German innovation stagnates - The country lags behind in future technologies
Germany's innovation capacity is stagnating, with the country sitting in 12th place, according to a recent study. This comes as competitors such as the United States, Britain and France are making significant progress.
The Innovation Indicator 2025, presented by the German Industrial Association (BDI) and consultancy Roland Berger, showed that Germany is particularly weak in future technologies, including digitalization and biotechnology.
A key problem is that German companies' domestic research and development spending is growing less than in other countries, especially in digitalization, where it lags behind the US and China.
The ranking, which has analyzed the innovation capacity of major economies since 2005, is again led by small, highly specialized countries: Switzerland in first place, Singapore in second and Denmark in third.
Germany ranks fourth in key technologies overall and is among the top five countries in four out of seven technology areas, including the circular economy, new materials and new production technologies.
But in key future-oriented fields, Berlin has lagged behind: seventh in digital hardware, tenth in digital networking, and only 15th in biotechnology.
"We must dare to think about the future, this is the only way to ignite new innovation dynamics. We must realize the first functional prototype for a nuclear fusion reactor by 2040 or become leaders in artificial intelligence for industry," the German Industrial Association underlined.
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