Local/Regional Economic Development in South ... - Value Chains

is the Regional Assembly, whose 84 representatives are
elected directly by the citizens. It is important to note that,
contrary to initial reservations, the State Capital does not
proportionally dominate the Regional Assembly; rather,
elected politicians from other cities and municipalities
form the majority. The region’s president is directly elected
by its citizens to head the regional administration.
Tasks and responsibilities
The concrete tasks of the Region of Hannover are listed
in §§ 8 ff. of the Regional Law. In general the Region has
assumed all tasks that were previously performed by the
Association of Municipalities. Thus the tasks and responsibilities
of the Region of Hannover are far more extensive
than those of other regional institutions in large German
urban regions.
Among other things the Region of Hannover is responsible
for all vocational schools, special-education schools
and social assistance programs throughout the entire region.
The regional contribution for these services is jointly
financed by all municipalities, whereas the operational
costs are borne primarily by the cities and local governments.
The Region is also responsible for public transportation
and regional planning, as it is the lowest level
Land and Permit Authority for the land-use plan of all 21
cities and municipalities. The Regional Law gave the Region
and no longer central government, the responsibility
for preparing regional development concepts, its own economic
development and employment promotion.
The example of economic development and
employment promotion
Economic prosperity is a key element for successful regional
development. Overseeing the Region of Hannover’s
economic development is the Department of Economic
Development and Employment Promotion. General regional
economic development is divided into the follow-
ing core areas:
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Business office/locational consulting
Strategic locational development
Locational marketing
Employment promotion
Women at work
Economic development and employment promotion in
the Region of Hannover form the foundation for regional
economic development. The subsidiaries of the region
deal with special areas of concern:
• Hannoverimpuls GmbH (deals with focus sectors,
business start-ups and regional growth and development)
• Tourismusverband Hannover Region e. V. (deals with
tourism and promotion of the Region)
• Hannover Region Beschäftigungsgesellschaft (is concerned
with employment promotion issues)
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Technologie-Centrum Hannover GmbH (the provision
of services for business start-ups, technology consulting
and infrastructure)
Hannover Region Grundstücksgesellschaft GmbH &
Co. KG (deals with land development issues)
Job creation and security are crucial to the economic development
of the region. Two important co-operation
projects between the State capital, Hannover, and the region
have already made a significant contribution to the
preservation and viability of the economy of the whole
Region. The first is the creation of Sparkasse Hannover,
through the merger of the Stadtsparkasse Hannover and
the Kreissparkasse Hannover to produce the fifth largest
savings bank in Germany, now under the auspices of the
Region of Hannover. For small and medium-sized enterprises
in the region this is an important step toward preserving
public credit institutions.
The second important project is the Hannover Project,
which was finally re-organized into a company, Hannoverimpuls
GmbH, founded in 2003. This company implements
concepts to strengthen the economic efficiency
of the Region, the heart of which is the formation of clusters.
Practically this means a concentration on five focus
areas, in which the region already has a comparative competitive
advantage, and in which future growth potential
is expected. These five focus areas are:
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Automotive industry
Laser technology
Production technology
Biomedical and medical technology
Information/communication technology
There are also individual measures and cross-cutting projects
concerned with issues such as business start-ups,
growth, co-operation and the relocation of businesses
into the region. Their function is to stimulate economic
growth and provide greater employment in the Region of
Hannover. A regional business office was created as the
central co-ordination and contact agency. In consultation
with the 21 municipalities of the Region, it has assumed
the function of facilitating contact between authorities
and the firms located in the Region, or those intending
to move there, primarily through attempting to shorten
permit procedures. A service centre for business start-ups
was established at the office, providing both financial support
and inexpensive office space for e-business, IT and
media.
The comprehensive range of services offered through the
economic promotion program, by the subsidiaries of Region
of Hannover, has led to tension in its relationships
with the Chambers of Industry and Commerce and of
Trade. The establishing of regional economic development
and employment creation programs has created parallel
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