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IW-Trends No. 1 13. March 2025 Jasmina Kirchhoff / Oliver Koppel Germany’s Position in the International Competition for Pharmaceutical Innovation – a Comparison of Patent Activity

An analysis based on the IW Patent Database shows that Germany’s pharmaceutical sector is finding it increasingly difficult to assert itself in the worldwide competition for pharmaceutical innovation.

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Germany’s Position in the International Competition for Pharmaceutical Innovation – a Comparison of Patent Activity
IW-Trends No. 1 13. March 2025 Jasmina Kirchhoff / Oliver Koppel

Germany’s Position in the International Competition for Pharmaceutical Innovation – a Comparison of Patent Activity

Jasmina Kirchhoff / Oliver Koppel German Economic Institute (IW) German Economic Institute (IW)

An analysis based on the IW Patent Database shows that Germany’s pharmaceutical sector is finding it increasingly difficult to assert itself in the worldwide competition for pharmaceutical innovation.

In the year 2000 over 1,400 patent applications, representing 17 per cent of the total for the global pharmaceutical industry, originated in Germany. By 2021, however, this figure had fallen to only 849, or just 9 per cent of the world total. The number and nature of patents filed by the international pharma industry reflects how companies in the sector have continuously adapted and adjusted their research activities since the beginning of the millennium. However, the data also reveals the differences in how national pharmaceutical industries have developed. While in many European countries there is an increasing lack of innovation in this sector, firms in China and South Korea are steadily catching up with the international leaders in a global industry still dominated by the USA. Developments in medical biotechnology, a speciality of increasing importance in pharmaceutical research, have been instrumental in this process. This expanding pharmaceutical sector is being promoted in other coun tries in a much more targeted and ultimately successful way than in Germany. Without an equally focused policy promoting Germany as a source of biopharmaceutical innovation and thus furthering the ‘National Pharma Strategy’ launched by the German government in 2023, the country is at risk of falling further behind the world leaders.

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Germany’s Position in the International Competition for Pharmaceutical Innovation – a Comparison of Patent Activity
IW-Trends No. 1 13. March 2025 Jasmina Kirchhoff / Oliver Koppel

Germany’s Position in the International Competition for Pharmaceutical Innovation – a Comparison of Patent Activity

Jasmina Kirchhoff / Oliver Koppel German Economic Institute (IW) German Economic Institute (IW)

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The contribution of qualified migration to patent activity in Germany
IW-Kurzbericht No. 87 13. October 2025 Carolina Guzman Martinez / Alexandra Köbler / Oliver Koppel

The contribution of qualified migration to patent activity in Germany

Qualified migration makes an indispensable contribution to Germany’s innovative capacity: at least 14 per cent of all patent applications developed in Germany now originate from inventors with foreign roots. India makes a particularly significant contribution — in part thanks to initiatives such as “Make it in Germany.”

Carolina Guzman Martinez / Alexandra Köbler / Oliver Koppel IW

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IW-Report No. 14 20. March 2025 Oliver Koppel

Germany's role in global value chains: Germany's technological strengths in global patent competition

Germany's strength in global patent competition is not accurately measured by patent applications emerging from Germany, but rather by those that are actually controlled by Germany.

Oliver Koppel IW

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