German companies are backing away from investments in research and development, thus undermining their own future viability, in the most significant way since 2008. This somber finding comes from a new innovation report released by the German Industry and Commerce Chamber (DIHK), which was cited in the “Handelsblatt”.
The report indicates a sharp decline in commitment: only 25 percent of companies plan to increase their engagement this year, down from 38 percent in 2023. Simultaneously, twice as many companies-32 percent-plan to scale back their activities compared to the previous survey, which registered 15 percent.
The findings suggest that enterprises are not merely dropping isolated projects but are increasingly foregoing entire competencies, partnerships, and structural elements necessary for future innovation initiatives. The report asserts that these results are more than just a snapshot of weak economic conditions; rather, they constitute a serious warning signal for the German business climate itself. Reduced investment, the report warns, permanently weakens productivity, technological sovereignty, and the ability to tap into new markets.
Although Helena Melnikov, the chief executive of the DIHK, stressed that many companies wish to keep the “German innovation engine” running, she noted that excessive bureaucratic guidelines, lengthy processes, and inadequate structural conditions are consistently slowing them down. Melnikov called for reliable regulatory frameworks and, crucially, more freedom and leeway for new concepts and successful innovation.
