StudyFeb 26, 2016

Munich is the leader in digital competitiveness

It has been clearly established once again: Munich is a digital hotspot. According to the recently published study by Deloitte on “Index Digitale Wettbewerbsfähigkeit – Die deutschen Städte im Vergleich (Index on digital competitiveness – comparing German cities)”, Munich is the leader when it comes to digitization.


The study investigated how well-prepared the 30 largest German cities are for digitization. The clear result: Munich is Germany's top digital location. And for various reasons: In addition to the high dynamics in the information and communications sector, companies located here can draw on a large number of qualified IT experts. Aside from that, the Bavarian state capital is a conurbation for IT companies and other sectors that are increasingly relying on digital technologies. In a 2014 study, the European Commission also distinguished Munich as a top ICT location in Europe, even ahead of London and Paris.

Talent pool number 1

Three different areas were examined in the thirty largest German cities: the IT talent available in the city, its innovation capabilities and its appeal. All three sub-categories were then weighted in an index from which the cities' positioning across sectors was derived. The intensely gratifying result: With a total index of 94.1, Munich took first place, followed by Berlin with an index of 88.1.

This outstanding position is due to the top marks Munich received in every sub-indexes. The Bavarian capital clearly outdistanced the competition in the rankings as a talent capital with an index of 95.0. In particular, the city has its dynamic development in the information and communications sector, general pool of IT experts and the high average education to thank for this. This confirms what has drawn investors and companies to Bavaria for years: The ICT sector is and will remain one of the most decisive factors in local economic development. And this applies to more than just the ICT sector. Rather, Munich draws on its strength from digitization for its traditional sectors, which increasingly rely on digital technologies: automotive, aerospace, medical and environmental technology industries. According to the study, Munich is the talent pool number 1 in Germany. This is thanks to the high number of academics and a strong focus on the ICT sector – in the last five years, the number of people working in ICT has risen by more than two-thirds, which equals 16,400 employees.

Pulling effect across all sectors

Additionally, Munich offers a balanced mixture: Young start-ups benefit from the outstanding innovation ecosystem that is generated through the expertise and resources from large companies at the location.


All-in-all, the authors of the study affirmed the magnetism of Munich has even in traditional sectors that are becoming increasingly digital and which are always looking for new talent and solutions. Thus, excellent opportunities and possibilities for the future are created at the location thanks to the efforts of the most diverse initiatives that will continued to be supported in coming years.

Related articles