Berlin is more innovative than the national average

The Berlin economy is significantly more innovation-oriented than the overall German economy. That is the main result of the “Innovation Report Berlin 2013”.

The share of companies who introduced new products or processes was 57% in Berlin in 2011 and thereby 7 percentage points above the overall German average. Especially small and medium sized enterprises show comprehensive innovation performances in Berlin.  Bigger companies, however, do not perform as well regarding most innovation performance indicators. The highest innovator shares in Berlin are reported by the electronics industry, the software and data processing services as well as the Research and Development services.

In 2011, the Berlin businesses spent a total of roughly €2.87 billion for product and process innovations. This corresponds to investments of 3.1% of the total revenue, which is a little less than the 3.3% for the German economy in total. The slightly lower innovation intensity is mainly caused by lower investments in innovation projects. However, when only taking R&D expenditures into account the intensity is quite similar.

The market success of innovations is an indicator Berlin does not perform well in. Compared to other metropolitan areas in Germany, companies in Berlin generated lower revenues with new products. The share of innovative products of total revenue is 15.2% for Berlin, 19.8% on average for other metropolitan areas in Germany and 17.4% nationwide. One reason for the low performance on this indicator are large-scale enterprises in the industry sector as well as structural reasons like sector formation and company structures. When controlling for these structural differences Berlin shows even higher revenues from product innovation than the German average.

The Innovation Report 2013 has been established by the Chair of Innovation Economics at the Technical University Berlin, headed by Prof. Knut Blind, in cooperation with the Centre for European Economic Research in Mannheim (ZEW). In the report, for the first time an analysis of the innovation behavior of companies in Berlin has been conducted and compared to the German economy in general as well as other metropolitan regions. Indicators for the evaluation include innovation involvement, alignment of innovation activity, R&D activity, innovation planning and cooperation. The results are based on information from 1,727 Berlin based companies. An assessment of the innovation performance of Berlin’s economy will be continued in 2013.

More information as well as the Innovation Report Berlin 2013 (note: only available in German) can be found here:

http://www.inno.tu-berlin.de/menue/berliner_innovationspanel/parameter/en/

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