Berlin – At a joint event held as part of Industry Week, Gesamtmetall President Dr. Rainer Dulger and IG Metall President Jörg Hofmann called for the swift implementation of the Bundesrat’s Research and Development (R&D) initiative at noon in Berlin. The Bundesrat had already adopted the resolution at its session on June 17, 2016. In doing so, the Bundesrat endorsed the view of the Lower Saxony state government that structurally necessary measures to strengthen small and medium-sized enterprises—particularly in light of the challenges posed by Industry 4.0 in Germany—must not be neglected.
Lower Saxony’s Minister President Stephan Weil also attended the event. Speaking before an audience of about 200 invited guests, Weil said: “We must not neglect structurally necessary measures to strengthen the SME sector, particularly in light of the challenges posed by Industry 4.0 and also in view of addressing other urgent problems in Germany. With our initiative, we are strengthening small and medium-sized enterprises and preparing them for the major challenges of the future.”
Gesamtmetall President Dr. Rainer Dulger also pointed out that innovation is the key to international competitiveness and job security. “It’s about promoting ideas that companies truly believe in. It’s about the attractiveness of Germany as a business location. A rapid nationwide introduction of tax incentives for research would be a real milestone,” said Dulger. Looking ahead, however, he could also very well envision expanding the range of companies eligible for funding. Dr. Rainer Dulger: “Research funding is a driver of job creation. The Lower Saxony-Bavaria proposal is a smart first step toward the broader research funding for companies—regardless of size—that we ultimately hope to achieve.”
“The action week is intended to highlight to the public the role of industry as a driver of employment, based on innovation, skills, and good jobs,” emphasized Jörg Hofmann, President of IG Metall. “At the same time, we want to highlight key issues such as a lack of investment in infrastructure, underfunding of education—evident, for example, in the inadequate equipment at vocational schools—and the challenges small and medium-sized enterprises (SMEs) face in the area of research and development. So far, innovation funding has not adequately reached SMEs, which is why it is necessary to introduce low-threshold, efficient, and effective support for small and medium-sized enterprises.”
The background to Lower Saxony’s initiative is that, while the German economy is regularly recognized for its high capacity for innovation in international comparisons, various studies show that the intensification of knowledge in the economy has taken place primarily in large companies. This is supported by the fact that SMEs employ 60 percent of the workforce, account for over 40 percent of gross fixed capital formation, and generate one in every three euros in revenue; however, according to the Stifterverband für die Deutsche Wissenschaft, they contributed only one in every ten euros to the economy’s R&D budget in 2013. This means that small and medium-sized enterprises (SMEs) in Germany spend less on research and innovation on average than in most European countries. At 11 percent, Germany also has the second-lowest share of SME spending on business R&D among the world’s 25 largest industrialized nations.
The “Future of Industry” alliance has called for a nationwide Industry Week (September 19–25, 2016). The campaign week is held under the patronage of Federal Minister of Economics Sigmar Gabriel. Nationwide, over 300 events are taking place as part of Industry Week, highlighting in particular the industry’s performance, innovative strength, and contributions to societal prosperity. Through September 25, companies, locations, and workforces across the country are showcasing themselves in their respective regions as key employers, drivers of innovation, and top performers.
For more information, visit: http://www.igmetall.de/presse
To the joint press release
