Berlin remains a top innovation hub

Berlin’s economy continues to show steady momentum. That is the takeaway from the 2025 annual results of Berlin Partner for Business and Technology GmbH. With a total investment volume of €970 million, the the agency recorded its third-strongest result in the past 15 years. Franziska Giffey, Berlin’s mayor and senator for economic affairs, energy and public enterprises, and Berlin Partner CEO Dr. Stefan Franzke presented the figures at a press conference today.

Across 96 innovation projects supported by Berlin Partner, approximately €172 million in research and development funding was secured –  a 19% increase over 2024. In total, 278 projects were successfully completed, accounting for 7,639 jobs. Of those, 4,560 are newly created positions, while 3,079 are safeguarded jobs. The latter are becoming increasingly important as companies undergo restructuring and strategic realignment. Through targeted measures — including support for investment, technological modernization, site selection and access to public funding –  Berlin Partner helps preserve existing employment relationships and strengthen business continuity.

As the city’s economic development agency, one of Berlin Partner’s core missions is to attract companies and startups to the German capital. In 2025, 74 new companies established operations in Berlin, including 37 international firms. Six each came from the United Kingdom, Türkiye and the United States, followed by two each from the Netherlands and China. As in the previous year, the largest share of foreign companies establishing operations in Berlin – 28% – originated in Europe.

Franziska Giffey, mayor and senator for economic affairs, energy and public enterprises, said:  “Berlin is bucking the trend. Especially in a challenging economic climate, the city’s strength is evident:  We are investing consistently in innovation, internationalization, talent and future-oriented industries. By expanding defense technology, we are developing a new field of innovation at the intersection of security and business.  Numerous dual-use innovations in areas such as AI, cybersecurity, robotics and photonics are strengthening our resilience while creating high-quality jobs and new growth opportunities for Berlin. Our goal is clear: Berlin aims to become a leading hub for responsible high-tech –open, innovative and economically resilient.”

Dr. Stefan Franzke, CEO of Berlin Partner, added: “The figures send a clear message: Berlin remains a dynamic center for innovation and investment. Achieving the third-highest investment volume in our organization’s history – despite challenging economic conditions – underscores the capital’s long-term competitiveness. The strong growth in research and development and the continued momentum of our startup ecosystem further highlight Berlin’s appeal. At the same time,  Germany’s economy has been stagnating for more than three years, and we are not immune to that reality. That makes it all the more important to continue promoting Berlin at home and abroad, to articulate clear prospects and to send a strong signal: Berlin is a city of freedom – a place where people can develop their ideas, experiment boldly and shape progress.”

Startup Capital Berlin

Berlin once again cemented its leading role in Germany’s startup ecosystem in 2025 – both in the number of funding rounds and in total capital raised. Despite a decline in overall deal volume nationwide, the capital maintained its strategic position as Germany’s foremost innovation and growth hub. With 218 funding rounds , Berlin ranked well ahead of Munich (124) and Hamburg (50), accounting for 31% of all startup deals in Germany. Berlin-based startups secured approximately €2.7 billion  in venture capital – a 23% increase over the previous year. The city also recorded 619 new business formations in  2025, up 24% compared with 2024, placing Berlin first among Germany’s federal states. The data further underscores the capital’s particular strength in software & analytics and fintech/insurtech, according to theEY Startup Barometer and the German Startup Association.

The #ai_berlin hub

Berlin also leads nationally in the key technology field of artificial intelligence. A total of 283 AI startups – representing 30% of all AI startups in Germany – are based in the capital (German AI Startup Landscape 2025).  AI continues to be a critical growth engine for emerging companies. To further support stakeholders across the region, the #ai_berlin hub was launched last year. The initiative serves as a guide, platform and showcase for the development and application of artificial intelligence. It provides information on Berlin’s AI ecosystem and relevant support programs, connects stakeholders through joint initiatives and facilitates collaboration across application areas such as health care, manufacturing and mobility. At the national and international level, the hub strengthens Berlin’s profile as a leading center for AI innovation.

Building a defense technology ecosystem

On behalf of the Berlin Senate, Berlin Partner has been tasked with building a dedicated defense technology ecosystem. The goal is to connect research institutions, industry and policymakers around security-driven innovation while actively promoting company relocations and new business formation in this sector. Berlin offers strong foundations for this effort. Federal decision-making bodies such as the Federal Ministry of Defense and the Bundeswehr Cyber Innovation Hub are based in the capital. Combined with close proximity to political institutions, a world-class research landscape, innovative companies and a rapidly expanding startup ecosystem, Berlin is uniquely positioned to advance security-related technologies.

The focus is on highly innovative tech segments and key enabling technologies, including artificial intelligence, cybersecurity, health tech, drone technology, optics, photonics, robotics, aerospace engineering and sensor systems – fields in which Berlin already has significant expertise. More than 400 companies in the capital region are active in the dual-use sector, developing cutting-edge products and software for both civilian and military applications. Defense technology represents not only a growth opportunity for Berlin’s economy but also a strategic lever for innovation, value creation and resilience. Reflecting this growing importance, defense tech companies have, for the first time, been invited to join the official Berlin delegation traveling to the South by Southwest (SXSW) creative and tech festival in Austin, Texas, from March 12 to 18.

For more information on Berlin Partner’s 2025 annual results, visit: https://www.berlin-partner.de/presse/detail/berlin-bleibt-attraktiver-innovations-und-investitionsstandort

Berlin Partner for Business and Technology – Working for Innovation and Growth

Berlin Partner for Business and Technology is the capital’s economic development agency for growth and innovation. The organization supports companies and investors as they relocate to Berlin and expand their presence in the city. Its experts provide guidance on financing opportunities, advise on finding suitable space and qualified staff, and help build networks with partners from the research community. Berlin Partner is backed by the State of Berlin and 250 companies committed to promoting their city, making it a strong public-private partnership. In addition, Berlin Partner is responsible for marketing Germany’s capital on the global stage. www.berlin-partner.de/en