Research, Innovation and Technological Performance in Germany (Report 2010)

Abstract

On behalf of the Federal Government of Germany, the Commission of Experts for Research and Innovation presents its third report.

The format of the report has been revised this year. Part A of the EFI report 2010 discusses current developments and future challenges. Part B of the report then addresses five core topics. The indicators for the status of research and innovation in Part C are presented in a new format, which we hope will be more readily accessible for decision-makers in particular.

The financial and economic crisis is not yet over, but there are signs of moderate growth potential for 2010. The German innovation system has done fairly well in the crisis. In addition, appropriate importance has been attached to research, innovation and education in the plans of the new Federal Government. As welcome as these declarations of intent are, it is important to follow these up by adopting specific measures in various key areas.

In this third report, the following five topics are addressed in detail. First, the Expert Commission analyses the overall structure of the German innovation system and in particular the role of non-university research (Section B 1). It then presents an interim assessment of the Bologna Process, which is currently the subject of lively public debate (Section B 2). Twenty years after German reunification, research and innovation policies in eastern Germany are reviewed (Section B 3). The Expert Commission also considers Germany’s technological performance in the field of electromobility (Section B 4), and comments on the efforts of the European Commission to introduce a European Union patent and a unified patent court system (Section B 5).

Highest priorities for the Federal Government should be the introduction of R&D tax support, improvements to the conditions for Business Angels and venture capital, and the systematic improvement of Germany’s education and research systems. Broad tax advantages for companies and individual tax-payers are no substitute for these urgently needed measures. Instruments which have been shown to have failed, such as the research premium, should be abandoned. Germany continues to do well in terms of creativity, inventiveness and openness to innovations. Despite financial constraints it is important to target investments in order to maintain and expand these strengths.

Keywords: Public Policy, Research, Innovation

JEL Classification: O31, O32, O38