This study explores the role of high technology areas for the German innovation system and inhowfar a focus of innovation policy on these areas is advantageous. The study looks at the application of high technologies (i.e. key enabling technologies and other types of new technologies that have the potential to change products and production in a very significant way) in traditional sectors and discusses the usefulness of technology classifications that distinguish high, medium and low technology. In addition, the significance of manufacturing for the development of innovative services will be analysed, as well as the types of interactions and value added chains between manufacturing and services.