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Press Release from 2021-03-02 / Group

KfW study on future technologies: Germany lags behind in information technologies

  • It has a generally differentiated technological profile
  • Good starting position in automotive, manufacturing, environmental and climate technologies
  • There is no way around digitalisation – competence centre must be expanded to include information technologies

Germany has a differentiated technological profile with many promising starting points for the future. A recent study commissioned by KfW Research with the Fraunhofer Institute for Innovation and System Research (ISI) revealed the strengths and weaknesses of Germany’s economy with a view to future technologies. It shows that Germany is particularly well-positioned in automotive technologies as well as in the fields of production technologies, environmental and climate technologies and medical technologies. An analysis of patents, scientific publications and trademark registrations illustrates this. But it has much catching up to do in a key area: information technologies – which form the basis of digitalisation. They are not one of Germany’s strengths.

“For Germany as a technological nation it is particularly important to create growth with the aid of innovation, technological progress and competitiveness in key technological areas. It is the only way to create future-proof jobs and secure and increase prosperity”, said Dr Fritzi Köhler-Geib, Chief Economist of KfW. “In this effort, Germany can build on many traditional technological strengths. However, Germany has some urgent catching up to do in the field of digitalisation. Information technologies are key technologies that already have great importance for other economic sectors such as the automotive industry, mechanical engineering and the chemical industry – and their importance will continue to grow. In other words, there is no way around digitalisation. It will be necessary to expand the competence centre for information technologies, as otherwise this valuable potential for generating value will remain untapped for Germany”, added Köhler-Geib. We must aim to become internationally competitive particularly in the application of these technologies.

For the current KfW study, a total of 32 potential future technologies were examined which are expected to have high market relevance in the medium term (five to ten years). The identified future technologies cover a broad range and reflect the diverse facets of Germany’s technological competence. The findings of the study can be summarised as follows:

  • German companies are technologically well-positioned in automotive technologies such as hybrid-electric cars, battery technology, electric drivetrains, light-weight automotive construction and autonomous driving. These technologies build on existing, traditional German strengths. But further research activity is necessary, particularly with the aim of building expertise in electric mobility.
  • Information technologies, on the other hand, do not represent a challenge for Germany. They are gaining increasing importance in many other technological fields and economic sectors. But Germany’s technological competences here are only mid-range. As it appears quite unrealistic to catch up with other countries in the development of these technologies within a few years through increased research and development, a particular focus should be placed on expertise in the application of these technologies – especially in production technology.
  • Environmental and climate technologies directly address social needs whose long-term importance is clear. In order for these technologies to make economic sense for companies in the short term it is important to create a reliable framework for their use, such as a carbon tax. The incentives for investing in environmental and climate technology must be strengthened on a broad front.
  • Manufacturing technologies are among Germany’s traditional strengths. A particular challenge for German businesses is the new market for additive manufacturing and the further integration of information technology.
  • The future technologies of medicine include, for example, new vaccines which were long deemed to have limited economic attractiveness. With the coronavirus pandemic, vaccines have gained new importance. As new viruses that pose a similar danger will emerge time and again in the coming years, considerable growth potential can be assumed.

The current analysis by KfW Research can be retrieved from
www.kfw.de/KfW-Konzern/KfW-Research/Zukunftstechnologien (only available in German).