News from 2026-03-04 / KfW Research

KfW SME Innovation Report 2025

Innovations thriving despite challenging economic conditions

SMEs in Germany are currently increasing their innovation efforts again – despite the overall challenging economic environment. The key findings of the current KfW SME Innovation Report are:

  • 41 percent of companies have introduced at least one innovation in the past three years.
  • Innovation expenditures are rising even after adjusting for inflation.
  • Innovation activity is strongly concentrated among a few, primarily large companies.

KfW SME Innovation Report 2025

Press release

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