Germany threatened with losing €1.7 trillion
Germany could miss the chance of an additional €1.7 trillion in economic growth by 2030 if it leaves its potential untapped, according to the results of a study conducted by the Boston Global Consulting Group (BCG) in collaboration with the Munich-based TUM Center, which specializes in supporting innovation and start-ups in Europe.
Without a radical change in a number of sectors, Germany risks losing its competitive position vis-à-vis the United States and China, the study authors say… The sectors mentioned in the study focus on six sectors.
The first of these are artificial intelligence, quantum technology, microelectronics, biotechnology, energy, and finally mobility.
Regarding artificial intelligence, for example, experts do not advise Germany to compete with the United States in the field of general language models (LLMs), but rather call on it to develop artificial intelligence, robotics, and so-called world models that understand physical relationships.
The same is true in the mobility sector, where the authors see great potential in the country that calls for the development of battery research, hyperloop technology and autonomous transportation systems.
The study emphasizes Germany’s strength as an investment location and as an excellent scientific base with a large number of patents, but the transfer of these patents to scalable business models is still insufficient in the country.
The difference between Germany and the leading countries in the field of technology is evident when you look at the number of big tech companies operating from their territory.
It has only 30 companies, while the United States has more than 700 companies and China has 370 companies, all of which are worth more than billions of dollars.
According to the study, the main reason for Germany’s decline in this area lies in the volume of investments allocated to accelerate the pace of growth.
While in 2024 the United States allocated about $209 billion for major investments, Germany has allocated only $10 billion for this purpose.
Michael Bregel, head of the Central Europe division at the Boston Global Consulting Group, praised the advanced technology agenda set by the Federal Ministry of Scientific Research, saying it’s a right step towards restoring Germany to an industrial and technological leading position, but at the same time reminding that key technologies such as artificial intelligence, microelectronics and biotechnology won’t only determine the economic winner of the future, but will also be decisive for the resilience and sovereignty of our country.
