According to a study by CIMA Institut für Regionalwirtschaft GmbH (German only), business ventures supported by Hamburg Invest create strong impetus for the entire Hamburg economy: thus, value creation effects totalling €1.6 billion were triggered in 2023, which corresponds to the previous year’s level. In addition to the direct and indirect effects of investment, the individuals filling these 8,900 newly created or secured jobs as a result of a relocation also play an important role by adding value in Hamburg as consumers and taxpayers. According to the institute‘s calculations, the fiscal effects amounted to €150 million in 2023, which is only slightly below the previous year’s figures (€160 million).
Cooperation and exchange with Nordic countries have gained importance at Hamburg Invest
In the past year, Hamburg Invest, the city’s business development agency, created and secured some 8,900 jobs in Hamburg. Moreover, 45 companies set up business in Hamburg in 2023. The majority of the newly created jobs are attributable to the fields of renewable energies, logistics, and IT & media. More than half of the companies setting up business in 2023 came from abroad – with strong impetus from Scandinavian countries.
Hamburg's Minister of Economy and Innovation, Dr Melanie Leonhard, explained: "Overall, 2023 was a successful year, especially with a view to securing jobs – for this is a way of retaining skilled workers in Hamburg in the long term. Against the backdrop of the geopolitical situation, alliances with neighbouring countries are becoming ever more important. Being the most southerly metropolis of Scandinavia, Hamburg is an attractive gateway for Germany’s northern neighbours, allowing them to easily access the German and European markets. And yet we are not only connected through geographical proximity: we also share a number of strategic focus areas. These include e.g. the availability of renewable energies, climate targets, mobility, and investment in green technologies."
Dr Rolf Strittmatter, Managing Director of Hamburg Invest, added: "With an investment volume of €502 million, we were once again able to achieve solid annual results – especially when considering that the investment climate continues to be subdued because of high interest rates and price increases in construction and energy. With our focus on innovative companies with high added value per job we are strengthening Hamburg as an innovation location in a targeted, sustainable manner, while also creating optimum conditions for meeting the dynamic demands of the market and fostering future growth."
The figures in more detail
Study confirms benefits for Hamburg‘s economy at large
A location with national and international appeal
Hamburg is in high demand both nationally and internationally. Presented in 2023, the Hamburg Senate‘s Foreign Trade Strategy (German only) attaches utmost importance to the European single market, and Hamburg Invest’s activities are fully aligned with the strategic direction specified in the strategy.
In its role as investment agency, Hamburg Invest was able to support 40 expansion projects in Hamburg, alongside attracting a total of 45 new companies to the city. Of the new companies setting up shop in Hamburg, 31 had come to the city from countries other than Germany.
In addition to market activities in Denmark, Sweden and the Netherlands, Hamburg Invest also expanded its activities in countries such as Singapore, the United States, the UK, Poland, Turkey, as well as Germany’s neighbouring countries of Austria and Switzerland.
Focus on Nordic countries
The partnership with Scandinavian countries plays a key role in Hamburg Invest’s international activities: "Year after year, the Scandinavian countries are among the top 10 in the Global Innovation Index and are regarded as pioneers for innovative solutions in areas such as digitisation and mobility. Relocating Nordic companies thus helps consolidate Hamburg’s position as a dynamic, attractive centre for business and innovation," said Dr Rolf Strittmatter.
Looking forward, the Fehmarnbelt Fixed Link will bring Northern Europe even closer together with Hamburg, the most southerly metropolis of Scandinavia. In future, the Fehmarnbelt corridor will connect the metropolitan regions of Hamburg and Copenhagen, while also integrating Southern Sweden. This connection will offer the opportunity to strengthen collaboration across different fields and to compete globally as one larger region with a population of around 10 million people. Current projects include the development of a hydrogen corridor from Hamburg via Copenhagen to Oslo, branding the region as a green hub, as well as promoting green initiatives and investment projects.
With the establishment of the Swedish Chamber of Commerce in Hamburg in 2019, Hamburg Invest was able to support an important strategic step for the city’s German-Swedish business community, which comprises more than 110 companies and has supraregional appeal thanks to major players such as Vattenfall and Securitas.
Especially the relocation of electric car battery manufacturer Northvolt, in which Hamburg Invest played a decisive role, underlines Northern Germany’s particular strengths: the company’s production facilities in Heide and its head office in Hamburg represent two major components that complement each other. The Hamburg branch will be opened on 1 July 2024 in the presence of Hamburg's First Mayor, Dr Peter Tschentscher.
The year 2023 also saw other companies such as Stock Republic (fintech) and Consid (IT) setting up business in Hamburg. Consid, one of the fastest growing companies in Northern Europe, realises digital business models based on its clients’ visions. Patrik Hall, CEO of Consid, said: "We chose Hamburg as the location for our expansion project because it is the economic centre of Northern Europe. Thanks to the region’s proximity to Scandinavia, people in Northern Germany have a pronounced interest in Swedish business culture and are familiar with Swedish values in business cooperation."
Marketing Hamburg’s startup ecosystem globally
With its geographical proximity to the Nordic countries, the Hamburg Metropolitan Region is also a logistically important location for Scandinavian scaleups looking to tap the German market. And indeed, teams from Scandinavia have been quite prominent in Hamburg’s Scaleup Landing Pad programme, which has been attracting growing international startups from the mobility, logistics, energy and construction sectors as potential candidates for relocation since 2022 and supports them in the process of setting up operations in Hamburg.
In 2023 alone, the programme supported eleven international stakeholders entering the local economy.
Established six years ago, Hamburg Invest’s dedicated Startup Unit continues to record unbroken demand from startups, with over 200 consultations throughout the year. Hamburg’s startup ecosystem is marketed internationally via a large number of presentations at trade fairs and events, such as the Hamburg Copenhagen Startup Forum, the Nordic Startup Challenge, the Slush startup event in Helsinki, the Web Summit in Lisbon, and Viva Technology in Paris. Moreover, the online platform Startup City Hamburg, which is managed by Hamburg Invest, connects new entrepreneurs and provides comprehensive information on funding and financing programmes available in Hamburg.
Innovation parks in Hamburg, Körber Technologies, and tecHHub Hamburg
In the course of 2023, Hamburg Invest brokered 24.1 hectares of commercial space to companies. Of this, around 7.8 hectares were private and around 16.3 hectares were municipal sites, whereby 7.9 hectares were awarded directly from Hamburg Invest’s property portfolio. Since May 2018, a total of around 51 hectares were allocated as part of 51 projects, and around 68% of land was provided as part of a lease contract. Such land brokerage activities are embedded in the Hamburg Senate’s strategic plans to promote industry and new business.
In 2023, one of the priority projects was the development of the Bergedorf Innovation Park. Körber Technologies had chosen the park as its preferred location for relocating and restructuring its plant, and thus a leasehold agreement was concluded in December 2023. In securing the Bergedorf location, Körber Technologies contributes to strengthening collaboration between industry and research in the City of Hamburg, which is one of the objectives laid out in the Hamburg Alliance for the Industry of the Future.
With the tecHHub Hamburg facility, Hamburg Invest created a pioneering location for the life sciences sector in 2023 and the first milestone in the Altona Innovation Park. Taking shape north of Science City Hamburg Bahrenfeld, it is a key component of the Free and Hanseatic City of Hamburg’s innovation strategy. With a gross floor area of around 5,600 m², tecHHub Hamburg offers modern lab space as well as additional office space. The aim is to provide affordable, rentable commercial space for young tech companies and research institutions. Development is almost complete and the building will be ready for use later this year.