brings generate indi- their families) at 318 companies, which is roughly 38% more than in 2016 rect and equally relevant (i.e., before the move). effects on the economy as well. Drawing on a This makes Berlin the calculation model for the capital of skilled labor regional economy, economists at the IBB assessed in Germany. “Every week, successfully completed projects nearly 900 new jobs are the extent to which these created in Berlin,” says Bernd Becking, Managing Director of the Regional Directorate Berlin-Brandenburg for the German Federal Employment Agency. He expects an additional 45,000 jobs with social insurance benefits for 2019. In 2018, the number of those employed in the capital city increased by 53,000 to reach 1.51 million. Boasting a growth in employment of 3.7%, Berlin features the highest rate of any federal state in Germany, with Bavaria (2.5%) and Hessen (2.4%) following. For 2014 to 2018, the Regional Directorate recorded There are several indicators confirming Berlin Partner’s €599.8 599.8 €599.8 6 %* impact in these success stories: First, there are the number an increase in the number of employed to be 6 %* million 12 % at roughly 216,000, with in planned investments 103,000 highly qualified million €599.8 6 %* 28 %* 12 % individuals comprising 30 % the largest share (47.7%). illion 28 %* 30 % For the same period, 36,102 million 28 %* new jobs were 12 % 3 9 % created through projects in planned investments receiving support from 12 % 3 % 12 % 3 Healthcare % Industries 9 % 9 % Berlin Partner – which anned investments .1 million tions in planned investments accounts for one-third of the total growth in employment. Relocations Relocations €160.1 €160.1 million million €439.7 €439.7 million million This is yet another indication of how much projects receiving Berlin Partner support contribute €439.7 million to the positive trends seen in Berlin’s economy. Portfolio Management Portfolio Management Portfolio Management According to economists at the Investitionsbank 589 the 323 successfully completed projects 55 Healthcare Industry 126 ICT | Media | Creative Industries 34 Transport | Mobility | Logistics 30 Energy Technologies 20 Photonics 33 Manufacturing Industries* 25 Service Industries* *Outside of the cluster The exhilarating pace of innovation in Berlin continues to make it a very attractive location in Europe for science, technology and R&D. As the face of business development for the capital city, Berlin Partner promotes Berlin internationally and provides assistance to incoming entrepreneurs, investors and talent. As soon as companies and research institutions arrive in Berlin, Berlin Partner helps them build their business and regional networks – also by providing them the opportunity to tap into Berlin Partner’s own extensive network. The experts at Berlin Partner also keep them apprised of funding opportunities and provide support in finding the ideal location and qualified personnel. residency permits issued for 318 companies with assistance from Business Immigration Service investment and employment effects as well as third-party funds raised in association with Berlin-Partner projects will 129 | 40 % affect Portfolio Management Berlin’s overall economic performance in the medium term. 113 | 35 % Relocations The IBB analysis reports that these efforts will increase Berlin’s GDP by a total of €1.6 billion between 2018 and 2020, with an increase of roughly €700 million in the first year of investment alone. The 8,810 new jobs of jobs that have been created or secured in Berlin with the assistance of Berlin Partner. Other tell-tale signs of success include the investment volume and third-party capital obtained by projects supported by Berlin Partner. As the numbers show, 2018 was a great year for Berlin, its economy and its business development. Indeed, this positive trend is reflected in the 2018 balance sheet for Berlin that will be created as a result of the investments Healthcare Industries Healthcare IndustriesICT I Media I Creative Industries Photonics ICT I Media I Creative Transport Industries I Mobility I Logistics Manufacturing Industries * Energy Technologies Transport I Mobility I Photonics Logistics Energy Technologies Manufacturing Industries * Service Industries Photonics * Manufacturing Industries * Service Industries * made by companies receiving Berlin Partner support will, in turn, have 12 % an impact on upstream and downstream sectors as well. The construction 30 % and real estate sectors will benefit considerably, as the need for commercial space for incoming companies will grow, as will the demand for housing in the city thanks to the newly created jobs attracting larger num- Service Industries * bers of people. And this trend will generate even 27 more jobs – particularly in those business-related areas requiring a larger employee pool such as the service sectors, manufacturing as well retail and public administration. As a result, an additional 4,000 jobs will be created. residency permits issued for 81 | 25 % Partner for Business and Technology GmbH: Through 323 successfully completed projects, Berlin Partner provided support to companies that created a total of 8,810 new jobs in Berlin. Some €599.8 billion will be invested in these projects. These projects also generated a total of €62.6 million in third-party funds. % ICT I Media I Creative Industries Transport I Mobility I Logistics Energy Technologies Innovation Projects 5

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