Does Germany have no chance when it comes to digitization?

The Expert Commission for Research and Innovation (EFI) concludes that its client, the German government, still has homework to do, such as creating tax incentives for companies.

However, Rainer Schulz, Managing Director of Sysmat, believes that companies have just as much of an obligation when it comes to ensuring greater digitization:

"Digital transformation takes place first and foremost in companies. It is important to reduce the timidity of digitalization in companies." "Defensive"

This is how Professor Dietmar Harhoff, Chairman of the Expert Commission, sees the German government's approach to digitization.

According to the experts, Parliament is focusing too much on SMEs with initiatives such as "Industry 4.0," which was launched in 2014. As a result, it is neglecting opportunities that are opening up with digitization, for example in administration.

"The willingness of SMEs to invest in innovation activities as well as in research projects has been declining for years"

says Uwe Cantner from the Friedrich Schiller University in Jena and member of the expert commission.

This finding is not new: As early as 2015, a study by management consultants McKinsey showed that companies spend just 14 percent of their annual budget on Industrie 4.0-relevant technologies. That is roughly half of what companies from the USA, for example, invest in future technologies.