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Digitization

Digitization is penetrating all areas of life and networking people, machines and processes. This is creating immense opportunities for the German economy.

About the topic

In Germany, it has triggered a profound structural change in all areas of the economy and society. This digital transformation holds enormous opportunities, and they must be exploited - including, but not limited to, the automation and networking of value creation processes under the buzzword Industry 4.0. Autonomization in particular, i.e. enabling machines to organize, repair and optimize themselves, opens up extensive opportunities.

The prerequisites for digital transformation are nationwide high-speed networks and an unbureaucratic and capital-rich innovation environment. Employees also face challenges: Companies must identify the new requirements for employee qualifications and train employees accordingly. In addition, companies, especially from the SME sector, must drive digitization more strongly in their own operations, for example by refining their business models and developing new ones, for example in cooperation with startups. On this page you will find various topics and current studies from the field of digitization.

German Economic Institute (IW) German Economic Institute (IW)

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Do Differences in Data Management Help to Explain Persistent Productivity Differences Between Western and Eastern Germany?
Jan Büchel / Klaus-Heiner Röhl IW-Trends No. 4 28. December 2022

Do Differences in Data Management Help to Explain Persistent Productivity Differences Between Western and Eastern Germany?

Since the mid-1990s the economies of the five states of ex-communist Eastern Germany have been converging only slowly with the rest of the Republic, though the process has not come to a complete halt.

IW

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Digitalisation of the Economy in Germany
Jan Büchel / Barbara Engels Expertise 14. December 2022

Digitalisation Index 2022: Digitalisation of the Economy in Germany

The economy in Germany becomes only slightly more digital in 2022 compared to 2021: The Digitalisation Index rises from 107.9 to 108.9 points. Following the sharp rise in 2021, digitalisation can be said to stagnate in 2022.

IW

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Most companies are not data economy ready
Jan Büchel / Barbara Engels IW-Kurzbericht No. 96 8. December 2022

Most companies are not data economy ready

Data is the central resource of the digital transformation. It underlies all digital processes, transactions and interactions. The use of this data is key to innovation and sustainable growth (BMWK, 2022). Currently, however, many companies in Germany do not ...

IW

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Status Quo and Use Cases in Germany
Jan Büchel / Barbara Engels IW-Report No. 53 20. October 2022

Industry trends in data sharing: Status Quo and Use Cases in Germany

Data is generated everywhere along the value chain. Each player produces data specifically or as a by-product at various points in the production process. This data can offer significant benefits for the companies themselves and for the economy as a whole.

IW

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Vera Demary

Dr. Vera Demary

Head of Digitalisation and Climate Action Research Unit

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Barbara Engels

Barbara Engels

Senior Economist for Sustainable Digitalisation

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Dr. Christian Rusche

Senior Economist for Competition and Structural Change

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107 results
Read study
Do Differences in Data Management Help to Explain Persistent Productivity Differences Between Western and Eastern Germany?
IW-Trends No. 4 28. December 2022

Do Differences in Data Management Help to Explain Persistent Productivity Differences Between Western and Eastern Germany?

Jan Büchel / Klaus-Heiner Röhl

Since the mid-1990s the economies of the five states of ex-communist Eastern Germany have been converging only slowly with the rest of the Republic, though the process has not come to a complete halt.

IW

Read study
Digitalisation of the Economy in Germany
Expertise 14. December 2022

Digitalisation Index 2022: Digitalisation of the Economy in Germany

Jan Büchel / Barbara Engels

The economy in Germany becomes only slightly more digital in 2022 compared to 2021: The Digitalisation Index rises from 107.9 to 108.9 points. Following the sharp rise in 2021, digitalisation can be said to stagnate in 2022.

IW

Read study
Most companies are not data economy ready
IW-Kurzbericht No. 96 8. December 2022

Most companies are not data economy ready

Jan Büchel / Barbara Engels

Data is the central resource of the digital transformation. It underlies all digital processes, transactions and interactions. The use of this data is key to innovation and sustainable growth (BMWK, 2022). Currently, however, many companies in Germany do not meet the requirements to be able to use data efficiently. This is shown by a survey of 1,051 companies from industry and industry-related service providers.

IW

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The Transatlantic Subnational Innovation Competitiveness Index
Expertise 14. November 2022

The Transatlantic Subnational Innovation Competitiveness Index

Viktor Lázár / Ian Clay / Stephen Ezell / Shelby Lauter / Axel Plünnecke / Stefano da Empoli / Lorenzo Principali / Michele Masulli / Aaron Wudrick

Innovation ecosystems are increasingly complex and diverse, but there are common markers of core strength. In this report, the Information Technology and Innovation Foundation, the German Economic Institute, the Institute for Competitiveness, and the Macdonald-Laurier Institute benchmark 96 states and provinces across Germany, Italy, the United States, and Canada.

IW

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