Potsdam has a population of more than 150,000 people is the capital of the state of Brandenburg, within the convergence region of Brandenburg South-West. Potsdam is an integral part of a region whose economic development is closely connected to that of Berlin.
In recent years Potsdam has undergone significant economic growth with the number of new business registrations per year more than doubling between 2001 and 2007 from 720 companies to 1,847 while there has been only a slight increase in business de-registrations per year from 823 in 2001 up to 1.247 in 2007. As a result of this business growth Potsdam has created a profile for itself as a modern business centre with a rich tradition; one that is developing increasing autonomy, independent from Berlin, its immediate neighbour. The main activities within its economy is a widely diverse service sector encompassing the areas of media, information and communication, biotechnology, trade, banks, insurance and tourism.