Published by Global Banking & Finance Review®
Posted on December 9, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleGermany's innovation stagnates at 12th place, lagging in digitalization and biotechnology, while rivals advance.
By Maria Martinez
BERLIN (Reuters) -Germany's innovation capacity is stagnating, with the country remaining stuck at 12th place in an innovation ranking while competitors including the United States, Britain and France make significant gains, a study showed on Tuesday.
The Innovation Indicator 2025, presented by Germany industry association BDI and consultancy Roland Berger, found Germany particularly weak in future technologies including digitalization and biotechnology.
A key problem is that Germany's corporate research and development spending at home is growing less dynamically than in other nations, especially in digitalization, where it lags behind the U.S. and China.
The ranking, which has analysed the innovation capacity of major economies since 2005, is again led by smaller, highly specialized nations: Switzerland in first position, Singapore in second and Denmark in third.
Germany ranks fourth in key technologies overall and is among the top five in four of seven technology fields including circular economy, new materials and new production technologies.
But in key future-oriented fields, Germany has fallen behind: Seventh in digital hardware, 10th in digital networking and only 15th in biotechnology.
"We must dare to think big, that's the only way to ignite new innovation dynamics," said BDI President Peter Leibinger.
"We should aim to realize the first functional prototype for a fusion reactor by 2040 or become leaders in AI for industry."
(Reporting by Maria Martinez, Editing by Miranda Murray)
Innovation refers to the process of creating new ideas, products, or methods that improve efficiency or effectiveness in various fields, including technology and business.
Digitalization is the integration of digital technologies into everyday life, transforming how businesses operate and deliver value to customers.
Corporate research and development (R&D) involves systematic activities that companies undertake to innovate and introduce new products or services.
The circular economy is an economic model aimed at minimizing waste and making the most of resources by reusing, recycling, and regenerating materials.
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