Knowledge and creativity at work in the Munich region Pathways to creative and knowledge-based region ISBN 978-90-75246-53-7 Printed in the Netherlands by Xerox Service Center, Amsterdam Edition: 2007 Cartography lay-out and cover: Puikang Chan, AMIDSt, University of Amsterdam All publications in this series are published on the ACRE-website http://www2.fmg.uva.nl/acre and most are available on paper at: Dr. Olga Gritsai, ACRE project manager University of Amsterdam Amsterdam institute for Metropolitan and International Development Studies (AMIDSt) Department of Geography, Planning and International Development Studies Nieuwe Prinsengracht 130 NL-1018 VZ Amsterdam The Netherlands Tel. +31 20 525 4044 +31 23 528 2955 Fax +31 20 525 4051 E-mail: [email protected] Copyright © Amsterdam institute for Metropolitan and International Development Studies (AMIDSt), University of Amsterdam 2007. All rights reserved. No part of this publication can be reproduced in any form, by print or photo print, microfilm or any other means, without written permission from the publisher. Knowledge and creativity at work in the Munich region Pathways to creative and knowledge-based regions ACRE report 2.7 Sabine Hafner Manfred Miosga Kristina Sickermann Anne von Streit Accommodating Creative Knowledge – Competitiveness of European Metropolitan Regions within the Enlarged Union Amsterdam 2007 AMIDSt, University of Amsterdam ACRE ACRE is the acronym for the international research project Accommodating Creative Knowledge – Competitiveness of European Metropolitan Regions within the enlarged Union. The project is funded under the priority 7 ‘Citizens and Governance in a knowledge-based society within the Sixth Framework Programme of the EU (contract no. 028270). Coordination: Prof. Sako Musterd University of Amsterdam Amsterdam institute for Metropolitan and International Development Studies (AMIDSt) Department of Geography, Planning and International Development Studies Nieuwe Prinsengracht 130 NL-1018 VZ Amsterdam The Netherlands Participants: Amsterdam (Amsterdam institute for Metropolitan and International Development Studies, University of Amsterdam, the Netherlands) Marco Bontje ~ Olga Gritsai ~ Heike Pethe ~ Bart Sleutjes ~ Wim Ostendorf ~ Puikang Chan Barcelona (Centre de Recerca en Economia del Benestar – Centre for Research in Welfare Economics, University of Barcelona, Spain) Montserrat Pareja Eastaway ~ Joaquin Turmo Garuz ~ Montserrat Simó Solsona ~ Lidia Garcia Ferrando ~ Marc Pradel i Miquel Birmingham (Centre for Urban and Regional Studies, University of Birmingham, UK) Alan Murie ~ Caroline Chapain ~ John Gibney ~ Austin Barber ~ Jane Lutz ~ Julie Brown Budapest (Institute of Geography, Hungarian Academy of Sciences, Hungary) Zoltán Kovács ~ Zoltán Dövényi ~ Tamas Egedy ~ Attila Csaba Kondor ~ Balázs Szabó Helsinki (Department of Geography, University of Helsinki, Finland) Mari Vaattovaara ~ Tommi Inkinen ~ Kaisa Kepsu Leipzig (Leibniz Institute of Regional Geography, Germany) Joachim Burdack ~ Günter Herfert ~ Bastian Lange Munich (Department of Geography, Ludwig-Maximilian University, Germany) Günter Heinritz ~ Sabine Hafner ~ Manfred Miosga ~ Anne von Streit Poznan (Institute of Socio-Economic Geography and Spatial Management, Adam Mickiewicz University, Poland) Tadeusz Stryjakiewicz ~ Jerzy J. Parysek ~ Tomasz Kaczmarek ~ Michal Meczynski Riga (Stockholm School of Economics in Riga, Latvia) Anders Paalzow ~ Diana Pauna ~ Vjacheslav Dombrovsky ~ Roberts Kilis ~ Arnis Sauka Sofia (Centre for Social Practices, New Bulgarian University, Bulgaria) Evgenii Dainov ~ Vassil Garnizov ~ Maria Pancheva ~ Ivan Nachev ~ Lilia Kolova Toulouse (Interdisciplinary Centre for Urban and Sociological Studies, University of Toulouse-II Le Mirail, Toulouse, France) Denis Eckert ~ Christiane Thouzellier ~ Elisabeth Peyroux ~ Michel Grossetti ~ Mariette Sibertin-Blanc ~ Frédéric Leriche ~ Florence Laumière ~ Jean-Marc Zuliani ~ Corinne Siino ~ Martine Azam Milan (Department of Sociology and Social research, University degli Studi di Milan Bicocca, Italy) Enzo Mingione ~ Francesca Zajczyk ~ Elena dell’Agnese ~ Silvia Mugnano Dublin (School of Geography, Planning and Environmental Policy, University College Dublin, Ireland) Declan Redmond ~ Brendan Williams ~ Niamh Moore ~ Veronica Crossa ~ Martin Sokol Table of contents Executive summary.......................................................................................................................... 1 1 National background ................................................................................................................. 5 1.1 Introduction............................................................................................................................. 5 1.2 The German political and administrative system.................................................................... 5 1.3 The German urban system ...................................................................................................... 7 1.4 Economic development in east and west Germany until 1990 ............................................... 7 1.5 Economic and demographic development after 1990 – growing disparities .......................... 8 1.5.1 Development of employment in Germany ............................................................................ 9 1.5.2 Demographic development in Germany.............................................................................. 13 1.6 National policies concerning the knowledge and creative economy .................................... 14 1.6.1 Knowledge economy........................................................................................................... 14 1.6.2 Creative economy / Creative industries............................................................................... 14 2 The context: Bavaria, Upper Bavaria and the Munich Region............................................ 17 2.1 The administrative units: Bavaria, Upper Bavaria and the Munich Region ......................... 17 2.1.1 Bavaria and Upper Bavaria................................................................................................... 17 2.1.2 The Munich Region............................................................................................................. 18 2.2 Economic and Demographic Development in Bavaria and Upper Bavaria.......................... 19 2.3 Munich´s (new) geopolitical position in Europe and in the global city system.................... 21 3 Historic development path of the Munich region (up to 2000) ............................................ 23 3.1 Before 1950 (1945)............................................................................................................... 23 3.1.1 The beginnings of Munich .................................................................................................. 23 3.1.2 Culture and sciences under royal patronage........................................................................ 23 3.1.3 The industrial development of Munich – the beginnings.................................................... 24 3.1.4 1900 until the end of World War II..................................................................................... 25 3.2 Reconstruction and economic upturn: The period from 1945-1980 ..................................... 26 3.2.1 Beginning of Munich’s rise to an economic and industrial centre ...................................... 26 3.2.2 Laying the foundations for Bavarian technology policy ..................................................... 27 3.2.3 Population development and change of social structure ..................................................... 28 3.2.4 Housing market: Private acquisition of property and large social housing estates ............. 29 3.2.5 Divergence between Munich and its suburban areas........................................................... 30 3.3 Period from 1980-2000: Economic growth and first growth problems ................................ 30 3.3.1 ‘Municon Valley’ and ‘Munich Mix’: Guarantees for positive business development ...... 31 3.3.2 Infrastructure Policies.......................................................................................................... 32 3.3.3 Demographical development and growing social polarization ........................................... 33 4 Current situation: Economically prosperous Munich and its negative concomitants ....... 37 4.1 The economic success story continues – Munich’s extraordinary competitiveness ............. 37 4.1.1 Economic and demographic profile of the Munich region.................................................. 38 4.1.2 Munich’s clusters as innovative growth poles of the city-region........................................ 44 4.2 Concomitants of economic growth ....................................................................................... 50 4.2.1 Poverty in prosperity: The dark side of economic prosperity ............................................. 50 4.2.2 Munich’s tight housing market............................................................................................ 53 i 5 The state of the creative knowledge sectors ........................................................................... 57 5.1 Statistical analysis of the creative knowledge sectors .......................................................... 57 5.1.1 Employees in the creative knowledge sector......................................................................