The German economy is highly specialized in incremental innovations. A number of high-technology industries have established themselves in Germany only slowly over the last decades. Innovation policy has tried to support the startup of high technology enterprises, e.g., by improvements for certain types of finance, incentives for founders and the reform of technology commercialization at universities. However, these measures have been counteracted by the German tax system which affects innovation adversely in some parts. Moreover, the emerging shifts in the age structure of the German population could affect innovation incentives and entrepreneurship negatively. Another important demographic aspect is the dominance of men in science and technology. Stronger participation by women in male-dominated scientific and technical professions could compensate partially for the effects of changes in the age structure. Copyright 2008 der Autor Journal compilation 2008, Verein für Socialpolitik und Blackwell Publishing Ltd.
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