Innovation Update

East German Industries Thrive In West

 

KIRSTEN GRIESHABER

BERLIN (AP) — Rotkaeppchen sparkling wine. Florena Cosmetics. Spee detergent. Zetti crunchy chocolate clusters.

The names may not mean much to people outside of Germany but they point to a remarkable trend in the 20 years since the Berlin Wall came down: All are familiar brands of the former Communist East that have found a niche in the West.

Many people feared it would take several decades for East to catch up with West after the wall collapsed on Nov. 9, 1989. But today, economic output of eastern Germans has surpassed 70 percent of that of western Germans — up from one third in 1991. And, surprisingly, some East German industries have found a market in rich and finicky cities like Frankfurt, Hamburg and Munich.

"When East Germany joined the Federal Republic of Germany, its infrastructure was completely dilapidated, their state combine companies produced products that were unfit to be sold," said Michael Huether, the director of the German Economic Institute.

"Today the five eastern states can no longer be called an industrial wasteland."

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