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DIHK, Fraunhofer, VDMA and ZVEI

Andrea Gillhuber,

Ten points for a competitive innovation location

An alliance of business associations and the Fraunhofer-Gesellschaft is calling for better framework conditions for innovation in Germany. They have jointly published recommendations for action for the new federal government.

© Mohamed Hassan/Pixabay

An alliance of the German Chamber of Industry and Commerce (DIHK), the Fraunhofer-Gesellschaft, the German Engineering Federation (VDMA) and the German Electrical and Electronic Manufacturers' Association (ZVEI) has presented ten key demands to strengthen Germany as a location for innovation. The position paper is aimed at the future German government and identifies specific fields of action to ensure the country's long-term competitiveness.

The participating organizations emphasize that Germany is facing challenges such as a shortage of skilled workers, regulatory hurdles and declining investment. "The structural weakness in Germany as a business location is clearly slowing down the innovation momentum in companies," explained Dr. Volker Treier, DIHK Head of Foreign Trade. According to a recent DIHK economic survey, only one in three industrial companies is planning to invest in the development of new products. "That's not enough for more growth," continued Treier.

A central point of the list of demands is to facilitate the transfer of research results into industrial applications. The associations also call for technology-open, risk-based regulation in order to reduce barriers to innovation. Other priorities include the promotion of start-ups, more efficient research and innovation funding and the strengthening of STEM education.

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The ten key demands at a glance

  1. Better conditions for the transfer of research results to industrial application.
  2. Regulatory relief and technology-open, risk-based regulation.
  3. Ensuring a broad mix of instruments to promote innovation with a focus on SMEs.
  4. Stronger support for start-ups and an improved start-up culture.
  5. Expansion of innovative production technologies to secure value creation and jobs.
  6. Creation of a dynamic innovation space that promotes global technology trends.
  7. International scientific cooperation to strengthen innovative power.
  8. Better use of synergies in the German scientific landscape.
  9. More efficient and less bureaucratic research and innovation funding.
  10. Higher status for STEM education and technology skills in society.

Prof. Holger Hanselka, President of the Fraunhofer-Gesellschaft, emphasized the need for modern framework conditions for research that are flexible and goal-oriented: "This is the only way we can bring scientific findings into application even faster and make them usable for industry and society." Hartmut Rauen, Deputy Managing Director of the VDMA, emphasized the importance of joint industrial research and Europe's technological sovereignty: "The levers are clear: joint industrial research, production technologies for value creation, technological sovereignty and resilience in Europe, research allowances, high-performance engineering sciences and guard rails that prevent the unwanted outflow of publicly funded knowledge and technologies from a location perspective." Wolfgang Weber, CEO of ZVEI, called for balanced regulation: "Instead of blanket bans, risk-based regulation is needed, for example for the use of artificial intelligence in industry and for substances such as PFAS, which are needed in industry for innovative solutions."

In particular, the associations are calling for decisive political action to strengthen Germany's innovative power in the long term. The proposed measures should help to make the location competitive and future-proof in the long term.

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Recommendations for action for Germany as a center of innovationAn alliance of the German Chamber of Industry and Commerce (DIHK), the Fraunhofer-Gesellschaft, the German Engineering Federation (VDMA) and the German Electrical and Electronic Manufacturers' Association (ZVEI) has presented ten key demands to strengthen Germany as a location for innovation. The position paper is aimed at the future German government and identifies specific fields of action to ensure the country's long-term competitiveness.
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