Strategies for creative spaces Berlin Case Study · 2.1 Creative economy 15 2.2 Creative enterprise and employment 15 2.3 Creative clusters 20 3. Creative industries strategy 24 3.1

Strategies for creative spaces

Berlin Case Study November 2006

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Introduction 3

1. Economic, political and demographic profile 51.1. Governance and political system 5

1.2. Economy 6

1.3. Demographics and population 9

1.4. Labour market and investment 11

1.5. Tourism 12

1.6. Urban regeneration 13

2. Creative industries 152.1 Creative economy 15

2.2 Creative enterprise and employment 15

2.3 Creative clusters 20

3. Creative industries strategy 243.1 Strength and weaknesses 25

4. Success factors 274.1 Lessons from Berlin 27

5. References 29

Appendix A – Projects and initiatives 31

Appendix B – Classification of creative economic fields 41

Contents

Berlin Case Study

“Berlin is 60% German, 35% New York and 5% jungle”.(Simon Rattle, Berlin Philharmonic)

Creative Spaces is developing strategies, specific to London and Toronto, to enhance the growth and development of creative industries in both cities. Drawing on international best practices identified through a combination of desk and field research, the project will identify optimal strategies for building the necessary infrastructure and environment in which creativity can flourish. The Strategies for Creative Spaces project is centered on three principal objectives.

1) The identification and evaluation of international best practice in the development of the creative city and in particular the creative cluster and the leverage of creative assets for broader local and regional economic regeneration and development.

2) The delivery of a practical learning experience for creative cluster, economic development, public policy and academic professionals that provides a stimulus to the development or refinement of creative cluster interventions.

3) Developing a deep network of ongoing bi-lateral relationships between creative cluster, economic development, and public policy practitioners in London, Toronto, and other major global creative centres around the world.

In order to meet these objectives, the project is framed around answering two key research questions.

• What ‘levers’ can be employed to nurture and grow the creative economy and a city’s creative assets and/or to make a city a creative/cultural centre?

• How can the value of a city’s creative/cultural assets be maximised for the purposes of regional economic development?

The Creative Spaces project is being carried out in three phases between early 2005 and mid-2006, followed by a programme of dissemination.

Phase I – Literature review and global scan of creative city and cluster strategies, policies and interventions. Identification and evaluation of the key success factors and ‘levers’ that are used internationally to pursue and sustain the development of the creative cluster. The Phase I Report is available to download at: www.creativelondon.org. An online searchable database of policies and publication abstracts is also available at www.citiesinstitute.org/creativespaces.

Berlin Case Study/introduction

Introduction

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This case study is one of a series of city reports produced as part of the Creative Spaces research project. Strategies for Creative Spaces is a collaborative initiative between the cities of London and Toronto – a joint venture between the London Development Agency (Creative London and the Evidence & Evaluation Team), the City of Toronto Economic Development and Culture divisions and the Ontario Ministries of Economic Development & Trade and Culture.

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Phase 2 – Drawing on the findings from Phase I, a comprehensive analysis and evaluation of the approaches taken by selected case study cities, including study tours of Barcelona, Berlin and New York, as well as London and Toronto, and how they might be transferred and applied to both cities. Follow-up with key city and cultural agencies has provided up to date economic data and project exemplars. This case study report on Barcelona is therefore published alongside reports on Berlin, London, New York, San Francisco and Toronto.

Phase 3 – The development and refinement of city specific strategies for developing and sustaining creative spaces and stimulating creative industry clusters in London and Toronto. The findings will be published in the form of a Final Report distilling policy implications arising from the whole project and outlining ‘Lessons Learned’ and transferable good practice across key themes developed from the Phase I global scan and city fieldwork tours. A programme of dissemination will then make the evidence and material available to a wider user audience at city, as well as national and international levels.

This City-Regional Case Study therefore documents the approach to development of creative spaces and the stimulation of cultural and creative industries taken by Berlin, drawing out the success factors and lessons, as well as pinpointing areas of weakness.

Firstly, an overview of the political and economic context and background to the city is provided. This is followed by a summary of population demographics, labour market, locational advantages, tourism and investment for the city-region. The approach to urban regeneration and neighbourhoods is outlined with examples of community development projects. The creative industries and economy is then detailed in terms of employment, trends, sectoral concentration and local and regional clusters, followed by a review of the recent creative industries strategy and supporting analysis and creative business surveys.

The report concludes with a summary of strengths and weaknesses, highlighting Berlin’s key success factors and current weaknesses. A selection of projects and initiatives is then detailed in Appendix A, as examples of innovative and good practice for other cities.

This report has been researched and written by the Cities Institute, LondonMet University (Graeme Evans and Antje Witting), with acknowledgements to Dr Cordula Gdaniec and colleagues at Humboldt University; Tanja Mühlhans, Coordinator Creative Industries Initiative, Berlin Senate for Economics, Labour & Women’s Issues; and participating creative enterprises in Berlin.

Berlin Case Study/introduction

1.1. Governance and political system

It then saw military parades, burning of synagogues, books and the exodus of its intellectual avant-garde under the rule of the National Socialists; the near total destruction of the city centre and its industrial districts; and the end of War followed by the Cold War and the construction of the Berlin Wall. Two generations of Berliners grew up in a divided city. While in West Berlin the post-War generation turned away from the previous generation and initiated a cultural revolution in 1968, the youth in the GDR either learned to adjust to the system and its rules or went underground. East and West Berliners were the centre-point of international attention when the Communist block gave in and the Wall came down in 1989. Germany was re-unified in 1990 and Berlin regained its status as national capital. Since then it seems uncertain of where it is going and what it wants to be: a unified city, the metropolis it had been the beginning of the twentieth century, or the capital of Germany.

In 1999 the renovated Reichstag building was officially re-opened and the national parliament started to debate there – Germany once again ruled from Berlin. However, on the day of the German re-unification, Berlin also became an independent state as one of three city-states (Stadtstaaten), together with Hamburg and Bremen that form part of the present sixteen German Federal States (Bundeslaender).

As such it has a Federal State Government (Landesregierung), which consists of a Governing Mayor (Buergermeister) Klaus Wowereit, Social Democratic Party (SPD) and eight Senators of which five are from SPD while the remaining three are from the Communist Party (PDS), which is in a coalition with SPD since the Federal State Election in 2001 (poll turnout 68.1 %). The Governing Mayor determines the direction of the government’s politics, such as local transport, sewerage and town planning, building and maintenance of schools, theatres and museums, adult education, with the consensus of the Senate (Senat). However, each member of the Senate is fully responsible and independently runs his/her department within the guidelines laid down by the federal government policy.

The House of Representatives (Abgeordneten Haus, approximately 150 members) is the representative body of the people in Berlin and appoints and supervises the government. In which the SPD, Christian Democratic Party (CDU), PDS and The Greens are represented.

The House of Representatives will be newly elected every five years – the next election will take place on 18th October 2006.

1. Economic, political and demographic profile

Berlin Case Study/part one 5

Berlin has experienced major social, political and cultural changes in the last century. In its early years it was the political, industrial, scientific, academic and cultural centre of Germany.

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The electoral mixed system of proportional presentation/ first past the post allows innovation (a small party can gain seats), but secures a level of stability (5% barrier). The current polls suggest that the SPD party will remain the ruling party. However, much will depend on who will lead the CDU election campaign and if the party will find coalition partners.

At the same time as the House of Representatives will be elected, the Borough Assembly (Bezirksversammlung, approximately 45 members) will be elected by those entitled to vote (incl. European citizens). Berlin is subdivided into 12 boroughs (Bezirke), which have been combined from the earlier 23 boroughs with effect from January 2001, in the context of the ongoing reform of the administrative body.

Each borough has an average of approximately 300,000 inhabitants, with a Borough Office (Buergerbuero), which is composed of the Mayor and the borough councillors. Every borough is allocated a lump sum to fulfil its tasks (as defined in the Budget Act). The boroughs are therefore fairly self-governed, but the Senate issues guidelines and supervises their budget allocations. Nevertheless, the policies of the boroughs vary according to the local context and political makeup.

Berlin boroughs are part of a very complex administrative apparatus, which was inherited from the administrative systems of the highly subsidised West Berlin and the administrative structures which were in place in East Germany when it was capital of the GDR (a majority of Civil Servants are on permanent contract). Approximately 207,000 civil servants worked in Berlin in 1991, which is twice as much as the federal states benchmark for 2012. Berlin’s administration is the subject of an ongoing reform process, aiming at expenditure cuts and more efficiency (Sen Fi, 2006) and the number has gradually decreased to 130,657 in 2005, however 31% of Berlin’s budget in 2006 is still allocated to staff expenditure (Sen Fi, 2005).

1.2 Economy

Table 1. Key economic indicators

Indicator (year) Value

GDP (2004 current prices) €77,858 million

Growth rate (2004) 1.3%

Registered Unemployment rate (2005) 19%

Economically Active (2005) 53%

RPI Inflation (1/2005) 1.6%

Creative Industries/GDP (2002) 11%

Creative Industries Employment (2003) 84,000/8% Sources: StaLa Berlin (2006), SenWiArFrau (2005b), IHK (2005), Sen WiArFrau/ WiFoKunst (2005)

Before World War II Berlin was a Metropolitan Centre comparable to London and Paris. (BBR, 2005). The city lost relevant functions and industries to other cities in Germany due to the post-war settlement (Sen Stadt, 2006). During the city’s division, its industries mainly depended on subsidies, while cities in West Germany gained strength. In consequence Germany now has a strong polycentric structure.

From 1991 to 2001, Berlin’s industrial base lost over 150,000 jobs. Unemployment went from 10% in 1991 to 19% in 2003 (11.6% nationally) (Sen WiArFrau 2005b). Two key factors contributed to this: the run down of industrial activity in the former East, and the ending of subsidies to production in the West, both leading to factory closures and relocations to lower-cost areas. Manufacturing employment fell from 264,000 in 1991 to less than 112,000 in 2001 (Kraetke, 2004).

Berlin has not had the manufacturing base which inhabits the outer/fringe areas of other German cities. Berlin is said to be an expression of a fundamental structural weakness throughout the metropolitan region. Its renewed role as capital city has seen some rebalancing towards service sector activity – the software industry has doubled, the advertising sector increased by two thirds – but not enough to compensate for its structural weaknesses revealed post-unification. Other cities have a higher concentration of advanced producer services and larger enterprises/corporate HQs, which had left Berlin on its division. (Figures 1 and 2).

Berlin Case Study/part one

7Berlin Case Study/part one

Figure 1. Relative concentration of advanced producer services (exc. Financial sector) by location quotients (Kratke 2004)

Figure 2. German ‘Headquarter cities’: concentration of large enterprises by location quotients, 2002 (Kratke 2004)

Berlin

Dresden

Leipzig

Hamburg

Munich

Stuttgart/Esslingen

Frankfurt-MainDusseldorf/Cologne/Essen

0.660.54

0.42

0.300.14

0.32

1.091.60

0.00 1.00 1.50 2.000.50 2.50

1.302.09

1.251.94

1.851.79

1.291.82

Large Enterprises > 50 million euros sales

Large Enterprises > 50 million euros sales with external subsidiaries/branch plants

Berlin

Dresden

Leipzig

Hamburg

Munich

Stuttgart/Esslingen


1.44

1.02

1.07

1.89

2.46

1.59

2.32

1.95

0.00 1.00 1.50 2.000.50 2.50

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Nonetheless, Berlin is now rated Germany’s second most popular business location after Frankfurt/ Main, one place ahead of Munich. Berlin ranks eighth in the league table of Europe’s 30 most popular business locations. Factors of importance for the ranking were, for example: ease of access to the market, a ready supply of qualified staff and good traffic connections, quality of telecommunications, and cost of staff. Berlin ranks in the top ten best cities for businesses in terms of qualified staff, quality of telecommunications, and value for money of office space, languages spoken, and internal transportation (Cushman & Wakefield, 2005).

Berlin is unique in terms of available premises, with 7 million m2 of new office space built between 1990 and 1998 alone, but this speculative over-building fuelled by special tax incentives, has left 1.2 million m2 of unoccupied space (including in premium locations). This has created an opportunity for cheap premises (office rents have fallen by 70% since 1991), but also an unused asset, and critically, the legacy of a massive debt burden and a lack of faith in the city’s politicians (Kratke, 2004).

Berlin offers a broad and high quality public transport infrastructure. It has three airports: Tegel Airport (TXL), Schoenefeld Airport (SXF) and Tempelhof Airport (THF). 2005 is said to have been the most successful year ever for Berlin’s airports. The number of air

passengers and direct flights to and from Berlin were on the increase, including daily Berlin-New York flights. In December 2005 Qatar Airways began flying directly from Berlin Tegel to Doha, in the Emirate of Qatar, which offers connecting flights to destinations in Asia and Africa. Negotiations are underway for direct flights to Hong Kong, Bejing and the Arab Emirates. (Berlin Partners 2007–2008/ 2005, 1/2006).

The capital is easily reached from all directions by rapid InterCityExpress, EuroCity and InterRegio trains (www.bahn.de). The new Lehrter Station in Berlin-Mitte is expected to link Berlin to other Metropolitan Centres in Germany. Motorways: A115 – Leipzig/ Munich; A113 – Dresden, A114/111 – Hamburg/ Rostock (www.adac.de). The capital’s public transport service is reliable, accessible, affordable and of high standard (SenVer Stadt, 2003).

According to the Senate Department for Economics, Labour and Women, Berlin’s broadband supply is better than the national average (17 %) with a DSL supply rate of 26% relative to the number of Berlin private households, including alternative broadband offers via cable and wireless media (Berlin Partners, 2007–2008/2005). 74% of households (1.4 million) are cabled, with nearly a million having 862MHz broadband access. This is due to modernisation of the entire telecommunications network after the fall of Wall.


Table 2. Berlin airports passengers (Year to November 2005)

National European International Total

Tegel 5,084,817 5,352,227 232,060 10,670,034

Tempelhof 366,774 110,821 85 494,292

Schoenefeld 693,338 3,648,895 284,954 4,629,613

Berlin Total 6,144,929 9,111,943 517,099 15,793,939

Frankfurt/M 6,495,675 22,883,741 18,813,590 48,205,378

Source: IHK (2005)

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Berlin has also improved its position in German’s metropolitan league table from nine to six, and in terms of medical treatment (Berlin is promoted as the ‘Life Science’ capital), tourism and transport, Berlin occupies the runner-up spot (Berlin Partners, 9/2005). In 2004 Berlin had the country’s best image in the media (news programmes, daily and weekly newspapers), well ahead of Hamburg, Munich, Frankfurt/Main and Cologne (Berlin Partners, 2/2005).

1.3 Demographics and population Berlin is the largest city in Germany, with 3.4 million inhabitants (51.2% female and 48.8% male) and covering an area of 892km2/ 38.8m2 per capita (Statistisches Landesamt Berlin, 2005) – equal to the area of Munich, Stuttgart and Frankfurt/Main combined. The metropolitan regional population is 4.3 million (2005) and is expected to grow to 4.4m by 2010. Reasons for growth from 1990 to 2000 were more international than national migration, while from 1999 onwards domestic migration has increased (SenVer Stadt, 2005).

The average rent of a unit of 60m2 to 90m2, including central heating is €7.39/m2 (Mietspiegel, 2003) – a four-bed flat costs the equivalent of a basement studio in London (Benoit, 2006). Berlin is more densely populated than other German cities, its inner city even more densely inhabited than London (Figure 3).

Berlin is a demographically young city: most recent records of the Statistische Landesamt Berlin show that 41.4% of Berliners are aged from 18 to 44, while 26.6% are aged 45 to 64. 16.6 % are aged 65 or over, and 10.4% 6 to 17 (Table 3).

Table 3. Age groups

Under – 5 5%

6 to 17 10.4%

18 to 44 41.4%

45 to 64 26.6%

65 and over 16.6%

Source: StaLaBerlin (2005)

Berlin is as much a city for singles as it is for families. Approximately 50.2% of Berlin’s households are single households. Out of 816,800 families, 41.6% have children less than 18 years old (Statistisches Landesamt Berlin, 2005). A recent survey suggests 95% of parents have access to all-day care for their children (compared with 74% in Munich). This survey concludes that the fact Berlin has the highest proportion of part-time workers among Germany’s five most popular cities suggests that raising children and pursuing a career are not incompatible in the capital (Prognos Market Research, in Berlin Partners, 12/2005).


Figure 3. Population density in German cities and London

Source: www.stadtentwicklung.berlin.de/umwelt/umweltatlas/eda606_01.htm

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Population density entire city (p/ha)

Population density inner city (p/ha)

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Berlin is also a well-educated city. In 2005, 141,010 students were enrolled at 21 universities and colleges (including 5,157 enrolled at cultural institutions for higher education). A further 56,787 Berliners were in vocational training and 15,578 adults were enrolled in adult education (Statistisches Landesamt Berlin, 2005). Approximately 19,880 international students were enrolled at Berlin’s Universities in 2003. (Sen WiArFrai, 2004). No information was available that explains why Berlin is attractive for international students. Free Higher Education is assumed to be one factor. While fees have already been implemented elsewhere in Germany (e.g. NRW), Berlin is unlikely to implement fees soon, as it has just formalised financial arrangements between Senate and universities from 2006 until 2009 (Hochschulrahmenvertrag 2006–2009). Nevertheless, the fiscal situation puts the Senate under pressure to implement changes in the long run. Another reason is said to be the high reputation of Berlin’s universities (e.g. Humboldt University) and the wide range of courses offered in the City Region (Sen WiFoKu, 2006).

A majority, 86.6% of Berliners, hold German citizenship (Statistisches Landesamt Berlin, 2005). Over 450,000 foreign citizens live in Berlin (December 2005), including 115,300 from Europe, 118,700 Turkey, 17,400 Africa, 22,700 North/South America, and 66,400 from Asia. Over 6,500 foreign citizens – 4,132 European and 2,536 Turkish citizens – became German citizens in 2004.

Berlin is perceived as an open minded city: whatever opinion or lifestyle people choose to have, Berlin is – despite its proverbial gruffness, a tolerant city hosting/partying on annual events such as Christopher Street Day, Carnival of the Cultures, Fete la de Musique and the Love Parade (to be relaunched in 2006). Launched by a local DJ in 1989, in 1990 2,000 people came to dance in the streets, two years later 50,000, and by 1995 there were 300,000. By then the route was changed to accommodate what by 1999 were 1.4 million people and over 50 floats. The Berlin Senate organises a host of sponsored cultural events around the parade – art shows, operas, clubs, films. The city sees this event as a draw for youth culture with the hope that the visitor (average age is 21) will like it so much that they will come back. The event enjoyed political demonstration status which allowed the city to pay for clean-up (over £100,000). Although a largely ‘free’ event, 800,000 spend on average £69.

Berlin is also a secure city. The total number of crimes recorded declined from 594,393 in 1996 to 539,667 in 2004.

Berliners are also open to new technologies. Berlin is Germany’s number one online state with two thirds of Berliners registered as internet users (N)online Atlas 2005). Berlin is also a diverse and divided city, reflected in different district profiles:


Table 4. Demographic data for selected Berlin boroughs

Highest Lowest Berlin Total

Age Group 15–65 % Friedrichshain-Kreuzberg 77.1%

Lichtenberg 50.4%

51.2%

Number of inhabitants Pankow 350,500

Spandau 225,700

3.4 million

Foreign nationals % Mitte 27.7%

Treptow-Koepenick 3.4%

13.4%

Average income per household

Steglitz-Zehlendorf €1800

Friedrichshain-Kreuzberg €1200

€1475

Source: StaLaBerlin (2005)

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1.4 Labour market and investmentBerlin’s labour participation rate is however low at 53% (Statistisches Landesamt, 2005). The population in Berlin worked approximately 50 hours more than the national average in 2003 (Berlin Partners 04/2005). Approximately 19.4% of Berliners are registered unemployed. Out of 16, only two Federal States have higher unemployment rates (Sen WiArbFrau, 2005, p.19).

In terms of access to markets, research by the Berlin Business Development Corporation (BBDC) suggests that companies in Berlin are significantly more active in the new European Union Member States and rate the business effects of the EU expansion far more positively than the national average. Berlin tries to establish itself as the ideal location for any company that wants to do business with central and eastern European countries. Almost 70% of Berlin’s foreign trade-oriented firms are said to currently conducting business with partners in the new European Member States. Nearly 60% of the companies polled in Berlin are hiring personnel from these regions in order to develop a basis of country-specific know-how within their company, rather than cutting costs (www.wfbi.de, 29.04.05). However, the high unemployment in (east) Berlin and underemployment of well-educated/ skilled (east) Berliners, also reflects a loss and under-use of talent, and a lost opportunity to exploit this comparative advantage of trade and cultural links to the ‘East’.

The evidence does however suggest that the investments in modernising the entire telecommunications and transportation infrastructure and the (re-) development of new living and working places in the 1990s have been paying off. These factors, alongside soft factors such as a skilled workforce and image, have been attracting new companies and investment to Berlin (IHK, 2005, Berlin Partners, 1/2006), for example:

• MTV Germany moved to Berlin in 2004

• Publisher Econ Ullstein moved from Munich to Berlin-Mitte in 2004

• Siemens started in 2004 to develop its new HQ in Berlin

• Intercontinental Hotel Group start developing first Express by Holiday Inn

• European Business School of Management founded by 25 German companies including Allianz, Axel Springer Verlag, BMW,

DymlerChrysler, Deutsche Bank and Lufthansa began training students in January 2006

• SonyGermany (HQ) joins SonyEurope (HQ) in Berlin in 2006

Another example is the Kircher-Burkhardt newspaper design and corporate publishing company established in the city in 2000. Relocated from Hamburg, the owner admitted: “I needed the best people in the field and they would only work for me if I were in Berlin”. The firm’s sales have increased five-fold over the past two years (Benoit, 2006).

The number of new business start-ups is higher than closures. In Berlin, 80% of new businesses are sole traders – one out of three of which is founded by a woman. The majority of new businesses are from within the services sector. (Sen WiArFrau, 2005b). In the past two years an estimated 27,000 companies were created, primarily ‘sole traders’ (DIW, 2005). The boost in the number of new single person businesses is said to be impacted by labour market measures such as the ICH-AG – initiative which is a three year public funding scheme for new businesses that targets jobseekers. Berlin has the lowest trade tax levy of the main German cities, and up to 38% investment grants for SMEs.

The latest joint survey by the Chamber of Industry and Commerce and the Chamber of Handcrafts suggests that the Berlin economy will continue to grow in 2006 (Berlin Partners, 1/2006).

Services and tourism are the strongest sectors (IHK Berlin, 10/2005, p.10), with exports the main engine for growth (Statistisches Landesamt Berlin 2005, Sen WiArFrau 2005, IHK 2005).

An estimated 11,000 companies work in the media and related software, communications sectors (wider than the ‘creative industries’ as defined, p. ) and employ 130,000 (www.berlin-partner.de). Making it the fourth most important employment area after transport, biotech and medicine/health. It is Berlin’s image and concentration of knowledge intensive industries, supported by its Higher Education/R&D base that represents the city’s economic and creative potential (Figure 4).


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An active media policy PROJECT FUTURE supports firms in the media, music and communications sectors (www.berlin.de/projekt-zukunft). Over 30% of all venture capital flows into these sectors – 43 of the 270 companies which receive federal equity assistance (technology partnership subsidy) are based in Berlin.

Nevertheless, in political economic terms, Berlin is a ‘poor’ city. Factors such as extensive investment in its infrastructure and the expensive administration have increased the budget deficit to an extent that Berlin cannot recover without external help. For that reason Berlin has opened a legal case about formally recognising its financial status (“Extreme Haushatsnotlage”) in order to be able to access further federal government funding. The capital’s budget deficit was approximately €58.6 million at the end of 2005 (Sen Fin, 2006). Less than 50% of the city’s annual budget is covered by locally generated taxes.

Furthermore the capital has the lowest GDP in Germany (Sen WiArbFrau, 2005b). From a 10.7% growth rate in 1992, this declined rapidly to negative growth in 1996–1997, only recovering a small growth rate of 1.3% in 2004 (versus 2.3% in Germany).

Berlin, as a city authority, has the right to raise its own taxes, but also receives funding from the Federal Government (about 30% of its 2006 budget), such as allocations under the financial equalization arrangements that apply in every state. Federal state responsibilities and revenues are currently being reviewed in the context of a fundamental federal

system reform. Cuts in federal funding are therefore being considered and are felt to be unavoidable.

The Senate therefore defines the following barriers to economic growth in Berlin: cuts in public spending, low national economic growth, and the threat of increasing petrol prices, as well as the unstable Euro (Sen WiArFrau, 2005b).

1.5 TourismIn terms of visitor activity, the number of national tourist arrivals has increased in 2005. Berlin is also becoming more attractive for foreign visitors (see Table 5). The growth in Berlin is said to be far higher than the national average (Berlin Partners, 9/ 2005).

Table 5. Overnight stays in Berlin, 2001 and 2004

Foreign Visitors 2001 2004

USA 386,639 423,660

UK 315,552 504,971

Italian 240,421 369,729

Netherlands 221,778 369,069

Denmark 164,473 241,459

Sweden 143,953 147,895

France 142,282 204,914

Japan 114,382 118,716

China/Hong Kong 42,578 56,082

Total 3,029,873 4,224,825

Source: IHK Berlin (2005c)

Figure 4. Concentration of ‘knowledge-intensive’ activity by location quotients, 2002 (Germany = 1) (Kratke 2004)

Berlin

Dresden

Leipzig

Hamburg

Munich

Stuttgart/Esslingen


1,82

2.07

1.69

0.96

1.73

1.26

1.24

1.06

0.00 1.00 1.50 2.000.50 2.50


As a cultural tourism destination, Berlin is rich in arts, heritage and entertainment with its museum island, 17 national museums, 300 galleries (200 private), the Bauhaus Archive, 150 theatres, three opera houses, eight orchestras, and the 76,000 seat Olympic stadium completed for the 2006 World Cup.

The number of day-trippers also increased from 2003 to 2004 by 64%. From a total of 123 million day-trippers in 2004, 25.6 million were business travellers (Berlin Tourist Board, in Berlin Partners, 10/2005). According to a report from the International Congress and Convention Association (ICCA) and the Vienna Tourist Office, Berlin is the world’s fourth most popular city for congresses and trade fairs, after Singapore, Barcelona, and Vienna (Berlin Partners, 07–08/2005). The German capital already tops the league table of venues for medical conferences. In May 2005 the city hosted the biggest ever Metropolis Congress, including city mayors and five hundred guests from 80 cities around the world (Berlin Partners, 6/2008).

Further international events, fairs and conferences include the World Cup in 2006, annual ECHO CEREMONYS, IFA, POPKOMM1, Buch! (Book Fair) Berlin, WOMEX Music Fair, ITB Tourism Fair, and an international design festival now in its third year, Design Mai (see below), and fashion fairs such as: Bread & Butter, Premium and Spirit of Fashion. The 10 day Berlinale is one of the most prestigious film festivals, with 40 screens in 13 cinemas and with over 13,000 seats, attracting nearly 400,000 ticket buyers in 2005 (tickets cost €7 to €11). In 2006 this will incorporate the 3rd Turkish Films Week (Turkish language films with German subtitles). The first Art Biennale held in 1998/9 attracted over 80,000 visitors, now several times that number attend; Berlin also hosts the annual Transmediale festival for art and digital culture, now in its 19th year.

The Berlin Fashion Week held in late-January attracted over 60,000 visitors in 2006. In 2009 Berlin will host the World Athletics Championships, the third largest sporting event after the Olympic Games. The €30 million culture programme in the build up to and during the 2006 World Cup has featured football in Fashion Week and in art galleries – the upmarket Martin Gropius-Bau gallery filled with football shorts, videos, fan memorabilia and a mini-pitch laid out in the main gallery. The World Cup promotion is being used to lever a larger image

campaign, including an exhibition of 70 artists from 20 countries, a football opera, business campaigns and worldwide football road shows, and the first ever Olympic-style opening ceremony to the World Cup itself.

1.6 Urban regenerationIn recent years, economic difficulties, increasing poverty, and outward migration of the middle classes have caused changes in the social structure of some of Berlin’s districts, often worsened by ethnic problems.

EU Structural Funding

Berlin has been allocated €1.2 billion between 2000 and 2006 from European Structural Funds (ERDF). The funds are managed by the Senate Department for Economy, Labour and Women. Berlin also expects further funding from 2007 to 2013. 70% of the funding is used for the structural improvement of the former eastern half of Berlin (€0.72 billion). 11.5% of the funding is used for the economic and social transformation of districts with structural problems in parts of West Berlin (€ 0.4 billion), whilst 12.3% of the funding is used for the modernization of the education and vocational training systems and for promoting employment parts of West Berlin (€0.19 billion).

In addition, the European Union finances Community initiatives (small-scale support programmes) such as URBAN II (Sen WiArbFrau, 2006) and LEONARDO (see Appendix A – Volicity).

The URBAN II EU Community Initiative supports run-down towns and neighbourhoods. The current funding programme runs from 2000–2006. The programme aims to invigorate local areas economically and socially to enable urban development. Funding of €20 million is provided 75% by the EU and 25% by federal and city funding.

The URBAN II location in Berlin is a 425 hectare area around Ostkreuz, situated 5km south of the city centre. Comprising 4 neighbourhoods in two districts of Lichtenburg and Friedrichshain, these include large housing estate of Frankfurter Allee-Sud and the area around Weitlingstrasse with a mix of pre- and post-first world war tenements. On the Friedrichshain-Kreuzberg side is the predominantly original nineteenth century residential area


1 Echo rivals the Brit Awards as the music industry’s second most important accolade after the Grammy; IFA – is the trade fair for experts in the European and international consumer electronics industry as well as increasingly the IT and telecoms sector; POPKOMM – international business and communication platform for music and entertainment industries.

13

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including the industrial works in Oberbaumcity (see p.30), now a location for media and service industries. The population of the targeted areas has been falling from 30,000 in the 1990s as young families leave due to job losses in manufacturing and as quality of life deteriorates. Small enterprises, craft and service industries also face competition from areas with better infrastructure – 50% of shops in the project lay empty (Appendix A).

Neighbourhood management

In 1999, the Berlin government, in co-operation with the boroughs, defined 15 ‘areas with special development needs’. In 2001, two more areas were added. In order to achieve a lasting improvement and to contribute to their stabilization, it was decided to implement Neighbourhood Management (NM) initiatives (Quatiersmanagement) in each area. This was done within the framework of the programme The Socially Integrative City (Soziale Stadt) initiated by the federal government and the governments of the federal states of Germany in 1999.

Initially, the pilot scheme was intended to run for three years, then extended for two more years. These 17 neighbourhoods contain 227,000 people. The numbers of residents in each neighbourhood range between about 4,500 and 24,000 people.

The following fields of action were defined.

• Employment and training

• Local business

• Integration of diverse social and ethnic groups

• Caring for residential areas

• Social infrastructure – schools, children, young people, senior citizens, and families

• Urban culture

• Health promotion and special needs

• Encouraging public participation

Additional Neighbourhood Funds (Aktionsfonds) are available. These funds provide each neighbourhood with a maximum of €500,000 per annum to provide frontline support for local projects. Local people manage the funds. Residents and initiatives from the neighbourhood can apply for funding. The initiative

is said to be inspired by initiatives in London, UK (e.g. New Deal for Communities – Senate, 2004).

From 1999 to 2003 approximately 2000 projects had been established in Berlin. (Senate 2004a) Many of these district projects focus on developing creative potential, establishing and strengthening a sense of identity and on closely-related image improvement, participation, learning and communication. Although culture is not seen as a panacea to eliminate social deprivation, it is often in disadvantaged neighbourhoods that social problems manifest themselves culturally. In this respect, cultural initiatives have assumed an informal educational function at neighbourhood level2.

Art and cultural projects are also seen to be capable of integrating hard-to-reach groups (particularly new migrants) into the district development process. This is because the projects do not require language skills or high levels of education, but more the ability to get involved in something new, to take practical action and to stretch imaginations and creative abilities. Addressing individual population-groups face-to-face and arranging cultural activities to fit in with daily routines appears to have been the most successful method to spur community involvement2 .

Strategies encouraging district culture in Neighbourhood Management areas are therefore aimed at weaving art and culture into the fabric of the local communities, creating opportunities to identify with the programme areas, improving image – casting the districts in a new light by launching cultural initiatives, changing accepted perceptions and inspiring new modes of learning and expression, along with establishing and expanding cultural networks. The projects and initiatives commonly rely on productive tasking, i.e. an emphasis on participation and DIY. Examples of supported neighbourhood projects are summarised under Appendix A – Projects and Initiatives, below.

According to the Senate the Neighbourhood Management initiative has reduced the number of pupils dropping-out and improved individual achievements in school in these areas. The number of social aid recipients has also declined, while the number of jobseekers entering the labor market increased here. Not only the quality of life and the perceived feeling of security in the participating areas have increased, but the number of recorded crimes also declined (Senate, 2004).


2 http://www.stadtentwicklung.berlin.de/wohnen/quartiersmanagement/index_en.shtml

2.1 Creative economy The award follows approximately six months after the city’s first Creative Industries in Berlin report was published (May 2005) that has inspired dialogues and discussions about the Creative Industries. The term is used to describe the cultural business sector and its relevance for Berlin. It was the first step to review the Creative Industries in Berlin in depth.

An earlier national report had highlighted that Culture was an important factor in improving Berlin’s image in the world and in supporting economic growth in the capital (DWI, 2002). Berlin’s creative economy is estimated to account for 3.6% of Germany’s GDP (with Hamburg having the highest proportion of ‘cultural goods production’ of all German cities: 1.7% of GDP compared with 1.3% German average). The Enquete Commission of the House of Representatives in Berlin3 drew the same conclusion in its May 2005 report and recommended that the Federal State of Berlin acknowledges the potential of the Creative Industries and of creativity as a major production factor in boosting economic growth. It suggests focusing on the development of a cultural cluster for Berlin as there is already evidence of creative clustering, but the report also came to the conclusion that more robust data about the Creative Industries is required.

2.2 Creative enterprise and employmentThe Senate Department for Science, Research and Culture published in the same month its first joint report on the Creative Industries in Berlin, together with the Senate Department for Economy, Labour and Women. According to Tanja Mühlhans, Coordinator Creative Industries Initiative in the Senate’s Department for Economics, Labour and Women´s Issues, a second report is planned for 2007/8. (communication with T.Mühlhans, 2006)

For the purposes of this Senate review, the term Creative Industries refers to the following sectors: Art Market, Literature, Print and Publishing, Architecture, Advertising, Audiovisual Sector, Software and Telecommunications, Music Sector, Performing Arts and Entertainment (Appendix B). The enterprise and employment figures in the report conform to the NACE Classifications (Classification of Economic Activities in the European Union – Appendix B). The report is based on statistical data for the period 1998–2002 (updated to 2003, StaLA Berlin, 2006), and draws the following findings.

In Berlin, more than 80,000 people are said to currently working in the different segments of the Creative Industries sector, which corresponds to

Berlin Case Study/part two

2. Creative industries

3 The Commission includes representatives of all parties, and aims to formulate a position paper that reflects social trends

15

Berlin has become the first German city to be appointed a City of Design by UNESCO. The organisation describes Berlin as an interface for and intersection between a variety of cultures, lifestyles, and traditions, making it an attractive location for imaginative minds and “a breeding ground for creative ideas” (UNESCO, 2006).

16

2000 2001 2002 2003 2004

25000

20000

15000

10000

5000

0

15.15816.417

18.010 19.637

21.194

approximately 8% of all gainfully employed people who are subject to social insurance contributions in Berlin (Table 6). This does not include a significant number of artists, designers and sole traders in creative occupations, because they either have an annual turnover of less then €16,617 (c.£10,000) or are not registered under a compulsory legal insurance/pension scheme (Kuenstlerkrankenkasse).

Approximately 20,000 to 30,000 economically active freelance/self-employed are estimated to work in the creative industries, which are not reflected in the ‘official’ data. For instance, an estimated 20,000 professional/semi-professional musicians, and many freelance performers and audio-visual specialists (Kratke, 2004).

With a share of 5.8% – in relation to the overall population – Berlin has the highest density of freelance artists in Germany. The number of individual artists in Berlin is said to have risen by more than 40% since 2000 (Figure 5). Additional secondary data indicates that sole traders working in advertising rose from 22.5% to 27% between 1991 and 1997.

Between 1998 and 2002, employment rose by more than 7% with variations between individual sub-sectors, e.g. media and advertising grew by 8.5% p.a. as Berlin established itself as an international media hub (Kratke, 2004).


Figure 5. Artists in Berlin, 2000 to 2004

Source: Sen WiArFrau/WiFoKunst (2005)

Table 6. Creative enterprises in Berlin4 (2003)

Sector Number of Companies Number of Employees % Change 2002–03

Print Market and Literature

4,532 18,327 – 7.5

Audio-Visual, Film & TV 1,702 12,618 – 4

Software and Telecommunications

2,256 16,822 – 8.7

Music Sector 1,379 5,717 + 0.5

Art Market 4,651 13,151 – 7.5

Advertising 1,806 5,943 – 6.5

Architecture 2,742 6,682 – 8.7

Performing Arts 1,061 5,084 – 5.7

Total Number 20,129 84,344 – 6.6

Source: StaLA Berlin (2006)

4 Umstatzsteuer Statistik der Jahre 1998–2002, includes all enterprises with an annual minimum turnover of €16,616 (c.£10k)

17

The number of people working the Creative Industry segments indicates that the Creative Industries sector is an important part of Berlin’s labour market. The city’s more than 20,000 Creative Industries companies (Table 6) have a sales volume of nearly €8 billion, which represents an 11% share of Berlin’s GDP Table 7). Overall, the average size of the 20,000 registered companies is 4.8 people per company.

The large number of design studios and freelance artist explains the strong position of the Art Market (which includes jewellery, fashion and textile design and manufacture). However, most of the Creative Industries are micro-enterprises – an estimated 50% of creative businesses in 2000 (Gdaniec, 2000) were individuals. It is estimated that over 85% of the 1,200 design firms are 1 to 3 person enterprises with less than €15,000 in annual turnover (Lange, 2005) and henceforth not included in the ‘official data’, above.

The Senate also highlights that the Creative Industries in Berlin increasingly rely on private funding, as public funding is decreasing, see Table 8 below.


Table 7. Gross Sales by Creative Industry Sector (2003)

Sector Sales in €000s € Sales per Employee Revenue Share of Berlin’s CI Sector

Literature, Print, and

Publishing

1,916,580 104,576 23.9

Audio-Visual, Film & TV 1,417,402 112,332 17.8

Art Market 1,158,732 68,882 14.5

Software and Telecommunications

1,137,512 198,970 14.3

Music Sector 1,014,142 77,115 12.7

Advertising 655,845 110,355 8.2

Architecture and Cultural Heritage

445,064 66,606 5.6

Performing Arts and Entertainment

224,027 44,065 2.8

Total Sales € 7,969,304 € 94,485 100%

Source: StaLA Berlin (2006)

Table 8. Dependency on Public Funding

Sector Dependency on Public spending 2000

GA** Funding in €000s2003

Literature, Print, and Publishing Low 10,945 6,743

Audiovisual Sector Average 24,996 6,092

Art Market Low 1,207 201

Software and Telecommunications Low 8,356 7,154

Music Sector Average 2,714 740

Advertising Low 3,948 1,914

Architecture and Cultural Heritage High 1,813 589

Performing Arts and Entertainment High N/A N/A

** “For the improvement of regional Economic structures” (GA)

Source: Sen WiArFrau/WiFoKunst (2005)

18 Berlin Case Study/part two

The sales income of the Creative Industries in Berlin also grew, by 6% between 1998 and 2003 (Table 7). The highest growth rates are found in Literature/Print/Publishing, Audio-Visual, Art Market, and in Software and Telecommunications. The combined sales of these sectors corresponds to 72% of total sales in Berlin’s Creative Industries. Sales/GVA per employee are comparatively high, with an average of €89k (versus €68k in London = £41,000). The highest value production sectors are Software & Communication, Audio-Visual, Advertising, as well as Print & Publishing.

As a metropolitan area and city-region, Berlin is said to benefit from the high population density and catchment, and economic processes that favour the emergence of creative environments and centres. The Senate report identified already visible Creative Industries clusters in the east part of Berlin, such as Berlin-Mitte (Art Market) and Oberbaumbruecke (Music Sector). The Music and related Club scene draws on a large number of musicians, DJs, sound and video technicians and promoters (over 200 clubs) with 70 recording studios and 600 record labels. The MTV Music Award ceremony held in the city from the late-1990s also established Berlin on the global pop music Scene.

The following analysis is taken from the report of the DIW on the Creative Industries in Berlin, and the Cultural Index for Autumn 2005 – both published in November 2005, further to the CI report of the Senate outlined above. The German Institute for Economic Research (DIW) published additional employment data in Autumn 2005 for the following sub-sectors: News/Journalists, Advertising, Film Industry, IT/ Multimedia, Publishing, Radio & TV, and Libraries/ Museums/ Archives. The DIW is one of the leading research institutes in Germany. DIW Berlin was originally founded in 1925 as the Institute for

Business Cycle Research and was later renamed the German Institute for Economic Research. It is an independent, non-profit academic institution which is involved in basic research and policy advice. More than half of the Institute’s budget is derived from public grants, which DIW Berlin receives as research funding equally from the City of Berlin and the Federal Government.

The DIW definition of the Creative Industries reflects only 86% of the sub-sectors analysed in the Senate’s earlier report. However the DIW agrees that the creative industries are an important part of the labour market (DIW, 2005).

Figure 6. Employment Change (%) in Berlin’s Creative Industries Compared to Federal and other metropolitan areas 1998–2004

National

Other Urban Areas

Why is Publishers mentioned twice?This is in the base material

Source: DIW (2005)

News/Journalists

Advertisment

FilmSoftware/

Multimedia

All CI Sectors

Publishers

Other CI

-4 -2 -1 0-3 1 2 3 4 5 6 7 8 9 10 11 12

Publishers

All Sectors

Libraries,Museen

Berlin Case Study/part two 19

In terms of employment in Berlin, the DIW suggest that the strongest growing Creative Industries sectors from 1998 to 2004 were Correspondents and News/Freelance Journalists; Film; Advertising and Software. Radio & TV grew at a rate equal to the national average. In contrast, the employment rate in Publishing decreased although less so than the national average. In contrast, publicly-funded cultural organisations had to cut back and the employment rates for Libraries & Museums dropped to less than the national average.

The number of creative enterprises in Berlin is relativey high, in part due to a high level of freelance, young and small enterprises, especially in the audio-visual sector (music, film, radio and TV). No further details about these sectors and the number of enterprises were available from this report. The importance of small businesses for the image of Berlin and the employment growth are however highlighted by the DIW.

In terms of the annual turnover of Creative Industries in Berlin, the strongest growing sectors between 1998 and 2003 were Correspondents & News Agents/Freelance Journalists; Film; Advertising; and Software. Growth in Radio & TV slowed down, however it still grew by more than the national average. The annual sales growth rate in Publishing dropped significantly below the national average.

The DIW report also highlighted that public spending cuts trigger job losses in public and publicly-funded organisations such as Museums and Libraries.

20 Berlin Case Study/part two

The DIW did not highlight particular Creative Industries clusters but suggested that where many artists live, creative enterprises are also located (see Figure 3). It is furthermore suggested that 25% of creative enterprises are located in Prenzlauer Berg, Kreuzberg, Friedrichshain, and Mitte districts. One reason given is that renting property in these areas has been cheaper than in so-called prestige areas in West Berlin such as Kurfuerstendamm (DIW, 2005).

In November 2005, the IHK Cultural Index was published. It provides data on how CI enterprises (who are members of IHK) assess their situation, and how the situation of creative industries has changed over time. The results of the most recent report, recording change between May and November 2005, suggest that private cultural enterprises and organisations look more optimistically on the future than public institutions.

2.3 Creative clustersThe media and related cluster is evident in inner East Berlin, with multimedia firms co-locating at building and street level (e.g. Chausee-Street, ‘Silicon Allee’). This ‘eco-system’ can generate cross-fertilisation across the creative production/value chain, creating what Kratke coins, a “space of opportunities” (2004: 518).

Table 9. Cultural Index (Business Confidence), November 2005

Sector Overall Individual

Museums 53 (+5) 58 (+5)

Galleries/Auction Houses 65 (+8) 66 (-1)

Performing Arts 41 (+7) 55 (+/- 0)

Orchestra/Music 28 (-6) 50 (+/- 0)

Cultural Institutes etc. 42 (+5) 42 (-3)

Libraries 35 (+1) 49 (+4)

Publishers (Book) 44 (+4) 49 (+3)

Music Industries 60 (+13) 61 (+7)

Live-Entertainment (e.g. Cabaret) 31 (+/- 0) 40 (+2)

Overall 43 53

Non-profit sector 50 (+2) 56 (-1)

Profit sector 43 (+1) 53 (+5)

Data as at November 2005 – change from May 2005 Scale 0-100: 50+ positive, 50- negative Number of questionnaires returned from profit sector: 39 Number of questionnaires returned from non-profit sector: 45

Source: www.ikm.fu.de/kulturindex (11/2005)


Berlin aims to become Germany’s media metropolis. Leading companies in the communication and media sector are relocating to the German capital. For many young and creative media experts Berlin is the sought after location. Berlin’s largest media location, the MEDIACITY Adlershof, is playing an increasingly important role in this cluster – see Projects & Initiatives (Appendix A). The city-region’s media cluster is evident from Figure 8, with larger and smaller firms concentrated in inner urban area districts.

Table 10. Film industry in Berlin/Brandenburg (1997)

City Regional Film/TV

The Film/TV production cluster is also evident at a regional scale in Berlin and in the surrounding Brandenburg region. Whilst Berlin had 11% of German film companies – second only to Munich with 13.2% – and 13.4% of employment, its national share of turnover was only 7.9% compared with 42.8% in Munich and 19.8% in Hamburg. In the city-region (Berlin/Brandenburg) however, nearly 16% of German firms are located, with a high concentration of film & video production, film/TV programme-making and in consequence supporting a self-employed artists and crafts community.

Unlike other regional centres, this region does not host a major TV station. The majority of media companies in the wider region are located in Potsdam/Babelsburg – with Union Film, and Studio Babelsburg having been a film and production location since 1912.

The number of staff employed in this media city in 1999 were estimated to be 1,500 in 125 companies. These city and regional clusters therefore support a range of production activity and employment with strong national and international networks and communication links (Kratze 2002). Investment capital in film development has flowed into the area from public and private sources, e.g. Filmboard Film Fund, Sony Fund, and the Berlin Film Festival.

Activity No. of firms

% Turnover DM 000s

%

Duplication of recorded film

17 11.6 26 14.5

Production of technical photo, projection and cinema equipment

10

3.6 62 1.8

Film & Video production

815 20 1,138 12.8

Film & Video programme-making

131 6.5 117 5.3

Production of TV & Radio programmes

39 17.6 48 1.7

Self-employed stage, film and TV artists

946 16.9 136 14.5

Total 1,958 15.9 1,529 8.3

Source: German VAT data, in Kratke (2002)

21

Advertising

Another sector growing in Berlin is the highly competitive advertising industry. With continued competition from Hamburg and Munich, Berlin has seen employment growth particularly since 1997. This is evident in both SMEs and larger firms employing over 100 people (Table 11). Creative occupations within this sector were however lower in Berlin than other cities, with 33% of employees engaged in creative activities compared with 45% in Hamburg and 42% in Munich, Rhine and Rhine-Main.

Table 11. Percentage of Advertising Employment by Firm Size (2001)

No. of employees Berlin %

Metropolitan Regions %

1 to 9 29.52 25.35

10 to 19 13.87 14.34

20 to 49 15.14 20.92

50 to 49 15.19 14.88

100 to 499 26.28 20.80

>499 – 3.70

Source: Thiel (2005)

Local clusters

In terms of developing a specific economic cluster as suggested by the Enquete Commission, the May and November 2005 CI reports agree that creative industry clusters are also evident in parts of Pankow (Prenzlauer Berg), Friedrichshain-Kreuzberg and Mitte districts (see Map – p.3). These boroughs include housing areas that had been deprived and empty for decades after World War II. The areas in East Berlin became breeding grounds for non-conformists – critics of the East German regime – left-intellectual-alternative, sub-cultural and bourgeoise-humanistic groups. After the fall of the Wall these groups stayed. They were soon joined by newcomers – from West Berlin, elsewhere in Germany and beyond – who saw in the available and cheap living and commercial places, spaces for realising new ideas and lifestyles. Both groups, often well-educated, are said to account for the alternative atmosphere and Berlin ‘scene’ (Lange 2005) and creative spirit in these areas (Vogt 2005).

The district of Mitte is part of the borough of Mitte (SPD party). It hosts the majority of new government buildings, many administrative buildings of Berlin and many museums and theatres. Henceforth the district has to cope with enormous amount of tourism and people who come in to work or consume entertainment. Mitte has 320,800 inhabitants of which 28% are not German nationals. 13.2% receive social aid, and the average income per household is €1275. Approximately 73.4 % of the residents are aged 15 to 65.

Example: Innovative Centre in Berlin Borough of MitteSpandauer VorstadtInternet: www.mitte-spandauer-vorstadt.deAccomodates galleries and exhibition centres such as C/O Berlin (www.co-berlin.com)• Re-developed old industrial building in Berlin-Mitte to Exhibition Centre• Exhibiting artist include James Nachtwey, Rene’ Burri, Margaret Bourke-White, and Anton Corbijn

The district of Prenzlauer Berg is part of the borough of Pankow (PDS party). The district is said to have replaced Kreuzberg as the trendy residential district, in which many artists live, work and galleries and bars co-exist. It accommodates the main shopping areas, transport arteries and social-cultural centres at or around Kastanienallee, Kollwitzplatz and Schoenhauser Allee/Danziger Strasse. Approximately 350,500 residents live in the borough of Pankow (including Prenzlauer Berg). Approximately 6.4% of people who live in Pankow hold another nationality than German. 5.2% of residents receive social aid, with an average income per household of €1400. Approximately 74.3 % are aged 15 to 65.

Example: Innovative Centre in Berlin Borough of PankowKulturbrauereiInternet: www.kulturbrauerei-berlin.de• 25.000 m_ former Schultheiss-Brauerei (Brewery)• Approximately 20.000 visitors per weekend• Offers a variety of cultural events

Together, Mitte and Prenzlauer Berg are promoted by their districts as the cultural centre of Berlin, with 13,000 said to be working in the creative and cultural industries. Mitte operates an advisory Kulturburo and workspace programme.

Berlin Case Study/part two22


In contrast, Kreuzberg had been the cultural centre of West Berlin, but now struggles with social and economic problems. Kreuzberg is part of the borough of Friedrichshain-Kreuzberg (PDS party). Kreuzberg’s major social-cultural centres and shopping areas are Kottbusser Tor, Mehringdamm, and Schlesisches Tor. However, after the fall of the Wall, Kreuzberg had to cope with significant spending cuts, because urban regeneration funds were redistributed to districts which by that time where in greater need of funding, e.g. Prenzlauer Berg and Friedrichshain (Gdaniec 2000).

Kreuzberg therefore found itself the centre of a unified Berlin with hopes that the ‘rich mix’ would coexist and flourish, but also fearing that gentrification and displacement by upmarket incomers would threaten this balance. In practice neither have occurred and the area now suffers from inter-community conflicts with the exodus of German and Turkish middle classes, leaving poorer, older residual resident groups. New migrants are more excluded and at risk with little chance of labour market participation. They include families of Turkish settlers, refugees from Bosnia and Kosovo, Arab, Kurdish and Lebanese refugees, asylum seekers and ethnic Germans from Eastern Europe. In the Kottbusser Tor (gate) neighbourhood of Kreuzberg, an estimated 80% are not of German origin, with 55% foreign nationals. Unemployment is 23–26% in some neighbourhoods (versus an average of 19% in Berlin) with the proportion of under-18 years olds reaching 33%, double the city average.

After merging with the borough of Friedrichshain, Kreuzberg now benefits from the development of Friedrichshain (e.g. OberbaumCity). The borough of Friedrichshain-Kreuzberg accommodates 258,500 inhabitants of which 23% are not German nationals. 13% receive social aid, with an average income per household of €1200. Approximately 77% are aged 15 to 65.

Example: Innovative Centre in Berlin Borough Friedrichshain-KreuzbergOberbaumCity www.operbaum-city.de• 46,000 m2

• International Design Centre• Companies in the creative services sector and ICT industry

Several of the neighbourhood management cultural projects are located in the Kreuzberg district, including an ‘empty shop’ project (see Appendix A – Projects and Initiatives) and an annual Rap Festival.

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In December 2005 Berlin hosted the second annual Conference of Creative Industries for representatives of Creative Industries sectors in Germany. The conference organisers referred to the Senate department’s Creative Industries report as

a document that serves to map and describe the creative economy and to create a basis for well-founded analyses and broad discussions. However, the process of understanding the creative industries and its synergies in Berlin is seen as still at its very

3. Creative industries strategy

Table 12. Success Factors by Creative Sectors

Success Factors Art Market

Literature, Print & Pub.

Architecture & Cultural

Heritage

Advertising Audio Visual

Software & Telecoms

Music Performing Arts & Ents

Total Score

City funds for projects

• • • • • • • • 8

High density of public educational facilities

• • – • • • • • 7

High density of specialists/ freelancer

• • – – • • • • 6

International relevant events

• – • • • – – – 4

High density of clients/firms

– • • – – • – – 3

Private Funding (e.g. foundations)

– – – – • – • • 3

Creative industry networks

– • – • – • 3

Access to infrastructure (space, ICT, transport)

• – – – – – • – 2

Capital bonus – • – • – – – – 2

International market

• – – – – – • – 2

Inter/National Visitors

– – • – – • – – 2

City Funds for individuals

• – – – – • – – 2

National or European funds

– – • – • – – – 2

Public-Private funds

• – • – – – – – 2

Regional market • – – – – – – – 1

Total score 9 6 6 5 6 6 7 4 49

Source: Content Analysis – Kulturwirtschaftsbericht (2005)

Berlin Case Study/part three24

beginning. In contrast, the federal state of North Rhine Westphalia published its first “Creative Industries Report” as long ago as 1990, and thus has established a more robust basis and data for policy and political strategies (Fesel, 2005).

3.1 Strength and weaknessesIn terms of strengths, the Senate report suggests that all of the eight Creative Industries sectors benefit from regional public funding (largely project-based), while seven out of eight profit from the high concentration of public educational facilities, and six out of eight from the high number of specialists/freelance workers.

For half of all creative industries sectors, international events are considered relevant to them. For a minority of creative sectors other factors such as – clustering of clients, private funding, and access to essential hardware, the ‘capital bonus’, international regional markets, national/international visitors, regional public funding of individuals, and national/European funding, as well as creative industry networks – are also rated as important in creative industry development (Table 12).

In terms of weaknesses, Berlin’s creative industries are said to involve an essential number of small businesses, which are more likely to struggle with funding and management deficits. The Senate also notes a lack of marketing expertise, which is said to result in the under-exploitation of export potential and a low degree of internationalization of the sector. Only a small fraction of sales income is said to be achieved in foreign markets, although there is a widespread willingness to venture into new markets outside of Germany. In addition, access to funding is below-average due to a lack of knowledge about financing tools and options.

Having identified strengths and weaknesses, the Senate define the following actions.

• Understanding the creative industries as an important economic sector and raising awareness among institutions and decision-makers by giving information on activities and on funding levels

• Creating networks within the creative industries sectors as well as international networks, e.g. focusing on development of specific clusters in certain areas

• Improving the general conditions for creative industries by providing affordable office space and by establishing start-up centres for companies, e.g. making public space available (interim or long term)

• Supporting creative industries’ marketing activities outside of Berlin by co-funding of joint stands at internationally relevant trade fairs

• Giving more advice to young entrepreneurs by re-orienting the trade fair for start-ups and entrepreneurs, to creative industries, and by strengthening the focus of business plan competition on CI start-ups

• Promoting infrastructure projects, especially information and B2B-platforms, in order to give support to the CI sector, for example providing Internet-based platforms for the music and design sector

• Enhancing the marketing of creative industries offer to tourists, by co-funding a comprehensive design and fashion-shopping guide and starting systematic research on participation of tourists in CI events

Many of these actions are said to have already entered the implementation stage such as co-funding of joint stands in international exhibitions/ events in Milan and Tokyo and additional start-up centres (due to open in 2007). The Media and Creative Industries units in the Senate Department for Economy, Labour and Women are responsible for implementing these developments. However, additional champions include the Senate Department for Science, Research and Culture and Berlin’s marketing institutions such as Berlin Partners and Berlin Tourism Marketing (communication with T.Mühlhans, 2006). However it is also recognised that the measures will only succeed if the general conditions in Berlin are improved for creative industries and if all players and stakeholders coordinate.

The results of the indicative Cultural Index survey (November 2005) suggest that only 26% of enterprises knew of the May 2005 report on Creative Industries, although a majority agreed with the planned actions. As part of this Creative Spaces case study and in order to supplement the 2005 study tour interviews and triangulate Senate and institutional reports, we undertook interviews between

Berlin Case Study/part three 25

26

December 2005 and March 2006 of a sample of seven businesses across several creative sectors as defined above5. These were also validated through interviews with local intermediaries who have undertaken in depth research into cultural enterprises and intermediaries in Berlin since 2000. This found the following:

In terms of the capital bonus – Berlin is considered to be an interesting location because it is the capital of Germany, a metropolis.

High density of specialists/freelancers – only one person believed that London might be a better location for recruitment. The majority believe that Berlin is a good location for recruitment. However one interviewee mentioned that he has problems recruiting skilled creative workers.

High density of clients/firms – Berlin is certainly seen as a place to meet clients. However, IT-related firms highlighted better options in south, south-west Germany to reach clients. Worldwide locations such as New York, Paris and London are considered attractive locations for their business. Comments about access to regional or international markets are usually linked with Tourism and the visitor economy.

High density of public educational facilities – only one interviewee highlighted the presence of many students and the business from this creative and market potential.

Only one enterprise linked Berlin’s attractiveness for its business with internationally relevant events.

Federal State funds or Public-Private Partnerships are not really seen as factors for a company to locate in Berlin. Only one enterprise highlighted the fact that it is publicly funded. Others stated that they have tried hard to get enough money to start their business. One is however optimistic about income from the private sector.

In only a few cases, interviewees stated that their main suppliers and partners were from outside of the city, however, enterprises usually had their partners and potential partners based in Berlin.

Easy access to essential hardware is one of the most cited factors for enterprises to locate in Berlin. Every interviewee said that they had excellent access to public transport, is satisfied with office space/price and positively assesses price and quality of the telecommunications network. Few assumptions were made about better telecommunications

infrastructure in London or New York. In contrast, interviewees believed that Berlin is a prime competitor on the national, European and international level.

A number of comments highlighted Berlin’s good reputation and the people who are living in the city, the ‘creative milieu’, as essential factors for them and other CI companies to locate in Berlin.

Most comments about the need for improvement are related to the fields in which the Senate recommends action.

In terms of awareness and understanding of the creative industries as an important economic sector, few interviewees complained that they felt neglected and that they wished the Senate would support and understand their enterprise. One interviewee suggested that local culture should be part of the school curriculum to attract the new generation of clients.

In terms of networks within the CIs, only one interviewee supported the development of a network of Creative Industries sectors in Berlin and Poland.

Few comments were made supporting CIs’ marketing activities outside of Berlin.

The majority of comments agreed with the recommendations to give more advice to young entrepreneurs. All enterprises were relatively young, and have experienced the same problems e.g. lack of knowledge (company law etc.), confusion by administrative bureaucracy, and the lack of high quality consultancy for start-ups.

Few commented on enhancing marketing of CI offers to tourists. Those who did asked for more tourists and for opportunities to get the attention of tourists.

Asked for their comment about the human characteristics of Berlin, all said that Berlin has two personalities. The first is usually related to a slow moody civil servant, has no money, uncomfortable etc. The other character is full of life, charming and very efficient.

Overall, the interviewees agreed with the action points the Senate defined in their 2005 CI report and reflect the aforementioned revenue/economic and demographic trends, e.g. Berlin is a liberal, young city but suffers from the budget deficit and associated structural issues.

5 Selection criteria – annual turnover of €16.617 or above (Senate cut-off for inclusion in CI employment data), interviewee owner and/or management position. 20–30 minute interview in German

Berlin Case Study/part three

4.1 Lessons from BerlinThese, together with a thematic grouping of good/best practice, will be used as the basis for the Lessons Learned report arising from the Creative Spaces study.

Key lessons emerging from Berlin can be summarised here.

1. Low entry/set-up costs and barriers – cheap, accessible space for working, performing exhibiting and living

2. High concentration and magnet for independent freelance performing and visual artists and designers, advertising, film/media and health science specialists

3. International club/music, art market and design ‘scenes’ Culturpreneurs, and conditions for growth – e.g. Club Commission, venues for production and performance, artists residencies (e.g. Bethanien – below)

4. East-West – trade, cultural exchange/investment, language (Russian)

5. Productivity – high GVA/sales per employee

6. Local urban district culture – district autonomy with federal/city support (see Projects below)

7. Multi-clusters in advertising/multimedia/film TV, artists/galleries and music/clubs – e.g. Babelsberg, city cultural quarters

8. City-Region (Berlin-Brandenburg) growth strategy – Berlin Partners agency, film/TV studios, design (Potsdam), city-region clusters/networks

9. Industrial buildings/heritage – vacant/under-used, large-scale inner and outer city, artists re-use and residencies

10. Education/HE – cheap/free, highly educated skilled, critical mass of HE/R&D, notably Science & Technology: biotech, medical/health ‘villages’, media city – e.g. Adlershof (see Projects below)

11. Cultural and Convention Tourism – international events, arts and entertainment, low cost airlines, transport infrastructure. Berlin ‘Entertainment Capital’ (2003), ‘City of Museums’ (2004), relaunched ‘Love Parade’ and World Cup (2006)

Structural weaknesses are also apparent, notably the city’s budget deficit (and requisite expenditure cuts), unemployment/worklessness (but also labour pool/skills), a lack of faith/trust in politicians (re. deficit, property speculation/corruption), social and ethnic problems (neighbourhoods, migrants), middle class flight creating a ‘divided city’, as well as the German federal system and competition from other city/lander.

4. Success factors

Berlin Case Study/part four 27

The foregoing case study describes and reports on the state of the creative industries in Berlin and the social, economic and political contexts. Key growth and sectoral trends, and strengths and weaknesses, have also been noted. Emerging strategies and support structures have been highlighted, and examples of projects, initiatives and interventions have been summarised below (Appendix A).

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The lack of both a strategic policy framework for the city as a whole and an integrated city plan, is also evident. This is in contrast with other creative cities which are using strategic planning to prioritise development and creative clusters (e.g. Barcelona and London creative hubs and regeneration zones).

Several of these socio-economic problems are also potential strengths, although the ability of policy-led intervention to influence economic development has been limited in the past. Because of the organic (and international) nature of Berlin’s creative economy, the evaluation of ‘success’ and measurement is problematic. This does not mean however that lessons are not valid and transferable elsewhere.

Berlin has distinct and tangible competitive advantages, and a strong ‘creative cachet’ especially in visual arts, design and film, and in its music/club scene, however it is expected that it will take another five to ten years for the city to ‘settle down’ and for its creative city role and status to become more embedded and mature (ref. Phase I Report: www.creativelondon.org).

Berlin Case Study/part five

www.berlin.de www.blc.de www.artnet.de www.art.berlin.org www.ikm.fu-berlin.de/kulturindex www.berlin-partner.de www.berlin.de/rbmskzl/verfassung/section1.html www.statistik-berlin.de/wahlen www.berlin.de/projekt-zukunft www.magazine-deutschland.de www.berlin.de/verwaltungsmodernisierung/einfuehrung/rueckblick.html www.sozialestadt.de/en/veroeffentlichungen/endbericht/5.6.phtml

Abgeordnetenhaus Berlin (2005) Enquete-Kommission: Eine Zukunft für Berlin, Kulturbuch-Verlag GmbH, Berlin

Alsop, W., McLean, B. and Stomer, J. (1992) City of Objects, Designs on Berlin. London Architectural Press

Benoit, B. (2006) ‘Berlin cool comes in from the cold’, Financial Times, London. 25.02.06

Berlin Business Development Corporation (2005) One year after EU enlargement: Companies throughout Germany polled on the effects, Pressemitteilung 29.04.2005

Berlin Partners (2005) Newsletter Edition 1–12/2005

Berlin Partners (2006) Newsletter Edition 1/2006

Berlin Senate (2004) The Neighbourhood Fund: A Berlin Model for Public Participation. Kulturbuch-Verlag. www.kulturbuch-verlag.de. Senatsverwaltung für Stadtentwicklung, October

Bernd, F. (2005) Kulturwirtschaft: Spitzenbranche in Deutschland im Wandel – Schwierige Hochzeit von Kultur and Wirtschaft kommt einen Schritt voran, in: politik und kultur Jan.– Feb. 2006, p.18

Binder, B. 2005) ‘National narratives and Cosmopolitan Dreams. Becoming a Capital in late Modernity’, European Ethnology, 34(2): 129–140

Bundesamt fuer Bauwesen und Raumordnung (2005) Raumordnungsbericht 2005, Berlin

Cushman & Wakefield (2005) European Cities Monitor 2005, London

Cushman & Wakefield (2005) European Cities Monitor 2004, London

DIW Berlin (2002) Kultur als Wirtschaftsfaktor in Berlin – Kurzfassung. Berlin

DIW (2005) Kreativebranchen in Berlin. In: Wochenbericht des DIW Berlin Nr. 44/2005

Farber, A. and Gdaniec, C. (2005) ‘Shopping Malls and Shishas. Urban Space and Material Culture as Approaches to Transformation in Berlin and Moskow’, in European Ethnology, 34(2): 113–128

Flier T (2004) Berlin: Perspectiven durch Kultur. Berlin, Senate fuer Wirtschaft, Forschung und Kultur Berlin

FT (2005) FT Germany Special Report, London, Financial Times, 6 December: 1–8

Gdaniec, C. (2000) Cultural, economic and urban policies in Berlin and the dynamics of cultural industries. An Overview. Berlin, iCISS, January

Huyssen A (2003) ‘The Voids of Berlin’. In Huyssen, A. (ed.) Present past. Urban Palimpsets and the Politics of Memory. Stanford, Stanford University Press: 49–71

IBBDC (2004) Music in Berlin. Berlin, International Berlin Business Development Corporation

IHK (2005a) Konjunkturbericht Berlin – Herbst 2005, Berlin

IHK (2005b) Neue Firmen – Neue Arbeitsplaetze – Neue Investitionen, Berlin

IHK (2005c) Zahlen, Daten und Fakten im Berlin-Tourismus, Berlin


5. References

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Kratke, S. (2001) ‘Berlin: Towards a Global City?’, Urban Studies 38(10): 1777–1799

Kratke, S. (2002) ‘Network Analysis of Production Clusters: The Potsdam/Babelsberg Film Industry as an Example’, European Planning Studies, 10(10): 27–54

Kratke, S. (2004) ‘City of Talents? Berlin’s Regional Economy, Socio-Spatial Fabric and ’Worst Practice’ Urban Governance’, International Journal of Urban and Regional Research, 28(3): 511–529

Lange, B. (2005) ‘Socio-spatial strategies of culturalpreneurs. The example of Berlin and its new professional scenes’, Zeitschrift fur Wirtschaftsgeographie, Jg.49, heft 2: 79–96

Marcuse, P. (2003) ‘Reflections on Berlin: The Meaning of Construction and the Construction of Meaning’. In, Cuthbert, A. (ed.) Designing Cities. Oxford Blackwell: 152–159

McRobbie, A. (2004) Creative London – Creative Berlin. Notes on making a living in the cultural economy. www.ateliereuropa.com, 5 April

Mühlhansm Tanja (2006) Cultural Industries Berlin, email communication to Cities Institute, 28th February

Statistisches Landesamt Berlin (2005c) Berliner Exporte im Jahr 2004 stark gestiegen, Berlin

Senate (2004) Quatiersmanagement Bewaehrt sich als Instrument zur Aufwertung und stabilisierung von Stadtquatieren, Senatssitzung 6.4.2004, Berlin

Senate (2004a) Schlussfolgerungen aus dem Evaluationsbericht zum Quartiersmanagement und künftige Programmumsetzung [WWW] www.quartiersmanagement-berlin.de/et_dynamic/page_files/1062_download.pdf?1087399806, March 2006

Senate Department for Economics, Labour and Women’s Issues (2005) The Creative Industries Initiative at the State of Berlin – Including an Analysis of the Economic Potential of this Sector – English Summary. Berlin

Senatsverwaltung fuer Finanzen (2005) Eckwerte Doppelhaushaltsplan 2006/7 und Finanzplanung 2005 bis 2009

Senatsverwaltung fuer Finanzen (2006) Verwaltungsmodernsierung [WWW] www.berlin.de/verwaltungsmodernisierung/index.html, March–2006

Senatsverwaltung fuer Stadtentwicklung (2003) Mobil2010 – Stadentwicklungsplan Verkehr www.stadtentwicklung.berlin.de/planen/stadtentwicklungsplanung/de/verkehr/download.shtml, February–2006

Senatsverwaltung fuer Stadtentwicklung (2005) Bevoelkerungsentwicklung in der Metropolregion Berlin 2002–2020, Berlin

Senatsverwaltung fuer Stadtentwicklung (2003) The Neigbourhood Fund – A Berlin Model for Public Participation, Berlin

Senatsverwaltung fuer Stadtentwicklung (2006) Stadtforum Berlin 2020 [WWW] www.stadtentwicklung.berlin.de/planen/forum2020/de, February 2006

Senatsverwaltung fuer Wirtschaft, Arbeit und Frauen et al (2004) Berlin 2004–2014 – Eine Wirtschaftsinitiative, Berlin

Senatsverwaltung fuer Wirtschaft, Arbeit und Frauen (2005b) Zur Wirtschaftlichen Lage in Berlin, Berlin

Senatsverwaltung fuer Wirtschaft, Arbeit und Frauen (2006) Strukturfonds [WWW] http://www.berlin.de/rbmskzl/europa/europapolitik/strukturfondsreform.html, March–2006

Senatsverwaltung fuer Wissenschaft, Forschung und Kunst (2006) Studieren in Berlin und Brandenburg, Berlin

Statistische Aemter der Laender (2005) Volkswuirtscjaftliche Gesmatrechnung der Laender [WWW] www.vgrdl.de/Arbeitskreise_VGR/, January 2005

Statistisches Landesamt Berlin (2005) Die kleine Berlin-Statistik, Berlin

Thiel, J. (2005) Creativity and Space. Labour and the Restructuring of the German Advertising Industry. Aldershot, Ashgate

UNESCO (2006) Berlin City of Design Official Press Release [WWW] http://portal.unesco.org/culture, March, 2006

Vogt, S. (2005) From West, go East! Forms of networking and entrepreneurship as youth culture effects in local-transnational relationships. Berlin, Humboldt University

Wolf, H. (2005) ‘Interview with the Senator for Economics, Employment and Women’s Issues in Berlin’, in Cities of the future. Global competition, local leadership. PriceWaterhouseCoopers: 94–95


Higher Education and R&D

• Adlershof – Eagle Yard Media & Science City

Business enterprise support

• Berlin partners

Incubation and showcasing

• Künstlerhaus Bethanien

• Design Mai (May International Design Fair)

Architecture and cultural heritage

• Shrinking cities

Urban district culture

• Art and culture for empty shops project

• Bringing art into the neighbourhoods

• Street Art

• TRO Artists’ Group (Raptures of the Deep – East)

• Brochure on the history of the neighbourhood

Youth training and diversity

• Volicity

Art market

• Art.Net

Higher Education & R&D

Adlershof and Eagle Yard Media & Science City www.adlershof.de

MediaCity Adlershof comprises 20 hectares of production facilities, hosting over 130 companies, and 1600 staff/800 freelance workers. Developed at a capital cost of €7.5m, and an additional €25m for new production facilities, Adlershof is also the hub for Eagle Yard – a science, research and industry innovation and production centre. Humboldt University relocated its science departments there between 1998 and 2001 and a new audio-visual and IT centre with university and incubation/enterprise facilities.

After German reunification, the guard regiment was dissolved and the fate of the Academy was sealed by the German Unification Treaty. The research facilities of the Academy were subjected to an evaluation by the German Science Council, which established that there were about 1,500 Academy employees who ought to be placed in new research structures. For the rest of the former employees, it was recommended that they either find new jobs or start their own companies. Of 250 newly founded companies, approximately 100 were set-up by ex-academy workers. Today almost 90% of the companies co-operate with at least one partner, and 60% with three or more partners at the site.

Adlershof is a traditional location for extramural research in Berlin. In the 1930s the facilities of the German Aeronautical Research Institute were established there. Today, the 12 Non–University Research Institutes in Adlershof concentrate on research areas of new materials and processes; optical technologies; information and communication technology and environmental and energy research.

Berlin Case Study/appendix A

Appendix A – Projects and initiatives

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In order to jointly channel experience and expertise into the further development of the location, the non-university research institutes in Adlershof joined forces in 1992 to form IGAFA (Initiative of extra-university research institutes in Adlershof). The 12 member institutions of IGAFA with 1,400 employees, including 700 scientists, have various sponsors, e.g. Federal Ministry for Education and Research, Federal Ministry for Economic Affairs, Berlin, etc. Its scientific office has become a central contact point for scientists and offers information on the scientific institutions and their research projects and organises series of lectures ranging from scientific presentations to events. IGAFA also runs two international meeting centres for scientists which offer guest accommodation and seminar and conference rooms.

To encourage innovative businesses to settle here, modern specialised centres were established, some in reconstructed old buildings, and others in new architect-designed buildings. The first was the “Innovation and Business Incubation Centre” (IGZ) in 1991, followed by the Centre for Photonics and Optical Technologies, the Centre for Environmenal, Bio and Energy Technology, the Centre for Information and Media Technology, and the Centre for Materials and Microsystems Technology.A Service-Centre and the OWZ – International Business Incubator for Middle and Eastern European entrepreneurs complete the profile. Up to the year 2000 WISTA-MANAGEMENT GMBH had made investments totalling €325 million.

Since the early-1990s Adlershof has been reconstructed with renovated and demolished old buildings, polluted and contaminated areas cleaned up, and over 30 kilometres of street repaired, producing modern technology centres with spectacular architecture. Today it is claimed that Adlershof is Europe’s most modern technology park and home to Humboldt University’s natural sciences campus. Adlershof has also became a “City within a City” with hotels, restaurants, shopping centres, GP surgeries, kindergartens, a golf course, tennis courts, cafés, bars, coffee shops, attracting new residents and workers to the area.

In September 1991 the State of Berlin founded the “Adlershof Development Society” (EGA), from which WISTA-MANAGEMENT GMBH emerged in 1994. In 1992 the Berlin Senate decided to establish an “integrated scientific and business landscape” on the Adlershof site and made building investments amounting to about €230 million. The goal was to bring together the synergies from science

and industry and innovation to market. A design contest for Adlershof-Johannisthal to build a City of Science Technology and Media was held in 1993. As a result Berlin created in 1994 a “city development area” of 420 hectares with the goal of a modern city structure with the “Science City” at its centre, surrounded by a Media City, an industrial park, and residential areas. The construction of the first single family houses began in 2004. These new quarters developed around a huge landscaped park, which was developed from the former Johannisthal airfield, soon be home to Berlin’s first thermal-spa.

The company responsible for the development since 2003 was BAAG, Berlin Adlershof Aufbaugesellschaft mbH. On January 1st 2004 WISTA-MANAGEMENT GMBH, replaced BAAG with Adlershof Projekt GmbH, as the new overall development authority for Adlershof. As landowner, Wista is now self-financed from rents and service fees. The insolvency rate of tenant firms was only 1% in 2005.

TV and Film

Adlershof also has a long and successful tradition as a centre for film and TV production. Since the 1920s thousands of movies were filmed in the studios and in 1956 the East German Broadcasting Corporation was established in Adlershof. The heart of the MEDIACITY is the Studio Berlin Adlershof GmbH, supplemented by the studios of Johannisthal Synchron in Adlershof and TV+SYNCHRON Berlin GmbH which are within walking distance.

Movie- and TV producers benefit from the synergies in Adlershof. A high performance studio centre has emerged with seven studios – including the largest studio in Germany – with a total of 6,500 m2. There are numerous post-production companies for editing and copying, dubbing, animation and image processing. Popular TV shows are being made in Berlin Adlershof and over hundred companies with almost 1,000 employees use the facilities.

The television centre at Babelsberg (Potsdam) is a branch of the studio Berlin Eagle Yard GmbH. Established in 1995, the enterprise produces TV serials and Showproduktionen. Facilities include:

• 8.500m2 of production offices and functional areas including air-conditioned studios, four with a total area of 720 m2 , a construction area of 610 m2

• complete direction for digital video and clay/tone photographs (format digitally Betacam, Camcorder and Studiokameras)


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• digital light equipment (bar light trailer, BEACH dimmer and desk technology)

• Digital electronic post office processing for picture and clay/tone, AVID Media Composers and Unity, Protocols, AVID Adrenaline mobile electronic production units

• Dubbing and localization in all stages of production

• A one-stop service for DRTV productions – from translation through to the German language mix, picture editing to CTA compilation, order page design etc.

The studios have experience in working with materials from all over the world:

Telenovellas from Brazil, series and films from the USA, Europe and North Africa, Dramas and Science Fiction from Korea, Action Thrillers from Hong Kong, Cartoons from Australia and Audio book production.

Innovation and founder centres (IGZ and OWZ)

Since September 1991 the innovation and founder centre (IGZ) offers a broad spectrum of support, both consultancy and technical-organizational infrastructure and premises for founder companies, recent enterprises with innovative, technology-oriented projects, as well as established enterprises with temporary innovation projects for start-up and enterprise development.

The IGZ buildings provide 16,500 m2 of rental space with multi-functional use – at present 72% usage with enterprises in different technology fields. The operating company of the IGZ and the OWZ is the international innovation centre, Berlin management GmbH (IZBM), a subsidiary of the economic development Berlin GmbH promotion company.

The international founder center (OWZ ), opened in the summer 1997, unique in Europe, it supports the establishment and settlement of international enterprises from all over the world, in particular from central and Eastern Europe, and which want to realize their economic co-operation activities locally from Berlin. It helps to broker contacts and to enable new ways for the development of markets.

The OWZ provides 4,800 m2 of rental space. At present there are 34 enterprises from 11 countries, working in the diverse technology fields.

A premises database and space enquiry service ranges from sites for warehouses and laboratories to modern office facilities and spacious halls, starting from 20 and going up to 80,000m2. In addition, there are plots available for residential development – next to landscaped parkland.

Business enterprise support

Berlin partners

www.berlin-partner.de

Berlin Partners is the newly-restructured economic development and inward investment agency – a partnership between the City of Berlin and the adjoining Brandenberg Region.

The organization provides a Business Location Centre (BLC) and start-up package which includes workspace, living accommodation and transport passes, and a start-up grant of €2,300 for the first three months (unique in the EU).

SMEs are important, but a small employment generator. Relocation of medium to larger-sized firms is also promoted, building on the city’s ‘capital bonus’, geopolitical position, premises availability and labour market, with good quality skills/education. Business support is targeted at ‘industries of the Future’, including, music, technology, design and crafts associations.

Inward investment averages 2,500 to 3,000 jobs per annum which is acknowledged to be small.

Berlin Partners also operates as a membership organization with 1,000 companies, which assists in local procurement, construction and locations transfers. Berlin’s Chamber of CRAFTS/Chamber of Commerce has a mandatory membership, ensuring greater coverage and participation in economic development. Trade Union apprenticeships still operate and provide vocational and crafts training alongside higher education provision. Their experience is that students try to stay on in the city after graduating,

Berlin aims to compete with other continental cities such as Paris and Barcelona, and nationally with other post-industrial German cities/regions.

Berlin Partners is also a promoter through exhibitions/ trade fairs, for example, sponsoring the annual Design Mai Fair, and a Design Conference for the Auto/Bike Industry involving 200 regional firms – the “Right place and space to bring together creativity, design and business” (R.Engels, Berlin Partners, 2005).


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Incubation and showcasing

Künstlerhaus Bethanien

www.bethanien.de/

Künstlerhaus Bethanien was founded in 1974, in the former Central Deaconesses’ Home and Hospital building. Its original architects were three of Karl Friedrich Schinkel’s students, while its park location was designed by the equally famous landscape architect Peter Joseph Lenné. Today, it has become known far beyond Berlin’s city limits, although the building also houses the district’s art council, a music school, and several other social organizations in addition to Künstlerhaus Bethanien GmbH, with its studios and exhibition spaces.

In 1974, the building was scheduled to be demolished, but squatters’ resistance raised public awareness for the building and paved the way for a small number of promoters to present their vision for Bethanien’s future use – among them Michael Haerdter, the founding director of Künstlerhaus Bethanien GmbH. The main activity is concentrated on the International Studio Programme. Since the foundation of the institute in 1974, more than 400 artists from 30 countries have worked at the Künstlerhaus. Guests stay for a period of 12 months and conclude their stay with the realisation of a project on the institute’s premises.

Künstlerhaus Bethanien’s goal is to further contemporary art and contemporary artists. It is responsible for the accommodation and support of international artists; for offering advice concerning art and its practical issues; for the running of workshops; for the planning and realization of its residents’ events; and the development and organization of artistic and cultural projects both in and outside of Berlin.

Künstlerhaus Bethanien GmbH provides 25 studios, 3 exhibition studios, and a media lab. It is a project workshop, an event location, and the publisher of a series of ambitious catalogue publications as well as an art magazine. The Künstlerhaus survived the short-lived “Berlin Mitte Boom” and saw the last of Kreuzberg’s galleries leave during the 1990s. Since then, a second gallery centre has established itself at Jannowitzbrücke, one station away from Bethanien on the elevated line, and Kreuzberg is experiencing a new cultural upswing with the first new gallery projects – all of which is creating a more favorable environment, even for a venue with an international focus. However the more successful it is, the less the funding the Senate grant-aids the Künstlerhaus.

However, artists from Australia, New Zealand, the Netherlands, Norway, Portugal, Sweden, Spain and Hungary are able to approach partners in their own countries and enquire about the possibility of open applications via the institutions there. Additional grants are awarded by the Rotterdam Centre for the Arts and the Ministerie van de Vlaamse Gemeenschap, Brussels.

Since 1993, Künstlerhaus Bethanien has also worked together with Philip Morris’ program for the promotion of the arts, which awards 2–3 grants each year within the context of its fellowship program. The artists sponsored by this initiative receive a monthly allowance throughout the period of their stay. In addition, the foundation pays their studio costs, provides a lump sum for materials and funds a documentation of their final project. But again, artists cannot apply for these grants on their own initiative. Since the late-1990s, Künstlerhaus Bethanien and its Media Arts Lab have promoted the interchange between classical and new artistic media, and are especially dedicated to an investigation of new, critical forms of expression located on the borderline to conventional art. However, the Media Arts Lab does not award grants of its own. Like all other artists, media artists are only accepted within the framework of the national grants system. They cannot apply to the Künstlerhaus itself, but only via the partner institutes.

Artists’ Residency

With its 25 studios, Künstlerhaus Bethanien represents one of the largest establishments among international residency programmes. The selection of artists – predominantly in the area of visual arts – is carried out according to the standards of originality and creative quality. Individual applications are not accepted by the Künstlerhaus, which owes its international renown as one of the most prestigious institutes for the support of contemporary art to the stringency of its selection criteria.

Project Workshop

Künstlerhaus Bethanien is constantly at work on the development and realization of a large number of artistic and cultural projects, resulting in numerous public events. 20 to 30 events come about each year out of the studio programme alone: exhibitions, work presentations and performances.


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A location for events

Künstlerhaus Bethanien is also a place of presentation that is used in a number of ways, where exhibitions and events are produced by the curatorial staff or by guest curators parallel to the international studio programme. Beyond this, the renting of individual rooms has become standard practice.

Advice

Among Bethanien’s most important services are its counselling activities. Artists are advised in respect of their projects, and suitable partners, organizations, and sponsors are recommended and introduced. The Künstlerhaus also provides recommendations and expertise in the application process for project financing, artists’ residencies, and grants. In addition, advice is offered on initiatives for the establishment, restructuring, and optimization of artists’ and studio programs, especially regarding questions of finance, tax, and administration (i.e. starting a company). In this context, cultural contacts to Eastern Europe (Poland, Hungary, The Czech Republic, Lithuania, Slovenia, Ukraine, and Russia) play a large role, with a focus on the development of stable partner relationships as well as the organization of exhibition projects. In view of the economic separation that continues to divide Eastern and Western Europe, this type of bridge-building activity will continue to remain one of Bethanien’s most important tasks.

International cultural work

Künstlerhaus Bethanien was and continues to be a partner institution in numerous bilateral cultural programs in Berlin, such as the city partnership program, the program of cultural capitals of Europe, the “grenzenlos” projects (without borders), and many more.

Publications

An extensive publishing activity counts among Bethanien’s services. Over the 25 years since the institute’s founding, approximately 190 works have been published: books and catalogues on projects of every discipline, catalogues of resident artists, and magazines.

Since 1994, the Künstlerhaus has been publishing its ambitious “Be Magazine,” which is produced in German and English, as are the majority of Bethanien’s catalogues, making its current exhibitions and topics of discussion well-known on the international art scene. “Be Magazine” constitutes the core of Bethanien’s theoretical work and reflects phenomena of the current art scene from the perspectives of international critics, theoreticians, and writers. At the same time, it supports young Berlin authors in their assessment of the city’s art production. Bethanien does not limit itself to a mere publishing role, but provides high-quality professional editorial accompaniment, copy-editing, and translation, not only building a solid reputation for its series of publications in the process, but lending a more enduring form to the projects and works of its young artists.

Media arts lab

Since 1997, the Künstlerhaus has become increasingly committed to the area of new electronic art forms with its own Media Arts Lab. This laboratory is dedicated to internet-based art and promotes those conceptual artists and projects that understand the computer not as an object of technological fascination, but as an object for aesthetic investigation. Since 1998, the Media Arts Lab has been inviting net specialists to take part in special “net conferences.” Bethanien was one of the first institutions that integrated the young phenomenon of “net.art” into its current work, at the same time plugging into an emerging media art scene in the Eastern European states.

Training center for curatorial practice

Due to its status as artists’ residency program, Künstlerhaus Bethanien is a location of curatorial practice where the curatorial staff, together with guest curators and curatorial assistants, work in close dialogue with invited artists, enjoying their appreciation as contact persons, researchers, and partners in contention and working together on the realization of artistic concepts. Parallel to these artistic projects, performances, colloquia, symposia, and publications, the curators reflect upon their practice in “Be Magazine” as well as in various other special issues published by the Künstlerhaus.


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3.2 Design Mai (May Design Fair)

www.designmai.de

The Design Festival is organised by a local society which is coordinated by seven voluntary members. The first festival was held in 2003. The initiative started out as a magazine – now 130 open studios (cf. London Case Study – East End/Hidden Art ‘Open Studios’) participate over a 2 week period in May each year. Some locations provide a venue for several design presentations, whilst a Showroom offers a retail opportunity to purchase direct from designers/creators. The central festival venue is the Forum in Berlin-Mitte, with an auditorium for workshops, lectures and presentations.

Berlin Partners sponsor an annual Design Prize with the aim of raising the profile of the sector and better connect designers.

Future fairs will be held over a shorter period, from 10 down to 4 days over 2 weekends – it currently ‘peters out’ after the first few days and media coverage. Design Mai is an international as well as a Berlin event, German design schools/students exhibit at international exhibitions, e.g. Milan Fair, and a ‘Young & German’ award of €100,000 links Berlin and Tokyo sponsors and designers. This award is supported by the Federal Cultural Foundation. A symposium “Brave New Worlds” is run in cooperation with the Einstein Forum, Potsdam and funded by the Federal government’s Capital Cultural Fund.

In 2005 over 12,000 tickets were sold, the Design Mai web site receives 6 million ‘hits’. Success is also measured in terms of free media coverage in Germany and in the international press. The 2006 Fair features international speakers, including designers from the UK.

Despite its high profile and growing popularity the Design Mai is a low cost event, and little in direct sponsorship outside of awards such as Nike’s ‘Design Room’ prizes of €5000/€3000/€2000 for first, second and third place.

50,000 copies of the festival magazine and programme are produced for €12,000 (excluding sponsorship in kind), but it is printed in Koln/Cologne not Berlin.

This designer-led initiative is not directly associated with higher education and training institutions – the Potsdam Design School operate a start-up system, providing low-cost studio space and marketing management advice. There is also little non-ethnic German creative sector engagement (although the ArtBerlin magazine is owned by a Turkish-German businessman), or with poorer, migrant districts of the city, Industrial Design in Berlin is a strength (e.g. Bauhaus tradition), but there is not a ‘community of design’ or cross-design collaboration. For instance, Berlin’s designated Design Centre is not well-connected to practitioner design/ers, according to Design Mai.

Architecture and cultural heritage

Shrinking cities

www.shrinkingcities.com

This is a project funded by the Federal Cultural Foundation between 2000–5, under the direction of Philipp Oswalt (Berlin) in co-operation with the Leipzig Gallery of Contemporary Art, the Bauhaus Dessau Foundation and the Berlin-based magazine, archplus.

Shrinking Cities, is a three-year initiative project of Germany’s Federal Cultural Foundation, which seeks to expand Germany’s city-planning debate – until now concentrated on questions of demolishing surplus apartments and improving residential quarters – to address new questions and perspectives. The project also places developments in eastern Germany in an international context, involving various artistic, design, and research disciplines in the search for strategies for action. The emphases of the research and exhibition project, Shrinking Cities, are, first, an international study of processes of shrinking (first project phase) and, second, the development of strategies for action for eastern Germany (second project phase).

The results of the first project phase (the international study) has been be documented in a catalogue and an exhibition, which was shown in September 2004 at the KW – Institute For Contemporary Art in Berlin. The results of the second phase of work were presented in an exhibition in 2005 in Leipzig. It is intended to show the exhibition in additional international sites in 2006 in Europe and North America.


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More than 10,000 visitors have seen the exhibitions in Halle and Leipzig, Germany The exhibition at the Centre for Contemporary Culture in Halle had 5,264 visitors between November 19 2005 and January 29 2006. The second exhibition of Shrinking Cities – Interventions, at the Gallery for Contemporary Art Leipzig, drew 4,900 visitors. More than 2,000 visitors attended the 66 events of the accompanying programme, which included discussions, city tours, workshops, club evenings, and a children’s and a film programme. Some items from the exhibition in the ZfzK will remain in Halle: the Municipal Museum of the city of Halle on the Saale has acquired a number of the exhibition contributions for its permanent collection.

The exhibitions in Leipzig and Halle were the concluding presentation of the results of Germany’s Federal Cultural Foundation’s extensive project on the phenomenon. More than 100 artists, architects, city planners, authors, and sociologists took part. After the exhibitions in Berlin in 2004 and in Halle and Leipzig, follow-up exhibitions are being planned for Detroit, Moscow and Manchester.

A publication on the exhibitions has already appeared in English with the publishing house Verlag Hatje Cantz: Shrinking Cities – Volume 1: International Research is devoted to the topic of processes of urban shrinking on several levels. The selected contributions to the international idea competition Shrinking Cities – Reinventing Urbanism, which were presented in the exhibition in Leipzig, were also published in a special issue of the German architectural magazine archplus. At the conclusion of the project, more publications will appear, including Shrinking Cities – Volume 2 Interventions, the Complete Works and the Atlas of Shrinking Cities.

Urban district culture

www.stadtentwicklung.berlin.de

Art and culture for empty shops

The cultural quarters project “Boxion” targets empty shops around Boxhagener Place in Kreuzberg, in order to re-use them for resident and local enterprises for art and culture.

This neighbourhood is a mixed area with old buildings located on the edge of the city centre. The Boxion project aims to promote the ‘culture of quarters’, improve the residential environment, its image and public areas.

“Boxion 2001” provides artists and creatives with the possibility to use and animate as exhibition and communication space, 18 empty shops and restaurants. The users of the shops commit themselves to keeping firm opening times and to participate in the overall “Boxion” cultural quarter project www.boxion.de

The shops are used as workplaces and extend into the public realm. At the end of the first year the shop lease is either transferred by the user or rented to other business premises in the district. Public works, such as external advertisements, shop window displays, information boards for promoting the Boxion project and activities, as well as accommodation management, are coordinated under the “social city” project. “Guerilla shopping” has also gained hold in Berlin, with high fashion brands and independent designers opening ‘secret outlets’, using vacant shops for only a few months before they become too popular.

With the help of a public show of interest, over 20 organisations applied to coordinate the project. The ‘playing field’ agency was selected by a project committee for to deliver the programme.

The exchange between inhabitants and artists as well as co-operation between cultural quarter projects are to be sustained beyond the life of the empty shop programme. The idea for artistic-cultural stimulation through the temporary use of shops and restaurants in the ground floor of the residential blocks, goes back to the results of a survey of local residents’ ideas and initiatives undertaken by the playing field agency – as well as those of representatives of the local district in the context of the social city area concept.

Project beneficiaries include local residents (tenants, owners) and enterprises, artists and education providers/students. Finance was provided through the European Union (EFRE), the federal land programme “social city”, sponsorship/donations, and other private donations for the different shop exhibition projects. Participating organisation included:

• Bad Boxhagener place – Accomodation Management

• District Friedrichshain Kreuzberg – Culture Committee

• Houseowners and Tenants


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• Professional school for technology and economics – area organisation

• Workers’ welfare institution – volunteer social training year

• District Friedrichshain Kreuzberg - NGA and civil engineering inspectorate

• Artists and creatives from photography, screen art, design, internet technologies, literature and drama

• Interested other quarters of the district and wider Berlin

• Media partners – press, radio, TV

Bringing art into the neighbourhoods

The contribution of culture to neighbourhood improvement was recognised early on Berlin Senate (2004): “Culture adds colour to every day life, and to the local community” (www.stadtentwicklung.berlin.de/wohnen/quartiersmanagement/index_en.shtml),

Neighbourhood Fund projects have ensured that people do not have to go elsewhere to enjoy the bright lights. The emphasis was placed on encouraging creativity along with simply making visible the varied culture that many of the quarters already possessed.

One area, Neukölln hosted Under Cover of Darkness, part of a cultural event ‘Shimmering Thursdays’. This fortnightly event helped to improve the image of the quarter among the local residents. Improving that image was one of the motives of a residents’ initiative to apply for money from the Neighbourhood Fund with which to present the cultural scene in the quarter on a regular basis. At the same time the cultural Thursdays extended the culture on offer to the local people and with its high profile also helped to promote the participating artists and thus indirectly to improve their economic situation. At the start of the series, which promised in its sub-title “Cultural mis-guidance around the Schillerpromenade”, the author Pieke Biermann read from one of her crime thrillers in the entrance hall of the Carl-Legien Secondary School. This Residents’ initiative received funding of €45,372 to promote district culture and local business.

This inspired a second project, the Cultural Office Schillerpromenade that aimed at raising the profile of the potential in the quarter and promoting the artists by networking. The neighbourhood jury allocated €40,000 to the applicants Förderband e.V. for two modules.

Firstly, a Culture Office in the neighbourhood was set up. Funds were used for rent and equipment. The Culture Office has been organising exhibitions and is the place artists and creative people in the quarter come to first.

As a second module, four project days were organised in April 2002 with 12 dance and performance artists from the neighbourhood. These project days promoted local networking and supported not only the dialogue between art forms, but also the exchange between professionals and amateurs.

Street art

The existing youth culture group Schlesische 27 received funding of €44,175 to promote district culture, the integration of diverse social and ethnic groups, and the social infrastructure of schools, children, young people, senior citizens, and families.

Schlesische 27 used the funds to plan and carry out cultural festivals for local street artists and residents. Each festival was stretched in organic shape of a river throughout the borough with the intention to signalise a flood of Street Art passing the streets of the area.

Each festival involved local geographical features (e.g. special stages at every crossing named after the intersecting side streets) and integrated local children, young people and adults in the preparation works (e.g. creating river banks). Along the pavements, artists animated by-standers to fill the river bank with creative activities. Outdoors, music and drumming was on offer, along with theatrical performances and make-up tables for the children, but there were also theatre and drumming workshops in the project shop.


TRO Artists’ Group

In 2002, the artistic group T.R.O. initiated the conversion of former laboratory buildings into an art factory with ateliers, based in the Oberschöneweide neighbourhood. Funding of €106,300 was provided to encourage public participation and development cultural activity in the area. Some of the money needed for this was provided by the Neighbourhood Fund jury. This made it possible to carry out a conversion project of a type which has long been favoured by artists in Berlin seeking suitable space to work in. For decades, new businesses and creative artists all over the city had been utilising former multi-storey factory buildings.

In 1883, Emil Rathenau founded the German Edison Company, which was renamed AEG in 1887. Two years later he opened the cable works which marked the development of Oberschöneweide into an industrial location. In 1920, AEG bought the factory buildings of Deutsche Niles-AG and set up the Transformer Factory Oberschöneweide, known as TRO. The artistic group T.R.O. have adopted the same abbreviation, but in their case the three letters stand for Tiefenrausch Ost (Raptures of the Deep – East). The group came together in 1997 around the painter and installation artist Leo Königsberg. Like many old factory complexes, the laboratory building of a battery factory had been empty since the former GDR closed down in the early 1990s.

The conversion began in late 2003 under the supervision of the Gesellschaft für Stadtentwicklung gGmbH. By the end of 2004, ten studios offered overnight accommodation, a multimedia atelier, and an art gallery. In order to keep the building costs down, the artists themselves carried out the entire interior work. Trainees from the Vocational Training Centre did much of the construction work, which gave them the opportunity to learn at first hand about building techniques which are no longer used – such as the typical Prussian capped floors. These contributions meant that the money provided by the Neighbourhood Fund could be used mainly for materials. The rooms of the art factory now offer the local artists affordable working space and also make it possible to extend invitations to artists from all over the world to come and realize projects against the backdrop of imposing industrial architecture, and then to exhibit their work. This represents an important addition to the rooms already provided for young artists in the quarter, for example by the Karl-Hofer Society (The Friends of the University of Arts).

Brochure on the history of the neighbourhood

Over a period of eight months, Ursula Bach and Cornelia Hüge studied the cultural, architectural and social history of the Reuter quarter. The result of their work is a richly illustrated 100 page brochure entitled Where Neukölln meets Kreuzberg – The Reuter quarter in transition.

Many local people contributed by attending focus group meetings, or by passing on information, photos and other material directly to the authors. The older local residents were particularly interest in the project, but also local schools.

Guided tours, lectures on urban history and a walking-tour-flyer followed the brochure. The project received €36,7200 from the Neighbourhood Fund in order to promote district culture and encourage public participation.

Youth training and diversity

VOLICITY (Vocational Learning in Creative Industries for Turkish Youth)

www.volicity.org

VOLICITY engages partners in three countries (Germany, Turkey and UK) in the development of a modularised e-learning programme, targeted at young people from Turkish speaking communities and focused on access to employment in the creative industries. It is being developed through three community partners in Berlin, Istanbul and London, creative industry employers in each country, an accrediting body and a specialist e-learning training organisation. Funded under the EU LEONARDO DA VINCI Vocational Training programme, it runs from October 2005 initially for two years.

VOLICITY combines young people’s interests in popular cultural forms (music, new media, broadcasting etc) with opportunities to work directly with employers from the creative and cultural industries. Employer and Youth Forums will be linked via the community-based partners. These experiences will be structured into a series of vocational training programmes (new media, performing arts and galleries and museums), each under-pinned by a strong e-learning base. Tutors from each community organisation will guide trainees through the design and development of the programmes, supported by employers who will relate the programmes to future employment opportunities. A training manual will be devised by employers and VOLICITY’s lead ICT partner to help facilitate this process.

Berlin Case Study/appendix A 39

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One of the UK’s partners, the Open College Network London Region will take responsibility for accrediting the learning programme and also for exploring issues of qualification equivalence and possible transfer across the EU and in Turkey. A VOLICITY website will be developed and dissemination conferences will held in each partner country.

VOLICITY will result in an e-learning programme and handbook. All products will be developed in formats that are accessible to the needs of Turkish speaking young people (16–25), the target group. The learning programme focuses on the skills required for employment in the creative industries sector but will also develop general employability skills. The programme will be partly diagnostic, partly informative and partly experiential to provide building blocks that can lead to a preemployability qualification. Modules of the programme will be accessed through the VOLICITY website. Throughout, the programme aims to develop intercultural awareness and competences through the use of case studies and exercise that foster confidence and tolerance.

There is potential to extend the programme to other Turkish Speaking communities in mainland Europe and also in northern Cyprus. A more ambitious plan is to translate the model for use with other ethnic minority communities. VOLICITY will however result in a useful database of information on the creative and cultural industry sectors in the three partner countries and a contribution to vocational qualification transfer across the partners.

Volicity partners

Kinder Jugend und Kulturzentrum “Naunynritze”, Berlin; ESTA Bildungswerk, Duisburg

ESTA Danismanlik, Ankara; Pera Guzel Sanatlar, Istanbul

Open College Network London Region; Cultural Industries Development Agency, London;

Balik Arts UK; London Metropolitan University, UK (coordinator)

The Berlin partner is the Naunyn Ritze Cultural Centre for Children, Young People and Adults and Outdoor Playground Civilipark (naunynritze(at)web.de). Naunyn Ritze is an Open House for children, young people and also adults in the Berlin district of Kreuzberg, attached to the area youth office of Friedrichshain-Kreuzberg.

Art market

ArtNet

www.artnet.com

CEO Thomas Eller founded the ArtNet magazine in 1997. Having been based in New York (born in Neurenberg, not Berlin), Berlin is less structured than New York, but has close art market ties – company earnings are 50:50 New York: Berlin.

From a position of expansion in 1985, following the Art market crash many galleries closed – in both NY and Berlin. ArtNet.com was established from developing a database of 2.8m art auction results. The database includes visual images, and is subscription-based. The fine art market is highly skewed – a private gallery needs only c.6 wealthy clients to be viable (i.e. an effective cartel). ArtNet aims to be more ‘democratic and transparent’.

ArtNet provides Custom Reports through a market research department which works with curators, collectors and analysts to generate custom reports, indices and data samples for any combination of artists, collector categories and art periods included in ArtNet’s extensive price database.

The Berlin ArtFair – although not as big as the Basle Art Fair, Switzerland which has 3 Art Fairs, 270 galleries, a ‘Younger Artists’ list of ‘young’ galleries (who exhibit for up to 3 years) – has benefited from a boom in art collection/dealing. This is witnessed in the independent gallery network (300 galleries in the city) e.g. in Mitte and Prenzlauer Berg, and an online gallery which exhibits/markets 10 works/gallery. Post the dot.com crash and 9/11, the Art market has maintained its status and value – it is no longer just a ‘luxury good’.

However, the Berlin Economy has little long-term wealth and lacks consumer confidence with a propensity to save not spend (and no credit/card culture – <50% in Germany versus over 80% card ownership in Spain and the UK). Exports from Germany are the highest in the world for the last 3 years. Gallery sales reflect this international market (e.g. to the USA), only 5% of art sales go to Berlin or Germany.


Berlin Senate definition of Creative Economic fields is based on NACE-Classification (2003)

NACE-Codes (%) Description of the economic field

Music business 2214/ 22113 100 Publishing of sound recordings

2231 100 Reproduction of sound recordings

36300 100 Manufacture of musical instruments

55403 100 Music clubs and discotheques

92312 60 Orchestras, bands and choirs

92315 100 Composers

92317 33.3 Musicians

92321 50 Organisation of concerts

92322 50 Concert halls and operas

92116 100 Sound Recording studios

2232 50 Reproduction of video recordings

2233 50 Reproduction of media material

2465 50 Manufacture of unrecorded media

3230 50 Manufacture of radios, sound recording or reproducing equipment

52452 50 Retail sale of radio equipment

52453 100 Retail Sale of musical instruments

92325 50 Technical services for cultural activities (advanced) booking agencys)

Performing arts 92311 100 Theater companies

92312 40 Dancing companies

92317 33.3 Performing artists

92318 100 Artists

92321 50 Organisation of theater events

92322 50 Theater locations

92323 100 Cabarets

92342 100 Other events (puppeteers/circus)

92325 100 Technical services for cultural activities

92722 50 Miscellaneous services for entertainment

92330 100 Amusement park activities

92341 100 Dancing schools

Berlin Case Study/appendix B

Appendix B – Classification of creative economic fields

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Audio-Visual Sector 71404 100 Video stores

9211 100 Motion picture and video production

9212 100 Motion picture and video distribution

92130 100 Cinemas

92201 100 Broadcasting stations

92202 100 Production of radio and TV programms

92317 33.3 Actors and radio presenter

2232 100 Reproduction of video recordings

2233 50 Reproduction of computer media

2465 50 Manufacture of unrecorded media

3230 50 Manufacture of TV receivers, video recorders or reproducing equipment

33403 50 Manufacture of cinema equipment

52452 50 Retail Sale of TV equipment

Art Market 26701 100 Sculpture art

28523 100 (Artistic) Blacksmith’s shops

36222 100 Manufacture of jewellery out of precious materials

36223 100 Manufacture of jewellery out of gold and silver

74874 100 Designers (textile, jewellery and furniture)

7481 100 Photographic activities

92313 33.3 Visual artists

52482 100 Retail with art objects and paintings

52501 100 Retail with antiques and antiques carpets

181/182/19 100 Manufacture of clothes, leather clothes and footwear

2621 100 Manufacture of Ceramic and Decorative Objects

5242 100 Retail sale of clothes

5243 100 Retail sale of footwear and leather goods

52485 100 Retail sale of watches, jewellery and other products

52612 100 Retail sale of clothes via mail order

74873 100 Auction halls

Architecture & Cultural Heritage

74201 100 Architecture companies for construction and interior design

74202 100 Architecture companies for regional planning

74203 100 Architecture companies for garden planning and landscaping

92314 100 Restoration activities

9252 100 Museums


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Literature, Print and Publishing

22111 100 Publishing of books

22121 100 Publishing of daily newspapers

22122 100 Publishing of weekly newspapers

22131 100 Publishing of journals and periodicals

22132 100 Publishing of general magazines

22133 100 Publishing of other magazines

71403 100 Lending libraries and reading circles

7485 100 Translation activities

92316 100 Authors

92401 100 Press agencies

92402 100 Journalists and press photographers

9251 100 Library and archives activities

22150 100 Other publishing

22210 100 Printing of newspapers

2224 100 Pre-press activities

2222 100 Printing n.e.c.

2223 100 Bookbinding

52472 100 Retail sale of books and professional journals

52473 100 Retail sale of newspapers and periodicals

52502 100 Retail sale of secondhand goods

Software & Telecommunications

722 100 Software companies

724 100 Databases

726 100 Other data processing activities

643 100 Telecommunication services

Advertising

7440 100 Advertising


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Other languages and formats: This document is also available in large print, braille, on disk, audio cassette and in the languages listed below. For a copy, please email [email protected], telephone 020 7953 9000, or write to London Development Agency, Palestra, 197 Blackfriars Road, London, SE1A 8AA.

Berlin Case Study

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Strategies for creative spaces Berlin Case Study · 2.1 Creative economy 15 2.2 Creative enterprise and employment 15 2.3 Creative clusters 20 3. Creative industries strategy 24 3.1

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