How can municipalities, state authorities, and regional economic development agencies sustainably increase their attractiveness without succumbing to a sea of bureaucracy and outdated structures? This question currently concerns numerous decision-makers in the public administration as well as those responsible in chambers of industry and commerce, because competition for skilled workers, investments, and innovative companies has intensified dramatically in recent years. The StandortBooster offers a promising approach here because it combines digital transformation with strategic economic development. In this comprehensive contribution, you will learn what concrete measures public institutions can take to make their region future-proof while simultaneously intensifying cooperation with the local economy.
The starting point: Why administration and business need to work more closely together
Public administration faces enormous challenges. Demographic change reduces the number of qualified applicants for public service. At the same time, citizens expect digital services. Companies demand faster approval processes and better infrastructure. This expectation often conflicts with rigid administrative structures and limited budgets.
An example from municipal practice illustrates the problem clearly: A medium-sized city in southern Germany lost several important business tax payers to neighboring municipalities within three years because building permits took too long and the digital infrastructure did not meet the requirements of modern production companies [1]. Similar developments are observed by economic development planners in numerous regions of Germany. The departure of companies leads to declining tax revenues. Declining tax revenues mean less investment leeway for the municipality. This vicious cycle can only be broken through strategic measures.
Another example illustrates the challenges in attracting skilled workers: Land offices in structurally weak regions report massive difficulties in filling IT positions. The competition with the private sector for qualified IT specialists is continuously intensifying. Young talent is moving to urban centers with more attractive employers. Rural municipalities often fall behind.
Location Booster as a strategic instrument for regional development
The StandortBooster combines various areas of action into a holistic concept. It does not view digital transformation in isolation. Rather, it links technological innovation with economic location development. This linkage enables synergies between public administration and private-sector actors.
The benefits are particularly evident in the field of commercial real estate development: a regional government in North Rhine-Westphalia has established a digital commercial real estate portal that provides investors with all relevant information about available plots of land within minutes [2]. This portal not only includes property data and prices; it also integrates information on transportation connections, broadband availability, and local funding opportunities. Requests from companies interested in establishing themselves in the region have increased significantly since the introduction of the portal.
A third example from practice concerns cooperation between municipalities in the field of economic development: Several municipalities in rural areas established an intermunicipal economic development company together. This brings together resources and expertise. It provides companies with a central contact point for all site-related questions. The efficiency gains achieved through this cooperation enable more professional support for companies looking to establish themselves.
Digital services as a competitive advantage for municipalities
The digitization of municipal services increasingly determines the attractiveness of a location. Companies expect online business registrations and digital building permit procedures. Citizens want electronic appointment bookings and digital application submission. Municipalities can no longer ignore these expectations.
Transruptions coaching supports public administrations in these very same transformation processes. It supports leaders in developing digital strategies. It provides impetus for the redesign of administrative processes. It accompanies teams in the implementation of new technologies and working methods.
Best practice with a AIROI customer
A municipal administration with about fifty thousand inhabitants faced the challenge of fundamentally modernizing its economic development efforts. The previous structures had grown over the decades and no longer met the requirements of modern companies. Applications for settlement were often processed only slowly. Important information about commercial space was scattered across various departments. Communication between the building department, economic development, and the town hall was fragmented and time-consuming. As part of AIROI the project, the administration initially developed a digital strategy for the entire economic development effort. This strategy included the introduction of a central customer relationship management system for business contacts. All relevant departments gained access to this central database. Processing times for settlement applications were thereby significantly reduced. In addition, the city administration implemented a digital dashboard for location data. This dashboard automatically aggregates information from various sources. Investors thus receive comprehensive location analyses within a very short time. The employees of the economic development department report on significantly more efficient workflows and improved service quality for companies interested in relocating.
Location Booster: Cooperation between the administration and the local economy
The strengthening of regional economic circuits is gaining increasing importance. Global supply chain problems have exposed the vulnerability of international trade relations. Regional value chains offer greater resilience. They create jobs locally and generate local tax revenues.
A concrete example illustrates the potential of regional cooperation: An industry and trade chamber initiated a program together with the district administration to connect local suppliers with larger production companies in the region [3]. This matchmaking program brought together companies that previously had no business relationships. The resulting collaborations sustainably strengthened the regional economic structure. Transport routes were shortened and the environmental impact decreased.
Another example from the field of workforce security showcases innovative approaches: A economic development organization developed a regional training marketing program together with local companies and the employment agency. This marketing is specifically aimed at high school graduates in the region. It presents local training companies as attractive and modern. This has helped slow down the exodus of young people to other regions.
Successful cooperation models also exist in the field of startup support: municipal economic development agencies work closely with universities, savings banks, and trade associations. They offer aspiring entrepreneurs comprehensive one-stop advice. These one-stop shop approaches significantly reduce the barriers to starting a business.
Infrastructure as the foundation of successful location development
Without efficient infrastructure, all efforts to promote location-based business are piecemeal. Companies need fast internet connections for their digitized business processes. They need good transport connections for employees and goods transport. They expect reliable energy supply at competitive prices.
The StandortBooster systematically takes these infrastructure factors into account. It identifies bottlenecks and development potential. It supports municipalities in prioritizing infrastructure investments. It accompanies the implementation of expansion projects with strategic advice.
An example from the field of broadband provision illustrates the importance of coordinated infrastructure planning: A district coordinated the fiber-optic expansion centrally through its own broadband company. This company negotiated bundled expansion contracts with network operators. Through this bundling, the district achieved better conditions than individual municipalities. The coverage with fast internet improved significantly faster than in neighboring districts.
Best practice with a AIROI customer
A county with a well-developed medium-sized business structure sought ways to increase its attractiveness for companies and skilled workers. The geographical location away from major urban centers made recruiting qualified labor difficult. At the same time, the region had innovative companies in emerging industries. In the AIROI-project, the county initially developed a comprehensive location analysis. This analysis systematically identified the strengths and weaknesses of the region. It compared the location factors with competing regions. On this basis, concrete recommendations for action were developed for various policy areas. A central element of the strategy was improving the welcoming culture for incoming professionals and their families. The county established a central point of contact for newcomers. This contact point supports people in finding housing and navigating government agencies. It also connects them with local associations and social networks. The response from the professionals who have been recruited has been overwhelmingly positive. Many report a faster integration into local life. Local businesses are actively using this service to recruit staff, which is another argument for the location.
Funding and financing for strategic site development
Financing site development measures poses major challenges for many municipalities. Their own budgetary resources are often limited. However, funding programs from the federal and state governments offer a wide range of support options. These programs require professional application submission and project management, however.
One example illustrates the potential for systematic acquisition of funding: A county administration established a central office for funding advice. This office informs both municipal departments and local companies about relevant funding programs. It assists with application submission and reporting. The region’s funding rate increased significantly after the establishment of this office [4].
Another example concerns the use of European Structural Funds: an economic development company developed a regional development plan that was specifically tailored to the funding priorities of European programs. This plan enabled the application of several coordinated projects. The synergy effects between the funded measures significantly enhanced the overall impact.
Private investments also play an important role in location development: Municipalities can mobilize additional resources through public-private partnerships. For example, a business park was developed jointly by the municipality and private investors. The risk-sharing enabled a more ambitious project than with purely public funding.
Administrative modernization as a perennial topic in site development
The modernization of public administrations is a continuous process. Technological developments require constant adaptation. Changed expectations from citizens and companies increase the pressure for change. Successful administrations view modernization as a strategic ongoing task.
Transruptive coaching supports governments in this continuous transformation. It supports leaders in developing change strategies. It provides impetus for the design of modern organizational structures. Clients often report positive changes in their organizational culture after consulting processes.
A concrete example from the field of process optimization illustrates the potential: A city administration systematically analyzed its permitting procedures for commercial enterprises. This analysis identified numerous gaps in the process and duplication of work. After the process reorganization, the average processing times were significantly shortened. The satisfaction of the applicant companies increased measurably.
My AIROI Analysis
Strengthening public administrations and regional economic structures requires a holistic approach that goes far beyond mere measures. My experience from numerous consulting projects shows that successful location development always rests on three pillars: first, a clear strategic vision shared by all relevant stakeholders; second, efficient digital infrastructures and processes; and third, a culture of collaboration between government, business, and civil society.
The StandortBooster only fully takes effect when it is not viewed as a separate project but as part of a comprehensive transformation strategy. Municipalities that consistently follow this approach report significant improvements in key location factors. They become more attractive to businesses and professionals. They increase their competitiveness in regional and supranational comparison.
It seems particularly important to me to recognize that technological solutions alone do not lead to sustainable improvement. People in government agencies must be involved and empowered. Leaders must actively shape and lead the change. Only when the cultural dimension of transformation is achieved can lasting improvements be achieved. Transruptions coaching accompanies governments and economic development organizations precisely during these multifaceted change processes by combining strategic advice with practical implementation support, always taking into account the individual framework conditions of the respective region.
Further links from the text above:
[1] German City Congress – Economic development and location development
[2] German Association of Cities and Municipalities – Digitization in Municipalities
[3] DIHK – Strengthening the economic location of Germany
[4] Federal Funding Database – Overview of Funding Programs
For more information and if you have any questions, please contact Contact us or read more blog posts on the topic Artificial intelligence here.
Deutsch 
English (UK)