Deloitte study: 4 Bavarian cities among the Top 15 German tech hubs
Bavaria has advanced to become an international leading region in terms of innovation and start-up mentality over the last few years – the ICT sector in particular is really booming in Bavaria. A current study by the management consultancy firm Deloitte now confirms this trend: it places Munich with a clear lead at the top of German tech hubs. And that’s not all: there are other Bavarian cities like Erlangen, Nuremberg and Regensburg among Germany’s Top 15 too. A trend that enhances the Bavarian locations’ global standing and presence further.
Tech hubs are places that benefit and promote the foundation and establishment of start-ups, specifically the digital industry, through their spirit of innovation, political support, work opportunities, networks etc. Regions or cities can be called tech hubs, but on a small-scale they can also be districts.
Munich is No. 1 – but Bavaria also impresses in the national comparison
Thanks to its exceptionally good conditions, Munich has advanced to become Germany’s tech Mecca quite some time ago, as a study by Deloitte has now established. According to this, Munich is in first or second place for eleven of the 15 indicators that the consultancy firm analysed: “What is remarkable about Munich’s current position in the digital talents section is that the city specialises to a very high degree in the ICT industry (industry and communication technology) and includes by far the most (technology-focused) MINT occupations in the entire urban economy at the same time,” Alexander Börsch, Head Economist at Deloitte, summarises the result.
This combination leads to Munich not just being a leader in the original digital sector but also in terms of the digitisation of classic sectors. This applies similarly to the whole of Bavaria. Due to the overall outstanding economic and infrastructural conditions, the state attracts an exceptionally high number of talents and start-ups: in the Deloitte ranking no less than four Bavarian states are placed among the German Top 15 with Munich (1), Erlangen (6), Nuremberg (11) and Regensburg (14) – with Augsburg (26) following as another city in the Top 30.
The present is very good, the future is promising
Deloitte worked out a status index and potential index to rank the locations. The status index primarily concentrates on the location’s current status, i.e. the current key figures such as the number of jobs in MINT sectors or the ICT sector and the employment rate and share of academics.
With the potential index on the other hand, Deloitte is attempting to see into the locations’ future: here the focus is on the number of MINT students, the reputation of the universities or the predicted employment market dynamics up to 2030. The Bavarian locations were convincing in all these areas.
The fact that this should remain the case is due to Bavaria being very well equipped for the future: Deloitte assesses the cities’ specialisation in certain talent and start-up target groups as crucial with regards to this. In Munich, for example, as indeed everywhere in Bavaria, prioritisation in the B2B sector can be observed. Besides this, the study particularly highlights the factor of internationalisation: this includes the development of international ecosystems, an on-site presence at innovation locations or cultivating business relationships in new markets.
Munich is an attractive location on an international level
What is conducive above all Munich and Bavaria’s increasing attractiveness as a location is that Deloitte spots a kind of magnetic effect on digital talents . According to the study, hubs develop a pull as soon as they have achieved a critical mass of talents, start-ups and innovation networks, in short: a certain reputation. “This trend towards a concentration of the digital industry and digital talents doesn’t just take place at national but also at international level. In future, the competition between locations will therefore probably take place less between German and more between international tech hubs.” As a result, Munich will mainly be in competition with other international innovation regions in future, finds Deloitte. A rosy outlook for one of the world’s leading locations.
You can download the entire study by Deloitte here.