Germany Between Innovation Ambition and Systemic Constraints
“German companies do not lack the will to innovate – what they frequently lack are the structures that make innovation sustainably effective. Many companies know precisely where their potential lies. What will be decisive is whether they succeed in developing robust systems from individual innovation initiatives that durably bring together speed, technologies, data, and user orientation.”
Prof. Dr.-Ing. Sven Schimpf, Managing Director, Fraunhofer Innovation Research Alliance
Innovation requires structure
The study "German Innovation Spotlight 2026" reveals that innovation is held in exceptionally high regard within German companies. However, the structural conditions required to match these ambitions remain lacking in many organisations.
- 85% consider innovation important or very important.
- 72% have firmly embedded innovation in their corporate strategy.
- Only 53% manage innovation through clearly defined processes.
- Just 33% steer innovation on the basis of key performance indicators.
"Germany's capacity for innovation remains intact. This is demonstrated to us every year by the award-winning projects of the German Innovation Awards. They show how the will to innovate can be consistently translated into applied solutions," says Lutz Dietzold, CEO of the German Design Council. He adds: “It is now incumbent upon policy-makers, businesses, and organisations alike to give this innovation capability purposeful structure and embed it for the long term.”
Based on an online survey – with a focus on the manufacturing sector, the IT and software industry, and the services sector – the “German Innovation Spotlight 2026” examines the key levers of innovation capability, spanning strategy and culture, digitalisation and artificial intelligence, through to sustainability, skilled labour, and location conditions.
The study is available for free download here: