02/2025 – Innovation

The upcoming federal election will influence the political course set for innovation in Germany. Innovation is the key to growth, competitiveness and sustainable progress. Whether artificial intelligence, green technologies or digital business models – new ideas are changing the economy and society at a rapid pace. But what setting is required for innovations to be created and successfully implemented?
 
This ZEW Monthly edition on the topic of “Innovation” focuses on main drivers of innovation strength in Germany. The chemical industry plays a key role here, making a significant contribution to the economy’s competitiveness. However, the potential is not fully tapped: For example, start-ups participate less in public tenders than established companies do. At the same time, high energy costs might cause an unexpected acceleration of the energy transition. There is a ray of hope, though. Innovation spending – a measure of future-oriented innovation efforts – was at a record high. And unlike in the past, this development has been driven by the service sector.
 
Finally, our newsletter takes a forward look regarding the 2025 federal election: In view of the serious economic problems, the new German government should clearly prioritise its European policy.