Half-year balance of the Berlin Economic Development Partner for Business and Technology
Despite ongoing and new challenges, the Berlin Partner balance sheet over the first half of 2022 has been positive. Compared with the first half of the previous year, the number of new jobs planned, the volume of investment and funds for research and development all increased. But since February 24, war is again raging in Europe. The effects of the war and sanctions, soaring energy costs, inflation and disrupted supply chains are now being felt in the capital as well. This is the result of a survey among Berlin Partner's target companies. This shows that entrepreneurs are more cautious and reserved - and as a result, a downturn is to be expected in the coming months.
Investments in research and development, in particular, developed positively: Here, there was an increase of 45 percent to 72.9 million euros (compared to 50.2 million euros). The ICT, media and creative industries (with 34.34 million euros), as well as optics and photonics (with 18.95 million euros) clusters, are benefiting in particular. In the 130 projects that Berlin Partner successfully managed by the end of June 2022, 6661 new jobs were created. Compared to the previous year, this is an increase of 50 percent (4430). In addition, the companies will invest around 573.7 million euros in the Berlin location, an increase of 26 percent compared to the first half of 2021. The health industry clusters (with 161.2 million euros) and optics and photonics (with 152.5 million euros) clusters are the main beneficiaries.
The development of Berlin's start-up scene is encouraging: Berlin was again voted the best location for startups and young companies in Europe. This is the result of the Startup Heat Map 2022, which is based on a survey of more than 24,000 founding entrepreneurs. And the half-year figures for 2022 also show that Berlin is again the hotspot of the German start-up scene in the first half of the year: a total of 3.25 billion euros was generated in 219 financing rounds. Even though this means that the total value of venture capital investments in the first six months of this year was down from the same period last year, Berlin was thus able to defend its position as Germany's startup capital.
Survey among Berlin companies on the effects of the war in Ukraine
After the invasion of Ukraine by the Russian Federation, Berlin Partner asked its target companies (key accounts, Berlin partners and companies in district support) about the effects and expectations. This survey was repeated six months after the outbreak of war in order to obtain as complete a picture as possible of the consequences for Berlin's economy in this continuously difficult situation, as well as to formulate recommendations to responsible institutions. The result (as of September 7) shows that the consequences are noticeable and, as expected, have increased compared to the March 2022 evaluation.
According to the report, one-third of the companies surveyed said they felt an impact on sales six months after the war began. The proportion of affected companies has thus doubled compared to the first survey. This also applies to the question of whether the companies surveyed are affected by supply chain problems. Here, 60 percent agreed (both small and medium-sized enterprises and large companies). More than 80 percent of the companies also expect energy bottlenecks or are affected by or anticipate rising energy prices. In 26 percent of the companies, the crisis is acutely impacting the skilled worker situation. At the same time, however, the willingness of companies here to employ refugees from Ukraine remains high. In this context, however, the streamlining of hiring processes, the recognition of qualifications and further support such as language courses are being called for.
Dr Stefan Franzke, Managing Director, Berlin Partner: "The stable and positive development especially of investment and job figures in the last six months shows that the capital remains a future location that continues to attract talent, entrepreneurs and investors. The major topics of digitization, decarbonization, demographic change and de-globalization have enormous potential for the capital region in particular and ensure that order books are full. As Berlin Partner, we are pleased to be able to play an active role in this development and to support companies as reliable helper, from setting up and securing a location, to researching suitable funding opportunities. That's why we've been offering a new sustainability service since January to support Berlin's economy on its way to increased sustainability."
Sustainability at Berlin Partner
Sustainability at Berlin Partner - that means setting an example and taking responsibility. With the development of a sustainability management system, the publication in the German Sustainability Code last year and the goal of achieving its own climate neutrality this year, the business development department is setting an example. At the same time, it is showing responsibility by offering companies a new sustainability service since January 2022 with the aim of strengthening Berlin as a business location in this area. Companies and organizations benefit from the offering by receiving advice on financing and funding opportunities, support in designing innovative sustainability projects, and networking opportunities with experts. Another important component of the sustainability package is the topic of corporate mobility management (BMM), which is high on the agenda of the Berlin Agency for Electromobility, or eMO for short, at Berlin Partner under the label "MOMA berlin". There are numerous funding programs for investments in sustainable forms of mobility; Berlin Partner/eMO provides information about the different options.
Stephan Schwarz, Senator for Economics, Energy and Public Enterprises: "Higher investments, significant growth in jobs, increased expenditure on research and development - this balance sheet would be a reason to celebrate even in normal times. Given the multiple crises, it is certainly a highlighting point for the attractiveness of our business location, its special adaptability, and its development potential. The shock waves of the Ukraine war will not go unnoticed, and we are already feeling them. But we are going into this crisis from a position of strength and in the knowledge that Berlin and its economy can cope if we continue to act together. And that remains our approach now."
Further information and graphics regarding Berlin Partner’s 2022 half-year figures can be found at: www.berlin-partner.de/presse.
Berlin Partner for Business and Technology – we work for innovation and growth!
The business development company Berlin Partner for Business and Technology is Berlin’s service provider for growth and innovation. Berlin Partner supports companies and investors in their move to Berlin and their development in this city. Berlin Partner’s experts provide information on financing options, advise on finding suitable premises or qualified personnel and help build networks with partners from the world of science. The State of Berlin and more than 230 companies committed to promoting their city stand behind Berlin Partner for Business and Technology as a unique public/private partnership. Berlin Partner is also responsible for marketing the German capital worldwide. www.berlin-partner.de