2016
Germany An innovation leader that needs to secure its competitive position in future
INVESTMENT IN R&D R&D SPENDING One of the highest levels of R&D intensity in the EU, but further investments are needed to catch up with the leading innovative economies
4 3
2.60
3.17
3.00
2.87
2.87
2.71
2.03
2 1 0 2008
2010
2012
2014
Objective 2020
EU average (2014)
EU highest (2014)
Business R&D intensity (business R&D spending as % of GDP)
STRENGTHS OF R&I SYSTEM BUSINESS R&D SPENDING
PATENT APPLICATIONS
Intensive R&D activities in the business sector…
1.95
1.95
… and very good performance in terms of innovation outputs
1.95
9.42
10 8
1.90 1.85
1.80
1.80
2
1.70
0 2010
Lowest
EU average
… and strong academia-business collaboration
0.114
0.12
14.5 11.5
10
0.10
10.5
0.08
7.5
0.052
0.06
5
0.04
3.5
2.5
0.02
0
0.002 EU average
er ag e Lo w es t
Lowest
y
Germany (Highest)
EU
av
an
rm
gh
es
t
0
Hi
Highest
PUBLIC-PRIVATE COOPERATION
Excellent science base…
Ge
Germany
Number of international (PCT) patent applications per € billion of GDP (2013)
QUALITY OF RESEARCH SYSTEM
12.5
0.23
2014
2012
Business R&D intensity (business R&D spending as % of GDP)
15
3.69
4
1.75 2008
6.42
6
1.82
Public-performed R&D financed by business as % of GDP (2013)
% of scientific publications that are highly cited (top 10%) in other publications (2013)
KEY CHALLENGES VENTURE CAPITAL
SPENDING ON INNOVATION
Lack of finance holds back growth of start-up companies, including in hightech sectors
Investment in innovation has decreased in recent years
2.7 0.05 0.04
2.5
0.043
2.0
0.028
0.03 0.02
1.0
0.01
0.5
0
0 2008
1995
2015
Venture capital (market statistics) as % of GDP
2012
% of companies’ turnover spent on innovation
TERTIARY EDUCATION
SCIENCE & ENGINEERING SKILLS
Demographic change and relative lack of skilled personnel will limit German innovation performance in future 60
1.6
1.5
In particular, a lack of science & engineering graduates is a growing concern for the R&I system
56.4
50
38.5
40 30
25
31.8
22.7 17.6
20
24.9
18.1
15
20
10
10
5
0
9.0
0 Highest
EU average
Germany
Lowest
% 30-34-year olds who have graduated from tertiary education (2015)
Highest
EU average
Germany
Lowest
Share of new graduates (per thousand aged 25-34) in science and engineering (2014)
RECOMMENDATIONS 2016 EUROPEAN SEMESTER – COUNTRY SPECIFIC RECOMMENDATIONS
“Reduce inefficiencies in the tax system, in particular by reviewing corporate taxation and the local trade tax, modernise the tax administration and review the regulatory framework for venture capital” HORIZON 2020 POLICY SUPPORT FACILITY ACTIVITIES Germany has participated in two Mutual Learning Exercises: 1. Evaluation of business R&D funding schemes (as core country) 2. A dministration and monitoring of R&D tax incentives (as observer country)
https://rio.jrc.ec.europa.eu/en/country-analysis http://ec.europa.eu/research/horizon2020/index_en.cfm?pg=country-profiles
Research and Innovation
Source: European Union, 2016 | ISBN: 978-92-79-54880-2 | doi: 10.2777/868112 | KI-04-16-055-EN-N
Achieve a sustained upward trend in public investment, especially in infrastructure, education, research and innovation, while respecting the medium-term objective
