What was the problem?
Bremen has a long tradition as an international port, and after industrialisation its economy was dominated by industrial and harbour activities. With the post-war boom in Western Germany, Bremen’s economy remained strong until the 1970s.
The industrial crisis of the late 70s and early 80s saw a period of massive decline in Bremen. Unemployment peaked in 1985, with the collapse of two major ship-building companies. The crisis was exacerbated by the structure of the federal tax system, suburbanisation of wealthier middle-class households, and the increasing burden of expenditures for social benefits. Furthermore, as one of three city-states in Germany, its duty to provide higher level functions not only for the region (retail, higher education, public services) but also for the country as a whole (the international port) caused it to become increasingly indebted.
In recent years, changing transport systems have result in the loss of harbour-related employment. Between 1994 and 2004, manufacturing jobs dropped by 25.2%.
What action was taken?
In the early 1980s, decisions were made to initiate a profound ‘change of direction’ in the economic focus of the city. In the past, Bremen’s economic fortunes had been linked closely to its harbour. The new strategy was to strengthen other activities seen as more adaptable to the economic requirements of the present and future, thereby transforming Bremen from a ‘harbour city’ to a modern ‘city of science’.
The Universum
Science Centre
Bremen decided to follow a policy of strengthening its scientific base with the university at its core. In addition, it funded new economic activities that were identified as areas of expansion in the future, and built on strengths in existing sectors such as aerospace and aircraft industries, car production, maritime services and logistics.
Two successive well-funded programmes were key for the implementation of this strategy:
1. Economic Policy Action Programme (WAP)
Between 1984 and 1988, the main academic focus of the university was shifted away from the social sciences and humanities towards high-skill technologies, engineering and natural sciences. Links were forged between the higher education institutions and local companies in the high-tech sector.
2. Special Investment Programme (ISP)
In the late 1980s Bremen made a claim at the federal Constitutional Court, that it should be compensated for its disadvantages in the federal tax system, and for the economic burden of paying for functions which benefit the wider region and the country as a whole. The claim was successful and in 1992 Bremen was granted a total of 8.5 billion Euros in special federal aid. The main investment areas were new industrial / office parks; transport- related projects; tourism; and research & development in innovation and technology.
In addition to these programmes, the ‘Innovision 2010’ project aimed to establish Bremen as one of the Top Ten German cities for technology, and a Technology Park was built at the university to help graduates set up their own businesses.
Topics associated with this project
Analysis, Change management, Economy, Employment, Energy, International, Transport