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We are taking on the challenges of the 21st century

We are feeling the effects of globalisation today more than ever before: On the one hand, Germany is the world's leading export nation, on the other hand however, many companies are moving their headquarters or production facilities to other countries. Germany cannot compete on cost. Which is why we have to be better than the competition. However, competitive advantages and concomitant growth opportunities can be tapped only through innovation - with new products, processes and services.

Germany is outstanding in mechanical and automotive engineering and a leader in many areas of laser technology, nanotechnology and medical technology. It could assume a pioneering role in resource-efficient and energy-efficient production processes and innovative service markets, such as in the health care sector. We can't afford to rest on our laurels. On the contrary: We have to step up, focus and mesh our efforts even further.

1. A co-ordinated innovation policy is more necessary than ever

Research findings are driving a broad wave of new enabling technologies. At the same time, technological change is opening up fascinating new fields of research. Innovation partnerships between science and industry will continue to change our lives in the coming years: In the area of molecular biomedicine, researchers are working on individualised medicine - a new approach that offers the chance of healing illnesses that have been untreatable to date. New worlds of constantly available information and communication are emerging in all spheres of work and leisure. Today, ultra-thin, wallpaper-like display screens and the 'Internet of Things' are examples of existing, concrete plans in labs that could shape day-to-day life in the near future. New, light-weight materials are opening the door to more environmentally-compatible mobility and resource-efficient production. New technologies are developing solutions for the major challenges of our century such as reducing illness, poverty and environmental pollution in the face of a growing global population.

The broad breakthrough of new technologies is bringing fascinating benefits for man and opening up new commercial opportunities the world over. This breakthrough is however also rapidly changing market structures, challenging established business models and taking the security out of once seemingly secure jobs. Anyone wanting a stake in the profits to be gained from technological change and hold their own on fast-changing markets has to quickly translate research findings into products, processes and services that are tailored to suit the needs of the market.

Intensive interaction between market-oriented entrepreneurship and knowledge-driven research - both of which should be geared to shared visions - is becoming increasingly crucial in this connection. In light of this, our innovation policy aims to build bridges between science and industry and between technologies and fields of application. Strategic partnerships are becoming increasingly necessary.

2. Using Germany's potential to become a lead market of the future

Innovation is shaped by market stimuli and market dynamics. Lead markets develop wherever a large number of innovations arise that build on one another. Such markets mature only when there is close contact with sophisticated, interested and innovative customers. Firms in high-tech sectors launch new products and services in markets that are particularly receptive and innovation-friendly. And they are increasingly locating their R&D activities where they can be close to production operations.

It is therefore important that we establish the conditions necessary for pioneer markets. Modern regulations to protect intellectual property, intelligent initiatives for establishing standards and norms, and a public procurement system that uses the potential offered by new technologies and, in the process, promotes market opportunities are absolutely indispensable. The greater the number of possible applications for research findings, the stronger the motivation to pursue research work will be and the greater the impact research will have. This also applies to the area of green genetic technology. The question of how far German nanotechnology products will penetrate markets also depends on the degree to which international norms and standards are actually used. The provisions regulating compensation for innovations in the statutory and private health insurance systems also impact the prosperity of the fast-growing medical technology sector. E-government can, in the interest of its citizens, show the way for the successful use of ICT solutions. Modern ICT legislation and regulations will determine the future of information and communications markets. Taking consumer interests into account and providing consumer information at an early stage can boost the level of acceptance for new products. The use of modern energy-efficiency technologies and the expansion of renewable energies can generate enormous potential and reduce our dependence on energy imports.

Developing leading-edge markets is consequently also a task for all political sectors that shape the parameters for industry and society's innovation behaviour.

3. Seeing global competition as an opportunity

Today, our country is part of a globalised innovation system that has grown steadily over the years and will continue to grow in the future as well. More than five million people worldwide currently work in the science field or on the development of new products and services. However, today only one out of every 20 researchers and only one out of every 20 developers in the world works in Germany. This figure was one out of every ten in the early 1990s.

This increases the pressure on Germany to produce innovation. The growing innovation potential in Southeast Asia benefits not only the people living in that region. As an export-oriented country, Germany will also be a player when it succeeds in establishing itself as a centre for trade, communication and co-operation while, at the same time, protecting its national interests - in the area of intellectual property rights, for example. The ability to understand and evaluate knowledge that is generated around the world and then translate it into new commercially-viable products and services is of vital importance in this connection.

The German government is investing an additional €6 billion in research, development and innovation during the period 2006 through 2009. This represents the largest public-sector investment in innovation since German reunification. Key tasks for the future will be defined and research institutes and firms will be given stable parameters for their financial planning. The German government is calling on industry and Germany's Länder governments to follow its lead and increase their spending on research and development (R&D).

More autonomy, self-organisation, co-operation and competition are the guiding principles for the government's science policy. Its aim is to establish conditions that will allow universities and research institutes - in competition with others - to markedly raise their profile as centres of excellence with international reach. The internationalisation of vocational training, the advancement of cross-border mobility (which is also to be achieved with the help of policies aimed at attracting top-level workers and experts from abroad) and the expansion of international research and technology networks are key answers to meeting the challenges emerging for today's global knowledge society.

Germany's national research and innovation policy must be viewed as part of the European Research Area. Research and innovation policy will consequently also be a priority during Germany's term as president of the Council of the European Union during the first half of 2007.

4. Making Germany an incubator for talent

Germany's innovative power hinges on the educational qualifications of the people living within its borders. Structural change in the direction of those branches of industry that employ workers with above-average levels of training will continue at an ever-faster pace. This will fuel the need for professional qualifications. However, compared to other countries, the share of young people in Germany who have completed secondary or tertiary education has shrunk over the long term - despite the growing need for well-educated workers. It is clear from the current demographic trend that the number of young people entering the job market will decline in the future, posing the danger of a shortage of well-trained skilled labour - the key resource for high-tech locations like Germany. This could have serious consequences for small and medium-sized enterprises in particular. Therefore, top political priority is being given to ensuring that Germany has an education and training system that fosters the potential of every individual in the best ways possible.

In order to meet industry's needs, steps must be taken to create good training opportunities in a sufficiently large number at all levels of education, particularly for the large age cohorts that are currently beginning their training. Suitable high-level continuing training options must also be opened up for older employees and job-seekers. Businesses should prepare their employees for coming challenges by providing in-house continuing training. 

The German government will use the opportunities and means available to it to foster outstanding talent, make careers in science more attractive and put universities in a position to offer high-quality scientific training for a fast-growing number of students in the coming years. In this way, talented individuals are to be fostered in research and companies and more room is to be provided for their creativity and involvement. We want to make Germany a talent incubator.

5. Knowledge and responsibility belong together

In the long run, scientific and technical excellence and economic prosperity thrive only in a climate of intellectual and cultural vigour and diversity. Each individual's curiosity and openness regarding things new shape Germany's ability to meet future challenges. One of the fundamental lessons taught by experience is that we must be responsible in how we deal with what is scientifically and technically doable. The fact that man is able to do more than he should is part of the history of modern society.

Technological advances are changing the way we see the world at a hitherto unknown speed. The natural sciences are establishing the prerequisites for this change and creating knowledge about its direction and technical 'side effects'. At the same time, it is the humanities' job to ponder this change from a cultural and social standpoint and provide it bearings. In doing so, they are participating in the debate over our conception of ourselves.

What we first of all need in Germany is more enthusiasm for the opportunities offered by new technologies. However, gains in knowledge, advances in our understanding and the early assessment of new knowledge in the interest of mankind are of equal importance and belong together. At the same time, we must address not only the ethical aspects of the protection of human life but also consumer safety and the preservation of our natural environment.

The High-Tech Strategy outlines the objectives and approaches pursued by the German government in its research and innovation policy. The German government holds that innovation policy can succeed only when the persons in positions of responsibility in the education sector, research, the media, trade and industry, the political sector, government and civil society mobilise all available forces for more innovation in Germany. Innovation is the result of individual effort. Therefore each individual bears responsibility for Germany's future.

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  We are generating new impetus - Our cross-section activities

  In implementing our objectives, we will take action in five key cross-cutting fields and co-ordinate them with one another: (1) The interface between research and industry, (2) private R&D and innovation work, (3) the dissemination of technology, (4) the internationalisation of research, development and innovation and (5) the fostering and advancement of talent. All of these areas - and their respective measures - are aimed at streamlining and shortening the path from idea to innovation. Competition and co-operation will be the guiding principles in our efforts here.
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  Full steam ahead - The individual innovation strategies

  Innovation policy is more than just research policy. Many conditions have to be right in order for new ideas from science and research to be able to develop their potential for benefiting mankind:
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  Our implementation of the High-Tech Strategy

  With its High-Tech Strategy, the German government is kicking off a process for the entire legislative period. This process will be both long-term and involve all ministries. A wealth of new programmes will be launched during the first year. A list of the government's key initiatives in the coming 12 months can be found at the end of this section.
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