Local Economic Development

Everything about innovation promotion, site development, start-up support, green urban economy, and corporate social responsibility.

Economic Innovation and Global Collaboration 

Cities face intense competition for locations. Attractive economic conditions attract investments, while structural change and population growth present challenges. Innovation promotion, entrepreneurship, and location clustering are central approaches to driving sustainable economic development.

Globalization offers opportunities for international cooperation in economic development. Joint initiatives at the regional and international levels promote the exchange of know-how and contribute to solving global challenges.

Lokale Wirtschaftsförderung

Economic Innovation and Global Collaboration 

A comprehensive approach to economic development, which considers individual businesses, industries, and the entire location, is crucial. By strategically networking actors from business, science, and civil society, cities can drive forward an innovative, socially balanced, and ecologically sustainable economic development.

Lokale Wirtschaftsentwicklung_2
Local economic development is the key to creating sustainable and resilient cities that foster innovation, allow businesses to grow, and create a better future for all.

Our subtopics

Green Urban Economy promotes ecologically sustainable economic development and strengthens the urban living environment. Cities can increase growth and quality of life through targeted measures such as climate protection policies, the expansion of decentralised renewable energies and a functioning waste management system. Examples such as the sustainable waste management projects in Jerash (Jordan) or the development of a timber construction industrial estate in Lörrach (Germany) show how the green economy creates new business areas, jobs and collaborations.

Cities are in global competition for investment and companies, which is why strategic location development is essential. Successful examples such as the India Urban Data Exchange (IUDX) or the municipal tree nursery in the city of Karak (Jordan) show how the targeted promotion of modern industries promotes growth and innovation. Co-operation between politics, business and science plays a key role in attracting investors and companies to a city.

The transfer of knowledge between universities and companies promotes sustainable economic activity and innovation. Cities benefit from new jobs and technological progress. For example, through the cooperation between the city of Potsdam and the Potsdam Institute for Climate Impact Research on the topic of climate-friendly construction. Measures such as innovation awards, cluster funding and technology transfer centres strengthen the cities. This potential is increasingly being exploited in countries of the Global South in particular, supported by international cooperation and modern training programmes. This creates sustainable innovation and economic impetus.

Culture and tourism are important drivers for the economic and social development of cities worldwide. They not only promote the local economy, but also strengthen the image and quality of life of the city. Cities like Tunis with a rich cultural heritage, important museums, festivals and creative scenes attract tourists and incentivise investment. Strategic urban management focuses on the networking of culture, business and tourism. Public investment in cultural spaces, transparent support programmes for creative people and the development of sustainable tourism concepts are key instruments for making a city culturally and economically viable for the future.

Small and medium-sized enterprises (SMEs) are the backbone of the economy and respond flexibly to market changes. Cities support them through networks such as foodRegio, whereby promoting innovation and involving the informal sector are important measures. Transparent procurement procedures strengthen companies, while technology transfer and training increase competitiveness. Such approaches improve the business climate and promote sustainable growth.

Lörrach plant erstes Gewerbegebiet Deutschlands in Holzbauweise

Good Practices are proven methods, strategies, or processes that have demonstrated exceptional success, efficiency, or effectiveness in practice. They serve as models or guidance for addressing similar challenges or projects in different contexts. Good Practices in sustainable urban development showcase innovative and successful approaches that can inspire cities worldwide. The key is to adapt and further develop them to fit local conditions, ensuring a long-term, sustainable impact.

Good Practice

Lörrach plans Germany's first business park constructed with wood

Lörrach plans Germany's first business park built with wood – a model project for sustainable construction and climate protection. The goal is to reduce CO2 emissions and set ecological standards for commercial spaces.

Overview

Wood is abundantly available in the city of Lörrach, which is located near the Black Forest. The idea arose to create a climate-neutral business park at the Lauffenmühle site using wood construction. To date, there are only individual commercial buildings made of wood in Germany, but no business park with a comparable concept. Some of the historical factory buildings on the site, with their natural stone facades, will be integrated into the new development plan.

In 2020, the city of Lörrach purchased the 8.5-hectare Lauffenmühle site, a former textile factory. This was made possible largely through urban development funding from the federal government and the state of Baden-Württemberg, totaling 9.1 million euros.

Following discussions with the Potsdam Institute for Climate Impact Research, the idea emerged to create a climate-neutral business park on the site using wood construction. The climate neutrality should be demonstrable, and from the city’s perspective, this is most easily achievable through wooden construction.

Wood is more than sufficiently available in the town of Lörrach and its proximity to the Black Forest. The town council and politicians are convinced that wood is a competitively priced building material and is not a limiting factor in the use of commercial buildings, but offers numerous advantages compared to concrete or cement, for example in terms of fire protection and earthquake safety.

To date, there have only been a few commercial buildings constructed from wood in Germany, but no industrial estate with a comparable concept. By contrast, timber buildings have become established in residential construction, even in larger units, such as Munich’s Prinz Eugen Park with 600 flats in timber or timber hybrid construction, which is currently the largest contiguous timber housing estate in Europe.

A climate-neutral business park for sustainable companies is to be developed on the Lauffenmühle site. Sustainability is the focus not only in construction but also in terms of the companies that will settle in the area. The idea is that “sustainable businesses need a sustainable business park.” Companies from production, research, services, and innovative craftsmanship will be encouraged to settle in the area, provided they pursue sustainable business ideas, commit to circular and regional economies, adopt sustainable supply chains, and focus on energy efficiency. The area is intended to be both a workplace and a living space, offering an attractive mix of quality of life, leisure activities, services, and sociocultural amenities.

The historical factory buildings on the site, with their natural stone facades, are not under preservation orders but will be renovated and preserved in their basic structure to be repurposed for new commercial uses. This will also help secure local identification with the project, especially in neighboring areas.

With a plausibility check and a potential analysis, the city of Lörrach sharpened the profile of the business areas and developed the framework for a specific certification process to implement wooden construction in a legally secure manner. The process is comparable to the energy efficiency classes A to G for electrical appliances.

As part of the wood construction initiative, Lörrach is developing good practices to promote commercial wood construction in Baden-Württemberg. The plan is to collaborate with woodworking companies that primarily use regional products and process as much damaged wood from forests as possible.

In March 2024, up to 14 architectural firms will present their ideas for the Lauffenmühle site. Based on these designs, Lörrach will prepare a development plan that includes largely autonomous energy supply with solar and wood, innovative mobility concepts, and a high-performance digital infrastructure for a competitive and future-oriented business park.
Approximately 4.5 hectares of the site will be re-planned, while 4 hectares will retain some of the existing identity-defining buildings. The commercial spaces will range from 1,000 to 10,000 square meters.

After more than 150 years of textile industry history at the Lauffenmühle site, the project “Lauffenmühle – next innovation” marks the beginning of a new, forward-looking era that continues the tradition of working with renewable raw materials. The first companies are expected to settle on the site by 2026. The city hopes that this development will bring new momentum and create jobs in the region.

With the project “Lauffenmühle – next innovation,” the city of Lörrach is developing a business park that ideally combines form and substance as part of a sustainable transformation. The planned wooden construction offers a feasible path toward climate neutrality. This project can serve as a model for other municipalities in Germany and internationally, proving that entire business parks can be built from wood.

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Klimawandelangepasste Stadtentwicklung

Key Topics for a Sustainable Future

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