THE METROPOLITAN AREA RUHR
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1 Leading markets for the future of a region Mutécos workshop EUROPEAN REGIONS AND THE CAPACITY FOR INDUSTRIAL REBOUND AS SEEN THROUGH 6 SUCCESS STORIES Brussels, 22 nd of April 2013 Ole Erdmann -project manager- Business Development Agency metropoleruhr GmbH 1
2 . Agenda 1. Facts - about the Metropolitan Area Ruhr 2. Challenges - structural change in the Metropolitan Area Ruhr 4. Résumé 2
3 . Agenda 1. Facts - about the Metropolitan Area Ruhr 2. Challenges - structural change in the Metropolitan Area Ruhr 4. Résumé 3
4 . 1. Facts The Metropolitan Area Ruhr is one of the largest metropolitan areas in Europe 4
5 . 1. Facts and the largest conurbation in Germany: 4,435 km 2 area 5.13 million population, 612,000 inhabitants without german citizenship 4 districts and 11 district-free cities population density : 1,155 inhabitants per km 2, national average : 230 inhabitants per km 2 and the largest conurbation in Germany: Cologne 1.01 Mio inhabitants Berlin Munich (Paris 3.5 Mio inhabitants 1.38 Mio inhabitants 10.4 Mio inhabitants) 5
6 . 1. Facts Gross domestic product (GDP) EUR 146 billion (bn) = EUR 63,459 per employed person corresponds to 26 % of NRW s GDP and 5.9 % of the German GDP Further key figures: Employees (2009): Enterprises (2012): Students (2012): 2.29 million employees, of which 1.51 million liable to pay social contributions, 85,000 trainees; 70,000 registered firms and cooperatives 220,000 students at 21 Universities 6
7 Agenda 1. Facts - about the Metropolitan Area Ruhr 2. Challenges - structural change in the Metropolitan Area Ruhr 4. Résumé 7
8 2. Challenges - structural change employees coal and steel industry Ruhr region total employees employees coal and steel industry employees
9 2. Challenges - structural change employees in million total manufacturing sector services sector agriculture and forestry sector 9
10 Agenda 1. Facts - about the Metropolitan Area Ruhr 2. Challenges - structural change in the Metropolitan Area Ruhr 3. Strategies leading markets 4. Résumé 10
11 Strategic factors Industrial core as driving force Search for sustainable solutions Systemic and holistic concept of innovation New definition of customer relations Cross-sector and cross-branch cooperation New instruments to face complex market settings External factors New challenges in society Demographic change Climate change Urbanization Plurality of lifestyles Social preferences Ecological awareness Health awareness Hybrid customer behavior Leading markets with high potential for growth and jobs 11
12 Leading markets Ruhr percentage of total employees Ruhr German average total no. of employees Ruhr industrial core 18,4% 16,6% 287,291 health 16,7% 15,2% 260,927 urban construction & living 11,4% 11,6% 177,096 mobility 10% 11,6% 156,071 sustainable consumption 6,7% 7,9% 104,868 resource efficiency 6,2% 3,6% 95,914 leisure & events 5,1% 6,2% 78,861 education & knowledge 4,5% 4,7% 70,568 digital communication 2,8% 3,4% 43,216 12
13 Leading markets urban proximity as driver for innovation in a knowledge economy urban economy as laboratory for global leading markets megatrends -> new demand -> leading markets -> new company strategies leading markets overcome former branch borders structural policy has to support SME s to react to these new markets overcome hurdles for market entry of new business fields due to transaction costs promote framework conditions for new business fields 13
14 14
15 . Example PHOENIX Dortmund: former steel production was closed in 2001 an techology park for 31 enterprises in the field of nano and micro technology, IT and logistics a lake was created with 1300 living units and leisure facilities framework of PHOENIX is the dortmund project, an cooperation between ThyssenKrupp and the city of Dortmund with long term cluster-strategy set up in
16 Example leading market mobility: LOGPORT in Duisburg: sited at an area of a former steel factory complex with nearly 16,000 workers. today biggest inland port of Europe linked with local logistics cluster with almost 17,000 employees. 16
17 Framework for the activities of the wmr federal state North Rhine Westphalia is main political actor in structural policy (Operational program for EU funds) funding of structural policy 1991 and 2010 for the Metropolitan Area Ruhr EU regional and social funds: ~ 2,2 Bn. EUR federal state funds: ~ 4 Bn. EUR NRW.Invest as state owned agency for international business contacts, foreign trade promotion and investor service Offices in Japan, USA, China, Korea, Russia, India and Turkey NRW Bank as state owned regional development bank since 2002 annual balance of 150 Bn. EUR subsidies of 9,5 Bn. EUR in 2012 disbursed Subsidies and credits for local communities, SME s and private persons 17
18 Framework for the activities of the wmr 4 districts and 11 district-free cities: 53 communities Regionalverband Ruhr (RVR) as association of these cities and districts of the region: RVR based on federal state law is legal framework Local communities delegate city councilors to the regional assembly RVR is sole owner of the Wirtschaftsförderung metropoleruhr Wirtschaftsförderung metropoleruhr (wmr - business development agency): Legal status: agency of private law (limited), founded 2007 staff: 20 budget: 2.3 Mio. EUR p.a. some local administrations in the region have local business development agencies 18
19 Focus of activities of wmr Network building and information exchange about leading markets Investor service cross-branch und public-private matching guide in complex regional administration structures regional real estate data base regional marketing regional lobbying on state and national level regional coordination of local activities business field analysis and promotion in leading markets 19
20 Agenda 1. Facts - about the Metropolitan Area Ruhr 2. Challenges - structural change in the Ruhr area 4. Résumé 20
21 . 4. Résumé close look to potential links between European and regional trends in demand on leading markets promotion of smart specialization in and across existing branches: cross innovations enabling cooperation between enterprises of formerly different branches and public administration to find innovation niches advantages of conurbation: new urban economy wmr approach: path formation based on related variety in leading markets in an urban area 21
22 . Thank you. Ole Erdmann -Project manager- Business Development Agency metropoleruhr GmbH Phone: Ruhrstraße Mülheim a.d. Ruhr Germany 22
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