Innovation driver Berlin

BERLIN, Aug. 4, 2025 – Berlin’s appeal is built on more than its storied past and multicultural vibrancy. The German capital has shown economic resilience in times of upheaval and crisis that is driven by a powerful combination of science and business. In Berlin, stagnation is rare. Progress and innovation are the norm, and the city’s performance stands out even in a European context. Berlin ranked 12th in the latest Regional Innovation Scoreboard (RIS) published by the European Commission, marking continued improvement in recent years.

The RIS, published on a regular basis, analyzes the innovation capacity of more than 200 regions in Europe. It complements the European Innovation Scoreboard by offering a regional perspective. Alongside Berlin, other top innovators include Stockholm (No. 1) and London (No. 3), as well as regions such as Upper Bavaria (No. 5) and Northwestern Switzerland (No. 16). Using more than 20 indicators – including education levels, research activity, investment, collaboration, and digitalization – the report identifies the strengths, weaknesses, and trends of each region. The goal of the RIS is to provide a clear picture of Europe’s regional innovation landscape and serve as a data-based tool for guiding innovation policy.

In the German context, the report classifies Berlin, like Upper Bavaria, as an “innovation leader.” The city benefits from its urban dynamism and dense population, with a high concentration of research institutions, universities, and startups, enabling innovation ecosystems to form and grow quickly. As a result, Berlin is becoming an increasingly attractive place to live and work, drawing skilled workers and offering strong potential for investment. The city ranks No. 1 in Europe for its share of specialists in information and communications technology and also leads in financing and support, specifically in public-sector research and development spending. This knowledge infrastructure – supported politically – is a key growth driver for the regional economy, giving companies direct access to research results and expertise through collaboration with universities and research institutions.

However, there is room for improvement in the area of human capital, particularly in lifelong learning. Here, the RIS measures the share of adults (aged 25 and over) participating in further education during a given period, as well as the general level of learning readiness and adaptability in the region. In the latest report, Berlin ranks 130th, unchanged from 2018 and 2023. In the second human capital indicator, tertiary education, Berlin has seen a decline since 2023 but still holds 39th place. Measures to make better and more sustainable use of human capital, especially by promoting lifelong learning, could include strengthening corporate training or introducing funding programs for professional qualification.

Whether Berlin can improve or maintain its current rankings will become clear in two years, when the European Commission publishes the next Regional Innovation Scoreboard. Until then, there is time to further advance the innovation power of the city on the Spree.