Work

For a Strategic, European and Competition-Oriented Industrial Policy

Year: 2025

Type: article

Abstract: The competitiveness of German industry is under significant pressure. While politicians acknowledge the need for change, their proposed solutions remain vague and lack a clear strategic direction. Current approaches focus on tax relief, broad investment subsidies for domestic firms or targeted cost reductions, such as lower electricity prices. While these measures may improve production conditions, they fail to address the fundamental issue: the technological investment trap. To overcome the current investment stagnation, a European, strategic and competition-oriented industrial policy is essential. Germany's and Europe's longterm competitiveness depends on targeted investments in innovative technologies and futureoriented projects while avoiding market-distorting subsidies and inefficient financial support.

Source: Intereconomics

DOI: 10.2478/ie-2025-0042

Authors: Tomaso Duso, Martin Gornig, Alexander Schiersch

Institutions: German Institute for Economic Research, Technische Universität Berlin

Language: English

Topic: Innovation Policy and R&D

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $2,690