Structural Reform in Germany, 2013-2017
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Structural Reform in Germany, 2013-2017 Final Report July 2018 Study carried out within the Framework Service Contract 'Studies in the Area of European Competitiveness' (ENTR/300/PP/2013/FC-WIFO) Structural Reform in Germany, 2013-2017 Authors Name (Institute) Contribution Marius Berger (ZEW) Chapter 6.2 Irene Bertschek (ZEW) Chapter 2.2 Wolfgang Briglauer (ZEW) Chapter 2.3 Verena Dutt (ZEW) Chapter 4.1 Birgit Gehrke (CWS) Chapters 5.1, 5.2 Friedrich Heinemann (ZEW) Quality Control Reinhold Kesler (ZEW) Chapter 5.1 Bastian Krieger (ZEW) Chapter 2.1 Moritz Lubczyk (ZEW) Chapter 4.2, 6.1, 6.2 Christian Rammer (ZEW) Chapters 2.1, 4.2, Co-ordination Markus Trunschke (ZEW) Chapter 5.2 Simona Wagner (ZEW) Chapter 6.1 Insa Weilage (CWS) Chapters 3.1, 3.2, 3.3 CWS Centre for Economic Policy Studies, University Hannover, Germany ZEW Centre for European Economic Research, Mannheim, Germany EUROPEAN COMMISSION Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs Directorate A — Competitiveness and European Semester Unit A.2 — European Semester and Member States' Competitiveness Contact: Tomas Brännström E-mail: [email protected] European Commission B-1049 Brussels EUROPEAN COMMISSION Structural Reform in Germany, 2013-2017 Final Report Structural Reform in Germany, 2013-2017 Europe Direct is a service to help you find answers to your questions about the European Union. Freephone number (*): 00 800 6 7 8 9 10 11 (*) The information given is free, as are most calls (though some operators, phone boxes or hotels may charge you). LEGAL NOTICE This document has been prepared for the European Commission however it reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein. More information on the European Union is available on the Internet (http://www.europa.eu). Luxembourg: Publications Office of the European Union, 2018 ISBN 978-92-79-73462-5 doi: 10.2873/33213 © European Union, 2018 Reproduction is authorised provided the source is acknowledged. Structural Reform in Germany, 2013-2017 Table of Content 1. INTRODUCTION ..................................................................................... 9 2. INVESTMENT IN R&D&I AND DIGITALISATION ................................... 10 2.1. R&D&I 10 2.1.1. Current Situation and Main Challenges .............................................. 10 2.1.2. Main Reforms 2013-2017 ................................................................ 20 2.1.3. Need for Further Reforms ................................................................ 22 2.2. Digitalisation ........................................................................................... 25 2.2.1. Current Situation and Main Challenges .............................................. 25 2.2.2. Main Reforms 2013-2017 ................................................................ 29 2.2.3. Need for Further Reforms ................................................................ 31 2.3. Digital Infrastructure .............................................................................. 33 2.3.1. Current Situation and Main Challenges .............................................. 33 2.3.2. Main Reforms 2013-2017 ................................................................ 37 2.3.3. Need for Further Reforms ................................................................ 40 3. INFRASTRUCTURE ................................................................................ 42 3.1. Electricity Grids ....................................................................................... 42 3.1.1. Current Situation and Main Challenges .............................................. 42 3.1.2. Main Reforms 2013-2017 ................................................................ 46 3.1.3. Need for Further Reforms ................................................................ 53 3.2. Railways .................................................................................................. 56 3.2.1. Current Situation and Main Challenges .............................................. 56 3.2.2. Main Reforms 2013-2017 ................................................................ 59 3.2.3. Need for Further Reforms ................................................................ 62 3.3. Motorways............................................................................................... 65 3.3.1. Current Situation and Main Challenges .............................................. 65 3.3.2. Main Reforms 2013-2017 ................................................................ 67 3.3.3. Need for Further Reforms ................................................................ 68 4. BUSINESS ENVIRONMENT .................................................................... 71 4.1. Corporate Taxation .................................................................................. 71 4.1.1. Current Situation and Main Challenges .............................................. 71 4.1.2. Main Reforms 2013-2017 ................................................................ 74 4.1.3. Need for Further Reforms ................................................................ 76 4.2. Bureaucratic Burden ................................................................................ 79 4.2.1. Current Situation and Main Challenges .............................................. 79 4.2.2. Main Reforms 2013-2017 ................................................................ 83 4.2.3. Need for Further Reforms ................................................................ 84 5. E-GOVERNMENT AND PUBLIC PROCUREMENT ...................................... 85 5.1. E-government and Open (Government) Data .......................................... 85 5.1.1. Current Situation and Main Challenges .............................................. 85 5.1.2. Main Reforms 2013-2017 ................................................................ 89 5.1.3. Need for Further reforms ................................................................. 91 5.2. Public Procurement ................................................................................. 98 5.2.1. Current Situation and Main Challenges .............................................. 98 5.2.2. Main Reforms 2013-2017 .............................................................. 104 4 EUROPEAN COMMISSION 5.2.3. Need for Further Reforms .............................................................. 106 6. ENTREPRENEURSHIP AND INNOVATIVE START-UPS .......................... 112 6.1. Entrepreneurship .................................................................................. 112 6.1.1. Current Situation and Main Challenges ............................................ 112 6.1.2. Main Reforms 2013-2017 .............................................................. 118 6.1.3. Need for Further Reforms .............................................................. 119 6.2. Venture Capital and Innovative Young Firms ........................................ 120 6.2.1. Current Situation and Main Challenges ............................................ 120 6.2.2. Main Reforms 2013-2017 .............................................................. 122 6.2.3. Need for Further Reforms .............................................................. 124 7. REFERENCES ...................................................................................... 126 8. APPENDIX .......................................................................................... 137 5 Structural Reform in Germany, 2013-2017 List of Figures Figure 1: Business R&D expenditure as a percentage of industry value added in Germany and the EU, 2006 to 2016, and in selected countries, 2016 .............................. 10 Figure 2: Expenditure for R&D&I in SMEs. Germany 2006 to 2018, and expenditure per SME in selected EU countries, 2008 to 2014 .......................................................... 11 Figure 3: Expenditure for R&D&I in German SMEs by size class and type of R&D&I activity, 2006 to 2018 ............................................................................................. 12 Figure 4: Share of firms with product/process innovation: Germany 1996 to 2016, and selected EU countries, 2008 to 2014 ............................................................. 13 Figure 5: Sources of financing for R&D&I and general investment in German firms, 2004/06 and 2011/13 .............................................................................................. 14 Figure 6: Public funding of R&D&I, 2006 to 2016 .......................................................... 15 Figure 7: Public funding of R&D&I in German SMEs, 2010 to 2016, by type of R&D&I activity ................................................................................................................ 15 Figure 8: Change in R&D&I expenditure of SMEs in Germany resulting from firm dynamics, and R&D&I expenditure of young firms, 2006 to 2016 ..................................... 16 Figure 9: Hampering factors for innovation in German SMEs, 2006 to 2014 ..................... 17 Figure 10: Significance of hampering factors for innovation related to labour supply and funding in German SMEs, 2016 .................................................................... 17 Figure 11: Impact of lack of qualified personnel on innovation activities of German SMEs, 2006 to 2014 ............................................................................................