The Electronics, Engineering and Chemicals Industries Top German Innovation Rankings

The electronics, engineering and chemicals industries are the three most innovative in Germany. More than 70 per cent of businesses in these sectors have introduced new products and processes. In the manufacturing industry, 61 per cent of businesses are considered to be innovative.

This is the finding of a current innovation study carried out by the Centre for European Economics Research (ZEW), in Mannheim, on behalf of the Federal Ministry of Education and Research (BMBF).  

In 2001, the electronics industry was the most innovative in Germany. Around 76 per cent of businesses in this sector introduced new products and processes. Expenditure on innovation in this sector, which employs around 700,000 workers, is also above average. The electronics industry invests 7.8 per cent of its total turnover in innovation activities. In the manufacturing industry, the equivalent figure is 4.3 per cent. The positive development of innovation activities in the electronics industry most clearly manifests itself in the increasing digitalisation of radio and television, as well as communication technologies.

With 73 per cent of businesses in the sector having undertaken innovative activities, the engineering industry was once again in second place. More than 70 per cent of mechanical engineering firms have introduced new, innovative practices every year since 1995. Particularly notable is the high proportion of new products released into the market by businesses in this sector. 43 per cent of mechanical engineering firms have released new products within the last year. This figure is even higher than that for the electronics industry (39 per cent).

In 2001, the proportion of innovative businesses in the chemicals industry was 70 per cent. In 2003, the "Year of Chemistry", businesses hope to make around EUR 8.2 million available for investment in innovative projects. If this target is reached, then spending on innovation in this sector will constitute approximately 13 per cent of all expenditure on innovation in Germany.

Levels of innovation have fallen considerably in the field of medical, measure, control and regulation technologies, and optics. In the previous two years, this sector topped innovation rankings. Now, however, with 66 per cent of businesses considered to be innovative, this sector ranks only fifth.

ICT and telecommunications providers maintain high levels of innovation in the service sector. Approximately 68 per cent of businesses in this sector have implemented innovative practices.  

Note from the editor

This information has been taken from the ZEW Sector Reports for Innovation. 

Contact

Tobias Schmidt, E-mail: schmidt@zew.de