Fast Pace in the Digital Economy

The recent study draws a comparison of digital economy in selected cities and regions, and – in contrast to the previous years – focuses on the role of the emerging Fintech field.

In the past few years, Berlin benefited from the growth of online retail. Today, as the recent study shows, the city sees the development of new digital companies mainly in the field of Fintech.

Thus, the financial sector in Berlin is growing more and more digital because of numerous Fintech startups, sustained influx of highly-qualified workforce, and inflow of funds from venture capital.

Today, according to IBB, 106 active Fintech companies are based in Berlin. That is more than twice as many as in Frankfurt (Main). With this result, Berlin holds the first place compared to other German cities. Also with regard to the number of employees, Berlin ranks clearly before the other German cities with a workforce of almost 3,000. It is expected that Fintech companies may create up to 40,000 jobs in Berlin over the course of the next ten years.

Furthermore, women stand behind one in five newly established enterprises in the digital field. The share of foundresses amounts to 18.3 percent in Berlin and is thus exceptionally high compared to other big cities in Germany:

• 16.9 percent in Munich
• 16.1 percent in Cologne
• 15.3 percent in Düsseldorf
• 15.1 percent in Frankfurt
• 14.8 percent in Hamburg
• 13.6 percent in Dortmund

Senator of Commerce, Ramona Pop, says, it is “remarkable that digital economy startups with female participation have a much better chance to survive in Berlin than their male counterparts. Therefore, foundresses make a particularly lasting contribution to the Berlin startup scene.”

All in all, digitalization has become the most important economic factor in Berlin. The cooperation of science and businesses leads to the development of new marketable products and services using digital networks. About one fifth of the economic growth in Berlin takes place in the field of digital economy. Every 20 hours, a new internet company is established, and every eighth new job is created by the digital industry. Meanwhile, the digital economy employs about 77,000 people. Berlin has the same amount of newly established companies as Munich and Hamburg together, and is thus holding a leading position in the digital economy.