Experts demand higher R&D investments in Germany
March 12th, 2012 | Topic: News
The Expertenkommission Forschung und Innovation (EFI, or Commission of Experts Research and Development), which was set up by the German government, is calling for a consistent development of science intensive industries and services in Germany in its 2012 annual report. In 2010 the proportion of expenditure on research and development (R&D) in Germany was 2.82 per cent of gross domestic product and thus 2010 reached a new high. With expenditure of 69.7 billion euros, of which 46.9 billion came from business, the German economy increased its investments in R&D by 4.3 per cent on the previous year. Nevertheless, the members of the committee were only partially satisfied with these results. In the face of increasing competition, including from developing countries, the experts describe the target set by the government of three per cent of gross domestic product for R&D expenditure by 2015 as “lacking ambition“. Other countries such as Finland, Sweden, Japan and Korea had already left this target level well behind them.
Decline in orders received in mechanical engineering
March 5th, 2012 | Topic: News
In January the orders received by the German mechanical engineering sector were six per cent below the previous year’s level in real terms. This is the result of a current survey by the Verband Deutscher Maschinen- und Anlagenbau (VDMA, or German Engineering Federation) of its members. Domestic business fell by nine per cent in annual comparison and foreign business by four per cent.
In the three month comparison from November 2011 to January 2012, which is less influenced by short term fluctuations, there was a total minus of nine per cent on the previous year’s period. Domestic orders were four per cent lower and there was a fall of twelve per cent in foreign orders. Nevertheless, with reference to positive early indicators, the VDMA hopes that orders will stabilise again but does not exclude falls in the coming months.
Around 80 per cent of SMEs involved in innovations
February 27th, 2012 | Topic: News
Small and medium sized enterprises (SME) in Germany are more heavily involved in innovation activities than had previously been assumed. This has been pointed out by the Institut für Mittelstandsforschung (IfM, or Institute of Mittelstand Research), which has evaluated current figures from the EU statistics authority (Eurostat) and the 2011 innovation survey from the Zentrum für Europäische Wirtschaftsforschung (ZEW, or Centre for European Economic Research). Accordingly around 80 per cent of SMEs are integrated in innovation processes.
Admittedly, according to the results only around six per cent of SMEs create original technical innovations, as reflected in patent registrations and registered copyrights. However, if non-technical process and organisational innovations are also taken into account the creativity of SMEs becomes clear. Then the proportion of companies that realise innovations reaches 80 per cent. 78 per cent of companies with 10 to 49 employees and 84 per cent of companies with 50 to 249 employees are involved in the innovation process. In comparison: the proportion of large companies is 95 per cent.
German goods traffic: 6.5 per cent transport growth in 2011
February 20th, 2012 | Topic: News
According to figures from the Federal Statistical Office (Destatis) goods traffic increased significantly by 6.5 per cent in 2011. This is the highest annual increase since 1994. In total 4.3 billion tonnes of goods were transported. Road and rail traffic as well as sea transport and air freight contributed to this growth. In contrast, inland waterways and the transport of crude oil in pipelines posted losses.
The vast majority of goods in Germany continue to be moved on the roads: Road goods traffic has a share of 77.5 per cent of transport volumes – this is equivalent to 3.4 billion tonnes, 7.7 per cent more than in 2010. Goods traffic by rail also rose: at 374 million tonnes traffic volumes were 5.1 per cent above the previous year’s value, thus reaching their highest level since 1993. Freight carriage by air also went up (+ 4.8 per cent). Well over 4 million tonnes of air freight is a record.
In contrast, the quantities carried by inland waterways declined by 4.3 per cent to 220 million tonnes. Goods traffic by sea developed positively in contrast: at 291 million tonnes 6.8 per cent more goods were carried than in 2010. The quantities carried by transporting crude oil in pipelines declined by 2.5 per cent to nearly 87 million tonnes.
Foreign trade surplus rises, current account surplus falls
February 13th, 2012 | Topic: News
German companies exported goods worth 1,060 billion euros in 2011. This is equivalent to an increase of 11.4 per cent in comparison with 2010. The Federal Statistics Office (Destatis) has just presented these provisional figures. This export record contrasts with imports worth 902 billion euros. Thus at 13.2 per cent the rise in imports was significantly higher than exports in annual comparison. Accordingly, a slight plus in the foreign trade balance surplus was recorded: it amounted to 158.1 billion euros in 2011. In 2010 it was 154.9.
However, the figures from Destatis and the German Bundesbank also prove there was a lower surplus in the current account of the German economy for 2011. This fell from 141.5 to 135.9 billion euros in annual comparison.