Green Economy in Munich:
Developments and potential

Client

State capital Munich

Year

2023


Prognos’ very own envigos model was used to analyse the Munich region’s environmental economy. With a focus on the developments in employment and global value added the six leading markets of the branch were examined.

Interesting insights emerged from looking at the gender distribution of employed persons and trainees as well as the significance of foreign sales for Munich's businesses. The innovation power of Munich’s environmental economy was measured according to patent activity in the environmental sector and also in terms of the number of start-ups. In addition, interviews were conducted with institutions and companies on the topic of innovation.

Through this project, the State Capital Munich seeks to gain an up-to-date overview of the cross-sectoral industry of the environmental economy in the Munich region (planning region 14). They are particularly interested in the economical and innovative focuses and the potential ways in which the city can better support the sector.

Munich’s green economy as a driver for innovation

The goal of the project was to gain an overview of the environmental economic sector’s development in the region of Munich. This overview will enable the City of Munich to support this process effectively and purposefully. The environmental economy is the “enabler” for the sustainable transformation of the economy. Thus, strengthening it benefits both society and politics. Its innovative power through new technologies and start-ups will also be of central importance in overcoming the current crisis.

Here are the core results:

  • Above average growth in employment and value added
  • Particularly dynamic development of “climate-friendly mobility"
  • Munich is Germany’s most important driver of innovation when it comes to patent registrations
  • Start-ups make use of the many positive location factors such as the strong research and development landscape
  • Institutions such as the Munich Urban Colab make strong contributions in the area of innovation and start-ups

Significance and potential of Munich’s environmental economy

The environmental economy is a significant economic factor for the city as well as the surrounding Munich area (planning region 14). In connection with a branch study from the year 2018, Prognos made a current assessment of the State Capital Munich in terms of the economic development of the sector, innovation activity, and start-ups. Within the process, new developments as well as an extended circular economy were taken into account.

Our approach

The basis for updating the Munich region’s environmental economy key figures was Prognos’ very own tried-and-tested, and already widely used, envigos model. The database was used to analyse key economic figures, innovation activities and start-up dynamics in the sector. In addition, interviews with relevant institutions, businesses and start-ups were conducted. From these combined evaluations, action recommendations and priorities were developed for the state capital.

The results were an overview of the developments, potential and priorities for the environmental economy in the region of Munich.

Links and downloads

Further information on the State Capital Munich’s website (in German)

To the study (PDF in German)

Read more about Prognos’ sector study 2017 (in German)

Project team: Jannis Lambert, Philipp Hutzenthaler, Johanna Draeger-Gebhard, Vera Wechner, Lucas Bierhaus

Latest update: 27.11.2023

Neuigkeiten aus dem Projekt

Umweltwirtschaft in München: Projektworkshop

| Event

Das Prognos-Projektteam stellt Ergebnisse des Zwischenberichtes vor und diskutiert diese mit den Teilnehmenden.

Do you have questions?

Your contact at Prognos

Jannis Lambert

Principal

View profile

More studies & projects on this topic

Successful implementation of the Talent Booster Mechanism: Completion of Pillar 1

2025
| Project update

The Talent Booster Mechanism supports eleven EU regions that are suffering from a decline in the working-age population and a low proportion of university graduates. The first pillar has been successfully implemented.

Impact of demographic transition on regional labour markets

ongoing
| Project

A shrinking workforce, digitalisation and decarbonisation: Prognos examined the specific effects of global trends on regional labour markets.

OVERLAP: Project results

2025
| Project conclusion

The results of the OVERLAP project show that demographic changes, digital transformation and the need for a green transition are simultaneously affecting regions across the EU.

Competitiveness of European clean energy technologies

2025
| Project

In recent years, Europe has maintained its strong position in the global market for clean energy technologies, but faces growing competition. On behalf of the European Commission, we examined the competitiveness of these technologies.

Full-day care for primary school children: where the federal states currently stand

ongoing
| Project

Germany needs around 166,000 additional full-time places for primary school children by the summer. We are examining how this can be achieved for the Federal Ministry of Education.

Guest article in Handelsblatt: “What drives a trade association into the arms of the AfD?”

2025
| Expertise

The party offers no constructive solutions to any of the current economic challenges. The fact that the Verband der Familienunternehmen is nevertheless opening up to it is dangerous, says Christian Böllhoff in his guest article in Handelsblatt.

Evaluation of the European Green Deal

2025
| Project

How effective are EU cohesion and structural policies in driving green change in Europe? We examined this and other questions together with COWI, Milieu and CSIL on behalf of the European Commission (DG REGIO).

S3 Community of Practice: Smart Specialisation in Europe

ongoing
| Project

How can smart specialisation be empirically justified and managed? On behalf of the European Commission (DG REGIO), Prognos is implementing the S3 Community of Practice (S3 CoP) together with a network of partners.

Regional contributions to climate neutrality

ongoing
| Project

For the European Observation Network for Territorial Development and Cohesion (ESPON), we are investigating how regions can work together more effectively to protect the climate.

Mid-term evaluation of the Single Market Programme (SMP)

2025
| Project

The Single Market Programme promotes the EU internal market in order to strengthen it, standardise it and make it more competitive. Prognos was involved in the mid-term evaluation of the programme.

About us

We combine economic research and strategy consulting for sustainable decisions in politics, business and society. Our robust data, precise analyses and scientifically based findings enable fact-based progress – financially independent, politically neutral. 

Learn more