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Dynamic Research and Development Landscape

 

Europe's largest market is located at the heart of the continent: Germany. As an export nation, Germany is economically integrated not only continentally but also globally. "Made in Germany" – an internationally recognized seal of quality – implies Germany's competitive strength and sets a high standard for both domestic and international producers. The innovative character of the domestic economy makes a significant contribution to Germany's economic stability.

Germany faces challenges regarding its national innovative strength due to demographic changes. The education system does not yet seem to be adapted to this aspect. Apart from the transfer between science and business and an efficient innovation system, one of Germany's strength is its excellent economic structure according to the study "Innovation Indicator – A Comparison of the Innovation Capability of the Most Important Industrial Nations". Compared with the 27 major industrial nations, Germany was ranked 6th.

Small and medium-sized enterprises, which account for 99.6 percent of the corporate landscape, are of fundamental importance for the German economy. In 2012 alone, 13 400 German patents have been approved by the European Patent Office. The dynamic research and development landscape, renowned research institutes, and the tried and trusted science transfer form the basis for German innovations. Highly innovative networks and (technology) clusters provide a competitive climate for innovation. The Federal Ministry of Economics and Technology's initiative "go- cluster" currently unites 89 of the best innovation cluster in Germany, more than 5 500 SMEs, 1 300 large companies, and 1 500 universities and research institutions.

Renowned research institutes, such as the Helmholtz Association, the Fraunhofer Gesellschaft, the Max-Planck Society and the Leibniz Association as well as the German universities benefit from the increasing annual R&D expenditures of the federal government and in turn strengthen the innovative power of the country through active support of businesses in terms of research.

As a popular investment target, the German economy is extremely diverse. Germany still holds a top position in rankings for FDI stocks in Europe. U.S. companies are particularly keen on investing in Germany: their investments account for 24 percent of all investment projects. Most FDI projects come from the automotive and mechanical engineering industries. So-called key technologies, which include biotechnology, the service industry, automotive and transport technologies, information and communication technologies, aeronautical technologies, maritime technologies, microsystems and nanotechnology, photonics/optical technologies, production technologies, space technologies and industrial and materials technologies are drivers of innovations and therefore funded by the federal government. The German government wants to adopt a leading position with regard to innovations. Therefore, it follows a new "high-tech strategy" designed to face global challenges in the following five areas of action: climate/energy, health/nutrition, mobility, security, and communication. Projects in these areas enjoy particularly high priority in terms of government support.

Not only at the federal but also at the state level R&D projects receive funding in form of grants. Funding programs, such as the "Central Innovation Program for SMEs", special loan programs, or the High-Tech Startup Fund provide an excellent infrastructure for domestic and foreign R&D projects.

 

»  Germany's Hightech-Strategie

»  Website of the Federal Ministry of Education and Research

»  Website of the Federal Ministry of Economics and Technology

»  GTAI: Business Location Germany

»  GTAI: Industries in Germany

»  GTAI: Investment Guide

»  Innovation Index