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Berlin: a hub for startups but not (yet) for fast-growing companies

Report of July 20, 2016

Over the last 20 years, Berlin has developed into Germany’s self-employment capital and into a startup hub. A large number of innovative companies have been launched. The city has become an internationally renowned magnet for creative startups. Mainly using official statistical data, the present report shows that the startup trend in Berlin is above average compared to other major cities in Germany while it is primarily driven by the high startup rates among non-Germans. However, with respect to turning startups into fastgrowing companies, Berlin has room for improvement. Consequently, future policy measures should focus on supporting these types of companies. Possible measures include developing high-quality industrial sites, cutting red tape and providing fast-track administrative procedures in all business-related matters, improving recruitment processes for highly qualified employees, as well as further expanding the knowledge transfer between research institutes and the fast-growing companies.

The full report by Alexander S. Kritikos in: DIW Economic Bulletin 29/2016 (PDF, 162.6 KB).