"Harnessing the Innovation Potential of Berlin's Digital Industry"

Berlin’s new 2022-2026 Startup Agenda was passed in November 2022. We talked to Norbert Herrmann, responsible for matters relating to the start-up economy at the Senate Department for Economics, Energy and Public Enterprises, to find out more about the agenda’s focus and next steps.

Berlin is still considered the start-up capital of Germany. More than 600 start-ups are founded in the city every year and Berlin's digital economy employed over 120,000 people in 2021. In addition, more than half of the VC funds invested in German start-ups have been allocated to Berlin for years, making the ecosystem a cornerstone of the Berlin economy. Passed by the Senate at the end of November, the 2022-2026 Startup Agenda aims to further expand Berlin's position as one of the world's most successful start-up metropolises and to set a new course – increasing diversity, sustainability and cooperation.

To do so, the agenda identifies five fields of action: promoting impact start-ups; attracting talent and skilled workers; strengthening female entrepreneurship and diversity; using synergies between start-ups, SMEs and universities; and expanding digital and modern administration by exploiting the potential of start-ups. The 2022-2026 Startup Agenda was drawn up under the leadership of the Senate Department for Economics, Energy and Public Enterprises (SenWiEnBe). We talked to Norbert Herrmann, responsible for start-up economy matters within SenWiEnBe, to find out more about approaches, focal points and next steps.

Mr Herrmann, the new Startup Agenda was passed just under a month ago. What has changed compared to the former version?

I was aware that the “old” agenda was being drafted as I held a position at a university entrepreneurship centre at the time. The activities and categories mentioned in 2016 actually still make sense today. Back then, the agenda focussed on labour/talent, land/infrastructure, capital/investments, and local and international networks. This time, we have set the priorities less generically and more according to fields of action that seem particularly relevant when reflecting on the ecosystem. Of course, the fact that we had access to a current study, the Berlin Start-up Report, the results of which we were also able to use as a foundation for the agenda, played into our hands as well.

Regarding the process of creating the agenda: we had planned to stay agile and participative. We were fortunate to have access to the structures of the Berlin Startup Unit, founded in 2015 by the state of Berlin together with partners from the start-up economy. Here, we found enthusiasts who gladly and explicitly assumed ownership of the themes and took charge to ensure that the Senate's Startup Agenda simultaneously became a document from the ecosystem, which was ultimately passed by the Berlin Senate on 22 November 2022. Which is truly exceptional! Especially as the contents are now being tackled by the entire ecosystem – with a shared willingness to achieve things together. For Berlin

The agenda is centred on  mpact start-ups. Why focus on these in particular? And what sets them apart?

As we are all aware, the climate crisis also impacts the capital region. As a result, start-ups identify with terms such as "climate change", "impact" or "purpose driven"; and these terms characterise their work. The German Start-up Monitor mentions start-ups that would use the term "green" to describe themselves. In 2022, 46 percent of all start-ups would use this term; in 2021, it was 42.8 percent. Regardless of how reliable these self-reported figures are, we have seen that the share of start-ups that would describe themselves as "green" is growing.

In which areas is Berlin's start-up scene most fit for the future?

That’s not quite as clear-cut. Berlin's unicorns often come from the e-commerce and quick commerce sectors as well as from the mobility and FinTech sectors. But we also see scale-ups like Thermondo or Enpal, which can clearly be classified as impact start-ups.

And of course a lot is happening beyond the unicorns. However, if I were to mention certain sectors here, other sectors or technology fields would rightly be outraged at not being mentioned. This is another thing that sets Berlin apart: the fact that so many different, successful start-up industries are at home here. Social start-ups, "purpose-driven" start-ups and, of course, FinTech and IoT. Even during the crypto winter, blockchain continues to play an important role, as does artificial intelligence – and so much more.

Start-ups still have difficulties when it comes to presenting their products and services to administrations and other public institutions or taking part in corresponding tenders. What could improve the situation? And what value could such a cooperation add for both sides?

More than two years ago, the Senate Department for Economics organised trainings for administrative staff, in cooperation with the Competence Centre for Innovative Procurement. The trainings aimed to simplify procurement procedures for innovations – within the legal framework, of course. Currently, interior administration in particular is tackling the modernisation of the Berlin administration together with the Senate Chancellery. In this context, the Going Digital Together: Berlin (“Gemeinsam Digital: Berlin”) strategy is a key document that outlines Berlin's digitalisation and smart city process. In fact, we are currently cooperating closely to ensure “Going Digital Together: Berlin” and the Berlin Startup Agenda are closely aligned. The person in charge of "Digitisation of Administration and Start-ups" comes from the “Going Digital Together: Berlin” team.

We are, of course, still pursuing the same aim: to harness the innovation potential of Berlin's digital industry and start-ups in particular and use it to advance administration. There are a number of starting points – from raising awareness among administrative employees and giving them access to training and development options at the Academy of Administration (“Verwaltungsakademie Berlin”) to the Govtech Campus run by the federal government, in which Berlin is also involved, to simply introducing administration and start-ups to one another. We are looking forward to cooperating with "Going Digital Together: Berlin" and other actors to tackle more ideas and take the next steps.

One aim is to make Berlin a beacon of cooperation between start-ups, SMEs and universities. However, the capital lacks suitable "spaces" where people can experiment in particular. How will the Startup Agenda take effect in this area?

I'm not at all sure that it's just a lack of shared space. In our experience, those who are willing to cooperate sometimes don’t come together for the simple reason that they are not aware of one another. We therefore aim to create more transparency about “who is willing” on the one hand and about "best practices" that already exist on the other. The Berlin Chamber of Industry and Commerce and the Association of Enterprises in Berlin and Brandenburg (“Unternehmensverbände Berlin-Brandenburg”, UVB) are particularly active in this area: we have two people from these two institutions on the team who are promoting cooperation. And the Start-up Round Table hosted by the Governing Mayor in early December addressed a closer linkage between universities and the Berlin start-up ecosystem, which I also find interesting and, in my estimate, extremely promising. In short: things are in motion.

Now that the agenda has been formally passed, you have your work cut out for you: what are the next activities and steps to ensure start-ups can benefit from the agenda as quickly as possible?

Start-ups are not waiting for us to develop their business models and seek customer contact. The Berlin Startup Unit is always available, especially Marcia Schranner and Christian Stigler from Berlin Partner für Wirtschaft und Technologie, as am I and the other actors. We try to help wherever we can. Nevertheless, we have, of course, planned further activities, overviews and alliances along with the Agenda to provide more effective support overall.

The Berlin Startup Unit and its advisory board have already held an initial meeting, during which we structured the five fields of action. This has helped us position the people in charge in a manner that allows them to develop their fields of action within the framework of working groups – which sounds more bureaucratic than it actually is. Anyone who wants to get involved and help us develop things is welcome. This helps us strengthen the exchange of ideas and information and the ecosystem network – and work on assignments arising from the Startup Agenda in the course. (vdo)