OECD Reviews of Innovation Policy: Germany 2022

Building Agility for Successful Transitions

The COVID-19 pandemic and the Ukraine war have revealed vulnerabilities in Germany’s economic model: undiversified energy supply, an over-reliance on fossil fuels, delayed digitalisation and disruptable supply chains. Digital technologies may significantly disrupt manufacturing industries Germany has dominated for decades, threatening future competitiveness. The green transition also requires significant industrial transformations. Germany can call upon one of the world’s most advanced innovation systems in dealing with these challenges, but a new more agile and experimental approach to STI policy is needed. This Review outlines how to develop such an approach and what STI policies need to focus on: create markets for future innovations, more significant and more risk-tolerant finance for innovation, inter-disciplinary knowledge exchange, improved data infrastructure and capabilities. Given the internationally shared challenges of dealing with transitions, the insights presented in the review will be of interest to policymakers, stakeholders and analysts from Germany and across the OECD.

Published on October 04, 2022Also available in: German

In series:OECD Reviews of Innovation Policyview more titles


Reader’s guide
Abbreviations and Acronyms
Executive summary
Overall Assessment and Recommendations1 chapter available
Overall assessment and recommendations
The German innovation system in international context: performance, capacities and policy4 chapters available
The socio-economic context for innovation
Benchmarking German innovation performance
The German research base for innovation
Strategies and the policy mix for innovation
Sowing seeds, fertile ground: getting the conditions right for innovative entrepreneurship3 chapters available
Framework conditions for innovation in Germany
Financing innovation in Germany
Quality infrastructure for innovation in Germany
Unbundling the international factor in domestic German innovation1 chapter available
The international dimension of Germany’s innovation ecosystem
Business as usual? Innovation and the transformation of the German private sector4 chapters available
The contribution of the Mittelstand to innovation for the digital transition
German business sector innovation for the green transition: Performance, challenges and opportunities
From incrementalism to breakthrough: New challenges and approaches to innovation
Technology and knowledge transfer for industry innovation and transformation
Steering the ship: governance and policy for the German innovation system in transition3 chapters available
National STI governance, EU leadership and international commitments
Agile, responsive and experimental policy for innovation
More seats at the table: Participation and inclusivity in German innovation
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