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Innovation enjoys outstanding status in Germany. This is evident for example in the amount of money that is spent on research and development by Germany’s government, industry and academic institutions. According to the “Federal Report on Research and Innovation 2016” (BuFI), this sum amounted to just shy of 84 billion eurosin 2014 – the highest figure ever. Published by the Federal Ministry of Education and Research (BMBF), the report appears every two years.
Where does funding for R&D come from?
A particularly large amount of money is invested in R&D by German industry and the federal government:
- A good two thirds of the 84 billion euros comes from industry, where 57 billion euros were invested in 2014 – a new record.
- German government expenditure on R&D totalled 14.2 billion euros – by way of comparison, the 2005 figure was nine billion euros.
Investment in research and innovation is also reflected in terms of patents: the number of patents with world market relevance in Germany per one million inhabitants is more than 240 percent above the EU average, and as such is twice as high as in the USA.
Leading the world
Germany’s investment in R&D is very significant within the European Union: 30 percent of total R&D expenditure happens here. Furthermore, five of Europe’s ten most innovative companies come from Germany. The country is also one of the innovation leaders worldwide, as a glance at scientific publications shows: one in six scientific publications from Germany are among the works most frequently cited internationally.