Berlin Outpaces Germany for 13th Year Running
The FUBIC innovation center will span five floors and approximately 30,000 square meters, providing space for up to 80 technology-oriented startups. © WISTA
Berlin's economy is on a roll. For the 13th consecutive year, the German capital has outpaced the national average, growing at 1.1% in 2025 compared to a modest 0.2% across Germany. That's five times the national rate, and Berlin's Senate is quick to point out that targeted investment played a major role.
According to a press release from the Senate Department for Economic Affairs, Energy and Public Enterprises, the city disbursed around €222 million through the GRW program ( Joint Task “Improvement of the Regional Economic Structure") in 2025. Co-financed equally by the federal government and the state of Berlin, the program supported both businesses and business-related infrastructure. An additional €51 million in federal GRW funds, redirected from other German states, further boosted Berlin's capacity.
The results? Around 3,567 permanent jobs created or secured, and nearly 130 active infrastructure projects covering everything from transport links for commercial zones to new innovation centers.
Two flagship projects stand out. The FUBIC innovation campus near Freie Universität Berlin, backed by €45 million in GRW funding, will eventually house up to 80 tech-focused startups and create 1,000 new jobs. Meanwhile, a new gene and cell therapy incubator on the Bayer AG campus, built in cooperation with the Charité and supported by nearly €14.71 million, is set to provide space for 15 to 20 startups working on treatments for currently incurable diseases.
Since the GRW program launched in Berlin in 1991, over €6.2 billion has been invested across roughly 9,350 projects. Senator Franziska Giffey called the results a clear sign that Berlin is "broadly and solidly positioned" as a business location.
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