Hanno Kempermann

All indicators of innovative strength in Germany – from research intensity and scientific and technical employment structures to patent successes – point to a strong south-north, west-east and urban-rural divide.

Maike Haag / Hanno Kempermann / Enno Kohlisch / Oliver Koppel IW

Over the past two years the Covid19 pandemic has presented the German economy with major challenges, with the personal services sector just as severely affected as manufacturing.

Johannes Ewald / Vanessa Hünnemeyer / Hanno Kempermann IW

Rural regions have historically played an important role in securing Germany’s prosperity and growth. It is here that a significant number of the country’s hidden champions are to be found, inconspicuous manufacturers whose innovativeness and high-quality production are nonetheless the hallmark of the German business model.

Vanessa Hünnemeyer / Hanno Kempermann IW

Successful innovation and the inputs it requires are not evenly distributed across the German business landscape. Instead, firms are spread across a number of innovative milieus which differ in their innovative inputs and outputs, and which allow the German innovation landscape to be subdivided into characteristic types.

Hanno Kempermann / Pauline Pohl IW

The digital transformation is not only revolutionising the world of business but also affecting geographical developments. Picking up on this trend, the thematic focus of this year's IW Regional Ranking is on the digital prospects of Germany’s various regions.

Hanno Kempermann / Agnes Millack IW

In Germany, there is a close link between R & D expenditures and employment of STEM graduates to successful patent applications. This chain of effects can be shown to exist both at the federal and regional level. Furthermore, virtually every indicator of innovation-related power exhibits a considerable southnorth, west-east, and urban-rural divide.

Sarah Berger / Hanno Kempermann / Oliver Koppel / Anja Katrin Orth / Enno Röben IW

The aftermath of the financial market crisis in 2009 had a substantial but differing impact on Germany's regions due to their structural differences.

Michael Bahrke / Hanno Kempermann / Katharina Schmitt IW

The Results of the IW Regional Ranking

Michael Bahrke / Hanno Kempermann IW

Hybrid business models are successful. Companies which offer solutions bundling manufactured products and services are well endowed with success factors and achieve better growth in turnover and employment than the average of German companies. Despite this, hybrid models are not widespread. To date only 16 per cent of all companies have a hybrid character. One reason for this is the obstacles hybrid companies face. They must deploy more resources and master a higher level of complexity. Nevertheless, these companies are convinced that the benefits outweigh the drawbacks. Thus in five years a fifth of all companies in Germany are expected to be pursuing the hybrid model.Download | PDF

Hanno Kempermann / Karl Lichtblau IW