‘Invented in Germany’ is a further iteration of
the label.
It signals that a product has been
created with German expertise in research and
development. Foreign manufacturers are
increasingly turning to Germany for their
innovation needs. Its enviable research and
development landscape encompasses various
institutes, universities and other higher
education establishments as well as innovative
SMEs.
Research-focused enterprises can also
be found in practically all sectors of industry in
Germany and there is an established tradition
of industry networks and research centres.
The number of companies that choose to base
their R&D activities in Germany bears
testament to the continued attractiveness of
the country as a place for driving innovation.
This is achieved by means of direct investment
but also simply through takeovers. These are
made in the technology segments where the
chances of catching up with German expertise
in the short term appear remote at best.
There is always a strong incentive for takeovers when
the market has not yet priced in the
competitive edge that can be obtained from
new innovations and know-how. This trend has
become increasingly concerning in recent
times as the companies that have the expertise
are being taken over – or are set to be taken
over – by foreign enterprises, particularly in
China, that are primarily financed by the state.
EU Forecast
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