More than two-thirds of companies' innovation activities are hindered by bureaucracy. This includes complex approval and licensing processes as well as detailed documentation requirements that drain personnel and time resources, especially in times of workforce shortages. Additionally, detailed product regulations and lengthy, complicated application procedures for innovation and research funding also pose challenges.

The German Federal Ministry for Economic Affairs has developed the so-called "Practice Checks" format to identify bureaucratic obstacles and collaboratively devise solutions together with policymakers, administrators, and businesses. Innovations, too, must be freed from unnecessary bureaucracy. For instance, a practice check for funding programmes might help simplify and streamline procedures, thereby incentivising stronger investment in research and innovation.

This format of practice checks should be used by all departments, involving companies of different sizes. Furthermore, the German government should expedite the implementation of existing proposals made by the business world to reduce unnecessary bureaucracy. This should happen promptly as part of the Fourth Bureaucracy Relief Act. (Here you can find the DIHK position paper on the subject (PDF, 374 KB) (only available in German).

Living labs make it possible to promote innovations within a temporarily relaxed regulatory framework, generating new products, processes, or services.

For reasons such as time-consuming applications, slow processing of approval decisions, and extensive usage verification requirements, businesses often refrain from applying for public funding—whether national, regional, or EU schemes—for high-risk projects.

Applied research is particularly crucial for businesses operating in the commercial sector to develop new products or services. What is vital here is ensuring research results find their way into the market, and collaborations between academia and industry need significant improvement in this regard. According to the German Chamber of Commerce and Industry (DIHK) Innovations Report 2023, one out of four businesses considers their regional collaboration possibilities with academia to require improvement.

Universities should be more willing to open up cooperation projects, especially with small and medium-sized enterprises (SMEs), and to collaborate with them on joint R&D projects by strengthening the concept of transfer as a third pillar alongside research and teaching. To achieve this, they need adequate financial and personnel resources. The transfer notion should be firmly embedded within universities and research institutions, not just reflected in study and master's theses, but also in lectures and transfer-oriented graduate programs.

Another significant step would be for universities and publicly funded research institutes to clearly and visibly communicate information on their service offerings to businesses through various channels. Reliable, cross-institutional technology transfer contacts or innovation guides in academia are particularly relevant contact points for SMEs. On the business side, the 140 innovation advisors and transfer managers within the IHK Organisation are the initial point of contact. Additionally, overview/search portals on research, development, and transfer competencies can provide assistance in initiating cooperation. AI is expected to play an increasing role in the future for this purpose.

Regular personnel exchanges between businesses and universities can renew knowledge on both sides. Temporary research or study stays of professionals from commerce at universities and research institutions could contribute to building competencies. Conversely, scientists from public research institutions could familiarize themselves with and assist in developmental and innovation processes in businesses, supported by research sabbaticals – including for junior academic staff.

Uncertainties and obstacles in research transfer also exist regarding how intellectual property rights (IP) can be transferred effectively from universities to businesses. Universities should fully leverage their potentials by utilising IP as an effective lever for start-up enthusiasts and providing regulated, low-threshold access. Overall, intellectual property rights are an essential matter for businesses to protect themselves from imitation or violating third-party rights. Potential support measures concerning intellectual property rights, including suitable contact points or funding schemes, should be even more strongly communicated to businesses, particularly SMEs.

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Spatial proximity remains important for cooperation between business and academia despite the increasing digitalisation. Campuses hosting universities or industries with sufficient space for innovation centres or technology parks create the prerequisites for joint projects and technology transfer. They can attract companies – especially small and medium-sized enterprises – that, for many research areas and innovation topics, still rely on the research infrastructure of universities.

Besides state research institutions, industry-funded research associations and privately organized research communities serve as significant transfer partners for companies. Differences can be observed, such as access to specific funding programs and funding conditions within a funding line. It is crucial that these differences are transparent, comprehensible, and justified to establish equal competition conditions for scientific transfer partners.

The coalition agreement includes the establishment of the German Agency for Transfer and Innovation (DATI). As an independent funding agency, it aims to bring research results into economic or societal applications through effective idea, knowledge, and technology transfer. DATI should not only initiate (regional) actor-open innovation networks involving the economy, but also support the transfer through low-threshold and unbureaucratic funding opportunities.

It is crucial that DATI operates with an economic focus and is SME-friendly to include smaller companies. Smaller companies often lack the financial and personnel resources for long-term, coordination-intensive research projects with science. Here, DATI can facilitate the transfer, for instance, by providing template contracts to address questions regarding intellectual property or data usage between science and business.

During the agency's establishment, duplicate structures should be avoided, for example, with the Agency for Disruptive Innovation. For DATI's success, regular evaluation and development of governance and its scope of services, such as the (funding) programs – currently the so-called Innovation Sprints and Innovation Communities – is crucial. The needs of the commercial economy as an directly affected transfer player should be taken into account.

Leap innovations—new products, services, or business models that significantly alter the market or are marked by radical technological advancements—often come with high risks for businesses. This is why the German Chamber of Commerce and Industry (DIHK) supported the establishment of an agency promoting leap innovations (SprinD) by the federal government, which commenced its operations in 2019. Previous funding conditions were often too complicated for established companies. Recently, however, numerous improvements have been made under the SprinD Freedom Act to further unlock its potential. Among other changes, the agency can now take stakes in existing companies and operate with more flexible economic approaches.

Moving forward, SprinD should better engage existing companies and foster disruptive potential. To enhance its outreach and increase awareness of its offerings, SprinD should also promote its services more broadly. Here too, there are connections to the IHK organization, such as serving as a mediator between the agency and its regional networks for the transfer of results/technologies.

Besides technological innovations, the German government emphasizes social practices and organizational models to address societal challenges effectively.

Through its "Future Strategy for Research and Innovation," the German Federal Government established inter-ministry mission teams to steer research policy for the first time in early 2023. Employees from various federal ministries work together to develop solutions for predefined missions, such as "Improving health for all."

The German Chamber of Commerce and Industry (IHK organisation) supports the cross-ministry coordination to address pressing challenges. That said, it remains crucial that innovative solutions emerge from technology-open discovery procedures rather than through political directives. The "Future Strategy for Research and Innovation" defines the German Federal Government's goals, milestones, and priorities for its research and innovation policy for the years ahead. However, politics should remain open to new missions brought forward by industry and science, and, where necessary, adjust or terminate missions at an early stage.