Berlin Tops Germany for 'Creative Class'

Every city has its ups and downs, some more extreme than others. Berlin was divided by a war, with the West heavily subsidized for decades after industry fled to other parts of the country and the East artificially propped up by a Communist regime. After the fall of the Wall, the job market collapsed with soaring unemployment rates on both sides of the city. Attracted by dirt cheap prices, though, creative types in recent years have been flocking to the city. Klaus Wowereit, Berlin's mayor, recently made headlines by describing his city as "poor but sexy."

A new report, though, suggests Berlin may soon be able to shed the poverty label. It turns out that Germany's capital, home to a population of 3.4 million, has the greatest potential for growth amongst all of Germany's 16 states. The conclusions come from a nationwide study, "Talent, Technology, and Tolerance - Where Germany Has A Future" (also known as the TTT study), undertaken by the Berlin Institute for Population and Development and financed by the non-profit Robert Bosch Stiftung. "Berlin has the best starting conditions in Germany," said Reiner Klingholz, director of the institute. "The only way is up from here."

Berlin came out No. 1 in the study, which ranked German states based on talent, technology and tolerance -- the three criteria co-author Steffen Kröhnert said "generate the conditions necessary for economic growth and employment."