Data collection template and questionnaire

Berlin

NUTS 1: DE3 BERLIN

Berlin appears at several NUTS levels but only one code is assigned “DE3 Berlin (NUTS 1, NUTS 2)”

GDP per head (2000)

DE 3 Berlin⁹⁴: 22.383 € (average of old Länder incl. Berlin: 26.426 € and excl. Berlin: 26.637 €/ average of new Länder incl. Berlin: 17.424 € and excl. Berlin: 16.216 €)⁹⁵

Germany⁹⁶: 24.700 €

EU-15 = 100, DE3 = 95,6⁹⁷

GDP at current prices/in Million €

DE 3 Berlin⁹⁸ (mio €): 75.749

Germany⁹⁹ (mio €): 2.030.000

EU-15¹⁰⁰(mio €): 8 524 371

Employment rate (2000)¹⁰¹

1.561.900 (63,4%¹⁰²) (German average = 68,8%)

Unemployment rate (2002) ¹⁰³

Unemployed persons: 288.319 (16,9 %) (German average: 9,8%; West 7,9%, East: 18,0%)

Technological standing (5 point scale): 3
Strengths¹⁰⁴ [short description]
The city-state Berlin – German capital and at a population of 3.382.000 inhabitants (2002) the largest city – covers a surface area of 892 km².

Enlargement of the European Union has restored the location of the city in the centre of Europe at the heart of a major regional market and central Europe. Following the reunification of Germany and the instalment of the German government in Berlin, it has become one of the prime locations for new business sectors, high technology and modern services companies. Besides electrical engineering, pharmaceutics and mechanical engineering, high-tech industries like biotechnology, environmental technology, transport systems technology, information and communications technology, laser and medical technology are gaining in importance. Dominating sectors are the media, information and communication, transport engineering, biotechnology, medical technology and (financial) services. The tertiary sector generates 81% of Berlin's real net output, and the financial, rental and corporate services sector shows the strongest growth in employment, at 5%, i.e. 14,600 new jobs (2000). Furthermore, Berlin has a great research and scientific potential three universities, 14 public institutes of higher education and more than 250 public and private research institutes. Also culture is an economically very important area, as the city houses 17 state museums, a multitude of theatres and operas as well as numerous libraries, cinemas, choirs and collections.

With a view to the development of the media landscape. the TV station N24 (news channel) set up its news headquarters in Berlin, Universal Music and the newspaper Welt am Sonntag established headquarters in Berlin.

Companies: Alcatel, Bally Wulf, Berlin Chemie, BMW Motorrad, Bombardier, DaimlerChrysler, Delphi, DETEWE, Deutsche Bahn, Dussmann, DWA, Ford, Gedas, GHH Borsig Turbomaschinen, Gillette, Herlitz AG, IBM, Krone, Orenstein und Koppel, Osram, Otis, Mercedes Benz, Motorola, Samsung, Schering AG, Schindler, Siemens, Sony, Axel Springer Verlag, Ullstein Verlag, Universal. (Gedas is building a software production plant and Gillette is investing in new Berlin based production facilities and in 2003 Delphi has opened a new vehicle safety centre and Corning Cable set up a new commercial centre in Berlin. Furthermore, Boeing announced in April 2003 to be coming to Berlin.)

Weaknesses [short description]

The city has a huge public debt (about 50 bn €), which is based on missing revenue from the processing industry. After WW II the economy and the budget of West-Berlin was strongly subsidised by federal grants covering more than 50% of the spending. Most of the person working in the service sector were public employees (Late 1980ies: 20% of all employees in the service sector; double of the west average). East Berlin was characterised by huge monopoly combines, which did not prove to be competitive after unification. The end of the planned economy in the East and the diminishment of federal grants in the west let to the reduction and breakdown of the processing industry. Berlin’s economic structure is still in a phase of fundamental structural change, which is expected to last until 2010, and nearly no producing industry got established in the surrounding countryside. With a view to its GDP development the city ranked penultimate state in 1999.

Additionally the city faces a still divided situation: East: cheaper rents; West: better job situation.

Like Brandenburg, Mecklenburg-Vorpommern, Sachsen, Sachsen-Anhalt, and Thüringen Berlin (East) still belongs to the "priority 1" regions (regions with maximum subsidization possibilities) supported by the EU structural funds.
Evolution in last decade [short description]¹⁰⁵

Employment has been decreasing (1992: 1.639.300, 2002: 1.533.000) while at the same time the GDP/per capita (1992: 19.674€, 2002:22.756€) was growing.¹⁰⁶

Berlin has largely overcome the repercussions of the division of Europe. Since the unification and with the transfer of the Federal Government it is increasingly becoming an international economic region, the principal place of business for many leading companies as well as industrial and commercial organisations. The service sector is becoming the most important economic sector with high growth rates, as Berlin is the seat of government, embassies, associations and lobbyists. Furthermore Berlin provides for good opportunities of contact with political and administrative Federal decision-makers. More and more companies were moving to Berlin over the past decade. In 2003 also the American Chamber of Commerce opened an office in Berlin. With its mixture of high technologies and modernised traditional industry, Berlin provides for a wide scale of business opportunities. A differentiated infrastructure and well-priced real are measures to promote investment in the city.

Further indicators

DE3 Berlin

Public revenue and spending (mio €)¹⁰⁷

	1998	1999
Revenue^108	12.091	12.767
Spending^109	21.364	21.305

Employment per sector¹¹⁰

Agriculture: 2000: 5.900 2001: 5.600

Industry (without building and construction trade): 2000: 156.075 2001: 153.650

Building and construction trade: 2000: 88.400 2001: 74.000

Trade, tourism, transportation: 2000: 259.950 2001: 259.150

Public and private services^111: 2000: 632.390 2001: 638.225

Industrial Structure

The Manufacturing Sector in Berlin in September 2001: Economic Divisions and Workforce Size (Companies with ... employees)¹¹²

Economic Divisions	Total Number of Companies	1 – 49	50 – 199	200 – 499	500 – 999	1 000 and more
Coal mining, peat productiong	1	-	1	-	-	-
Stone and earth, other extractive industry	4	4	-	-	-	-
Food	222	168	39	11	4	-
Tobacco processing	4	-	2	-	1	1
Textiles	68	63	5	-	-	-
Clothing	96	88	8		-	-
Leather	6	6	-	-	-	-
Wood	46	41	5	-	-	-
Paper	44	34	7	2	-	1
Publishing, printing and duplication	1 009	955	45	4	3	2
Chemicals	103	78	19	4		2
Rubber and plastics production	101	83	14	3	1	-
Glass and ceramics, stone and earth processing	79	69	6	4	-	-
Prime metal production and processing	27	11	9	1	-	-
Metal products	261	221	32	7	-	1
Mechanical engineering	206	164	31	5	4	2
Office equipment, EDP equipment and installations	25	22	3	-	-	-
Equipment for electricity generation, distribution etc	122	85	23	11	-	3
Radio, TV and communications technology	103	77	12	10	2	-
Medical technology, measurement and quality assurance technology, optics	175	146	25	1	3	-
Motor vehicles and components	16	4	7	2	2	1
Other vehicles	28	16	6	5	-	1
Furniture, jewellery, musical instruments, sport equipment, toys and other products	146	141	5	-	-	-
Recycling	29	26	3	-	-	-
Total	2 921	2 508	309	70	20	14