From research to business: Innovation transfer in Germany

Innovation transfer is of central importance for future economic growth, maintaining the global competitiveness of the German economy and achieving the transformative goals defined by policymakers. The challenges arising from this are becoming even more pressing as the viability of the export-oriented German economic development model, which has proven itself over decades, is being fundamentally called into question in the wake of geopolitical shifts in power.

This paper highlights the strengths and weaknesses of the German innovation system and what we can learn from other selected countries. Switzerland, Sweden, the United Kingdom and the United States were used as reference countries to identify best practices. The analysis of the innovation systems and best practices in these countries was then linked to the prerequisites for adaptation. Recommendations for action were subsequently derived.

The following points are particularly noteworthy:

• Germany has a strong mid-tech system, but deficits in the high-tech sector: while incremental developments in traditional industries are working well, there is a lack of momentum in the transfer to forward-looking technologies such as artificial intelligence, biotechnology and quantum technology.
• Successful countries rely on systemic approaches rather than individual measures: best practices from the USA, Switzerland, Sweden and the UK show that success depends less on isolated programmes and more on innovation systems that have developed over the long term with close links between science, industry and government.
• Cultural factors are crucial: Positive attitudes towards entrepreneurship and technology promote the transfer of innovation. In this respect, the USA and Northern European countries have clear advantages over Germany, where the start-up culture and enthusiasm for technology are less pronounced.
• Venture capital and start-up ecosystems are key to high-tech innovation: Countries such as the United Kingdom and the United States have mature venture capital markets and support programmes that secure early-stage and growth financing – an area in which Germany still has some catching up to do.
• Reducing bureaucracy and improving data access are key levers: obstacles such as complicated application procedures and a lack of data availability slow down the transfer of innovation. Best practices from the United Kingdom and the United States can show ways to reduce bureaucracy and make better use of research data.

Read the entire policy paper: ‘Innovationstransfer in Deutschland: Stand, Internationale Best Practices und Perspektiven’ here as a PDF. Please note, to date this publication is only available in German.