The Commission for Research and Innovation (EFI) handed its annual report to Chancellor Friedrich Merz on Wednesday.
Irene Bertschek, chair of the EFI and director at the Leibniz Center for European Economic Research (ZEW), warned that the United States and China are far ahead in artificial‑intelligence development. “We cannot afford to give up or retreat from the race” she said. “Germany must invest in expanding computing capacity, improve data utilisation, pursue new AI‑model research, and strengthen the European internal market”.
She added that persistent geopolitical tensions call for more focused efforts in security‑relevant research and innovation. “Innovation‑driven procurement of defence goods should be actively employed as an instrument” she explained.
Bertschek also highlighted the need to improve knowledge transfer from universities. While many breakthrough ideas stem from academic research, their potential is often under‑realised. “Transfer must be given equal priority alongside research and teaching” she urged, stressing that the private sector must be motivated to invest heavily in research, innovation and key technologies, and that the resulting opportunities should be communicated broadly to society.
She pointed out that small and medium‑sized enterprises are vital actors in Germany’s research and innovation system. “Barriers to innovation should be removed-simplify funding applications and facilitate the immigration of qualified professionals” she said.
Guido Bünstorf, a member of the EFI and professor at the University of Kassel, called for better resources for universities. “Research‑intensive universities lead in patent filings and in publications that are cited by patents” he noted. “In application‑oriented basic research, scientific excellence often goes hand in hand with concrete application potential, giving rise to breakthroughs such as lasers and mRNA vaccines”.
Bünstorf observed that structural issues hinder knowledge and technology transfer from German universities. “Many transfer facilities are inadequately equipped, largely because they rely on short‑term third‑party funding rather than stable institutional resources” he explained.


