Germany has two federal states with innovation ranks among the top in the world, which can be compared with Silicon Valley . However, Germany performed mediocrely in the comparison of international innovation strength and must accelerate its development.
Experts believe that the energy crisis in 2022 may completely put Germany in an industrial crisis, or even a crisis in Germany's business model. The German economy needs to maintain its own competitiveness in innovation. However, in key business areas in the future, Germany is far from reaching the level of progress needed to ensure long-term prosperity. Fortunately, there are still some regions in Germany at the forefront of the world in terms of innovation. A research report entitled "Investment Innovation, Green Transformation" by ING of
Financial Institutions ING shows that Germany has not strictly formulated standards in terms of technology that can be used to reduce carbon dioxide emissions .
German green economy is underdeveloped
ING German chief economist Carsten Brzeski said when talking about Europe's dependence on fossil fuels, "The urgency of green transformation this year is more obvious than ever." Germany, especially imports a large portion of oil and gas from Russia, and is now in an unstable situation. Russia's neo-imperialist war of aggression strengthened the need to be fast independent of fossil fuels. He believes that the way to achieve this is not through savings, but through technological advancement. He is convinced that “innovative countries will succeed in this transformation better than those lacking.”
However, in terms of green technology, Germany is far from reaching the leading position some decision makers hope. As measured by an economy, the Global Green Economy Index (GGEI) is the "Energy Transformation" in Germany is only ranked 11th.
Ireland has gone further on the road to decarbonization, and they rank third. France ranks first in the global green economy index, which means that the carbon-free power generation of French nuclear power plants is rated as the absolute advantage of the region.
Ireland ranks first in the ING Innovation Index. There are more people who are highly educated there than euro zone anywhere else, and more people work in the high-tech industry than anywhere else, accounting for 10% of the workforce. Through targeted innovation, the Irish government is also ensuring its advantages. "Seldom countries can complement each other better than they do. National investment increases innovation strength, and where there is innovation, it is not far from a successful green transformation."
Economic innovation strength rankings in some regions
11 The German Institute of Economic Research (IW) conducted a study with partners from the United States, Italy and Canada to analyze the innovation capabilities of several large economies provinces and federal states. Economist and innovation expert Axel Plünnecke said Germany has two federal states that are well-positioned in the competition for best creativity: "In the transatlantic comparison, Bawu and Berlin are one of the five most innovative regions." That is, Germany's prosperous regions can definitely compete with the best in the world.
He said, "Based on our assessment, only two regions surpass Baden-Württemberg . They are Massachusetts and California ." Massachusetts is the world-renowned MIT and is considered the center of biotechnology and humanities. California on the West Coast has become one of the world's IT hotspots with Silicon Valley. But in terms of research, investment and innovation concepts, Berlin, Germany is very powerful, with Berlin ranking fourth, following , California, . "In general, Germany has an advantage over the United States, Canada and Italy in the competition for innovation."
performed the best in the IW rankings, and the eastern part performed poorly except Berlin. Baden Württemberg scores as high as 84.9, while May, Brandenburg or Saan are less than 30.The region with the least innovative in Germany is roughly equivalent to Umbria in Italy and Iowa in the United States.
Baden-Württemberg's advantage is that its company is particularly stronger than the research field. These southern companies are far ahead in terms of the number of patent applications.
One third of German patents are in Baden-Württemberg
According to data from the German Patent and Trademark Office , last year, Baden-Württemberg registered 13,570 patents, more than one third of all patents in Germany. 122 out of every 100,000 residents have applied for patents. Many legally protected inventions come from automotive companies or suppliers of "Ländle", and Robert Bosch GmbH alone has nearly 4,000 applications. In the entire Saan State, only about 150 patents were registered throughout 2021.
Berlin is unsatisfactory in patent applications. Plünnecke commented: "Berlin occupies a leading position in the knowledge base. As a state-level city, Berlin benefits from a high proportion of highly educated population and many high-quality immigrants." There are also many technology experts that innovative companies can rely on. In addition, Bavaria also impresses people with its global network and high-level high-tech exports.
Plünnecke points out Germany's flaws: "Even if its competitiveness shows many advantages in the transatlantic comparison, global trends such as decarbonization and digitalization pose major challenges to Germany." In addition, there are population changes, resulting in a decrease in young professionals available.
Germany must accelerate its transformation
ING Germany's chief economist Carsten Brzeski said: "In general, Germany's green innovation strength is not good." In international comparisons, Germany is only ranked in the middle. Germany ranks only 16th among the 19 euro zone countries. Therefore, it is urgently needed to strengthen national investment and clear strategies for responding to population changes in the country. At the same time, Germany must also increase its attractiveness to foreign direct investment and expand research on small and medium-sized enterprises.
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