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Hubertus Bardt / Michael Hüther / Hans-Peter Klös IW-Report No. 22 4. June 2021 Modernization through investment

The German economy is facing extensive modernization challenges that have to be overcome with new technologies, new business models and the necessary investments.

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Modernization through investment
Hubertus Bardt / Michael Hüther / Hans-Peter Klös IW-Report No. 22 4. June 2021

Modernization through investment

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German Economic Institute German Economic Institute

The German economy is facing extensive modernization challenges that have to be overcome with new technologies, new business models and the necessary investments.

While the automotive industry, with its strong innovation and investment performance, is already experiencing significant transformation dynamics, energy-intensive industries are facing greater challenges. In particular, there is a lack of adequate state support measures in order to be able to make the necessary investments in climate neutrality in Germany that have not yet been economically viable. A catching-up process has also started in digitization so that the combination of industrial strength and digital innovation can create a strong competitive position for the next few decades. While many infrastructural prerequisites are still lacking, the state initiative is going in the right direction. For economic policy, the necessary modernization is linked to three core tasks: The prerequisites for private investments in Germany must be strengthened through locational policy and transformation support, the complementary public investments must be made and the state itself, with its lengthy planning and decision-making processes, must be modernized and integrated. 

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Modernization through investment
Hubertus Bardt / Michael Hüther / Hans-Peter Klös IW-Report No. 22 4. June 2021

Modernization through investment

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German Economic Institute German Economic Institute

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Björn Kauder / Niklas Potrafke in Public Choice External Publication 10. May 2022

Rewarding conservative politicians?: Evidence from voting on same-sex marriage

We ask whether voters rewarded conservative politicians who voted in favor of same-sex marriage. The evidence is based on a rollcall vote in the German national parliament (Bundestag) in June 2017.

IW

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Vera Demary / Jürgen Matthes / Axel Plünnecke / Thilo Schaefer IW-Policy Paper No. 26 28. October 2021

What business needs to shape the transformation: Recommendations to the new federal government

Germany is facing major structural challenges stemming from the four trends digitalisation, decarbonisation, demographics and de-globalisation. These trends occur simultaneously and cause additional demand for policy, especially at their interfaces, so that ...

IW

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