The federal Ministry for Economic Affairs, under the leadership of Katherina Reiche of the CDU, has temporarily ceased accepting new applications for the “Central Innovation Program for Small and Medium-sized Enterprises” (ZIM). According to a ministry spokesperson speaking to the “Handelsblatt”, the government is currently implementing consolidation measures agreed upon by the coalition.
The spokesperson explained that the entire federal budget is focused on these consolidation efforts, a stance that also affects funding programs. ZIM is designed to finance research and development projects undertaken by small and medium-sized companies, often in collaboration with universities and research institutions.
This decision has sparked sharp criticism from both the business and scientific communities. Uwe Möhring, Chairman of the Association of Innovative Companies, sharply condemned the move, calling it a “slap in the face” to the innovative SME sector. He stressed that these companies require stability and reliability, especially during the economic crisis, to successfully integrate new knowledge and continuously increase their competitiveness.
Similarly, Martin Bastian, President of the Zuse community (which represents research institutions), criticized the application halt, warning that it now weakens the crucial process of transferring ideas into tangible products. He told the “Handelsblatt” that this exact challenge-the weakness in the transfer of ideas-is a persistent ailment of the German innovation system.
