BDI Fact Check | Mittelstand & Family Businesses The German Mittelstand
Digitalisation and innovation
Digitalisation and innovation Are SMEs driving research, development and innovation?
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In a comparison of economic sectors, internal spending on research and development (R&D) is concentrated primarily in manufacturing. SMEs play a key role in keeping the German innovation system fit for the future. The indus trial SME sector is characterized by lively patenting activities, good connections to the scientific community and an overall high level of research intensity.
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In an international comparison, Germany is still among the international innovation leaders, ranking fourth in the Innovation Indicator 2020 (BDI 2020b). However, Germany risks to fall behind its main competitors if the environment for innovation does not improve consistently – particularly in the areas of technology-neutral investment, funding in R&D, digital infrastructure and attracting skilled labor.
Internal R&D expenditure in Germany by company size Source: IfM Bonn (2017)
SME: up to 499 employees
Large companies: 500 and more employees
SME share in percent
in million euros
59902 52869
54565
49027 42792 38924 36184
15.9
26
15.5
37946
16.2
45440
45728
39375
16.1
16.2
15.5
14.6
14.0
13.3
13.1
12.9
6851
7149
7328
7554
8285
8350
7839
7970
8082
8261
8885
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
