Berlin-Brandenburg and the metropolitan development: cooperation and economy Brussels, February 10, 2015, Dr. Volker Löwe, Office of the Land Berlin

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(1)

Berlin-Brandenburg and the

metropolitan development:

cooperation and economy

Brussels, February 10, 2015,

Dr. Volker Löwe, Office of the Land

Berlin to the EU

(2)

Senatskanzlei Berlin, Referat I C, Büro des Landes Berlin bei der EU

Metropolitan regions in Germany

Capital Region Berlin-Brandenburg

Past and present efforts of cooperation

Spatial planning in Berlin and Brandenburg

Joint Innovation Strategy „innoBB“

A closer look at the digital economy in Berlin-Brandenburg

Conclusions

Overview

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Senatskanzlei Berlin, Referat I C, Büro des Landes Berlin bei der EU

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Senatskanzlei Berlin, Referat I C, Büro des Landes Berlin bei der EU

• large region: 30.371 km2 (Belgium: 30.528 km2)

• diverse region: Berlin 3,4 mio. inhabitants (growing population), Brandenburg 2,4 mio.

inhabitants (falling); metropolitan region with largest core metropolis in Germany

• cross-linked region: 293.800 commuters to Berlin, 168.300 commuters to Brandenburg

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Senatskanzlei Berlin, Referat I C, Büro des Landes Berlin bei der EU

Referendum on fusion of Berlin and Brandenburg in 1996 – negative outcome:

• 53% acceptance in Berlin, 36% acceptance in Brandenburg (main reasons in BB i. a.

fear of high debt ratio in Berlin, bad remembrance of East-Berlin as „Capital of GDR“, fear of economic dominance)

• second referendum - foreseen in 2006 – cancelled; new attempt not in sight

New approach - politics of „small steps“:

• fusion of public institutions (27), i. a. Joint Spatial Planning Department, Office of

Statistics, Broadcasting Berlin-Brandenburg, VBB (Public Transport Company), Common Laboratory, Institute for School and Media ...

• state treaties and administrative agreements (ca. 100) concerning i. a. agriculture,

education, emergency management etc.

• cooperation between regional parliaments

From failed fusion to pragmatism

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Senatskanzlei Berlin, Referat I C, Büro des Landes Berlin bei der EU

Informal public cooperation:

• Kommunales Nachbarschaftsforum (KNF): cooperation of municipalities in the

periphery of Berlin (partnership dialogue regarding the peri-urban development)

• „Oder-Partnership“ (i. a. Berlin, Brandenburg and Western Polish Wojewodships)

• variety of contacts between ministries of both regions

Joint associations in the non-public sector:

• f. e. association of enterpreneurs, state unions

Two best practice examples:

Joint spatial planning:

• only fusion on the ministerial level

Economy and labour market, esp. definition of common economic growth poles:

• Common Innovation Strategy („innoBB“)

Two Länder – one Capital Region

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Senatskanzlei Berlin, Referat I C, Büro des Landes Berlin bei der EU

Joint Spatial Planning Department (“Gemeinsame Landesplanungsstelle”, GL):

• parts of BB ministry for spatial planning + Berlin senate department for urban

development = GL with HQ in Potsdam

• 2 directors, 6 divisions, 80 employees (20 from Berlin, 60 from Brandenburg)

• August 2006: a new label „Capital Region Berlin-Brandenburg“

• joint activities on the European level (Trans-European Networks/TEN, Interreg)

State Development Plan (LEP B-B) in 2009 - a new framework for future spatial

development in both regions (“strengthen the strength”):

• reducing restrictions, opening spaces for development, promoting industrial

settlement, every 5 years report on regional planning (population, spatial planning, economy, land use, transport)

Regional Planning Council:

• high-level coordination regarding energy, climate, demographic change, urban

settlement, transport, European affairs

Governance in spatial planning

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Senatskanzlei Berlin, Referat I C, Büro des Landes Berlin bei der EU

Planning contract:

• balance the distribution of development chances

• promote the joint regional development

• strengthen the joint economic area with regard to the European competition

• preserve the natural resources

• adapt the cooperation structure to the European integration

Tasks:

• elaborate joint development plans, programs and concepts

• approve regional plans

• safeguard the spatial planning: i. a. adapt construction plans to the objectives of the

spatial planning

• match spatial planning with neighbor regions and states

• information systems on spatial planning (transparency)

• regular reports

• participation in EU projects

Objectives in spatial planning

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Senatskanzlei Berlin, Referat I C, Büro des Landes Berlin bei der EU

Working Group on Foreign Trade:

• common presentation of Capital Region on more than 50 fairs (2013)

Tourism:

• both marketing companies are active as shareholder in the other company

• common offers (Berlin no. 3 in Europe regarding overnight stays, 2015 no. 2 ?)

Airport BER:

• most important infrastructure project for the Capital Region (27 mio. passengers);

date of opening ?

• joint acquisition and marketing in and around the airport

• noise reduction sensitive issue for Brandenburg government (referendum 2013)

Labour market:

• unemployment rate - in Berlin 10,4%, in Brandenburg 8,6% - is constantly falling, high

rate of youth unemployment (in Berlin 9,6%, federal level 4,9%)

• cooperation in the field of safeguarding skilled personnel (information/webtools f. e.

regarding wage settlements, reduction of mismatch by procurement of skilled workers across the regional border, training schemes f. e. in energy management)

Economy and labour market

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Senatskanzlei Berlin, Referat I C, Büro des Landes Berlin bei der EU

Strong R&D basis in the Capital Region:

• 7 universities, 40 public and private academies, 90 research institutes

5 clusters (2011):

• Health: 274.000 employees, 5.900 enterprises (i. a. 500 enterprises in pharma, medicine- and

biotechnology), 130 hospitals, 16 bn. € turnaround

• creative industries, media and ICT: 241.000 employees, focus i. a. on arts/culture, music, fashion,

media (broadcasting, TV, cinema), ICT (start-ups); soft factors important (high quality of life, enough space, still affordable rents, critical mass of creative heads)

• transport and logistics: 164.000 employees, focus i. a. on electro-mobility, B/BB as a hub in the

inland water transport, intermodal transport

• energy: 56.000 employees, 6.200 enterprises, focus i. a. on renewables, power plant technology,

energy efficiency, networks and storage, turnaround 23 bn. €

• optical technologies: 17.000 employees, “high end research”

• plus 4 cross-cutting themes: new materials, automation, clean technologies, security

Overarching:

• Masterplan “Industriestadt Berlin 2020” and action plan “ProIndustrie Brandenburg” aiming at the

re-industrialisation of B/BB (public-private partnership)

A bi-regional innovation strategy - a model for metropolitan

regions in the EU

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Senatskanzlei Berlin, Referat I C, Büro des Landes Berlin bei der EU

Governance and financing:

• common cluster management with participation of external agencies; close cooperation with universities and

research institutes

• cluster are co-funded mainly by European Regional Development Fund (ERDF)

• joint ERDF-planning with regard to funding period 2014-2020

• harmonization of regional funding instruments for innovation and technology (example: ProFIT in Berlin and in

Brandenburg: support for enterprises from research to market)

• working groups on internationalization in every cluster (European network activities, lobbying in EU institutions)

Implementation of the ERDF in “innoBB“:

innoBB is included in all OP’s (ERDF, ESF, EPLR) and in strategies for other portfolios (including sustainability

strategy) - financial contribution by companies

policy mix of financial and non-financial support options

one area of focus of innoBB is to initiate additional cooperation projects (e. g. between business and science)

budget for cluster work in 2013: around 5.6 mio. € (Berlin and Brandenburg)

Internationalisation

international cooperation via ERDF mainstream – network measures

Exchange of knowledge

presentation and cooperation via R3 platform in Sevilla Link: www.innobb.de

European support and regional implementation

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Senatskanzlei Berlin, Referat I C, Büro des Landes Berlin bei der EU

Dynamic development:

6.500 enterprises

72.400 employees

start-ups: 469 creations 2013 (Munich 269, Hamburg 164)

ratio on gross value 4,2% (construction: 3,7%)

Berlin has the highest amount of investments in startups nationwide:

200 million Euro in the first half-year of 2013

Prospects:

McKinsey 2013: 100.000 new jobs in the start-up sector of Berlin until 2020

further support is intended: one-stop-agency, new incubation centers, start-up-fund

Favorable framework conditions for start-ups:

critical mass of creative people from Germany and abroad

still affordable rents (but quickly rising)

open-minded atmosphere, broad cultural offer

start-ups and „global players“ work together (f. e. „The Factory“ started in August ‘14)

Berlin ahead of the development in other German cities

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Senatskanzlei Berlin, Referat I C, Büro des Landes Berlin bei der EU

Overview about ICT made in Berlin

12. A closer look at the digital economy in Berlin-Brandenburg (II)

Cluster ICT, Media,

creative industries

ICT

Share

nationwide in %

Number of

companies

32,000

6,500

5.5

Employed

241,000

72,00

5.7

Revenue in bn €

25.9

10.4

3.7

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Senatskanzlei Berlin, Referat I C, Büro des Landes Berlin bei der EU

13. A closer look at the digital economy in Berlin-Brandenburg (III)

Berlins strength for the digital economy

Venture capital and startup-financing

Incubators and co-working spaces

International hubs, skilled personnel from all over the world

Synergies between IT development, design and creativity

Strong networks for the creative industries

Excellent education facilities

Low costs for labor and living

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Senatskanzlei Berlin, Referat I C, Büro des Landes Berlin bei der EU

ICT made in Berlin

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Special expertise of the IT industry

mobile business

eGovernment /open data

Open IT

Internet of services / capital cloud

broadband and internet infrastructure

IT security / security with IT

digital content, app solutions and gaming

e-commerce

business services and solutions

15. A closer look at the digital economy in Berlin-Brandenburg

(V)

24/02/15

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Start-ups / Digital Economy: Action Lines

internationalization:

delegations, trade show representation, event platforms

(e.g. SXSW Austin, TEDx, Berlin Web Week, Berlin Music Week)

visibility for the digital location Berlin:

IT marketing campaign “log in.berlin.”, publications on the location, presentations in Germany

and abroad

financing options:

support contacts with / settlement of investors, informative events, setting up the platform

www.crowdfunding-berlin.com, strengthening of crowd investments, funding competitions

welcoming culture / recruiting skilled employees:

better visibility of the procedures, interaction with appropriate authorities

linking of old and new economy:

sectoral events for networking of IT start-ups with established companies / SME from other

growth areas, pilot project “Future Lunch”, formats for capturing and constituting the needs of

potential for cooperation

16. A closer look at the digital economy in Berlin-Brandenburg

(VI)

24/02/15

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Senatskanzlei Berlin, Referat I C, Büro des Landes Berlin bei der EU

Achievements /positive outlook:

• cooperation between Berlin and Brandenburg closer than in any other regional

context in Germany

• „Capital Region Berlin-Brandenburg“ has become a well known label (among experts)

• pragmatic politics of “small steps” has turned out to be the right way for a ever closer

cooperation where it is useful and where interests are shared

• success stories are remarkable, i. a. well performing economy, innoBB,

acquisition/creation of new and innovative SME‘s, significant decline of unemployment, balanced budgets

• joint activities in and with Polish wojewodships

• new airport „Berlin-Brandenburg“ will give new impulses for economy, labour market

and tourism

Is the glass half-full …?

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Senatskanzlei Berlin, Referat I C, Büro des Landes Berlin bei der EU

Challenges persist:

• demography: impact of demographic change will stay and deepen the differences

• governance: reform of federal states (fusion) is an academic discussion; no new

referendum in sight

• marketing: still a lack of identification with the label “Capital Region” among general

public

• budget: high debt level constraints political scope particularly in Berlin

• finances: reform of (vertical and horizontal) financial exchange scheme still pending

• EU-support: both Länder receive less from the EU-structural funds in 2014-2020

(Berlin: 850 mio. € instead of 1,2 bn. €, Brandenburg 1,2 bn. € instead of 2,4 bn. €)

• airport: BER is poisoning the political atmosphere between Berlin, Brandenburg and

federal government

Lesson(s) learned:

• The successful development of the Capital Region Berlin-Brandenburg needed

interaction of several factors: 1) elimination of (administrative and mental) barriers, 2) definition of the locational advantages, 3) definition of the regional requirements, 4) based on locational advantages and regional requirements an alignment of the funding and cooperation environment. This process is still going on …

… or is the glass half-empty?

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Senatskanzlei Berlin, Referat I C, Büro des Landes Berlin bei der EU

Dr. Volker Löwe

Senate Chancellery Berlin

Office of the Land Berlin to the EU, Brussels

tel.: 02-738 00 72

e-Mail: volker.loewe@senatskanzlei.berlin.de

Thank you …

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