Innovation in Germany – Chemical and Electronics Industries in the Lead

The chemical and electronics industries are the most innovative in Germany. Around 80 per cent of businesses in each of these sectors have implemented innovative products and processes.

The proportion of innovative businesses in the manufacturing sector totals 58 per cent. With a total of 68 per cent, the information technology and telecommunication industries boast the greatest proportion of innovative businesses. These are the findings of the most recent Innovation Survey carried out by the European Centre for Economic Research (ZEW), in Mannheim, on behalf of the Federal Ministry for Education and Research (BMBF).

In 2002, the chemicals industry was the most innovative sector in Germany; 82 per cent of the businesses in this sector have introduced innovative products and processes - more than ever before. The chemicals industry, with a total expenditure for innovation activities of around 10.5 million euro, also ranks highly in terms of the level of expenditure for innovation. This constitutes 15 per cent of the total expenditures made for innovation activities across all sectors in Germany.  Businesses expect expenditure for innovation activities in 2004 to be in the region of 11.5 million euro. Along with an above average proportion of businesses offering new products (38 per cent), the chemical industry is characterised by a high degree of streamlining, achieved through the implementation of innovative processes. Such economizing practices have thus enabled businesses in this sector to save 6.3 per cent of costs.

With 79 per cent of businesses classed as innovative in 2002, the electronics industry is in second place. Although this proportion represents an increase on the percentage achieved in 2001 (77 per cent), this sector has had to cede first place to the chemical industry.  Particularly notable is the high proportion of new products which are brought onto the market by businesses in the electronics industry. In 2002, 42 per cent of businesses in this sector released new products. The expenditures made for innovation activities totalled 10.7 million euro. Businesses expect expenditures for innovation projects in 2004 to total 11 million euro. 

In third place we find vehicle manufacturing industries and optical, medical, measurement, control and precision engineering, where 72 per cent of businesses are considered to be innovative.

In 2002, the gap between the most innovative and the least innovative industrial sectors widened yet further. Whilst the proportion of innovative businesses in the most innovative industrial sectors increased, this proportion, with the exception of the textiles industry, fell in the least innovative industrial sectors.

Looking at the degree of innovation in individual industries in the service sector, information technology and telecommunications industries have now taken the lead. Approximately 68 per cent of the businesses in these industries have implemented innovative measures. The large proportion of innovative businesses in these sectors, in comparison to other industries in the service sector, is undoubtedly explained by the strong orientation towards technology in these two sectors.

Note from the Editor

All information is taken from the annual ZEW Sector Report on Innovation, carried out in 20 sectors.

Contact

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