02/2024 – Innovation

In a time of groundbreaking changes and technological revolutions, it is of great importance for Germany to remain innovative and establish future-oriented business models. A key question is whether Germany can manage the balancing act of preserving old strengths while promoting forward-looking enterprises. In this ZEW Monthly focusing on the topic of “Innovation”, various policy instruments addressing this issue are examined.
 
The tax credit for research and development is very well received in the chemical and pharmaceutical industry. With nearly 400 applicants, it proves to be an asset for Germany’s innovation landscape, enabling many innovative projects that would otherwise not be possible. On the other hand, the subsidies for plug-in hybrids turned out to be environmentally damaging, as it encouraged the purchase of large and heavy vehicles without leading to actual emission reductions. To be able to better evaluate research and innovation funding in Germany, ZEW Mannheim will work on a high-quality database as part of the EVALDAT research project.