According to the new index, the speed at which countries can adopt new ideas, methods and products will give them a competitive edge as the Fourth Industrial Revolution continues apace. This innovation ecosystem is measured by five sub-pillars as captured in the above chart: Commercialization, Interaction and diversity, Administrative requirements, Research and development, and Entrepreneurial culture.


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Innovation capability had the lowest median score across all 12 pillars, at just 36 - showing how most countries are struggling to get all the factors in place. Generally, high-income economies scored more highly on the key five sub-pillars, showing their innovation ecosystems are more developed. The index also found that a high degree of buyer sophistication Volkswagen, the biggest carmaker in the world, spent In , a total of , patents were registered with the German Patent and Trade Mark Office DPMA , the largest in Europe and the fifth largest in the world, and one in three patent applications in Europe came from Germany.

As the DPMA explains: Consumers also profit from innovative products.

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But none of this innovation would be possible without public and private research institutions. The views expressed in this article are those of the author alone and not the World Economic Forum.

Mannheim Innovation Panel - the Annual German Innovation Survey

Our goal must be to make Germany one of the most innovative nations of all, one that is spearheading key enabling forward-looking technologies, both today and in the future. To this end, the Federal Ministry for Economic Affairs and Energy published an Agenda for Innovation which is based on a two-pronged approach: Secondly, there is to be a greater focus on forward-looking technologies and key enabling technologies. You can find the Agenda for Innovation here in German.

For a brief summary, please click here in German. Germany has a long tradition of being at the forefront of technological innovation. Around 33, companies in Germany are continuously active in research and development; more than , companies regularly bring new products and services onto the market. These companies create a positive environment for innovation. The total amount of investment that goes into new innovations, from their development to their launch onto the market, stands at around billion euros.

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There is high demand for technology products made in Germany. This puts Germany in second place globally, behind China, and before the US. These are usually small and medium-sized enterprises that are world market leaders for their products and services. Their success is based on a long-term company strategy, a high level of private equity and a highly skilled workforce. German companies can draw on the expertise of numerous internationally renowned research institutes such as the Max Planck Society, the Fraunhofer-Gesellschaft, the Helmholtz Association of German Research Centres, the Leibniz Association, and the research facilities governed by German ministries and universities.

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German companies have a strong position on the markets and therefore Germany often ranks among the top countries in innovation rankings, generally behind Switzerland and the Scandinavian countries, but always ahead of other major economies. However, Asian countries, particularly China and South Korea, are catching up. German companies therefore need to deal with the fact that the number of global competitors will rise in the technology sector.

The measures set out in these programmes target the whole of the innovation chain — from creative idea to the implementation of new products and services. A special focus is placed on transferring technologies from research to the market. In addition to this, the Federal Ministry for Economic Affairs and Energy provides funding for specific research and technology projects undertaken by companies — often in cooperation with research institutions — in technology areas such as energy, information and communications technology, the maritime economy, mobility and aerospace.

In addition, the Federal Ministry for Economic Affairs and Energy is further improving the framework for research and innovation. In particular, such clothing and equipment includes. Innovations help maintain the competitiveness of German SMEs.

ZEW-Innovationserhebung 2017

In order to increase competitiveness and harness the potential for development, the Federal Ministry for Economic Affairs and Energy has put in place dedicated programmes for small and medium-sized enterprises SMEs that promote research and development, provide advice on innovation and facilitate cooperation with the academic world.

The Federal Ministry for Economic Affairs and Energy provides SMEs with grants and low-interest loans so that they can finance their research and innovation activities more easily.

New scientific findings are to be translated into marketable products as soon as possible. This is why the Ministry provides strong incentives for companies to cooperate with research institutes. The idea behind this programme, too, is to promote innovation and to quickly bring new practical ideas to market. The results achieved under this programme benefit all companies in Germany. Under the INNO-KOM programme, funding is provided for non-profit research establishments that undertake applied research projects in structurally disadvantaged areas. The German government provides SMEs with advice on innovation, helping them to build up expertise in developing new innovations.

This means for example that companies receive information on how to manage innovations in an efficient manner and on what funding programmes are available at national, regional and EU level. At the end of August , the Federal Cabinet decided to set up an agency to promote breakthrough innovations. The first innovation competitions are to be launched in Many companies and research institutions work together in regionally or industry-specific clusters and networks in order to create the best possible value chains and improve their competitiveness and innovation capabilities.

In order for German businesses to continue to be leaders in the international markets, Germany needs to ensure that it has high-quality research facilities that conduct research into key enabling technologies. Most of these are conducted by companies in cooperation with research institutions. From biotechnology to the aerospace industry: If you want to learn more about a particular key enabling technology, click through the images in the gallery.

The extent to which we will be able to master the big challenges of our time depends on our ability to make scientific breakthroughs and develop new innovations. Policymakers, representatives from the worlds of business, academia and education therefore need to raise awareness for new technologies, highlight how people can benefit from these technologies in their daily lives, and encourage young people to choose a career in technology.

Skilled professionals — with academic or vocational qualifications — are the key to innovation and competitiveness, to growth and employment, and to prosperity and a good quality of life. Demographic change could cause this skills gap to further widen in the coming years. In , just under 32, patent applications were filed in Germany — more than in any other European nation.

The Federal Ministry for Economic Affairs and Energy aims to foster a spirit of innovation in Germany whilst at the same time ensuring that intellectual property is protected. Standardisation can help innovative products and processes to be rolled out more quickly. Standards define the state of the art in technology in almost all areas of our lives, and they stipulate the requirements that products and services must fulfil.

Standards help provide for systems capability, assure quality, create transparency and protect consumers.

innovation

Standards can also help to reduce the amount of time needed for innovations to become widely available on the market. Standards need to be developed globally so that technical barriers to trade can be eliminated, innovations can be rolled out more quickly, and technology-related legislation can be refined. Intellectual property needs to be protected in an effective way — at both national and international level.

This is particularly key in a technology-based economy like Germany where it needs to be ensured that companies can bring their innovations to market and stand the test of global competition. If we want our globalised economy to work well, we need to ensure that intellectual property is effectively protected. International efforts that aim to improve the protection and enforcement of intellectual property rights therefore need to be continued and refined. Germany provides a technical and legal framework that is conducive to innovation and constantly works to improve it.

Germany is known for its safe products, for its efficient market surveillance and for standardised measurement methods.

Mannheim Innovation Panel - the Annual German Innovation Survey

All of this helps guarantee free trade, and is an important element in building up a competitive technology base in Germany. The Federal Institute for Materials Research and Testing BAM provides for safety and reliability in the area of chemical, environmental and materials engineering. For example, the Institute tests the containers used for the transport of dangerous goods and draws up the safety standards required for these.