Report on Research, Innovation and Technological Performance in Germany 2017
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A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics EFI - Commission of Experts for Research and Innovation (Ed.) Research Report Report on research, innovation and technological performance in Germany 2017 Report, No. 2017e Provided in Cooperation with: Expertenkommission Forschung und Innovation (EFI) Suggested Citation: EFI - Commission of Experts for Research and Innovation (Ed.) (2017) : Report on research, innovation and technological performance in Germany 2017, Report, No. 2017e, ISBN 978-3-00-056754-4, Commission of Experts for Research and Innovation (EFI), Berlin This Version is available at: http://hdl.handle.net/10419/167641 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. 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Strohmeier, all of whom contributed their expertise to the report. In addition, we wish to thank all those persons who helped prepare the studies on the German innovation system. The Commission of Experts wishes to emphasise that the positions expressed in the report do not neces- sarily represent the opinions of the aforementioned persons. 4 Members of the Commission of Experts Staff of the EFI Coordination Office for Research and Innovation (EFI) Christine Beyer Prof. Dr. Uschi Backes-Gellner Dr. Alexander Cuntz University of Zurich, Department of Business Dr. Helge Dauchert Administration, Chair for Business and Dr. Florian Kreuchauff Personnel Economics Dr. Petra Meurer Antje Michna Prof. Dr. Christoph Böhringer Carl von Ossietzky University of Oldenburg, Gina Glock (student assistant) Department of Business Administration, Vincent Victor (student assistant) Economics and Law, Chair of Economic Policy Prof. Dr. Uwe Cantner Staff of the Commission Members Friedrich Schiller University Jena Chair of Economics/Microeconomics David Bälz Karlsruhe Institute of Technology, Prof. Dietmar Harhoff, PhD Chair for Economic Policy (Chair) Max Planck Institute for Innovation and Yvonne Giesing Competition Ludwig Maximilians University of Munich, Seminar for Comparative Economics Prof. Dr. Ingrid Ott Karlsruhe Institute of Technology, Martin Kalthaus Chair in Economic Policy Friedrich Schiller University Jena Chair of Economics/Microeconomics Prof. Dr. Monika Schnitzer (Deputy Chair) Patrick Lehnert Ludwig Maximilians University of Munich, University of Zurich, Seminar for Comparative Economics Department of Business Administration, Chair for Business and Personnel Economics Miriam Rinawi University of Zurich, Department of Business Administration, Chair for Business and Personnel Economics Dr. Myriam Rion Max Planck Institute for Innovation and Competition Alexander Suyer Max Planck Institute for Innovation and Competition 5 EFI REPORT 2017 Table of Contents Foreword 9 CHALLENGES AND AREAS FOR ACTION A 0 Challenges 15 A 1 Area for action: the science system 18 A 2 Area for action: transfer 20 A 3 Area for action: innovation in established companies 22 A 4 Area for action: entrepreneurship 24 A 5 Area for action: governance 26 A 6 Area for action: digital change 28 CORE TOPICS 2017 B 1 Science system 32 B 1-1 Research at tertiary education institutions 34 B 1-2 Excellence Initiative and Excellence Strategy 37 B 1-3 Young academics at tertiary education institutions 39 B 1-4 Non-university research organisations 42 B 1-5 The mobility of researchers 47 6 Table of Contents B2 Transfer 52 B 2-1 Transfer of knowledge and technology 54 B 2-2 Cluster policy 57 B3 Innovation in established companies 62 B 3-1 Demography and skilled labour 64 B 3-2 State financing of innovation 68 activities in companies B 3-3 The contribution of SMEs to research 72 and innovation in Germany B 3-4 Internationalisation of R&D 74 B 4 Entrepreneurship 78 B 4-1 Start-ups 80 B 4-2 Venture capital 84 B 5 Governance 88 B 5-1 The High-Tech Strategy 90 B 5-2 Innovation-oriented public procurement 93 B 5-3 Evidence-based innovation policy 96 B 6 Digital change 98 B 6-1 Digital change and new business models 100 B 6-2 E-government 103 B 7 Options for funding R&D through tax credits 106 7 EFI REPORT 2017 C STRUCTURE AND TRENDS Contents 124 Overview 127 C 1 Education and qualification 129 C 2 Research and development 136 C 3 Innovation behaviour in the private sector 142 C 4 Financing research and innovation 145 C 5 New enterprises 148 C 6 Patents 151 C 7 Scientific publications 154 C 8 Production, value added and employment 158 D LISTS 162 8 Foreword Foreword In 2017, the Commission of Experts on Research and Innovation is submitting its 10th Annual Report. This is an opportunity to review the last ten years of German research and innovation policy (R&I policy). The Commission of Experts identifies fundamental devel opments in R&I policy, acknowl- edges important advances, and develops key recommendations for action with regard to upcoming challenges. In the election year 2017, it is even more important to provide citizens with information on clearly defined options for R&I-policy measures over the next legislative periods. The Commission of Experts wishes to make a contribution to this end. In the introductory chapter A0, the Commission of Experts identifies challenges for R&I policy and derives objectives for the year 2025: an increase in research and development (R&D) expenditure to 3.5 percent of the gross domestic product (3.5 percent target); a significant improvement in the interna- tional visibility of German universities; doubling the amount of venture capital available in Germany; a leading international position in the field of digital infrastructure; doubling the share of funds allocated to research and knowledge transfer in the domain of digital change; and a leading position in Europe in the field of e-government. The Commission of Experts describes sets of measures for six important fields of activity that can boost Germany’s innovative strength: the science system (Chapter A 1), the transfer of knowledge and technology (A 2), innovation in established companies (A 3), entrepreneurship (A 4), governance of the R&I system (A 5), and digital change (A 6). Detailed analyses of the respective fields of activity are presented, and proposals are substantiated, in the corresponding chapters B 1 to B 6. Furthermore, the Commission of Experts submits two proposals on R&D funding through tax credits (Chapter B 7). Following an analysis of existing quantitative studies of R&D funding through tax credits in important countries, the Commission of Experts arrives at a positive recommendation: when designed appropriately, R&D tax credits are effective and lead to an increase in corporate R&D spending, particularly by small and medium-sized enterprises (SMEs). The introduction of such a funding instrument in Germany would be a sensible measure. According to the Commission of Experts, two proposals should be on the short list: a tax credit on income tax proportional to a company’s internal R&D expenditures, or a tax credit on wage tax calculated on the basis of the R&D personnel costs incurred. The Commission of Experts prefers the second option, as it reduces potential financing constraints faster and more effectively; it also directly triggers support for companies with no income-tax liability. The Commission of Experts advocates initially restricting to SMEs (according to the Euro- pean Commission’s definition) and subsequently expanding it to larger companies if necessary. Such a measure can be carried out with a manageable input of resources. Whichever specific design is chosen, the Commission of Experts regards R&D funding through tax credits as complementary to project funding. In its review, the Commission of Experts on Research and Innovation expressly acknowledges the important progress achieved