According to the Fraunhofer-Gesellschaft, Germany’s research strength will only generate lasting innovation, value creation, and technological sovereignty if political and regulatory frameworks accelerate the transfer of research to industry. The “Freedom of Innovation Initiative” outlined in the coalition agreement is intended to drive the transfer of research into industrial value creation and strengthen Germany’s competitiveness. In a joint position paper, the Fraunhofer-Gesellschaft and the Federation of German Industries (BDI) therefore call for swift implementation—in particular through subordinate legislation.

“Germany’s innovative strength is at stake”

Prof. Holger Hanselka, President of the Fraunhofer-Gesellschaft, explains: “Germany’s innovative strength is at stake in the face of international competition. If we want to secure our prosperity, it is not enough to simply conduct excellent research—we must translate scientific findings into industrial value creation much more quickly. This is precisely where the “Freedom of Innovation Initiative” comes in, which we view as a key industrial policy tool for competitiveness. Our joint position paper with the BDI makes it clear: Instead of constantly creating new laws, we should take advantage of existing opportunities for sub-statutory regulations and thus provide immediate relief.” Hanselka went on to say that it is essential to break down bureaucratic barriers along the entire innovation pathway and create more leeway for research and industry so that new technologies can scale up in Germany. “Technological sovereignty is not a solo effort—it arises when science, industry, and politics join forces.”

In their joint position paper, the Fraunhofer-Gesellschaft and the BDI outline specific recommendations for action and sub-statutory regulations that can be implemented quickly to strengthen Germany as a hub for innovation and secure its technological leadership.

Freedom of Innovation as a Competitive Strategy

According to the FraunhoferGesellschaft and the BDI, whether innovations in Germany can be scaled up and generate economic impact depends largely on the regulatory framework. The Freedom of Innovation Act is a crucial competitive tool for translating scientific findings more quickly into industrial value creation, jobs, and technological sovereignty. Excellent research alone is not enough—what matters is what comes of it. Many of the levers for achieving this do not lie in new, additional funding programs, but rather at the sub-statutory level: procedures must be simplified, rules modernized, responsibilities clarified, and funding conditions harmonized.

Excellent research matters—its impact is what counts

According to the Fraunhofer-Gesellschaft and the BDI, success in innovation policy is not measured solely by publications or technological excellence. What matters most is whether it leads to industrial value creation, jobs, and technological leadership in Germany. For this to happen, the entire innovation pathway must function effectively—from research through demonstration and pilot projects to industrial scaling.

Overcoming the “Valley of Death”

According to the Fraunhofer-Gesellschaft and the BDI, time and innovation potential are currently being lost between successful research and industrial scaling. To overcome this “Valley of Death,” research institutions need the freedom to develop demonstrators, pilot plants, and limited zero- and small-batch production runs as long as industry has not yet built up sufficient production capacity. This would accelerate market validation, reduce development risks for companies, and facilitate the adoption of new technologies. To support this, a national intellectual property strategy and a national technology monitoring system are needed to identify global developments early on and derive strategic decisions.

Speed as a Location Factor

According to the Fraunhofer-Gesellschaft and the BDI, lengthy funding procedures, differing rules at the federal and state levels, and disjointed processes are hindering innovation. The “time-to-grant” must be consistently shortened, funding conditions must be standardized, and the entire process must be digitized from start to finish. Research institutions and companies should spend more time on innovation and less on administration. Furthermore, the use of data relevant to research and innovation should be significantly facilitated within the existing European framework through uniform interpretation, standardized procedures, and legally secure testing environments—for example, for AI applications and health data.

Collaboration Among Science, Business, and Politics

According to the Fraunhofer-Gesellschaft and the BDI, freedom of innovation can only be achieved through joint action. Science creates technological possibilities, companies bring them to market, and policymakers must establish a legally secure framework. The swift implementation of the proposed regulatory measures would unleash significant economic momentum without requiring new funding and would sustainably strengthen Germany’s position as a hub for innovation. According to the Fraunhofer-Gesellschaft and the BDI, the success of innovation policy will be measured in the future primarily by a reduction in “time-to-market.

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