12th Regional Economic Forum (2014)
German-Dutch border region - Cross-border mobility of specialists and graduates (May 13, 2014)
3rd ERSA International Workshop (2013)
Niederrhein Institute for Regional and Structural Research (NIERS) hosts 3rd ERSA International Workshop. Topic is "Higher Education Institutions and Regional Development".
The event takes place at Hochschule Niederrhein - University of Applied Sciences in Mönchengladbach, October 14-15, 2013.
Conference Program
11th Regional Economic Forum
Bringing districts forward - strengthening the local economy!
After a welcome address by the President of The Hochschule Niederrhein - Prof. Dr. Hans-Henning von Grünberg - in which he acknowledged the local connection of universities of applied sciences in general and the special focus of The Hochschule Niederrhein on the local economy in particular, the forum began with a presentation by Prof. Klaus Wermker, retired head of urban development in Essen. Prof. Wermker dealt with the "Role of the local economy and ways to strengthen it". He explained his theses using a case study, the "Essen Consensus". Prof. Dr. Rüdiger Hamm from the NIERS institute then gave an introduction to the origins and special features of the project "Strengthening the local economy in Viersener Südstadt", which is being carried out by the NIERS and SO.CON institutes. The project was presented by Katja Keggenhoff (NIERS) and Leif Lüpertz (SO.CON). They divided their presentation into an analysis of the spatial structure and problems of Viersener Südstadt, as well as the implementation of possible improvements on site and in cooperation with those involved. A panel discussion took place at the degree of the forum.
Report on the event
Presentations:
Hamm: Strengthening the local economy in Viersener Südstadt - a special project in many respects!
Keggenhoff/Lüpertz: Strengthening the local economy in Südstadt - BIWAQ sub-project 1
10th Regional Economic Forum
Niederrhein is looking for specialists?!
The messages could not be more different: representatives of the German economy claim that companies are desperately looking for qualified employees. The German Institute for Economic Research (DIW) in Berlin counters that the current statistical evidence does not clearly show a shortage of qualified workers. This controversy was addressed and discussed at the 10th Regional Economic Forum of the Niederrhein Institute for Regional and Structural Research (NIERS) under the title "Niederrhein sucht Fachkräfte!?".
The first part of the forum passed two contributions, one dealing with the situation of the shortage of skilled workers in Germany and the other in the Lower Rhine region:
The second part of the event passed a panel discussion with the following participants:
Moderator: Prof. Dr. Martin Wenke, Dean of the Business Administration and Economics Department at The Hochschule Niederrhein; Member of NIERS
Panel participants:
- Prof. Dr. Alexander Cisik, The Hochschule Niederrhein, Business, Organizational and Occupational Psychology
- Dr. Alexander Herzog-Stein, Head of the Labor Market and Working Time Research oral presentation at the Hans Böckler Foundation's Institute of Economic and Social Sciences
- Christopher Meier, Managing Director of the Employment Agency in Krefeld
- Prof. Dr. Hans-Hennig von Grünberg, President of The Hochschule Niederrhein
- Dr. Ulrich Walwei, Vice Director of the Institute for Employment Research in Nuremberg
Dr. Walwei, Vice Director of the Institute for Employment Research in Nuremberg, addressed three questions in his presentation "Are we running out of specialists?".
Recruitment of skilled workers: Is there any current evidence of a shortage?
The number of unemployed will level off at around 2.8 million in 2012, after reaching almost 5 million in 2005. This figure shows that the labor market situation in Germany has improved significantly. Another indication of this trend is the number of vacancies. In 2004, there were around ten jobseekers for every vacancy in Germany. In 2011, however, there were only three jobseekers per vacancy. However, these figures vary greatly by region and occupational field. Another statistic presented by Dr. Walwei related to difficulties in filling vacancies. Here it became clear that insufficient professional qualifications of the applicants and too few applicants are responsible to roughly the same extent for difficulties in filling vacancies. In conclusion, Dr. Walwei came to the conclusion that there is no global shortage of skilled workers, but that there are certainly tendencies towards a regional and sector-specific shortage of skilled workers.
Demographics and the labor market: must there be a sustainable shortage?
Demographic change is leading to a declining labor supply, which is taking pressure off the labor market. However, the situation does not necessarily have to lead to a sustainable shortage in the future, as economic growth may weaken due to shrinking populations and ageing and market reactions can be expected, e.g. through mobility of companies and employees or changes in labor productivity.
Education and personnel reserves: Where is the potential for securing skilled workers?
In addressing this question, Dr. Walwei began by pointing out that the number of people without formal qualifications is on the rise. Another much-discussed potential for securing skilled workers is the participation of women in the workforce; here, Walwei emphasizes that approximately the same number of men and women are in employment, but that there is still a significant difference in working hours, as many women only work part-time. Further potential is likely to lie in immigration: although the net migration rate (per 1,000 people) rose sharply between 1985 and 1995, it has been at 2 since 2000 and is showing a downward trend. In his conclusion, Dr. Walwei addressed the changes in the labour market, whereby long-term strategies are needed to tap into personnel reserves and competition for young talent and bright minds will also increase.
In the second lecture, Prof. Dr. Rüdiger Hamm and Angelika Jäger presented the research results of NIERS on the topic of "Brain drain despite a shortage of skilled workers? - Brain flows in the Lower Rhine region and their determinants".
Three surveys of graduates from The Hochschule Niederrhein were analyzed in this study. Angelika Jäger began by presenting the results of the analysis and pointed out that The Hochschule Niederrhein has a negative brain flow balance. This means that more local graduates leave the Niederrhein to take up employment and do not remain in the region than external students remain in the region after their studies. The most important reasons for staying or leaving the region are, on the one hand, personal or family reasons and, on the other, whether the graduates have found an adequate job. Soft location factors such as the regional image, infrastructure and leisure opportunities play a subordinate role in the decision to migrate. It should be noted that around 40 percent of the remaining graduates found their job through a connection to their studies, such as part-time jobs during their studies, internships or theses. This shows the high influence of the university in the job decision.
Prof. Hamm then went on to assess these results and discussed possible reasons for the migration of graduates. He emphasized that the Lower Rhine is not unattractive for graduates, as many of those who left would have stayed in the region if there had been a better job offer. In order to find out whether the region simply needs fewer academics, NIERS used a shift-share analysis to examine the skilled labour situation in the Middle Lower Rhine region and found that the region is "under-academized". On the one hand, industries that make do with fewer academics are particularly well represented in the Lower Rhine region. In addition, significantly fewer academics work in these regional economic structures than the national average. Since the Middle Lower Rhine region needs more academics, but graduates still decide to start their careers in other regions due to a lack of or unsuitable professional opportunities, Prof. Hamm sees a possible explanation in the combination of both sides. According to this, graduates show only limited knowledge of the relevant entrepreneurial landscape in the Lower Rhine region. Here it is important that the mutual flow of information is improved in order to keep graduates who are willing to migrate to the region.
In the following panel discussion , practical orientations and possible courses of action were discussed in response to the skills situation.
Dr. Walwei pointed out that internships during studies have positive "bonding effects" and that companies and students should be brought together more and, above all, earlier. Against this background, Prof. Dr. von Grünberg emphasized the importance of closely interlinking studies and work - e.g. through the dual study system - in order to provide application-oriented and practical training. Dr. Herzog-Stein also pointed out the importance of a good apprenticeship against the backdrop of the discussion about a shortage of skilled workers. Christopher Meier, Head of the Krefeld Employment Agency, supported this thesis and criticized the fact that one third of apprentices in the skilled trades sector, for example, drop out of their apprenticeship. Prof. Dr. Cisik then focused on the profiling of companies and applicants and explained: "No applicant has to write more than ten to twenty applications." Both sides should ask themselves the questions: Who am I? What can I do? What do I want? Potential diagnostics play an increasingly important role for applications, while employer branding plays an increasingly important role for companies. Companies need to present themselves as attractive to applications. It is also important to advise students and discover their talent. To this end, Prof. Dr. von Grünberg called for greater involvement of Student Degree Programme Counsellors, who accompany the organization and progression of studies. Christopher Meier starts even earlier and calls for targeted advice to be provided while students are still at school. Information should be provided about the variety of professions and subjects. However, pupils should not get the feeling that only studies can lead to success in a career - it is important that non-academic professions are valued.
9th Regional Economic Forum
Municipalities 2030 - empty & old?
How we should deal with demographic change
Demographic change is a dominant topic in terms of its consequences for every age group. Since the early 1970s, Germany has been experiencing growing birth deficits every year. In addition, the continuing rise in life expectancy is placing massively increasing demands on the social security systems. The net positive migration exchange with other countries will not be able to relieve the pressure for social and economic policy reform: Germany is getting fewer, older and more diverse - what answers do we have?
Under the title "Municipalities 2030 - empty and old? How we should deal with demographic change", the topic was addressed at the 9th Regional Economic Forum of the Niederrhein Institute for Regional and Structural Research (NIERS). The following contributions were presented for discussion:
- Welcoming remarks by the President of The Hochschule Niederrhein (Prof. Dr. Hans-Hennig von Grünberg).
- Challenges of demographic change for municipalities from the perspective of the state government (Heike Weiß, Ministry for Health, Emancipation, Care and Ageing of the State of North Rhine-Westphalia)
- The Hochschule Niederrhein - a guide to coping with demographic change (Prof. Dr. Rüdiger Hamm, Hochschule Niederrhein, NIERS)
- Demographic development concepts for municipalities (Prof. Dr. Harald Schoelen; Christiane Goebel, The Hochschule Niederrhein, NIERS)
- The demographic development concept for Geldern - field report (Ulrich Janssen, Mayor of Geldern)
- Assistance systems as aids for living in old age (Prof. Dr. Gudrun Stockmanns, Hochschule Niederrhein, FAST competence center)
- Conclusion by the President of The Hochschule Niederrhein (Prof. Dr. Hans-Hennig von Grünberg)
The President of The Hochschule Niederrhein, Prof. Dr. von Grünberg, opened the 9th Regional Economic Forum and pointed out right at the beginning that demographic change affects everyone, especially municipalities and institutions such as the Hochschule Niederrhein (HSNR). From the perspective of The Hochschule Niederrhein, the question therefore arises: Will HSNR also be empty and old in 2030? Prof. Dr. von Grünberg began by pointing out the difficult situation facing universities in general. On the one hand, long-term planning is difficult, as an increase in student numbers is initially to be expected due to the double Abitur cohorts and the suspension of compulsory military service, but there will then be a sharp drop in the predicted student numbers. Secondly, an indebted federal state such as North Rhine-Westphalia, which has committed itself to a debt brake, will reduce rather than increase the inflow of funds to universities. Both developments make it difficult to plan long-term infrastructure facilities for universities. As a result, public universities in particular would have to increasingly look for private funding. According to Prof. Dr. von Grünberg, this should happen on the one hand in the area of research through the university's research institutes, and on the other hand the HSNR wants to break new ground and introduce offers for private continuing education.
Lateral entrants are becoming increasingly important for the future of the HSNR. The HSNR attracts around 3000 new students a year. In the future, the student population will change significantly; among other things, they will be older (on average). According to Prof. Dr. von Grünberg, if we succeed in keeping many of them in the region after they have completed their studies, the graduates could help to mitigate the effects of demographic change in the region - so the university will not be empty in 2030!
Prof. Dr. Hamm, Director of NIERS and moderator of the forum, pointed out that competition for students will intensify in the future. The more innovative the "products" a university offers, the easier it will be for it to attract students. The HSNR was well positioned here in the past, according to Prof. Dr. Hamm. It was the first university in Germany to introduce dual degree programmes, which are now known as the "Krefeld Model". Prof. Dr. Hamm moved on to Ms. Weiß, who represented Mr. Lessmann from the Ministry of Health, Emancipation, Care and Ageing of the State of North Rhine-Westphalia.
Ms. Weiß underlined the effects of demographic change with impressive figures. For example, the number of younger residents will fall by 15% by 2030. The proportion of older people, on the other hand, will increase, especially those over 80 years of age. Today, 3% of the population in North Rhine-Westphalia are in need of care, 70% of whom are cared for at home, and there are also around 2,000 care services. The number of people in need of care will roughly double by 2050.
According to Ms. Weiß, the state of North Rhine-Westphalia in particular has special challenges to overcome due to the heterogeneity of its municipalities. The ministry's guiding theme is to enable age-appropriate neighborhood development. Older people should be given the opportunity to actively live together and lead a self-determined life in a society based on solidarity. For many older people, moving into a home is out of the question, so it is important to create a suitable living environment to enable them to live in familiar surroundings. This requires a certain structure in the neighborhoods. Shopping facilities, doctors, restaurants and cafés must be available in the immediate vicinity and sufficient mobility must be provided.
The state government is offering its help in planning age-appropriate neighborhood development. The state ministry has developed the "Neighborhood Master Plan" for this purpose. The municipalities are provided with a "construction kit" in which they can call up know-how. In a first step, the municipalities would have to analyze their current situation. In a second step, the municipalities should develop strategies for action together with the citizens. The modules for this could be individually adapted. There is no fixed plan, as the municipalities have to act individually due to their great differences.
In the planned amendment of the State Care Act and the Housing and Participation Act, the Ministry wanted to coordinate with the interest groups. Ms. Weiß pointed out that the Federal Statistical Office is warning of a shortage of nursing staff. There would be a shortage of around 150,000 nursing staff in 2025. According to estimates, there were already 3,000 too few nurses in the last year. In order to reduce the permanent shortage of nursing staff, the ministry wants to create a training levy and promote the academization of the nursing professions. To this end, the universities in North Rhine-Westphalia would have to offer more health-oriented degree programmes in order to improve the image of the nursing professions. In addition, the professional recognition procedure for migrants should be made easier, according to Ms. Weiß, in order to be able to employ more specialists according to their apprenticeship.
In the subsequent discussion, Prof. Dr. von Grünberg pointed out that the academization of the healthcare professions at the HSNR is already very advanced with three degree programmes on offer.
In his presentation, Prof. Dr. Hamm pointed out that local authorities would have to renew their infrastructure due to demographic change. This appears problematic in view of the tight financial situation. Although the population is declining, the demand for housing will increase, especially in terms of quality. The demand for housing will also change, as the number of single-person households will continue to rise in the coming years. Consumer behavior and purchasing power will also change, as the savings rate of young people, for example, is significantly higher than that of older people. As a result of these developments, the income of local authorities would also change. Prof. Dr. Hamm pointed out that demographic change, like so many problems in the economy, is interdependent and therefore affects almost all areas.
Following his remarks on the effects of demographic change, Prof. Dr. Hamm gave an overview of who at The Hochschule Niederrhein can help with which "problems". It became clear that many issues can be covered by researchers at The Hochschule Niederrhein. The Hochschule Niederrhein can provide support with analyses, action plans and application-oriented research in the following areas:
1.Affectedness of a municipality
2.Consequences for the labor market and personnel deployment in companies
3. Municipal action plans
4. Changed consumption structures
5. Municipal income and expenditure effects
6. Need for adaptation in the district/neighbourhood
7. Older people (including living and housing, speech recognition, education in old age)
8. Nutrition
9. Infrastructure needs
10. Health Care
The areas listed should not be regarded as exhaustive, but are intended to provide a (partial) overview of what The Hochschule Niederrhein can offer in this very broad range of topics.
In his presentation, Mr. Janssen, Mayor of the City of Geldern, pointed out that for many forecasts, such as those on demographic change, a starting point and an end point are selected and the model is then calculated, but often without including people's actions in the meantime in the model. Mr. Jansen recommended that his colleagues first examine what the respective city/municipality could do on its own, without its neighbors, without the district and without the state. As an easy-to-implement example, he cited sockets for e-bikes, which were installed in Geldern. Cities could also independently carry out a needs assessment for local public transport and organize shared buses or shared cabs, for example. Mr. Janssen emphasized how satisfied he was with the report that NIERS had prepared for the city of Geldern. This report was not only a great technical help, but also served as a scientific concept that facilitated democratic decision-making.
Following Mr. Janssen's presentation, Prof. Dr. Schoelen and Ms. Christiane Goebel from NIERS presented the demographic development concept that was created for the city of Geldern. Prof. Dr. Schoelen first gave an overview of the population development in Germany over the past decades and briefly outlined the consequences for household development, consumer structures and the labor market, among other things. Prof. Dr. Schoelen also presented the modular consulting approach that was used to create the demographic development concept for Geldern:
1. first, a strengths and weaknesses analysis was presented, in which key figures on population, economy, labor market, household development, etc. for Geldern and neighboring municipalities were retrospectively compiled and analyzed. In addition, the results of the population survey for the core town of Geldern and the districts were briefly presented, which can provide indications of where action may be needed first in the future.
2) In the second step, the interdependency analysis was presented, in which Geldern's interdependencies with the surrounding municipalities were explained in more detail with regard to education and the labor market.
3) Thirdly, the population forecast for Geldern and the surrounding municipalities was presented. The projections were carried out for different age cohorts ("infant", "kindergarten", "elementary school", "family formation", etc.) in order to outline the potential development of the population in the different phases of life with their different needs. With the help of a traffic light system, the options and needs for action for all age groups were outlined.
4. in the next step, the restriction model - a new socio-geographical model - was presented, which was used to develop and derive action approaches for various areas of the labor market and the area of "living in old age" for Geldern.
5. other activities incorporated into the demographic development concept were the implementation of a population and pedestrian survey with a coordinated questionnaire, visits to schools and a student survey as well as discussions in municipal boards and committees (council, specialist committees, working groups)
Finally, Prof. Dr. Schoelen presented some examples of recommendations for action that were developed as part of the workshop on the labour market. Overarching approaches to action included maintaining the performance and employability of older people, the realignment of local public transport and the further development of inter-municipal cooperation. Ms. Christiane Goebel also presented some recommendations for action in the area of "Living in old age". As overarching approaches to action, for example, the facilitation of age-appropriate housing and age-appropriate care, the upgrading and age-appropriate conversion of housing stock as well as the availability of means of transport and the existence of attractive local public transport were discussed.
In a concluding presentation, Prof. Dr. Stockmanns from the FAST competence centre presented various technical aids that can make life easier in old age. These include electronic assistance systems in particular. The competence center is working on the further development and market launch of these systems. The aim of these systems is to enable people to live longer in their own homes. The assistance systems are suitable for inpatient and outpatient care and create more freedom for care staff. During the forum, Prof. Dr. Stockmanns presented two systems as examples. Firstly, she explained the function of an awareness assistant as an example of an electronic assistance system. Secondly, she presented "just-in-time assistance" as another area of research.
As an example from a current cooperation with the Fraunhofer Institute, Prof. Dr. Stockmanns presented an awareness assistant. It is designed to help remember important everyday things such as taking medication, drinking and eating. It can also determine whether soap, toothbrush or toilet have been used. The awareness assistant is embedded as inconspicuously as possible in the environment, for example in the bathroom mirror. It reacts when something is not happening and is therefore suitable for people with mild disorientation. It can also be equipped with additional features (or installations), such as a weather map or a small TV screen. In the medium term, it may be possible to integrate these systems into the everyday lives of younger people and adapt them accordingly if necessary (in old age), i.e. to convert them from an entertainment system to an electronic assistant.
Another area of research was "just-in-time assistance". This involves trying to find out what needs to be installed in an age-appropriate home and where sensors could be used. The aim is not only to research what is technically feasible, but also to consider how the systems can be integrated into the normal environment. One of the aims is to reduce costs so that care staff only have to come when they are really needed.
However, these services would only work if all partners were coordinated. However, there is always the problem of funding. One advantage is that Germany already has a very well-developed infrastructure, residents are considered to be tech-savvy and, according to surveys, are willing to pay up to a third of the costs of electronic assistance systems themselves.
Finally, Prof. Dr. Hans-Hennig von Grünberg summarized the contents of the forum once again in a short statement.
8th Regional Economic Forum
Municipal finances in crisis-
Need for action and opportunities
Many local authorities in North Rhine-Westphalia are on the brink of financial collapse. Almost 40 percent of municipalities and associations of municipalities were in a state of budget protection last year - 80 percent of which were even under emergency budget law.
If the budget is not balanced, the local authorities have to submit a plan to the district government setting out how and when they can get out of the crisis. Only eight municipalities managed to achieve a real balance in 2010. If a fictitious budget balance is achieved, then usually only by using up equity. In the most serious cases, balance sheet over-indebtedness threatens to eliminate even the last room for maneuver for an increasing number of municipalities. Cities and municipalities must take action - there is no alternative to consolidation. The effects are visible and tangible for everyone.
The 8th Regional Economic Forum on 19 May 2011, organized by the Niederrhein Institute for Regional and Structural Research (NIERS), took up the topic of "Indebted Municipalities" and presented the following contributions for discussion:
- Ways out of the municipal debt trap (Prof. Dr. Martin Junkernheinrich)
- Lower Rhine municipalities under pressure to consolidate (Prof. Dr. Harald Schoelen)
- Municipal financial situation and alternative courses of action from a municipal perspective (Gabriele C. Klug)
Prof. Dr. Martin Junkernheinrich, holder of the Chair of Urban, Regional and Environmental Economics at the Technical University of Kaiserslautern with a special focus on financial aspects, presented a political solution concept for the debt relief of municipalities in his lecture.
The problem lies in the misguided development of many municipal budgets, which is reflected in structural deficits and massive cash loans. The resulting interest represents an enormous additional burden for the budgets of many local authorities. The cash credit volume of German municipalities amounted to more than 20 billion euros in 2009. The concentration of problems, particularly in western Germany, is led by the crisis trio of Saarland, Rhineland-Palatinate and North Rhine-Westphalia. The cities with the highest cash borrowing are Oberhausen, Hagen and Remscheid; Mönchengladbach is in seventh place. The structural deficit comprises the part of the total deficit of public budgets that exceeds the accepted level of state credit financing. In Germany, this amounts to more than 2.1 billion euros per year. The problem concept is based on three scenarios that include a forecast of the expected level of debt up to 2020.
Prof. Dr. Junkernheinrich concluded the scenario presentation with a call for swift action to slow down the further increase in debt and bring about a change in thinking. He indicated that banks will also exert a considerable influence in future through their lending practices.
The main objective is the sustainable restoration of the local authority's ability to act, which was explained using the example of NRW. On the one hand, this objective includes the restoration of sustainable budget management, which provides for the balancing of municipal budgets in all municipalities and the relief of municipalities in emergency situations. Secondly, with the help of measures to increase revenue and reduce tasks, the aim is to permanently secure a level of funding commensurate with the tasks. The aim is to balance the budget in all municipalities as quickly as possible, repay cash advances and reduce debt by 50% in 10 years.
The ideal consolidation path for achieving the target envisages a six-year plan with the support of the state and the contribution of the municipal solidarity community. The main part of the consolidation is achieved through the recipients' own efforts by means of streamlined measures.
The financial contribution from the federal government, recipients, the state and the municipal family is distributed as follows:
- Federal government: higher participation in municipal social benefits (basic security, integration assistance)
- Recipients: Tax increase, budget consolidation and own loan repayments
- State: Debt relief aid and increased municipal financial equalization
- Municipal family: solidarity contribution plus updating of the social burden approach
Four consolidation models were presented for a lasting structural improvement in financial resources, which provide for different levels of participation by the funding bodies.
Due to the fact that municipal budgets are over-indebted as a result of cash advances and the structural deficit, Prof. Dr. Junkernheinrich concludes that rapid and joint action is urgently required, which should be geared towards the common good and sustainable.
The second lecture "Lower Rhine municipalities under pressure to consolidate" by Prof. Dr. Harald Schoelen, professor of economics, in particular finance and economic development, and deputy director of the Niers Institute, focused on the current financial situation of municipalities in the Lower Rhine region. At the beginning, a five-stage escalation process of the general budget principles was presented, which signals the endangerment of a budget protection concept (hereinafter HSK), with the consequence of not being approvable:
- Stage 1: real budget balance
- Level 2: fictitious budget balance
- Level 3: approved reduction in the general reserve
- Level 4: HSK not eligible for approval without over-indebtedness
- Stage 5: HSK with over-indebtedness that cannot be approved
It should be noted that the financial situation of local authorities in NRW is characterized by increasing debt. For 2010, only nine out of 430 municipalities achieved a genuine budget balance, while 138 HSCs were not approved.
In the Lower Rhine region, no local authority had a genuine budget balance and an approved HSC as at 31.12.2010. The municipalities of Mönchengladbach, Viersen, Krefeld and Neuss were examined and compared in detail. The cities of Mönchengladbach and Viersen are assigned to stage five in the escalation process. Neuss corresponds to the notional budget balance of level two. The HSC of the city of Krefeld is currently in the approval process, but is likely to be assigned to level four.
The following developments can be seen when comparing the ordinary income, taxes, grants, levies and expenses (personnel, transfer, material and service expenses) of the individual municipalities in the Lower Rhine region:
- Unsteady development of trade tax over the course of the economy
- Redefinition of the notional assessment rates leads to higher increases in property tax B and moderate increases in trade tax (competitive and locational disadvantage as consequences)
- Personnel and transfer expenses as Damocles swords for a structurally balanced budget
In summary, it should be noted that the municipal financial situation has deteriorated significantly over the last two years, taking into account the New Municipal Financial Management (NKF) regulations to be applied from 2009. The negative development of financial results and equity means that only a few municipalities have good prospects. Overall, the debt situation in the Lower Rhine region will most likely worsen.
In the third presentation, Gabriele C. Klug, Treasurer of the City of Cologne, presented the "Municipal financial situation and alternative courses of action from a municipal perspective" using Cologne as a case study.
The city of Cologne is struggling with an unbalanced budget, high asset consumption, constantly rising social benefits and unrefinanced transfers of tasks from the federal and state governments. As a result of the deficits, the City of Cologne is drawing up a ten-year restructuring plan with the aim of balancing the budget and the voluntary obligation to increase assets. The high debt burden (long-term liabilities € 2.5 billion, cash loans: € 41 million) has negative consequences for the quality of the location, as the municipality's scope for action is severely restricted. Nevertheless, there is important potential for the city, which is seen in the region's reurbanization and concentration processes.
In order to achieve effective and sustainable budget consolidation as a strategic goal, the City of Cologne is planning measures to reduce expenditure, e.g. by strengthening cooperative ventures, and to increase income, e.g. by raising the trade tax rate. At this point, the political enforceability and the effect on citizens should be questioned. Here too, the consolidation project aims to restore the local authority's ability to act in the long term. However, this can only be achieved in cooperation with the state, the federal government and the municipalities' own massive efforts.
In order to successfully consolidate and restructure the budget, it is necessary to integrate a comprehensive "controlling" management and coordination concept into the municipal processes. This enables the identification of potential, the development of key figures and the analysis of their effects, which creates more transparency in the consolidation process.
In summary, it should be noted that many local authorities in NRW are heavily indebted and only a few are still in a good financial position. The causes of the worsening municipal financial situation are seen in particular in the decline in tax revenues and the simultaneous increase in social expenditure by the cities and municipalities - for example for social welfare and accommodation for Hartz IV recipients - as well as in the use of cash loans to finance debt. As a result, these burdens enormously restrict the scope for action at local political level and have a particular impact on a municipality's investment activities.
Lectures
Prof. Dr. Martin Junkernheinrich (Technical University of Kaiserslautern):
Ways out of the municipal debt trap
Prof. Dr. Harald Schoelen (Deputy Director of the NIERS Institute, The Hochschule Niederrhein):
Lower Rhine municipalities under pressure to consolidate
Gabriele C. Klug (Treasurer of the City of Cologne):
Municipal financial situations and alternative courses of action from a municipal perspective
7th Regional Economic Forum
Creative class and creative economy - drivers of regional economic development?
With the publication of his theoretical approaches, Richard Florida has provoked a broad response in politics, the public and among regional economists - there has been much discussion in recent years about the potential of the creative class and the creative industries. In a broad-based research project, the Niederrhein Institute for Regional and Structural Research (NIERS) examined Florida's theories for the regions of North Rhine-Westphalia. To conclude the project, NIERS organized the 7th Regional Economic Forum on 9 November 2010 at The Hochschule Niederrhein (Mönchengladbach) on the topic of "Creative class and creative industries - drivers of regional economic development?". In addition to selected specialist presentations, over 40 economic developers, regional economists and researchers discussed the content, consequences and application of Florida's theoretical approaches in a regional economic context during the forum. The contents of the presentations are briefly presented below - by arrangement with the speakers, the presentations are also available as downloads, if available as PowerPoint presentations.
Prof. Dr. Haselbach gave a general introduction to the topics of cultural industries, creative industries and the creative class. He focused in particular on the definition of terms and systematic, conceptual models of the creative industries. For example, he discussed a model describing the music industry and used this example to emphasize the high cyclical dependency of the cultural and creative industries. The lecture concluded with concrete recommendations for supporting and promoting the cultural industries. Contact with Prof. Dr. Haselbach and further information on the cultural and creative industries can be found on the Infora Consulting Group homepage at
Professor Dr. Hamm first explained Florida's theoretical approaches. He then went on to discuss the regional economic significance of the creative class and the creative industries; in this regard, his lecture was supplemented by a short presentation of a Bachelor's thesis on the subject (Scholz, A. 2010). Hamm then presented the results of the NIERS research project "Significance of the creative class for the North Rhine-Westphalian regions". The presentation included empirically based results and comparisons with human capital theory.
In the ensuing discussion, Ms. Landsberg from the consulting and planning company agiplan enriched the presentation by pointing out the possibility of expanding the indicators to include the "gay index" proposed by Florida as a measure of tolerance, which agiplan created in a similar research project based on a Germany-wide dating portal.
As a representative of politics, Mr. Noll began his presentation by addressing the basic political conviction that creative people should be supported, and that the promotion of innovation in particular is already a high priority in the political sphere. Accordingly, Florida's model approaches met with a broad response in the ministry, which led, among other things, to the funding of the research project at NIERS. According to Noll, it is not yet clear to what extent funding for the creative sector will be realized under the influence of the new state government. The presentation therefore focused on possible political fields of activity that Noll sees in the context of application-oriented support for the creative industries. Here he looked at possibilities in connection with the current discussions on the subject of the shortage of skilled workers and securing them, integration policy and activities in the field of urban development (e.g. setting up research centers, studios, etc.). Other points he mentioned were the sponsorship of cultural events and specific, industry-oriented cluster funding, with which smaller cities can also promote certain creative industries.
Mr. Preen presented the city of Krefeld's economic development department and its industry-oriented activities; a scientific study on the city's areas of expertise and growth industries served as an empirical foundation course. This showed, among other things, that only 266 companies in Krefeld (approx. 8% of all companies in Krefeld) can be attributed to the creative industries. On this basis, Preen pointed out that in Krefeld, with 34% of employees subject to social insurance contributions in the manufacturing sector, the creative industries do not have the highest priority. He then presented the activities promoting the cultural and creative industries: important points are the promotion of regional networks (e.g. texellence), cooperation with city marketing, the cultural office and marketing club (e.g. "Business Breakfast"), the real estate industry (creation and promotion of lofts, studio and rehearsal rooms, etc.) and the promotion of culture-oriented events (e.g. "Krefelds Kreative" February 24 - 25, 2011). The presentation warned of the potential for conflict and the danger of misinvestment in the promotion of creative people: the cultural policy regarding the Gängeviertel in Hamburg was cited as an example. In the ensuing discussion, forum participant Mark Nerlich (TU Hamburg-Harburg) was able to address this point directly.
Mr. Lippert emphasized his conviction right from the start: Yes, creatives need cluster management. The activities within the framework of cluster management, which he also presented as goals for Creative.NRW, included - Supporting creatives, e.g. by offering assistance (seminars, workshops, etc.) - Supporting a kind of "umbrella brand" of creatives, "mouthpiece" and mediator between creatives and politics or the public - Supporting cross-disciplinary networking and active exchange between creatives Mr. Lippert ended his presentation with clear demands: Cultural and creative promotion should be seen as an investment rather than a subsidy. Creativity should increasingly be seen as a hard factor by the public, politicians and economic development agencies and treated accordingly. Subsequently, the main issues discussed were the sustainability of cluster management and the possibility of self-financing that is not dependent on public funding. In this context, an economic classification of the creative industries was suggested; this raises the question of the measurability of the social added value and external effects of the cultural and creative industries.
In addition to his role as moderator of the forum, Mr. Wenke concluded the event with a summary. The much-noticed theories on the promotion of the creative class and creative industries are based on the idea that the promotion of creative professionals has a positive influence on investors, companies and also the region's "non-creative" employees who are subject to social security contributions. Accordingly, the conviction ran through the forum: Yes, creative industries and the creative class can be seen as drivers of regional economic development. However, when applying and implementing Florida's theoretical approaches against the background of regional economics, fundamental questions arise, such as: Who is creative, who is not? Is classification according to occupational groups the right approach to clarifying this question? What can an application-oriented implementation of theoretical approaches look like in detail, in a regional and cross-regional context? What is the social and economic added value of the cultural and creative industries and how can this be calculated? Does the funding have a sustainable effect? The specialist presentations and discussions were able to answer some of these questions, but not all of them - the topics of the creative industries and the creative class therefore offer further potential for discussion and research.
Presentation and lectures
Event report
Prof. Dr. Hamm: The regional economic impulse of the creative class - Empirical results
Prof. Dr. Haselbach: The regional economic impulse of the creative class
Eckard Preen: The role of creatives from the perspective of economic development in a regional center (On application)
Final Report Creative Class: Part 1
Final Report Creative Class: Appendix
6th Regional Economic Forum
Structural and location analyses as an instrument of municipal economic development
At the 6th Regional Economic Forum, we discussed the topic of "Structural and location analyses as an instrument of municipal economic development" with the participants and presented a NIERS concept.
First, the range of tasks of NIERS was presented. NIERS projects are primarily carried out in the areas of structural and location analyses, evaluation of infrastructure projects, but also demographics, district monitoring and the labor market.
The results of a survey were then presented, in which NIERS asked about the analysis needs of business developers. Business developers are particularly interested in regular analyses in the areas of economic development, structural change and municipal indicators as well as the topic of demographic change. The results of the survey were used as an opportunity to organize a forum on the topic of structural and location analyses, as a corresponding NIERS concept covers three of the four most frequently mentioned areas of regular analysis requirements.
In the main part of the event, employees of the institute presented three building blocks of the NIERS concept for a structural and location analysis.
1. indicator comparison: The indicator comparison consists of key figures on various location-relevant topics, which provide a quick overview of the quality and development of a location and establish comparability with higher-level regional units. In the model presented, a set of indicators was created for each of the areas of population and economy/development/prosperity.
Discussion: According to some forum participants, the comparison of indicators is particularly interesting as a benchmarking tool. In addition to the comparison with higher-level territorial units, a benchmark with neighboring municipalities or districts is often desired. In many municipalities, indicator comparisons are already prepared and used independently, but outsourcing this task to a research institute would make it easier and contribute to the systematization and consolidation of this analysis.
2. municipal structural analysis: A structural analysis depicts the economic structure of a municipality and shows structural changes and developments in individual sectors. The potential of the location is derived from the weight of the sectors that are growing rapidly in the municipality under consideration. Statements on the quality of the location are made on the basis of a comparison between the actual development of the location and the development that would actually have been expected based on the sectoral structures.
Discussion: Some forum participants pointed out that a structural analysis is a good marketing tool for external customers if it is positive for the location. If, on the other hand, the result is rather negative, this analysis is useful as an "internal" marketing tool, e.g. in the direction of local politics, in order to develop approaches for improving shortcomings or negatively assessed aspects.
3. location analysis: based on a company survey As part of the location analysis, the companies in a location are asked about 59 location factors in five subject areas. They are asked to give an assessment of the importance and quality of the location factors at the location. The location factors are then ranked in terms of their importance and quality. By comparing the importance and quality of the individual location factors, fields of action become visible, particularly for those areas to which the companies attach great importance, but which at the same time receive a poor quality assessment.
Discussion: During the discussion, it became clear that a location analysis often results in interesting topics for impact analyses, in which, for example, the reasons for the particularly good or poor performance of individual location factors can be explored. One participant emphasized that a location analysis should include concrete recommendations for action, which could then be worked through point by point. Overall, the participants agreed that structural and location analyses are a useful tool for economic development. There was also agreement on the point that analyses in the area of structural and location policy should not be a one-off instrument, but that sustainability should be at the forefront. The prices for the analysis modules are €1000 for the indicator comparison, €4000 for the municipal structural analysis and €4000 for the location analysis. As a package, the modules cost €7500.
Presentations and lectures
Analysis requirements of economic development agencies
Comparison of indicatorsMunicipal structural analysis
Location analysis
5th Regional Economic Forum
What can universities do for the region in which they are located?
On October 29, 2009, The Hochschule Niederrhein held its 5th Regional Economic Forum on the topic of "What can universities do for the region in which they are located?".
Four presentations and a subsequent panel discussion provided information on the topic and provided the forum participants with material for discussion.
After Prof. Dr. Hermann Ostendorf, Rector of The Hochschule Niederrhein, welcomed the approximately 65 participants, Prof. Dr. Helmut Karl from Ruhr University Bochum explained the transfer channels that exist between the university and the region in which it is located. There are two ways in which a university provides impulses to the region. Firstly, through the provision of services: the construction and operation of a university generates orders for companies in the region; the university is also an important regional employer. On the other hand, a university has an impact on the region, especially during the service delivery phase. The transfer channels are then the supply of graduates, the knowledge pool within the university, cooperation in research and development with industry and spin-offs from the university.
In her presentation, Prof. Dr. Martina Fromhold-Eisebith from RWTH Aachen University addressed the conditions under which the transfer channels described by Prof. Dr. Karl can also be used. As a starting point, she chose the apparently paradoxical situation that, on the one hand, RWTH Aachen University has been selected as an elite university and meets many of the requirements for sending positive impulses to the region (good image, above-average size, high level of third-party funding, many personal contacts with business representatives, etc.), but on the other hand, economic development in the Aachen region lags behind that of the state of North Rhine-Westphalia - despite intensive efforts to improve regional knowledge and technology transfer. One of the reasons for this is that RWTH Aachen University often works on highly specialized research topics with little regional relevance. A lack of interest in cooperation and innovation or communication barriers have also sometimes made knowledge and technology transfer more difficult. An important key to overcoming the barriers described above is the promotion and generation of as many spin-offs as possible. Graduates as company founders in the region would have good access to the university's knowledge pool through existing contacts. In addition, the fields of activity of the spin-off companies largely coincide with the university's research areas. These spin-offs are therefore potential clients for the universities.
Prof. Dr. Rüdiger Hamm presented the study conducted by NIERS entitled "Kompetenzfelder der Hochschule Niederrhein - Kompetenzfelder der Wirtschaft am Niederrhein". As part of this study, professors from the university, regional business promoters and companies from the region were asked about the importance and image of The Hochschule Niederrhein. According to the survey results, The Hochschule Niederrhein has a perception problem. Although the university has a high level of expertise, faculties that match the regional economic structures and is also very application-oriented, the regional economy is not sufficiently informed about the HSN, according to Prof. Dr. Hamm. Research efforts should therefore be increased and better publicized. However, Prof. Dr. Hamm also took the view that the university does not have optimal structural conditions for research work. For example, there are "bottlenecks" in the form of capacity bottlenecks in science administration, scientific personnel and the provision of secretarial staff and material resources. The conditions for professors conducting research should be improved here.
Prof. Johann Walter from the University of Applied Sciences Gelsenkirchen presented a long-term study on the regional effects of the FH Gelsenkirchen. The basic findings of the studies are that the university is being judged increasingly important by the regional economy over time, particularly with regard to qualifications and the availability of workers. Cooperation between universities and industry has increased and is viewed positively by the majority of companies. The most popular forms of cooperation are "students on internships", "practice-based theses" and "hiring graduates". Students and graduates are therefore the most important transfer channel. Particularly with small and medium-sized or young companies, which tend not to be so open to cooperation with the university, contact could be established with "more modest" forms of cooperation such as internships and theses. Only then would this result in further research and development projects. As part of the changeover to Bachelor's/Master's degree programs, care must therefore be taken to ensure that internships and practical projects are mandatory for all students wherever possible.
The subsequent panel discussions focused on the specific question of what The Hochschule Niederrhein can do for the Niederrhein region. Under the moderation of Prof. Dr. Martin Wenke, Dean of the Faculty of Business Administration and Economics, the future President and current Rector of The Hochschule Niederrhein, Prof. Dr. Hans-Hennig von Grünberg and Prof. Dr. Hermann Ostendorf, the Managing Director of IHK Mittlerer Niederrhein, Dr. Dieter Porschen and MR Dr. Dietmar Möhler from the Ministry of Innovation, Science, Research and Technology of the State of North Rhine-Westphalia discussed this.
Presentations and lectures
Prof. Dr. Helmut Karl: Impulses from universities for the region - The transfer channels
Prof. Dr. Martina Fromhold-Eisebith: Impulses from universities for the region - The transfer conditions (On request)
Prof. Dr. Rüdiger Hamm: Impulses from universities of applied sciences - Equivalent but different? (1)
Prof. Dr. Johann Walter: Impulses from universities of applied sciences - Equivalent but different? (2)
4th Regional Economic Forum
The regeneration of image in old industrial regions: agents of change and changing agents
Joint event with the RSA (Regional Studies Association)
From February 15 to 17, 2009, a joint event of the NIERS Institute and the Regional Studies Association (RSA) on "The regeneration of image in old industrial regions: agents of change and changing agents" took place at the Faculty of Business Administration and Economics of the Hochschule Niederrhein (Mönchengladbach).
Over 30 regional researchers from various (economic) disciplines and nine nations spent three days discussing ways of improving the image of old industrial regions. The examples from various old industrial regions in Europe and the USA show that image campaigns cannot change a (negative) image of regions that has been shaped over decades or centuries - associated with factory chimneys, dirt, exhaust fumes and bad air - in a short space of time.
Many old industrial regions are trying to improve their public image through broad-based image campaigns. In addition, a number of megaprojects have been presented as an attempt to improve their image. These projects are buildings, housing and infrastructure projects, which in many cases are characterized by special architectural quality and are thus intended to give the region in question a unique selling point. In addition, the stimulation of the regional image through targeted economic strategies - e.g. through cluster policy - was an important topic of discussion.
During the discussions, there was general agreement with the statement that the external image of old industrial regions is very strongly linked to the local identity and that authenticity is of decisive importance for the success of image campaigns. It has also become clear that although the hard location factors are still very important for companies, the most important of these factors are also present/available in almost all regions. Therefore, the soft location factors - landscapes, regional identity, architecture, (cultural and leisure) facilities, resident satisfaction, etc. - are becoming increasingly important and must therefore be given even greater consideration when marketing regions in the future.
3rd Regional Economic Forum
Regional economic data and analyses - superfluous, helpful or necessary?
All-day workshop on September 9, 2008 (approx. 30 participants).
The role of economic analyses in policy advice. Lecture at the 3rd Regional Economic Forum at The Hochschule Niederrhein. MR Wulf Noll, MWME NRW
Exemplary information services - E.I.S.-Euregionaler Informations-Service, IHK Standortinformationssystem, NIERS and cooperation partners. Presentations at the 3rd Regional Economic Forum at The Hochschule Niederrhein. Ralf P. Meyer, Division Manager AGIT GmbH. Gregor Werkle, IHK Mittlerer Niederrhein. Prof. Dr. Rüdiger Hamm, Prof. Dr. Harald Vergossen and Prof. Dr. Peter Schäfer, The Hochschule Niederrhein
The need for regional economic data and analyses. Keynote speeches from the region. Rudolf Röhrl, Managing Director of Wirtschaftsförderungsgesellschaft der Stadt Kleve mbH. Frank Wolters, Head of Department of the Office for Economic Development of the City of Neuss. Martin Lutz, Managing Director of Standort Niederrhein GmbH. Gregor Werkle, IHK Mittlerer Niederrhein.
Demand vs. supply. Discussion as part of the 3rd Regional Economic Forum at The Hochschule Niederrhein. Moderated by Dr. Ulrich Schückhaus, Managing Director of Wirtschaftsförderungsgesellschaft Mönchengladbach mbH
2nd Regional Economic Forum
Perspectives on regional start-up consulting
Half-day workshop on March 10, 2008 (approx. 30 participants).
Start-up consulting in the region - The Niederrhein start-up region. Lecture as part of the 2nd Regional Economic Forum at The Hochschule Niederrhein. Anja Geer, Managing Director of the IHK Mittlerer Niederrhein.
University and start-ups. Lecture at the 2nd Regional Economic Forum at The Hochschule Niederrhein. Sylvia Folgmann, Member of the Executive Board of Innovationsallianz NRW, Managing Director of the transfer agency f.i.t. at The Hochschule Niederrhein.
The start-up situation in the Lower Rhine region - results of an empirical analysis. Lecture at the 2nd Regional Economic Forum at The Hochschule Niederrhein, 10.3.2008.
Presentations and lectures
Regional business start-up monitoring for the Middle Lower Rhine region
1st Regional Economic Forum
Clusters - the new magic weapon of regional structural policy?
One-day workshop on September 6, 2007 (approx. 50 participants).
Cluster development, cluster policy and cluster management - what can we realistically expect?
Lecture at the 1st Regional Economic Forum at The Hochschule Niederrhein. PD Dr. Dieter Rehfeld, Institute for Work and Technology, Gelsenkirchen.
The cluster policy of the North Rhine-Westphalian state government.
Lecture at the 1st Regional Economic Forum at The Hochschule Niederrhein. MR Frank Butenhoff, Ministry for Economic Affairs and Energy of the State of North Rhine-Westphalia, Düsseldorf.
OWL-Maschinenbau - An example of successful cluster management.
Presentation at the 1st Regional Economic Forum at The Hochschule Niederrhein. Gerald Pörschmann, Head of the OWL-MASCHINENBAU e. V. office, Bielefeld.
Approaches to the identification of regional cluster potentials. Lecture at the 1st Regional Economic Forum at The Hochschule Niederrhein, 06.09.07.
Presentations and lectures
Cluster development, cluster policy and cluster management - what can we realistically expect? PD Dr. Dieter Rehfeld,Institute for Work and Technology, Gelsenkirchen
The cluster policy of the North Rhine-Westphalian state government MR Frank Butenhoff, Ministry of Economic Affairs and Energy of the State of North Rhine-Westphalia, Düsseldorf
Approaches to identifying regional cluster potential Prof. Dr. Rüdiger Hamm,Hochschule Niederrhein, Mönchengladbach
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