The aim of this research is to determine the extent and scope of innovation activities of the business enterprise sector in the city of Berlin. Based on a special sample for Berlin-based enterprises as part of the German Innovation Survey 2012 the project analyses similarities and differences of the innovation activities of Berlin enterprises as compared to those from other urban regions in Germany. In addition to standard innovation indicators such as expenditure for innovative activities, the introduction of new products and processes, and the direct economic benefits from these innovations, the research will also look at innovation prospects for the years 2012 and 2013 and the role of innovation partnerships. Such partnerships refer to joint innovative efforts together with customers, users, suppliers, competitors and science institutions. A main focus of this part of the project is the role of spatial distance between partners for successful partnerships.