Berlin Innovation Report 2013 - Berlin's Economy Considerably More Innovation-Oriented than Overall German Economy

The proportion of Berlin-based firms which introduced new products or processes reached 57 per cent in 2011, thereby exceeding the comparable figure for the overall German economy by seven percentage points. In particular small and medium-sized firms were in the first line in the field of innovation in Germany’s capital city. Berlin’s larger companies, on the other hand, performed weaker, according to most innovation indicators. The highest rate of innovators was reported by the electrical industry, software and data processing, and R&D services. These are the results of a joint project conducted by Technische Universität (TU) Berlin and the Centre for European Economic Research (ZEW).

In 2011, Berlin’s economy spent about 2.87 billion euros on product and process innovation. Measured against turnover, this accounts for 3.1 per cent and thus ranges slightly below the value for Germany’s overall economy (3.3 per cent). This slightly lower innovation intensity mainly resulted from lower capital expenditure on innovation projects. Regarding pure R&D expenses, however, intensity figures in Berlin and Germany as a whole are on similar levels.

When it comes to market success of innovations, Berlin ranks behind other German regions. Compared to companies in other German metropolitan areas, companies in Berlin generate smaller turnover from newly launched products. Innovations contribute 15.2 per cent to sales in Berlin, compared to 19.8 per cent in other metropolitan areas and 17.4 per cent in the whole of Germany. The limited success of product innovations in Berlin can be attributed to large industrial companies and structural factors, for instance industry and company structures. If these structural differences are partialled out, the turnover generated by product innovations is even above-average in Berlin.

The Innovation Report 2013 was jointly compiled by Prof. Knut Blind, Chair of Innovation Economics of Technische Universität (TU) Berlin, and the Centre for European Economic Research (ZEW). In the report, the innovation activities of companies in the federal state of Berlin are examined and compared to the overall German economy as well as to companies in other German metropolitan regions for the first time. Assessment criteria include innovation participation, innovation strategy, innovation expenditure, innovation success, R&D activities, innovation planning, and innovation partnerships. The findings are based on data derived from 1,727 companies in Berlin. The comparison of Berlin’s innovation performance will be continued in 2013.

For more information please contact

Dr. Christian Rammer, Phone+49 0621/1235-184, E-mail rammer@zew.de