Germany's Innovation Crisis Deepens as EFI Report Exposes Policy Failures
The Expert Commission on Research and Innovation (EFI) has handed its 2026 Annual Report to Chancellor Friedrich Merz. The document outlines urgent steps for Germany's innovation policy but arrives as the government faces criticism for inaction. Despite declaring innovation a 'top priority', Merz's administration has yet to present a clear strategy to address long-standing challenges.
The EFI 2026 Report calls for immediate action to boost Germany's research and development sector. It highlights persistent issues: excessive bureaucracy for small and medium-sized enterprises (SMEs), weak collaboration between businesses and universities, and a failure to meet the 3.5% GDP target for R&D spending. With austerity measures expected in the 2027 budget, experts warn that funding gaps will worsen.
The report also points to jurisdictional conflicts and poorly defined plans as reasons for stalled progress. Funds allocated for the High-Tech Agenda remain frozen, while key decisions on AI and higher education are left to individual states rather than coordinated nationally. This fragmentation has drawn criticism from Ayse Asar, spokesperson for research, technology, and space policy, who accused the government of lacking a unified approach.
Bavaria's role in shaping policy has added to the uncertainty. The state's influence—through the CSU-led Federal Ministry of Education and Research and its presidency of the Conference of Science Ministers—has raised concerns about transparency. Critics argue that political considerations have overshadowed merit-based funding, undermining trust in the system.
The EFI report provides a detailed roadmap, but its success depends on government action. Without a coherent national strategy, Germany risks falling further behind in research and innovation. The 2027 budget cuts and ongoing disputes over responsibilities could delay progress even more.
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