marc a. stahl the industrial- and innovationspolicy of germany - germany’s technological...

Marc A. Stahl

The Industrial- and Innovationspolicy of Germany

- Germany’s Technological Performance -

Agenda

1.The economic situation of Germany in the Past

2.The economic situation of Germany today

3.The consequences of the current situation

4.Industrial- and innovationpolicy in Germany

The economic situation in the past

In the last century Germany has become famous in the whole world for its fast economic growth

The Past – The situation today – The consequences – Industrial and innovationpolicy in Germany

What was the fundamental basement for the big growth ?

The question is:

The economic stituation in the past


► Germany has a long economic and industrial history►Ludwig Erhardt created after WW2 the economic and poltitical system “Die Soziale Marktwirtschaft”►Free acess to the markets for everyone►Social security system for everyone►Protection of the labour force ►free education system for everyone(human c.)►Federal Republic System (Bundeslaender)

The economic situation in the past

Based on those structures and systems Germany became a rich country with the aim:

A high growing prosperity for everyone on the one hand and full employment on the other.


Agenda





The economic situation today

How it looks today:

● The technological performance of Germany's economy still continues at a high level.

● Germany could again reach a national R&D intensity of 2.5 per cent

● Germany has still a good high-tech industry

But there are also a lot of problems!



● The society and the economic system are on the way to the age of informations and service

This important structural change and way to handel it has not been realized by the German government and the German people



►Germany is actually not able to face those new challenges

►Germany has a tremendous need of reforms (The health and pension system)

►A rank growth of bureaucracy ►A blocking trade union►A inflexible and over-adjusted labour

market►Black market


Agenda





The consequence

1. Very high unemployment (4,6 Mio)► termendous encumbrance for the

• national finances

• the social securtity system • potential growth

2. High, excessive national debt► 1,5 trillions DM in 1999 and 83 Billons just for the

interest (= 21% of the inland revenue)► the public deficit exceeds the postulated 3.0 % limit of

the EU


The consequence

3. A non growth situation in past two years. The GDP has even reduced in last quarter

4. A constricted scope for the politcian

5. Decreasing goverment purchases

Momentary there is a bad, pessimistic atmosphere in Germany


Ranking of Germany compared to other industrial nations

Blue line:

during the 90th

Red line:

today


Agenda





Innovations in Germany

The currently situation:• The goverment reduce their R&D

investments• The companies are full of uncertainty• Especially service providers and middel

class enterprieses reduces their R&D investments

• The ”Neue Markt” and the high-quality sector collapsed


The consequenses for the innovations are:

Innovations in Germany

1.The resulting shortage of capital is a big handicap for new innovations


2.The effects of the productivity of innovations stagnates

1) Industrial sector 2) Service sector

The intensity of innovation


1) Knowledge based E.

2) Techn. Service E.

3) High-tech E.

4) Hight-quallity E.

Number of new enterprieses


Resons for the weakness of innovations

• People are discontented with general conditions and there is a feeling of uncertainty

• Increasing shortage of highly trained employee• Missed investments in R&D in the past• Absence of dynamic on the labour market• Saving the loosers strategy• Mentality (The point of view is more on the risks

than on the opportunities)


Ways and means out of the crisis

►New conception of the economic system

►A new way of thinking in the whole society

►More investments in education, R&D and science

►Approvement of the general conditions

►Quicker and easier process of accreditation and permissions

►More initiative of one’s own and more autonomy


The new industrial and innovationpolicy

The political system has now realised the situation.


Accordingly they want to creat a new indusrtial and innovation policy

1. To create the best possible conditions

2. Interlocked the German ip with European ip

3. More influence on the legislation

4. To pay more attention to particular sectoral like the BioTech and Pharmacy sector.



•Out of the guideline of the ministry of economics the aims of new definition of the ip:

In detail means that:• To create a increasing competition and

deregulated more markets

• A strong delivery of new technologies and innovations

• Creating a climate, which is good for investments

• International division of labour



Questions, criticism, …

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marc a. stahl the industrial- and innovationspolicy of germany - germany’s technological...

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