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Germany's Technological Specialization Assures Growth Opportunities


  • Heike Belitz
  • Marius Clemens
  • Martin Gornig


Germany's economic profile gives reason to believe that the country will emerge strengthened from the current economic crisis. Germany boasts the world's highest share of value-added output attributable to (R&D) intensive goods and knowledge intensive services. At the same time, Germany possesses an extremely broad range of economic sectors that rely on R&D intensive goods and knowledge intensive services. German firms have strong competitive advantages in numerous industries, including vehicle manufacturing, chemicals, machine building, measurement and medical technologies, as well as business oriented services. Moreover, in relation to its important trading partners, Germany has a unique production portfolio. Although Germany's dependence on exports and specialization in the production of capital equipment has led to a sharp decline in demand in the current crisis, the country's orientation in R&D intensive technology represents a strong foundation for renewed growth as soon as the global economic climate improves. However, continued business investment in R&D during the recession is necessary if Germany hopes to emerge the crisis on sound footing-even if such investment does not generate revenues over the near term.

Suggested Citation

  • Heike Belitz & Marius Clemens & Martin Gornig, 2009. "Germany's Technological Specialization Assures Growth Opportunities," Weekly Report, DIW Berlin, German Institute for Economic Research, vol. 5(16), pages 108-113.
  • Handle: RePEc:diw:diwwrp:wr5-16

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    Cited by:

    1. Konon, Alexander, 2012. "Direct and Indirect Crisis Effects on International Trade or: Is There a Chance to Employ an Income Stimulus to Stimulate Exports?," MPRA Paper 36363, University Library of Munich, Germany.
    2. Stefano Lucarelli & Roberto Romano, 2016. "The Italian Crisis within the European Crisis. The Relevance of the Technological Foreign Constraint," World Economic Review, World Economics Association, vol. 2016(6), pages 1-12, February.

    More about this item


    Industrial specialization; Technological change;

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries


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