Germany Top Ranked for Research-Intensive Goods
Berlin - At approximately 50 percent, the proportion of research-intensive industries and knowledge-intensive services in Germany was the largest in the world based on 2007 aggregate value added. Germany also led all other countries in exporting research-intensive goods in 2007. Based on two new studies published by the German Institute for Economic Research (DIW), Germany features the most technology-intensive production profile in the world.
In 2007 Germany exported research-intensive goods valued at USD 800 billion, surpassing Japan with USD 300 billion and the USA with USD 80 billion. Germany?s focus on research-intensive goods can especially be seen in the automotive industry. Market share in high-tech industries is also increasing, including sectors such as medical technologies, measurement technologies, telecommunications and aerospace. Germany also continues to hold its solid position in machinery and equipment. This level of performance over strong international competition is a credit to the country?s stable industrial foundation. According to the DIW study, conducted for The Commission of Experts for Research and Innovation (EFI), Germany will emerge stronger from the economic downturn due to its specialization in research-intensive goods.
Germany is additionally one of the world?s largest technology providers in foreign trade. Following previous dominance by the USA in exporting research-intensive goods, Germany managed to claim the top position in 2007. With a per capita export surplus of USD 3,900, Germany also leads in this area. The study stresses the necessity to financially support innovative companies with research and development. Only in this manner can Germany continue to hold its strong position for research-intensive goods in the future. Government measures to support research spending take these recommendations into consideration.
A high level of production efficiency also contributes to Germany?s success. Between 1995 and 2005, German efficiency levels increased considerably. While the automotive industry maintained its high standard for efficiency, the machinery and equipment industry and electrical engineering sector held top positions in 2005. In contrast to Germany, EU countries and Japan saw a reduction in efficiency levels. The USA defended its top position in this area.
The DIW study classifies goods as research intensive when the proportion of internal R&D expenditures exceeds 2.5 percent of revenues, based on the OECD average. When R&D exceeds 7 percent, goods are classified as high-tech.