KfW SME Innovation Report 2019

The innovator rate in SMEs is falling to the lowest level ever measured by the KfW SME Panel. Since 2006 the share of innovators among SMEs of all sizes and sectors has declined. The loss of innovators affects both enterprises that produce market innovations as well as the broad mass of imitating innovators. Innovation expenditure is developing without a clear trend in the medium term. Innovation efforts are thus concentrated in fewer and fewer enterprises.

In order to ensure Germany's competitiveness, an innovation policy is needed that pursues two strands: On the one hand, the research and development (R&D) of new technologies must be encouraged. On the other hand, it is necessary to support the innovation activities of companies without R&D, which cannot be achieved through R&D funding measures.

KfW SME Innovation Report 2019(PDF, 1 MB, non-accessible)