Entrepreneurship
Theme: Innovation
Cross-cutting themes covered: Regenerating deprived areas, Networking opportunities
Name of project: Channel Hamburg e.V.
City: Hamburg
Who is it? Channel Hamburg e.V. is a registered network of local businesses located in the Inner Harbour in Hamburg-Harburg, an area that is being redeveloped into a site for innovative companies. In 2005 the Channnel Hamburg e.V. had almost 100 members.
Where is it? Hamburg-Harburg is an ex-industrial brownfield site where rates of unemployment, benefits claimants and crime are higher than in the city as a whole.
What is it? Channel Hamburg e.V. oversees infrastructure improvements in the Hamburg- Harburg area, representing the interests of local enterprises in the regeneration of the 500,000m2 inner port area and its 40,000m2 focal zone ‘Channel Hamburg’. The organisation also works to market the area as a prime location for innovative businesses, leading in the new technologies sector in North Germany.
Who funds it? The members of the association pay an annual contribution.
How does it work?
Promoting dialogue: Channel Hamburg e.V. is very actively involved in the discussions over the regeneration of the 40,000m2 ‘Channel Hamburg’ site. Channel Hamburg e.V. runs networking events, which have forged better communication links between planning departments and enterprises, as well as among entrepreneurs themselves. Networking helps businesses to identify and communicate local needs and promotes the alignment of objectives and resources.
Financial support: Channel Hamburg e.V. has also lent financial support to regeneration projects, such as ‘Safety Conference Harburg’, which has recently improved safety in a local pedestrian tunnel that connects the Harburg town with the Channel area. Signposts have also been set up by the project to guide traffic into the area.
Anything else? Positive branding: The Harburg-Harbour area had a very negative image due to its derelict industrial sites and high crime rates. Positive branding has been essential in turning this former ‘no-go’ area into a site that is attractive to new businesses and inward investors. The area is now marketed as ‘Channel Hamburg’, and its slogan ‘From ship to chip’ refers both to the naval history of the site and its high-tech future.
The marketing strategy has successfully built on the area’s existing mix of old and new economy, its proximity to the technical university, the presence of the Airbus industry and its unique harbour flair and waterfront character.
Channel Hamburg e.V. works to promote the area as a prime location for innovative businesses, through: press and public relations work; giving presentations at fairs and conferences; and producing brochures, magazines and newsletters to market the locality.
Promoting inward investment: Channel Hamburg e.V. also helps companies to establish themselves in the area. So far, the agency has supported 15 companies, employing around 300 members of staff, to move into the area.
What are the results? New companies have been attracted to the area, in sectors such as aviation technology and life sciences, ranging from graduate start-up companies and SMEs to large international companies. Significantly, in 2005, the area became the headquarters for all strategic Airbus suppliers.
More jobs: Channel Hamburg’s successful marketing of the area has attracted many innovative new companies to the area, enhancing local employment opportunities.
Local service suppliers and retailers are realising the potential of new customers. Local businesses, such as pharmacies and fitness studios, are now trying to attract the employees of the Channel Hamburg companies with services tailored to their needs.
Is it successful? bottom-up approach: One of the reasons for the success of Channel Hamburg e.V. is that its members represent the target group itself – local businesses. Resources are therefore spent more effectively on what local companies feel most supports their needs.
Long-term approach: The fact that the majority of investors have a long-term perspective (for example, the largest developer is a traditional local Hamburg-Harburg construction company) has had a very positive impact on the redevelopment process. Most premises are rented out, rather than sold, meaning that investors are interested in keeping the location attractive for tenants. They are more willing to invest in infrastructure improvements and networking events, safety improvement measures and site marketing.
Is the model transferable ? The Channel Hamburg e.V. model is not directly transferable – it is grounded in a bottom-up approach that can not be implemented from above by policy makers.
However, although policy-makers cannot force private sector-led regeneration, care must be taken to foster bottom-up approaches, like Channel Hamburg e.V., where possible. The Hamburg-Harburg local authorities now recognise Channel Hamburg e.V. as a key local actor and actively seek dialogue with it on the regeneration of the area. Openness of public authorities to such bottom-up approaches is transferable.
In addition, the public sector can facilitate networking between businesses. In Hamburg-Harburg, networking activities have forged better communication links between planning departments and enterprises, as well as among entrepreneurs themselves. This has enabled the identification and communication of local needs and promoted the alignment of objectives and resources.
Building on local competitive advantages? Channel Hamburg e.V. builds on several competitive advantages offered by the location, in particular: its proximity to knowledge resources, such as the Hamburg-Harburg Technical University; the presence of the Airbus industry; and a comparatively good transport infrastructure.
The fact that rents are lower in Hamburg-Harburg than in other areas of the city is also an advantage. In addition, the potential offered by the harbour’s waterfront style has been a unique selling point; the harbour now offers a range of restaurants and leisure facilities. These factors are not directly transferable to other areas.
What are the barriers to transferability? The amount of actual investment in redevelopment in different localities depends strongly on financial resources available, and the willingness of local businesses to invest in the area.
