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Southwest companies rate innovation location worse

Investment in research and development is one of the foundations of the South-West economy. However, many companies are putting the brakes on - and are increasingly critical of the conditions in the state.

An employee assembles a gearbox in a factory. Photo.aussiedlerbote.de
An employee assembles a gearbox in a factory. Photo.aussiedlerbote.de

Survey - Southwest companies rate innovation location worse

From the perspective of many companies, the framework conditions for research and development in the southwest have deteriorated noticeably in recent years. This is shown by an evaluation of the Innovation Report of the German Chamber of Industry and Commerce for Baden-Württemberg. On average, companies gave the location factors for innovation a score of 3.1, which is slightly better than the score for Germany as a whole, said the President of the Baden-Württemberg Chamber of Industry and Commerce, Christian Erbe. "However, as a strong innovation state - especially in an international comparison - we cannot be entirely satisfied with this".

According to the information provided, the rating has deteriorated compared to previous surveys. In 2020, the Southwest companies still awarded a 2.75 in the report. In 2017, the score was 2.4. "It has become noticeably more difficult for companies to turn ideas into new marketable products and services in just a few years," said Erbe. This is a bad signal for competitiveness.

According to the survey, the willingness to innovate has also decreased significantly. Compared to the last survey in 2020, the innovation balance fell by 12 points to 33 points. The value indicates the difference between companies that plan to increase their activities in the next twelve months and those that expect to reduce their activities in this field. Across Germany, the value fell to 23 points, the lowest level since the first survey in 2008.

Companies - both in the southwest and nationwide - cited the shortage of skilled workers and high bureaucratic requirements as the biggest obstacles to innovation. Another warning sign is the growing interest of companies in establishing research and development activities abroad. This development is increasingly threatening the location, said Erbe. He continued: "We need to give our companies more room for innovation again.

The BWIHK is the umbrella organization of the state's chambers of industry and commerce. The survey for the Innovation Report was conducted for the sixth time this year. Nationwide, 2272 companies took part in the survey. 215 of these came from Baden-Württemberg.

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  1. Despite being a leading innovation state in Germany and internationally, the framework conditions for research and development in the Southwest, as assessed by companies, have shown a noticeable decline, according to the President of the Baden-Württemberg Chamber of Industry and Commerce, Christian Erbe.
  2. The Baden-Württemberg Chamber of Industry and Commerce, represented by Erbe, cited the Innovation Report of the German Chamber of Industry and Commerce, which revealed that companies in the Southwest gave the location factors for innovation a score of 3.1 in the latest survey.
  3. The IHK, or Baden-Württemberg Chamber of Industry and Commerce, conducted the survey for the Innovation Report for the sixth time this year, with 215 Southwest companies out of a total of 2272 participating nationwide.
  4. According to the survey results, associations in Germany's Southwest region also face challenges, as companies have expressed concerns about high bureaucratic requirements and a scarcity of skilled workers, which they view as the biggest obstacles to innovation.
  5. The declining framework conditions and the challenges for innovation have led to a significant decrease in the willingness to innovate among Southwest companies, with the innovation balance falling by 12 points to 33 points compared to the 2020 survey.
  6. To counteract this trend and rekindle innovation among Southwest companies, Erbe called for more support and room for innovation, while acknowledging the growing interest of companies in establishing research and development activities abroad as a threat to the local innovation environment.

Source: www.stern.de

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