­Innovation dynamism in industry

The Federal Government's research and innovation funding is particularly aimed at increasing the number of innovative, high-growth small and medium-sized enterprises by means of appropriate measures.This should ensure that their high performance and creativity further vitalise the innovative dynamism of the country’s economy.

The high performance and creativity of German enterprises vitalise the innovative dynamism of the country’s economy. In reference to large companies with a strong R&D commitment, innovation potential must be leveraged first and foremost in the Mittelstand, the skilled trade sector and technology-based spin-offs, and have a regional focus. Therefore, government research and innovation funding is particularly aimed at increasing the number of innovative, high-growth small and medium-sized enterprises by means of appropriate measures.

German companies, and SMEs in particular, receive backing in the form of a coordinated, effective system of research and innovation funding. Technology-neutral programmes, like the Central Innovation Programme for SMEs, und the technology-specific measures introduced as part of SME innovative assist SMEs in their research and development endeavours. Furthermore, other specialised programmes place particular emphasis on the involvement of SMEs.

The start-up activity of an economy has an enormous impact on its innovative momentum. Although start-ups in research and knowledge-intensive sectors contribute disproportionately to growth and employment, they often have inadequate funding at the outset. Programmes like EXIST, INVEST, GOBio, IKT Innovativ, the High-Tech Start-Up Fund, the ERP-Startfonds and its successor coparion stimulate the growth of a new start-up dynamism, especially in the early stages of new technological developments, thereby strengthening Germany’s position as a competitive location for venture capital.

Unlocking the innovation potential of structurally weak regions enhances their innovative strength, economic growth and employment level. Ongoing efforts in the East German Länder are stimulating the development of technological, scientific and economic capacity, and the networking thereof. With several successful programme formats, Entrepreneurial Regions - the Innovation Initiative for the New German Länder promotes the development of internationally competitive centres of excellence and clusters with highly dynamic innovation capabilities. The regional grants awarded under the Joint Scheme for the Improvement of Regional Economic Structures aid structurally weak regions in both East and West to reach technology and investment policy goals.