City of Connectivity
Düsseldorf is one of Europe‘s leading locations for the digital industry. Which, in itself, is an important driving force for all other economic sectors – and for an adaptable and crisis-proof society.
Theresa Winkels, Head of Office, Düsseldorf Economic Development
IKT, ITK, ICT, IuK – the different common abbreviations used to describe what this VIVID is about can initially confuse non-professionals. However, it can be summarized more simply: “We are also calling it the digital industry,” says Dr Florian Bayer, consultant for market research at the German Association for Information Technology, Telecommunications and New Media, BITKOM. “This includes all services related to digitalisation, everything to do with software and hardware, everything to do with data communication and also the infrastructure that companies have to create, for example.” This creates a rather large market: In Germany it is expected to reach a volume of 178.2 billion euros, four percent more than in 2020. In order to understand this complex overall market, it makes sense to take a closer look at its segments, because they have their own dynamics. In this context BITKOM differentiates between information technology (IT), telecommunications (TK) and consumer electronics (CE). While the IT segment - the largest with a volume of 101.8 billion - is expected to grow by 6.2 percent this year, TK (volume of 67.5 billion euros) is expected to grow by 1.3 percent and CE (9 billion euros) will probably shrink by four percent. Why these differences?
IT has obviously benefited particularly strongly from the digitalisation accelerator coronavirus, many companies have upgraded and retrofitted here. For the telecommunications sector, however, the year 2020 was relatively weak: Even if more data was exchanged in 2020, this higher volume of data was often covered by flat rate tariffs – to name just one example. At the same time, network operators are continuing to invest heavily in the expansion of fibre optics and new 5G networks. And the ‘slump’ in CE must be put into perspective, too: In a very successful year, i.e. the ‘lockdown year 2020’, many products for home entertainment or headphones were purchased in a business context – however, this year people are enjoying more freedom and are spending money again on holidays and leisure activities.
„In turn, digital participation is also increasingly becoming
a prerequisite for social participation”
In the ”lockdown year 2020”, the consumer electronics sector grew very strongly because, for example, more products for home entertainment or headphones were bought in a business context.
“The ICT industry is an important driving force for all other areas of the economy and also for social change in general. It accelerates innovation and growth in all areas of life – be it in the area of health, in mobility or environmental and climate protection. This is particularly evident here in Düsseldorf,” says Theresa Winkels, the head of the city’s economic development department. The state capital has grown into one of the leading ICT locations in Europe in recent years. This can be demonstrated with an example from the healthcare sector: since May of this year, the UKD, University Hospital Düsseldorf, has been creating Europe’s first 5G-clinic. The super-fast data transmission technology can improve patient care further and thus save lives – for example, when transmitting a patient’s vital signs in emergency medicine or when supporting surgeons via 3D-simulation in tumour surgery. Another showcase example comes from the area of mobility: Since 2017, autonomous or highly automated driving has been researched in real-life situations on a 20-kilometre test route through the city of Düsseldorf in order to understand the requirements for the necessary infrastructure. And most recently: In July 2021, ‘Fusion Campus’, a new games competence centre, was launched (see p.29). “Our aim is to connect the players in the games industry with the classic industry. So, together with ‘Fusion Campus’ we aim for formats, which create interfaces and synergies and contribute to the development of innovative ideas,” says Theresa Winkels. As close partners, the state capital has closely accompanied the establishing of ‘Fusion Campus’ from the start.
Over the past few years, the number of ICT companies based in Düsseldorf has grown steadily: According to Germany’s Agency for Employment there were around 1,600 companies with around 28,300 employees subject to social insurance in 2017, but last year around 1,700 companies with almost 30,600 employees focused on ICT. In addition to large mobile network operators such as Vodafone, Telefónica or Deutsche Telekom (see p. 12), Düsseldorf is also home to Sipgate - the first German provider of Voice over IP (telephoning via Internet-based networks). Local players such as Ericsson, Huawei and ZTE moreover equip networks with appropriate communication technologies and services. With companies like Vivo, Oppo and Xiaomi settling here, Düsseldorf has by now become the most important location in Europe for Chinese technology. And the expert knowledge of Indian IT service providers is also increasingly enriching the location (see p. 24). Numerous initiatives also ensure that the ICT industry is being increasingly integrated and that digital innovations are promoted in the city and region – just as, for example, the ‘Digital City Düsseldorf’ or the Digihub Düsseldorf/Rhineland. Science and research are also in full swing when it comes to digitalisation (see info box).
Dr Florian Bayer, Market Research Officer, BITKOM e.V.
“The prospects for the ICT industry are very positive, but companies do have many questions.”
The pandemic gave the digital industry a push, too – not only in Düsseldorf. Many companies were able to get through the crisis more resiliently thanks to digital technologies – and those who couldn’t often learned from it. Looking into the future BITKOM expert Dr Florian Bayer says: “The prospects for the ICT industry are very positive, but companies do have many questions. For example, whether there will be production and delivery bottlenecks due to the pandemic towards the end of the year, when, for example, semiconductors are becoming scarce. Or how workplaces will organise their employees – keyword ‘remote working’. The result of the Bundestag election will of course also have an impact on the development of the markets.”
DIGITAL DEMO DAY, organised by Digihub Rheinland/Düsseldorf, is Germany's leading startup expo & conference for industrial tech.
In the last one and a half years, digitalisation has become much more visible and noticeable in almost everyone’s daily life – for example through the coronavirus app or regular video conferences. A new mindset has emerged. The rapid technical development and implementation is one thing, but people, too, have to be taken along this path of change: very important is, for example, the implementation of digital sovereignty and digital participation. People should be able to deal with digital media in a self-determined, safe and confident manner and education is essential for this. In turn, digital participation is also increasingly becoming a prerequisite for social participation. So it is about using the opportunities of digitalisation in such a way that everyone can benefit equally. In Düsseldorf, the ‘City of Connectivity’, it’s looking good already. •
The Centre for Digitalisation and Digitality ZDD at DÜsseldorf University of Applied Sciences
The ZDD is an interdisciplinary teaching and research institute that develops application-oriented solutions and innovative study programmes in the field of digitalisation and digitality. Despite their diversity, the current social challenges and megatrends of digitalisation have one important unifying element: people. The focus of research is therefore on people and their immediate living environment, which is supported by technical solutions. Ten new professorships and a special space will be created for its implementation:
By 2023, a new building will be constructed on the campus that will provide the optimal conditions for creative and project-oriented learning and working.
zdd.hs-duesseldorf.de
Interview Tom Corrinth
Pictures Melanie Zanin, iStock, Bitkom, Paint the Town