DM: Franzke, what is it that makes Berlin so attractive for companies and investors?
Dr Stefan Franzke: It’s hard to explain. You have to experience Berlin for yourself. Since 9 November 1989 and even before that, Berlin has been a symbol for freedom and has had a very good reputation around the world. The city stands for open-mindedness, tolerance, creativity and internationality – all the things that make it unique, including its people and exceptional diversity. This is why Berlin has become one of the most attractive international locations for entrepreneurs and creatives from around the world. It has the most international start-up scene in all of Germany. Forty-two per cent of the employees in Berlin start-ups come from abroad. There are people from over 180 countries living in Berlin. With their individual way of life, they are largely responsible for the creative atmosphere and the unique feeling of freedom that the city conveys. Berlin is the city of freedom.
DM: Which companies are in your partner network?
SF: Our Berlin Partner network now includes 280 companies and institutions. After reunification, Berlin’s economy faced some major challenges: building the economy, positioning Berlin as an attractive location and attracting investors to the city of Berlin. Back then and even today, being a Berlin partner means playing an active part in shaping an innovative major city with charisma and future potential. Our partners have committed more than six million euros as an investment in Berlin, which also serves to reinforce the economic clout of the German capital. I am looking forward to celebrating our 25th anniversary next year.
DM: In the first half of this year alone, Berlin Partner was behind the creation of 5,000 new jobs. The investment volumes in your projects came to around 296 million euros and third party funding for innovations totalled over 30 million euros. Will you exceed these figures in the second half of the year?
SF: Our half-year figures indicate a stable trend. More and more jobs are being created at companies that are moving to Berlin or planning an expansion here. Those figures are increasing. With 5,119 new jobs, we have already nearly reached the total number of new jobs in the first half of this year that we had accounted for in 2014. This shows that we are on the right path.
DM: You launched the Business Immigration Service (BIS) in 2016. Why?
SF: The Business Immigration Service has been around longer than that. The participants, including the foreigners’ registration office, the Chamber of Commerce and Industry of Berlin, Berlin Partner for Business and Technology, the Senate Department for Economy, Energy and Businesses, and the district authority of Charlottenburg-Wilmersdorf, moved together into Ludwig Erhard Haus in 2016. BIS is a unique association of all the relevant actors from the economic and administrative sectors for visa and residency issues. It allows us to guarantee fast communication within a maximum of 48 hours and transparent work processes focused on solutions. It is cooperation at its best.
DM: What can you tell us about your Start Alliance programme?
SF: Berlin Partner launched Start Alliance in 2015 as a city partnership network that helps speed up the entry of a given start-up into its partner’s market, reinforce efficiencies of scale, adapt business models to global requirements and promote innovation. Start Alliance has been a huge success for Berlin, for Berlin Partner, and above all for the start-ups that have taken part in Start Alliance programmes. We have gone abroad with more than 100 companies, and around 50 companies have come to Berlin. We maintain good contacts in the major global startup hubs of Paris, London, New York, Shanghai, Beijing, Tel Aviv, Vienna, Warsaw and Dubai. But we want to expand our network even further with both the addition of new cities and the development of existing partnerships, as was recently the case with New York.
DM: The latest global trade conflict between the U.S. and the EU has been settled for now. Are you still approaching American motorcycle maker Harley- Davidson all the same?
SF: Yes we are, because that is our mission. We brought nearly 100 companies to Berlin in the last several years, including software companies, publishers, service providers, manufacturers and many more. Over half of them came to Berlin from abroad, 12 per cent from North America. Whenever we find out that a company is looking for a site location, as Harley-Davidson is doing, we demonstrate that Berlin is the right city. After Harley-Davidson, I was also asked whether we had written to Levi’s. My answer was no, but only because we were not aware that Levi’s had any specific plans to move. If that changes, we will also write to Chip Bergh. The same goes for all other CEOs who decide not to subject their company policy to populism and isolationism.
DM: Industrial and commercial spaces in the capital are not only getting more expensive but also scarcer. Is this the biggest challenge you will be facing in future? Or is it perhaps the lack of fast Internet connections?
SF: It is right to say that we are under a lot of pressure in terms of space. And this is just the start of the problem, because Berlin is growing. You couldn’t stop it if you tried, because people are drawn to the city, it’s a fun place to be and work is taken seriously. Business development and politics need to work together in order to secure and expand office and commercial spaces. But we also want those who come to us to have a place to work in the city. This is why Berlin would do well to reserve living and working spaces in every neighbourhood. There are vast resources in terms of office and commercial space, like at Südkreuz, Gleisdreieck and in Europacity. We know that everyone involved in ‘Masterplan Industrie’, an industrial cooperation project, is aware that the commercial spaces need to be secured and developed. And bandwidth expansion is also part of urban development. These are two aspects of the same challenge.
DM: The German capital is an attractive location for research and development, particularly for tech companies. Which sectors will have an influence on Berlin in future?
SF: Berlin is the city where answers are found today to the questions of tomorrow. Take mobility, for example: The capital has long been the location for the digital business units of mobility companies such as Lufthansa, VW’s Ideation:Hub, Urban Mobility International, MOIA and Digital:Lab, Deutsche Bahn’s Mindbox, Audi’s Denkfabrik (thought factory) and many more. The same goes for all other sectors: around two thirds of all DAX companies have their think tanks in Berlin, where they are represented by digital hubs, accelerators and incubators.
DM: Thank you for your time.
INTERVIEW Enrico Blasnik