Germany's Innovation Crisis Deepens as EFI Report Exposes Policy Failures
The Expert Commission on Research and Innovation (EFI) has handed its 2026 Annual Report to Chancellor Friedrich Merz. While the chancellor calls innovation policy a 'top priority', critics argue that little concrete action has followed. The report highlights ongoing delays and funding shortfalls in Germany's research sector.
Germany continues to fall short of its 3.5% GDP target for research and development spending. Austerity cuts in the 2027 budget now make this goal even harder to reach. Meanwhile, months of disputes between government ministries have stalled progress on key initiatives.
The EFI report outlines a clear plan for improvement, pushing for a unified European research area to boost technological independence. It also calls for faster implementation of innovation policies and better support for small and medium-sized businesses. Many SMEs currently face excessive bureaucracy and weak knowledge-sharing networks.
Funds allocated for the High-Tech Agenda remain frozen, as officials cite a lack of workable proposals. Ayse Asar, spokesperson for research, technology, and space policy, has criticised the government's failure to deliver a coherent strategy. The report stresses the need for reliable, long-term planning to turn ambitions into results.
The EFI's recommendations provide a detailed framework for reform, but implementation remains uncertain. Without stronger coordination and funding, Germany risks lagging further behind in research and innovation. The federal government now faces pressure to turn its stated priorities into measurable action.
