Industrial Transition in the Berlin/Brandenburg Automotive Industry

Summary: The Cluster Transport, Mobility and Logistics Berlin-Brandenburg has established itself as a key actor within the regional industrial ecosystem. The cluster has been set up as an integral part of the regional innovation strategy and is actively used by public authorities to facilitate regional industrial transition. Since its establishment in 2011, the cluster contributed to significant employment and revenue growth in the region and initiated various R&I projects with a particular focus on digitalisation, electrification and upskilling. Against the background of its strong track record in providing targeted support to cluster members, the cluster was entitled by the regional stakeholders to launch and coordinate a renowned project, run by the Federal Ministry for Economic Affairs and Climate Action (BMWK), on industrial transformation in the automotive and supplier industry with a particular focus on de-carbonisation, digitalisation of production and upskilling.

The Berlin-Brandenburg Region

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The two federal states Berlin and Brandenburg form the German metropolitan region “Berlin-Brandenburg” in the centre of Europe. The region is home to more than six million people, and is the location of more than 475,000 companies, 51 universities and 86 research centres. Some 3.2 million employees work, develop or conduct research in the region. Despite divergent levels of innovation performance – according to the EU’s Regional Innovation Scoreboard 2021, Berlin is an Innovation Leader while Brandenburg is a Moderate Innovator with decreasing innovation performance over time – the cross-border interdependencies in areas such as industry, science, transport, energy, health and the environment are unique in this form throughout Germany.

The states of Berlin and Brandenburg see themselves as a single economic area. The “Strategic Framework for the Capital Region” adopted by the two state governments in April 2021 formulates guiding ideas for the joint development of the region. Key areas of action include digital transformation, mobility, skilled workers, energy and climate protection, urban and regional development, and internationalisation.

Regional Innovation Scoreboard - Berlin Brandenburg

The Berlin-Brandenburg region is shaped by five dominant Industrial Ecosystems, which all encompass players from the smallest start-ups to the largest companies, from academia to research, service providers to suppliers:

1. Healthcare industries

2. Energy technology

3. Transport, mobility, logistics

4. ICT, media, creative industries

5. Photonics

Strategic challenges, which have been identified and addressed in the region’s strategic framework are:

1. digital transformation,

2. a high demand for skilled workers,

3. an increasing shortage of space in Berlin,

4. regional social cohesion,

5. sustainable development, and

6. COVID-19 pandemic-related disruptions.

Based on a joint innovation strategy (innoBB 2011/2025), the two states have established five cross-border industry clusters in 2011. They all bring together the relevant stakeholders in the above-mentioned five industrial ecosystems and provide tailor-made support to facilitate digital and green transition and the building of economic resilience. Each cluster is jointly operated by the business development agencies of both states, Berlin Partner für Wirtschaft und Technologie GmbH and Wirtschaftsförderung Land Brandenburg GmbH. They share staff resources, contacts and activities. This set-up secures the clusters’ financial resilience as long as Berlin and Brandenburg continue their strong support for cluster-based regional economic development.

The five clusters are also tasked with providing impetus for some 50 regulatory test beds and testing areas, which are run in Berlin and Brandenburg with the aim of testing and developing technical and non-technical innovations in realistic circumstances at an early stage of development with reduced commercial risk. The interplay of industry clusters and test beds shall help getting prototype applications quickly off the ground.

The Mobility, Logistics and Automotive ecosystem in Berlin and Brandenburg plays a particularly important role for the regional economy. The metropolitan region has developed into an important automotive location with a significant number of both OEMs, such as BMW, Mercedes-Benz, Volkswagen and Tesla, and suppliers. Today, around 21,000 people are employed in more than 200 companies. Production ranges from accessory parts to the development and manufacture of complete vehicles.In addition, more than 25 research institutes, software companies (e.g. Cariad, Mbition) and mobility Start-Ups code, conceive and test new software and business models for the automotive industry.

Regarding logistics, Berlin-Brandenburg is traversed by three of the nine designated trans-European corridors and is thus connected to all European and Asian growth markets. The annual take-up of 340,000 to 400,000 m² has secured Brandenburg and Berlin a spot among Germany’s top logistics regions. Companies such as Amazon, Rossmann or Zalando have settled in or expanded in the region.

Rail Systems Technology and Aerospace are two further sectors of high economic relevance for the region, employing more than 20.000 and 17.000 people respectively.

 

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Cluster Transport, Mobility and Logistics

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The cross-border Cluster Transport, Mobility and Logistics (CTML) was founded in 2011 by the two German federal states Berlin and Brandenburg with the sole purpose of implementing the mobility-related policy objectives, which had been enshrined in the joint innovation strategy innoBB 2011. The cluster is managed by the business development agenecies of both states, Berlin Partner für Wirtschaft und Technologie GmbH and Wirtschaftsförderung Land Brandenburg GmbH. Funding is almost exclusively provided by the two federal states. Membership fees do not apply.

CTML counts some 650 committed participants from all relevant categories (industry, research & education, intermediates, marketing & communication, government & public administration). Approx. 500 participants belong to industry (400 small and medium-sized enterprises and 100 large players). Other committed participants are: 24 R&D institutions, 14 universities and 13 training and education providers. Because of its unique institutional set-up as an extended arm of the regional developers in Berlin and Brandenburg, the cluster’s work is based on a solid (and fruitful) Triple Helix structure (university-industry-government relationships).

The cluster management team consists of nine well-qualified staff members (7 full time equivalents (FTE)). Work of the cluster management is based on a comprehensive cluster strategy (“Master Plan”) with the clear vision to “make Berlin-Brandenburg a leading global location for sustainable, intermodal and networked mobility.” An important element of the ‘Master Plan’ is the highly participatory and consultative process in which the various stakeholders were involved and could postulate their opinions on the priorities. CTML is a4 member of the renowned go-cluster programme, the cluster political excellence activity of the German Federal Ministry for Economic Affairs and Climate Action (BMWK), and carries the SILVER Label of the European Cluster Excellence Inititaive.

The cluster is actively involved in the European Rail Cluster Initiative (ERCI), which it uses to facilitate collaboration among mobility Start-Ups across Europe and more traditional SMEs from within the region.

Digital and green industrial transition and building up resilience are equally important objectives of the cluster initiative. In order to achieve these goals, the cluster management narrowed down its service portfolio to three targeted support activities:

1. Initiating collaborations: with a particular focus on the acquisition of regional, national and European mobility-related R&I projects, which the cluster management initiates and also coordinates in close collaboration with the regions’ various industry and science partners;

2. Internationalisation Support: developing systematic network relations and strategic partnerships with other European and non-European players; and

3. Securing Skilled Employees: facilitating the recruitment of employees, their specific further education and retention in businesses.

BB Impact

Throughout the past years, CTML has established itself as a key actor within the regional industrial ecosystem. With the help of an online tool for performance monitoring, which was developed in coordination with the public authorities of both regions (Senate Berlin and Federal State Ministry in Brandenburg), CTML can show that both employment and total revenue of its core members increased by more than 20 percent between 2011 and 2019/2020.

Moreover, in 2021, R&I projects with a total volume of 349.4 million euros were newly initiated with the support of the CTML cluster management. These projects have a particular focus on digitalisation and elctrified drive and mobility solutions. Most projects are supported by federal funding. Of the 86 running R&I projects in 2021, individual projects stand out that can be assigned to the innovation field of automation and networking and at the same time have the character of regulatory test beds and testing areas – i.e., in addition to technical testing, they also address the need for regulatory action. Examples of such inititaives are projects on automated train operation (BerDiBa), a digital test bed for automated and autonomous inland navigation (DigitalSOW) or a roundtable on resilience and recovery of public transport use during COVID.

In 2021, CTML successfully submitted a proposal for a “Regional Transformation Network Berlin - Brandenburg for the Development and Implementation of a Regional Transformation Strategy in the Automotive and Supplier Industry” (ReTraNetz BB). The inititiave was triggered by an open call for “Transformation strategies for regions of the vehicle and supplier industry" by the German Federal Ministry for Economic Affairs and Climate Action (BMWK). The funding programme focuses on the medium and long-term challenges of regions where economic and employment development are particularly dependent on successful transformation in the automotive and supplier industry. Overall objective is to promote regional transformation networks with the relevant players in order to develop strategies for regional transformation and support their implementation.

CTML, in close collaboration with industry, science and social partners, including labor unions, coordinates the various tasks in order to transform activities of large and small companies towards de-carbonisation, digitisation of production, and upskilling. Main activities over the 4-years project duration are: 1. the establishment and expansion of the network via bottom-up processes; 2. collection and provision of relevant data and information; 3. preparation of concepts and studies, 4. networking of all involved actors, 5. provision and testing of qualification formats, and 6. initiation of collaborative projects.

The ReTraNetz inititiave is a prime example of how national policy makers can incentivise collaboration between regional clusters and relevant regional stakeholders in order to facilitate industrial transition and build up regional economic resilience.

Lessons Learned and Transferability

The Cluster Transport, Mobility and Logistics Berlin-Brandenburg has established itself as a key actor within the regional industrial ecosystem. The cluster has been set up as an integral part of the regional innovation strategy and is actively used by public authorities to facilitate regional industrial transition. Since its establishment in 2011, the cluster contributed to significant employment and revenue growth in the region and initiated various R&I projects, mainly focusing on digitalisation, electrification and upskilling. Against the background of its strong track record in providing targeted support to cluster members, the cluster was entitled by the regional stakeholders to launch and coordinate a renowned project, run by the Federal Ministry for Economic Affairs and Climate Action (BMWK), on industrial transformation in the automotive and supplier industry with particular focus on de-carbonisation, digitalisation of production and upskilling.

The case of CTML and Berlin-Brandenburg highlights the important role of policy support for cluster-based economic development at national, regional and local levels. Moreover, it shows the need for both, an effective interplay of national and regional policy interventions and a clear alignment of relevant strategies and policy support programmes. The case also demonstrates how cluster support programmes can facilitate the development of professional cluster management structures, ultimately leading to higher performance levels of the cluster management. Finally, the case underlines the relevance of international engagement and partnering in global value chains in order to access investment, technologies and skills.