[ Advertisement ] Germany remains a leader in industrial innovation, while sectors such as chemicals and healthcare are weakening. But there is potential for a turnaround: Chemicals and healthcare could catch up with an increased focus on research and digitalisation. The German Innovation Award shows which sectors are particularly innovative and where there is still some catching up to do.

Who drives innovation?
The answer is clear: Germany’s innovation engine remains industry, which since 2018 has taken the top spot with 10% of all winners of the German Innovation Awards. Sectors such as buildings & elements (8%), automotive (6.5%) and even niches such as heating & bathrooms and kitchen & household appliances (6% each) pull ahead of traditional heavyweights such as chemicals (1.5%) and healthcare (3%).
Chemistry and health: bottom of the league with potential
How did this happen? The figures speak for themselves: according to the Federal Research Report 2023, German chemical companies invest only 2% of their turnover in research. While the global market for green chemistry is growing by 10% a year, Germany is in danger of being left behind. At the same time, innovation is migrating abroad: more than 60% of German chemical companies’ research projects are now carried out abroad.
The situation is little better in the health sector. While biotech pioneers such as Biontech show what is possible, there is a lack of broadly scalable business models. Sweden shows how things could be better: The country achieves almost 5% of all healthcare innovation, thanks largely to digital platforms. Germany achieves just 3% – a missed opportunity in a market that could grow through digitalisation.
A wake-up call for more innovation
The BDI’s Innovation Indicator 2024 shows that Germany ranks only 13th in international comparison – behind South Korea, the US and Switzerland. Sectors such as chemicals and healthcare could reverse the trend. If they can catch up.
This is where the German Innovation Award comes in: it provides a platform for projects that make innovation visible and give new impetus to laggards. Companies have until 31 January to submit their ideas and projects and show how innovative they are shaping the future: https://anmeldung.german-innovation-award.de
The German Innovation Awards highlight where Germany shines – and where it falls short:
The top 5 sectors:
- Industry / Machinery & Technology: 10%
- Buildings & Elements: 8%
- Automotive: 6.5%
- Heating & Bathroom: 6%
- Kitchen & Home Appliances: 6%
The data is based on internal analyses of the German Innovation Award, which have been collected since 2018 on the basis of more than 1,200 awards. Categories, key figures and regional distributions were systematically analysed to identify the main areas of innovation in Germany.
Sources:
Bundesforschungsbericht 2023, Angaben zu F&E-Ausgaben in der Chemieindustrie: Bundesministerium für Bildung und Forschung (BMBF).
VCI (Verband der Chemischen Industrie), 2024, Daten zur Verlagerung von Forschungsprojekten ins Ausland: VCI.
Mannheimer Innovationspanel (MIP 2023), Angaben zur Innovationsintensität und F&E-Investitionen: ZEW – Leibniz-Zentrum für Europäische Wirtschaftsforschung.
Innovationsindikator 2024 (BDI), Internationale Platzierung Deutschlands im Innovationsranking: BDI – Bundesverband der Deutschen Industrie.
Statista, 2023–2024, Marktgröße für grüne Chemie und Investitionen in F&E in Deutschland: Statista.
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