Germany should back R&D, streamline regulations – VCI
Tom Brown
23-Aug-2017
LONDON (ICIS)–The
German government should increase financial incentives for
research and development (R&D) to increase the share of
spending on new technologies as a proportion of GDP, and
streamline regulatory obstacles for chemicals companies,
industry body VCI said on Wednesday.
The association welcomed news that German Chancellor Angela
Merkel has pledged to increase R&D spending to 3.5% of
GDP by 2025 from current levels of around 3%, but claimed
that additional incentives and a reevaluation of the
country’s regulatory framework are necessary to achieve
that.
“Germany is a good location for turning ideas into
innovations. But this country is not ranking at the very top
in the international innovation competition,” said Thomas
Wessel, VCI’s chairman of the committee for research, science
and education.
70% of the country’s chemicals and pharmaceutical companies
are continuously engaged in R&D compared to 30% for
industry as a whole, Wessel said, representing €10.8bn of
investment in 2016.
However, due to the disproportionate level of investment the
chemicals sector pours into research, that figure would need
to increase to €13bn, a 20% increase at a time when the bulk
of spending by many Germany-based chemicals majors is focused
outside the country.
Aside from increased fiscal incentives for keeping research
in the country, VCI argued that innovation should feature
more prominently in impact assessments of new regulation, to
avoid stifling the development of new products and
technologies.
Over 60% of chemical and pharmaceutical companies find
regulatory obstacles in Germany highert than those in other
countries, the VCI added.
“We will not reach the 3.5% target without extra incentives
and without framework conditions that are conducive to
innovation and investment,” Wessel said.
The body also pushed for a shift in tone toward new
innovations, arguing that a more welcoming social outlook
would speed the take-up of new technologies.
“Instead of scepticism, we need a societal climate where the
chances and risks of new technologies are assessed in a
well-balanced manner. Otherwise, technical progress is hardly
possible,” Wessel added.
Image: Thomas Wessel, VCI’s chairman of the committee for
research, science and education. Source: VCI
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