This content is relevant for:Research and Development / Coronavirus
Business Location Germany
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The latest data published by the Stifterverband on behalf of the Federal Ministry of Education and Research shows that companies have spent more on research and development in the last year than ever before.
Moreover, research spending in 2020 is set to exceed this record level despite the ongoing coronavirus crisis according to the survey of 27,000 companies.
The ratio of total R&D spending to gross domestic product (GDP) reached 3.17 percent in the last year – exceeding once again the European Union target of three percent. Germany’s government has now revised this figure upwards to 3.5 percent to be achievable by 2025. The private sector spent EUR 75.6 billion on internal R&D activities and awarded research contracts with a value of EUR 21.6 billion to third party service providers and institutes.
The automotive sector has traditionally accounted for the lion’s share of research spending – equivalent to around one third of total industry R&D spending. The Stifterverband data records particularly strong increases in the pharmaceuticals, IT and measurement technology sectors.
The ongoing Covid-19 pandemic will most likely see R&D spending increase further this year, rising most likely to 3.3 percent of GDP in total. A major driver of this development has been the race to develop an effective vaccine to the SARS-CoV-2 virus.
The German government’s economic stimulus package launched in June provides billions in economic aid and funding to research and development activities within the country. Major focal points of research activity include health research, artificial intelligence, and green hydrogen technologies. The National Hydrogen Strategy alone represents a nine billion euro investment in a carbon-neutral future for the country.