Expenditure on research and development (R&D) in Germany since 2005
increased significantly
Frankfurt am Main (ots) –
– New analysis by the ZEW on behalf of KfW Research
– Government share in R&D expenditure falls, business share rises to 64%
– Concentration on a few branches of the manufacturing industry and on
large companies
In Germany, expenditure on research and development is
grown significantly over the past decade and a half, like one from ZEW
Mannheim on behalf of KfW Research shows. your real
Growth averages 3.4% pa in the period from 2005 to 2019,
after it was only 1.4% pa in the period 1991-2005. The R&D quota (expenditure
for R&D in relation to economic output) has fallen from 2.1% in 1994 to 3.17
% increased in 2019.
According to the study, the dynamics of R&D expenditure in Germany falls in
Period from 2005 higher than other large, sophisticated
Industrialized countries such as Japan (0.7%), France (1.6%) or Great Britain (2.2
%). However, it cannot compare with countries like China (13.0%), South Korea (8.0%) or
Israel (6.0%) not keeping up. In 2019, Germany will achieve an R&D quota
of 3.17% and thus ranks sixth before the outbreak of the corona pandemic
Position among the comparison countries – on par with the USA and before similar
major European countries as well as China.
The positive development can be attributed to the comprehensive realignment
of research policy in Germany. From 2006, she set clear priorities for
increased investment in research and new technologies, was long-term
created and addressed not only the corporate sector but also the universities and
non-university research institutions. She was also supported
by an economic upswing, which is caused in particular by a rising
demand from the emerging markets. In Germany the
The federal government formulated a target value of 3.5% for 2025, which applies at EU level
3.0% as the target figure.
Central results of the extensive analysis of the R&D system in Germany
are:
– With regard to the financing of R&D, Germany and the
Comparative countries show a trend towards a higher share of the economy in a
declining share of the state. In 2019, 64% of the
aggregate R&D expenditure financed by the domestic economy
(1991: 62%). In the comparison countries, the increase was stronger overall
(from 59% to 69%). In return, in Germany, the state
Funding share from 36% to 28%. It is shown for the comparison countries
also an – overall stronger – decrease in the state
Financing share from 35% to now 21%.
– The R&D expenditures of the economy are few in Germany
sectors of the manufacturing industry. The Five Industries
with the highest R&D expenditure are automotive (37.3% of the total
R&D expenditures of the economy), the electronics/measurement technology/optics industry
(18.5%), mechanical engineering (10.3%), the pharmaceutical (6.7%) and chemical industries
(5.9%). These branches of the economy alone account for almost 79% of R&D expenditure
the economy on itself. On the other hand, the for the digitalization important
Information and communication services are not a focus of the
German R&D. Compared to 2009, the industry concentration of
R&D spending in Germany increased during such a development
does not show for all of the comparison countries.
– In hardly any other country is R&D expenditure so heavily on large companies
concentrated like in Germany. In 2018, companies with 500 accounted for 88%
or more employees. Only in Japan is the proportion even higher at 90%.
– Overall, the R&D intensity of the German economy is lower than that
economic structure might be expected. This means that still a significant
Potential for higher R&D intensity and thus higher R&D expenditure
is available. Would every branch of industry in Germany have one
below-average R&D intensity this to the average level
of the comparison countries would increase, as would the R&D expenditures of the German
economy are almost 30% higher.
“The high-tech strategy of the federal government and its interaction with the
appropriate strategies for science have shown that deal with
a concerted initiative that reflects the political priorities towards
Research and innovation is shifting and taking a long-term perspective
occupies a turn towards higher R&D activities. I hold
it is important to continue this strategy at all costs – especially in times when
where maintaining high levels of investment in R&D is becoming more difficult,” says Dr.
Fritzi Köhler-Geib, Chief Economist at KfW. “Compared to other
In developed countries, the R&D intensity of most sectors of the economy is
Germany below average. At the same time, the corresponding
Expenditure by small and medium-sized companies in Germany is well below that
most other industrialized countries. This means great potential
exists for an increase. In order to mobilize this, in particular
R&D incentives for medium-sized companies and for the whole sectoral
breadth of the German economy is important. In addition, the high speaks
Importance of digitization for research and innovation for R&D and
Integrate digitization projects more closely in funding.” A
Strengthening the R&D activities of the German economy presupposes, however,
that there is a corresponding supply of qualified personnel. “Of the
A shortage of skilled workers is currently the biggest obstacle for those willing to invest
companies in Germany. This applies not only to labor demand
in general, but in particular for the implementation of innovation projects.
In order to secure the supply of skilled workers for R&D activities, an expansion of the
academic training and professional training in relevant professions,
the mobilization of all people in Germany and also a migration policy
necessary, which facilitates the immigration of qualified specialists”, says
Koehler-Geib.
The current study can be accessed at http://www.kfw.de/fokus
About the data background:
The new study is based on various databases from the OECD. To the
Comparable countries include larger European and North American countries,
Asian and Pacific countries as well as a selection of smaller European ones
states. These are the countries: France, Great Britain, USA, Canada,
Netherlands, Japan South Korea, China, Australia, Israel, Denmark, Finland,
Norway, Sweden Austria, Belgium and Switzerland.
Press contact:
KfW, Palmengartenstr. 5 – 9, 60325 Frankfurt
Communication (COM), Christine Volk,
Tel. +49 (0)69 7431 3867, Fax: +49 (0)69 7431 3266,
Email: mailto:[email protected], Internet: http://www.kfw.de
Further material: http://presseportal.de/pm/41193/5336762
OTS: KfW