Health location Berlin-Buch: Impulses for structural change in the city
DIW Weekly Report 26/2008, pp. 350-356
Berlin-Buch is a location specialised in biomedicine where companies, research institutions and clinical practice work closely together in the immediate vicinity. With over 4,500 employees, Berlin-Buch is one of the leading clusters of its kind in Germany. The total expenditure of the health location Berlin-Buch (465.2 million euros) has a noticeable impact on Berlin’s economy and labour market. The economic effects can be quantified to a total of 320.4 million euros of additional value added per year. This secures around 3,000 Berlin jobs outside the location. The facilities and companies at the Berlin-Buch health location receive around 12.6 million euros in funding from the state of Berlin every year. Against the backdrop of Berlin’s precarious budget situation, the effect of the alternative use of the state funds for the early repayment of the debts of the state of Berlin was calculated. This would result in a saving of 53 cents per euro repaid early. This compares to an additional value added in Berlin-Buch of 69 cents per euro of funding. The long-term effect of the knowledge capital accumulated in Berlin-Buch on overall economic productivity in Germany can be estimated at 100 million euros per year. In order for Berlin to benefit more from the value creation potential in Berlin-Buch, it is necessary to further expand the share of Berlin companies in the biomedical value chain.