High demands in the innovation process pose challenges for many companies and bind resources that are lacking for research and development. This includes, for example, the time and cost involved in approval and authorization procedures. Product regulations and regulatory requirements also burden companies and can hinder innovation. Furthermore, companies often miss qualified individuals within the supervisory authorities who can provide binding information and advise companies. 

Simplifying procedures can help companies intensify their innovation activities. To this end, policymakers should review legislative proposals for innovation-friendliness and eliminate obstacles to innovation arising from existing laws for companies. The "Practical Checks" format developed by the Federal Ministry for Economic Affairs and Climate Action should serve as a model here. At the European level, policymakers should advocate for the reduction of obstacles to innovation in EU law, for example, in the form of greater transparency and assistance in navigating the multitude of product regulations. 

To inject fresh momentum into innovation projects, a comprehensive innovation policy is required, taking into account small, young, and medium-sized companies as well as larger enterprises. The Central Innovation Program for SMEs (ZIM), Industrial Collective Research (IGF), "KMU-innovativ", WIPANO, tax-based research support "Forschungszulage", and INNO-KOM are valuable instruments of support. The Federal Government should continue to adequately and securely finance successful support measures. Within the constraints of budgetary possibilities, consideration should be given to expanding assistance beyond the pre-competitive phase to market launch. Sudden stops in application and approval processes should be avoided.

Overall, innovative companies require a more transparent innovation support system in international comparison, featuring simplified application procedures, comprehensible forms and explanations, and prompt processing times. To enhance innovation focus in public procurement, the Competence Centre for Innovative Procurement (KOINNO) can offer support. Another tool to bring innovations to market is standardization and normalization. It should be ensured that SMEs are able to participate in standardization and normalization processes.

The innovative capacity, especially of small and medium-sized enterprises, can only be strengthened if the EU also makes its innovation funding SME-friendly (see chapter "Strengthening SMEs"). This includes open-topic and transparent calls for applications, bureaucracy-reduced application processes, short deadlines from application to funding decision, and adequate financial resources for funding initiatives. The early involvement of commercial businesses is also essential.

Real-world laboratories make it possible to drive innovations within a relaxed regulatory framework for a limited time and usually in geographically defined areas. This enables the creation of new products, processes, or services. Additionally, real-world laboratories can strengthen the collaboration between actors from business, science, and politics. Based on the results obtained in the real-world laboratory, the legal framework can be adjusted. They are an effective tool for enabling and accelerating innovations. The federal level should take the lead in this regard and give the states corresponding leeway for action. The emergence of real-world laboratories should be promoted and enabled nationwide. A legislative experimental clause check could also help, serving to examine every new law for the possibility of implementing new real-world laboratories.

To strengthen the transfer between science and business, universities and research institutions should open up more than before to collaborate with businesses by strengthening transfer as the third pillar alongside research and teaching. Technology transfer should be more strongly focused upon by universities and both public and private research institutions that complement the offerings of private R&D service providers. They need appropriate resources to enable regular exchange with businesses and to maintain the broad diversity of the German science system.

Overall, it is important to evaluate how previous transfer measures have taken effect. Particularly for medium-sized enterprises, fixed, regional, and business-oriented contacts for technology transfer are crucial. They can establish connections between businesses and academia, initiate projects, support their implementation, highlight application-driven innovation potential, prepare it in a comprehensible manner for SMEs, and promote the protection of intellectual property. An increased level of digital transparency in portals for R&D and transfer competences would also be helpful, and prospectively, AI will play a greater role here.

As young companies, often associated with higher economic risks, start-ups require resources to bring products to market maturity and introduce them to the market. In an international comparison, the German venture capital market is poorly developed. Germany has relatively few active business angels and venture capital funds compared to other countries. Large-scale investment opportunities for institutional investors are lacking, as well as incentives for small and medium-sized enterprises to collaborate with start-ups.

Legislative measures aimed at improving the possibility of loss carryforward represent an important step to invigorate the venture capital market. Moreover, the taxation of venture capital funds should be designed in a legally secure manner, clarifying instances in which the fund itself, alongside the investor, is required to pay taxes. Enhanced cooperation can also be achieved by further developing university-affiliated and entrepreneurially-oriented start-up centers and advisory services, such as Start-up Factories.

The German Agency for Transfer and Innovation (DATI) is intended by policymakers to act as an independent funding agency to bring research results into economic or societal application through effective transfer of ideas, knowledge, and technology. From a business perspective, DATI should not only initiate (regional) innovation networks open to actors with economic involvement but also support the transfer through low-threshold and non-bureaucratic funding opportunities. Positive insights should, following an evaluation, also be transferable to other funding instruments. It is essential for DATI to operate in a manner that is business-oriented and SME-friendly. This is because the financial and personnel capacities of smaller companies are often not suited to long-term, coordination-intensive research projects with academia. For example, the chambers of commerce and industry (IHK) can be incorporated as regional partners in this area. This also applies to the Agency for Breakthrough Innovations (SprinD) founded in 2019. In the future, SprinD should engage more actively with existing companies. To increase its reach and awareness of its offerings, SprinD should also promote its offerings more broadly.

Fair competition is also achieved through effective and reliable protection of intellectual property (IP), particularly for technical innovations through patent law. Especially for Europe as a research and investment location, this protection should also remain in place during crisis situations, such as the Covid pandemic, as the protection of intellectual property is an important part of the solution. The partial suspension of global protection mechanisms for intellectual property, among other things to protect health as discussed in the World Trade Organization, requires thorough consideration from an economic perspective. Research into new forward-looking products and methods requires significant investments, which can be safeguarded by patent protection. Consequently, patent law represents an essential instrument for promoting innovation. Without the prospect of securing these investments with patent law and thereby ensuring economic success, research and development, both nationally and in the EU, is at risk globally. For this, an internationally harmonized patent law would be crucial to improve market access opportunities and reduce bureaucracy.

The European unitary patent is a step in the right direction, but not all EU countries are yet participating. Furthermore, SMEs need better support regarding intellectual property. This starts with raising awareness about the opportunities offered by intellectual property, moves on to developing an internal IP strategy, and culminates in enforcement. Intellectual property disputes should also remain affordable for SMEs. Overall, the enforcement of patent rights and the punishment of patent infringements should be consistently guaranteed internationally.