City of Munich Department of Labor and Economic Development
Key Competitive Attractions
Munich Business
A total of 1.4 million residents and 960,000 employed people make Munich Germany’s third-largest city and the country's second-largest employment hub. Bucking the national trend, the Bavarian capital is forecast to see substantial population growth continue. Thanks to a consistently higher birth rate than the death rate and significant inward migration – much of which is made up of well-educated and highly skilled young people – the city's population is slated to rise by just under 11% to 1.5 million in the next 20 years. This development establishes Munich as Germany’s youngest major city.
The Bavarian capital and the surrounding area form one of Europe’s most dynamic economic regions. An impressively strong economy, a favourable geographic location and an efficient infrastructure add up to ideal conditions for the corporate sector. Impressive purchasing power of €24,879 per capita and an unemployment rate of 4.7% (in 2010) - which is the lowest of any German major city - highlight the forceful competitive edge enjoyed by the City of Munich.
The city's economic vitality is rooted in the balanced and diverse economic structure - the 'Munich mix'. Global players rub shoulders with promising start-ups; manufacturers with service providers; skilled crafts people with innovative clusters.
While many business regions lead the field in one advanced sector, Munich is a leader in many. It is precisely this depth and breadth that has given the Bavarian capital such an impressive track record of sustained and sustainable growth.
Assistance and Support For New Business Investors
A single point of contact (SPC) for corporate customers makes life easier for investors. The SPC is their first port of call not only for matters relating to company startups and relocation, but also with regard to subsidies, grants and contact with relevant networks. The SPC also supplies early assistance – providing the Munich Welcome Package – to investors who are interested in relocating to Munich.
The Munich Business Startup Office advises entrepreneurs on all matters relating to self-employment and helps them prepare a business plan. Startup consultant Evobis provides a similar service to new technology businesses.
Foreign investors keen on a move to Munich also have access to the Munich Touchdown Base package. To simplify the process of setting up operations here, Touchdown lets them spend the first three months at the Munich Technology Centre (MTZ). For an extremely attractive flat fee, they can rent premises, use fully furnished offices and cutting-edge technology and take advantage of the MTZ's outstanding technology infrastructure. During this period, they can also use a broad range of MTZ consulting services and establish contact with other resident business partners. This package makes it significantly easier to gain a foothold in Munich. Throughout every phase of (re)location, the City of Munich's Economic Development unit is on hand to provide advice on issues such as licenses, procedures and the purchase of commercial space.
Existing Business Base
Knowledge, creativity and innovation - Munich's recipe for success.
Knowledge and innovation are vital resources in a world of global competition. Munich is acknowledged to be a modern hub of technology, research and development. No fewer than seven of the companies listed in the DAX 30 index of Germany’s top blue-chip firms are headquartered in Munich – more than in any other German city. Munich’s automotive, information and communication technology, life sciences, aerospace, corporate services and financial clusters deliver a steady stream of innovative stimulus. High-tech industries and research combined with industrial production – the proverbial 'Munich mix' – are rooted in the city’s balanced, highly diverse and sustainable economy. Global players such as Siemens and BMW, and youthful high-tech companies recognise Munich as a research hub that commands worldwide respect. Munich's first-class research organisations interlock closely with the high-tech industry, enabling innovation to be translated quickly into marketable products. Heavy research spending and 26% of all German patents guarantees that Munich will continue to help shape the future. Excellent universities provide resident companies with a guaranteed influx of highly qualified specialists.
Munich is best at attracting creatives and will remain so for the decades to come. Employing Richard Florida’s criteria of evaluation of a business community’s appeal to creatives, the authoritative Creative Class in Germany 2010 study gave Munich the highest TTT ('technological innovativeness, tolerance and talent') ranking of any city in Germany.
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