Arguments and Positions
Innovation: Implementing the Roadmap to World
Champion in Innovation
Education, science and research are the main
pillars of an industrial society. Innovation opens
up new markets, strengthens Germany's
competitiveness, ensures growth and contributes to preserving existing opportunities of
qualified employment and to creating new ones.
Defending its top position is getting increasingly
difficult for the industry location Germany.
Emerging markets are catching up, but also
established industrial nations massively invest
in education and research and create
innovation-friendly framework conditions.
The German chemical-pharmaceutical industry
is facing this challenge. In 2016 the industry
invested ca. 10.8 billion euros in research and
development (R&D). Company-internal
obstacles to innovation are eliminated
consistently, because in ever fiercer global
competition the time from research to getting
products on the market is becoming more and
more important.
But industry cannot make Germany the
innovation world champion entirely on its own –
support from politics is needed for this purpose.
With this in mind, the VCI has developed a
12-point plan for an innovation-friendly industrial
policy in the next legislative period. This plan
includes implementation horizons for the
necessary steps, with the following elements:
Promote culture and talent, reduce and
eliminate barriers, bring promotion into focus
and simplify cooperations.
Innovation needs the backing of politicians
and society
Innovative products and processes from
chemistry are part of the solutions to the great
societal challenges in the fields of health, food,
mobility, climate protection and resource
conservation. Politicians and society need to be
open to innovation, thus facilitating relevant
progress.
THE VCI IS CALLING FOR THE FOLLOWING:
Increase the research spending; fiscal incentives for research and venture capital
The political goal for the share of R&D spending in GDP should be raised from 3 to 3.5 percent. In order
to achieve this, it is also necessary to improve the framework conditions for research and innovation.
This includes fiscal incentives for research. Tax loss carryforwards for start-ups should become possible
without limitation in terms of time or amount, legal provisions on venture capital should be optimised, and
those tax rules on the relocation of corporate functions which impair R&D should be abandoned.
Consistently continue the German High-Tech Strategy
Adequately funded R&D promotion programmes for a sufficiently broad range of technologies are
important for maintaining the high level of research in Germany: in the energy sector, for more resource
efficiency, innovative medicines and key technologies – like new materials, catalysis, nano- and biotechnology and the use of renewables. R&D promotion programmes need to take into account the specific
needs of both SMEs and large companies.
Strengthen natural science education, STEM subjects and university financing
General natural science-technical knowledge ("Sachkunde") should be introduced already in elementary
schools, and one third of the total number of lessons in secondary schooling should be dedicated
continually to STEM subjects (= science, technology, engineering, mathematics). Excellent basic
research is essential for the chemical-pharmaceutical industry. Universities should have more funding:
University financing by the federal administration should be used to improve the quality of research and
teaching, and socially acceptable university fees should be introduced. Also, university education needs
to be further internationalised and improved (bachelor and master qualifications). Possibilities for further
advanced education and qualification of employees need to be expanded.
Regulation and actions by public authorities should support innovation, not impair it
Bureaucracy should be reduced in licensing procedures for new products; periods and deadlines set in
relevant legislation should be observed. The impact assessment of new and existing legislation should
be improved, and an "innovation check" should be introduced for this purpose. As Germany is an
important pharmaceutical industry location, adequate reimbursement should be paid for innovative
medicines. Authorisation procedures for innovative plant protection products need to become faster.
Status: 1 June 2017
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