Innovationen: Deutsche Industrie bei Hightech-Forschung international hinten

A recent study reveals that German industry ranks among the lowest performers in high-tech research among developed industrial nations. According to the Munich Ifo Institute's analysis, only 20% of industrial research expenditures are allocated to high-tech sectors like pharmaceuticals, chip manufacturing, aerospace, and aviation.

The United States leads the pack with a high-tech share of 68%, while neighboring France sits in the middle at 46%. A higher high-tech share is expected to correspond with stronger economic growth in the medium term. "Germany focuses its research on traditional industrial sectors," explained Oliver Falck, head of the Ifo Center for Innovations Economics and Digital Transformation.

"Countries with a higher share of high-tech research, on the other hand, tend to grow faster, even when accounting for differences in the overall level of research spending." The gap with the top group has been widening for years, with the German high-tech share dropping from 32% in 1995 to around 20% in 2023. In the same period, the US increased its high-tech share from 57% to 68%.

Meanwhile, three-quarters of Germany's research and development spending goes to what is known as medium technology, including automotive, machinery, and chemical industries. Germany is considered a leader in this area. Economists have examined how the structure of research spending relates to growth. If a country's high-tech share is ten percentage points higher than the US level, average per capita real economic growth over the following five years is roughly half a percentage point higher.

If Germany's high-tech share of research and development expenditures reached the international average of 38% instead of the current 20%, it would result in about 0.9 percentage points higher annual GDP growth per capita in the medium term. The authors believe a pure spending target for research volume is insufficient. "It's not just the amount of spending that matters, but whether it goes towards technologies that go hand-in-hand with higher growth," said Ifo researcher Yuchen Guo.

"Policy should simultaneously set the conditions so that risky and potentially disruptive innovation projects become more attractive for businesses." This includes an innovation-friendly tax system and better access to venture capital.