Building the Innovation Economy City-Level Strategies for Planning, Placemaking, and Promotion Case study: Munich October 2016 Authors: Professor Greg Clark, Dr Tim Moonen, and Jonathan Couturier ii | Building the Innovation Economy | Case study: Munich About ULI The mission of the Urban Land Institute is to • Advancing land use policies and design ULI has been active in Europe since the early provide leadership in the responsible use of practices that respect the uniqueness of 1990s and today has over 2,900 members land and in creating and sustaining thriving both the built and natural environments. across 27 countries. The Institute has a communities worldwide. particularly strong presence in the major • Sharing knowledge through education, Europe real estate markets of the UK, Germany, ULI is committed to: applied research, publishing, and France, and the Netherlands, but is also active electronic media. in emerging markets such as Turkey and • Bringing together leaders from across the Poland. fields of real estate and land use policy to • Sustaining a diverse global network of local exchange best practices and serve practice and advisory efforts that address community needs. current and future challenges. • Fostering collaboration within and beyond The Urban Land Institute is a non-profit ULI’s membership through mentoring, research and education organisation supported dialogue, and problem solving. by its members. Founded in Chicago in 1936, the institute now has over 39,000 members in • Exploring issues of urbanisation, 82 countries worldwide, representing the entire conservation, regeneration, land use, capital spectrum of land use and real estate formation, and sustainable development. development disciplines, working in private enterprise and public service. Copyright ©2016 by the Urban Land Institute. ULI Europe, all rights reserved. No part of this report may be reproduced in any form or by any means, electronic or mechanical, including photocopying or recording, or by any information storage and retrieval system, without written permission of the publisher. ULI has sought copyright permission for all images and tables. Front cover image: Photo by Maximilian Dörrbecker, CC-by-SA 2.0 Urban Land Institute 50 Liverpool Street Tel: +44 (0)20 7487 9570 London Email: [email protected] EC2M 7PY Web: www.europe.uli.org United Kingdom iii | Building the Innovation Economy | Case study: Munich Acknowledgements This case study has been developed through a literature review of available academic scholarship, public and private research reports, and media publications. This effort has been supported by interviews with public officials, landowners, and district marketing organisations. We offer our thanks to the following individuals for their insight and advice in the development of this case study: Dr Rainer Emenlauer, Manager, ProStadt Robert Kulzer, Chairman of the District Committee, Berg am Haim Johannes Marx, Property Development/Property Management, R&S Immobilienmanagement GmbH Christiane Thalgott, former Councillor of Urban Development, City of Munich The authors wish to thank the following for their advice, ideas, and input: Lisette Van Doorn, CEO, ULI Europe Dr Elizabeth Rapoport, Content Director, ULI Europe Authors Professor Greg Clark, Senior Fellow at ULI Europe Dr Tim Moonen, Director of Intelligence at The Business of Cities Ltd Jonathan Couturier, Research Fellow, The Business of Cities Ltd iv | Building the Innovation Economy | Case study: Munich Contents Executive summary 1 1. Introduction 2 2. Munich’s innovation ecosystem 3 3. A new model of innovation districts for Munich 7 3.1 The catalytic roles played by landowners, investors, and the city government 8 3.2 Land use, real estate, and placemaking in Werksviertel 9 3.3 Marketing and promotion of innovation: Munich and Werksviertel 10 4. Conclusion 11 Notes 12 1 | Building the Innovation Economy | Case study: Munich Executive summary Many cities around the world are seeking an strong urban core, with sub-centres anchored by intensification and recycle profits into social enhanced presence of the emerging innovation specialised R&D functions and institutes. The infrastructure. economy in order to grow a new base of jobs, collaboration between universities, institutes, adjust to industrial change, or to leverage corporate R&D, trade unions, and multiple tiers Werksviertel has been developed according to a technology to address sustainability, resilience, of government created a unique ‘institutional model of placemaking that aims to retain all real and social cohesion. In the current cycle, cities thickness’ sometimes called the ‘Munich Mix’. estate of heritage value, attract a mix of uses and are focusing investment and promotion on new larger and smaller tenants, and achieve a very ‘innovation districts’, locations within the city Today, Munich’s main innovation sectors include high environmental performance. The site is where the innovation economy may develop and biotechnology, ICT, media automotive and distinctive for providing a substantial housing expand, although not all cities have the aerospace, all supported by a strong system of component, and a dynamic combination of endowment, ecosystem or expertise to finance and venture capital. Over successive recreational, artistic and retail spaces to sustain host them. economic cycles, Munich’s growth has its vibrancy. successfully addressed quality of life challenges As part of a collaboration between ULI and the amid substantial population growth and Munich’s city-level branding approach has City of Rotterdam, this case study of Munich was diversification. In the context of current serious evolved over the last 15 years, focusing on its developed in order to review and explore the land and growth constraints, Munich is bringing credentials as an open, welcoming and youthful ways in which cities can foster an innovation forward new locations to a new kind of city, but calibrating the brand towards innovation ecosystem and build a long-term strategy to innovation economy model. is an ongoing challenge, despite the strength of establish themselves as centres for innovation. Bavaria’s innovation brand. Werksviertel is not Munich was selected as a case study city, along One of Munich’s most important yet widely and explicitly promoted by the city as with San Diego and Tel Aviv, because of its innovation locations is Werksviertel, a a flagship innovation district. Instead currently mature innovation system, with the city now in re-purposed former industrial district and one of district leaders have employed tactics to build its third cycle as a city of innovation. the last remaining sites near the city centre. demand and identity in Werksviertel, from urban Over the last 15 years, family-owned design competitions to nightlife development Three overriding research questions informed landowner-investors have patiently collaborated and attracting cultural assets, always this case study: and taken the initiative to support cultural activity encouraging stakeholders to sample the district on the site, initiate viability studies, agree a joint in different ways. Today it is established as a • What roles are played by city governments, development plan, and make catalytic go-to neighbourhood within Munich’s large and landowners and investors in building an in - investments. The city government has deployed diverse innovation ecosystem, and is helping to novation economy, creating new innovation instruments effectively to enable land expand Munich’s long-term innovation capacity. districts, and sustaining them over time? Areas of successful leadership in Munich’s innovation economy and • How does land use, placemaking and real estate help support the innovation economy, district development and how can it contribute to making a city Strategy Tactics more liveable and attractive? Develop a Strategy as Optimise Land Use and Placemaking a City of Innovation • How does branding, communication and Support district development with flexibility, responding promotion of the city’s innovation focus help to market preferences Recognise and leverage the build identity and successfully attract regional innovation context Use infrastructure and land as platform for experimentation investors and businesses? Prioritise attention on Employ placemaking to achieve critical mass of real estate citywide ecosystem and commercial activity, and authentic sense of place Munich possesses one of Europe’s most development and networking advanced and mature innovation systems Build the City’s Innovation Brand that has developed over the past 60 years, Grow and support existing characterised by strong German federal and innovation firms and activity Leverage city DNA and expertise in promoting innovation Bavarian state support for high-technology Develop innovation brand as a broad identity and shared narrative Manage externalities that arise sectors. This model of innovation resulted in Invite others to feel and experience the innovation culture distinctive polycentric development around a Adapt through the cycles 2 | Building the Innovation Economy | Case study: Munich 1. Introduction Munich is one of Europe’s most diversified and have helped foster a renowned ‘Munich Mix’ of In the context of current serious land and balanced city economies, with a gross domestic sectors and companies, contributing to balanced growth constraints, Munich is bringing forward product (GDP) of US$220 billion that makes it spatial development over the past