For every euro spent in Hamburg from tax revenues to promote innovation, companies invested a further 1.76 euros in the location. This is one of the results of a study that evaluated the work of the Hamburg Investment and Development Bank (IFB).
Fundings create increases in turnover and jobs
The external evaluation, carried out by the Gesellschaft für Finanz- und Regionalanalysen (GEFRA), analysed both the implementation and the impact of seven standard funding programs in the areas of startups and research, development and innovation. These include programs such as InnoRampUp, InnoFounder and the Innovationsstarter Fonds Hamburg as well as the Program for Innovation (PROFI) and Green Aviation Technologies. The analysis is based on funding data from the years 2013 to 2022, supplemented by surveys of funding recipients and interviews with experts. The aim was not only to evaluate the effectiveness of the programs, but also their strategic embedding in Hamburg's socio-economic development.
According to the report, IFB Hamburg approved funding of 113.3 million euros to startups and existing companies between 2013 and 2022, which triggered investments totaling 312.8 million euros. This corresponds to a leverage effect of 1.76 euros per funding euro. In addition to the pure financing gap, the funding also closed innovation deficits and increased competitiveness. Funded startups and companies recorded an annual increase in turnover of around 184 million euros. In addition, more than 3,000 new jobs were created. By 2040, a cumulative increase in gross value added of 464.6 million euros is expected as a result of the funding examined. For every euro of funding invested, there is a long-term added value of around 4.10 euros.
