Eastern Germany still has a lot of potential for start-ups

Tom Schmidtgen Tom Schmidtgen | 08.12.2020

The Commission "30 Years of Peaceful Revolution and German Unity" sees a lot of catching up to do for the eastern German states. It hopes that the capital Berlin will have a pull effect.

Start-ups in eastern Germany are having a hard time. This is the conclusion of a commission convened by the federal government to provide general recommendations for the further unification process. In its final report, it also identifies economic weaknesses in eastern Germany that make it particularly difficult for start-ups to gain a foothold in Saxony, Thuringia, Saxony-Anhalt, Brandenburg or Mecklenburg-Western Pomerania.

The commission, made up of 22 public figures, concludes, among other things, that the competitiveness of the eastern German states must be strengthened. "The difficult starting position in the eastern German states - aging, low population density, weaker economic structure - requires special political efforts to ensure that this part of the country can successfully participate in globalization," the report's authors write. For this reason, venture capital for start-ups should be given preferential tax treatment and production conditions improved. Business associations should also value start-ups more.

The commission also sees advantages

The authors draw hope from Berlin, where every third German start-up is based. The capital should serve as a growth engine for all of eastern Germany, the authors write. East German start-ups, Berlin's scientific landscape and companies in the region should also be linked in a targeted manner. "This also includes better infrastructural links between the various eastern German regions and Berlin and its international airport," the report says.

The commission hopes that the capital's geographical location in the middle of eastern Germany will have a radiant effect on the entire eastern part of the Federal Republic. It also lists other growth regions with a certain radiance, including Chemnitz-Zwickau, Leipzig-Halle, Dresden, Rostock and central Thuringia. The commission sees lower real estate prices and more available land as advantages for eastern Germany, which would open up new opportunities for rural regions.

The commission was set up last year. It is headed by the former Minister President of Brandenburg, Matthias Platzeck (SPD). In addition to politicians, industry representatives, celebrities such as Jan-Josef Liefers and economists such as the head of the Dresden ifo Institute Marcel Thum are also represented.


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