AiF on the draft federal budget for 2025: no cuts in successful innovation funding

In view of the changing times and the current situation of many medium-sized companies, the AiF Alliance for Industry and Research is opposed to the substantial reduction in funding for the Central Innovation Programme for Medium-Sized Enterprises (ZIM) planned in the draft federal budget for 2025.

‘In view of the current low growth rates and the outstanding demands on the German economy, we believe that the planned cut of over 17 per cent sends the wrong signal. The research funding programme, which was recently described by the Federal Minister for Economic Affairs, Dr Robert Habeck, as a ‘flagship’ and in a recent evaluation report as one of the most important and successful, had to cope with a ten per cent reduction in funding as early as 2024. However, the currently planned reduction from 628 (2024) to 519 million euros (2025) is out of proportion to the needs and economic situation in Germany. We recommend a readjustment,’ explains AiF Chairman Thomas Reiche. The AiF is the voice of the research-based SME sector in Germany and, thanks to its innovation network, which has been built up over decades, it is an effective bridge-builder between business, politics and science.

The ZIM is a nationwide research funding programme for small and medium-sized enterprises that is open to all technologies and sectors and is run by the Federal Ministry for Economic Affairs and Climate Protection (BMWi).

The IGF and INNO-KOM funding programmes remain unchanged

Innovation funding is a guarantee for the competitiveness and global marketability of the German economy. According to Reiche, measures to promote research and development within small and medium-sized enterprises are a prerequisite for maintaining our prosperity and for the urgently needed success of the economic transformation process. According to Reiche, successful BMWK research funding programmes such as the Industrial Community Research (IGF), the ZIM or INNO-KOM (funding of innovation competence with non-profit industrial research institutions) must be given the appropriate high rating in the future federal budget law.

The fact that the funds for the IGF and the INNO-KOM funding programme are not to be cut according to the current draft is to be seen as a positive development in view of the significantly lower overall budget of the Federal Ministry. However, in view of the significantly increased costs for research-intensive companies, this is tantamount to a reduction, analyses Reiche, emphasising: ‘The globally unique industrial community research, which enables small and medium-sized companies to carry out sustainable, cross-industry, technology-open, pre-competitive and, last but not least, clearly result- and transfer-oriented research activities under the umbrella of the AiF research associations, strengthens their innovative strength. This innovative strength is essential for overcoming the ecological and economic challenges.” A total of €253 million has been earmarked for the IGF and INNO-KOM for 2025.

The AiF Alliance for Industry and Research will continue to work with its partners, such as the Federation of German Industries (BDI) and the German Chamber of Industry and Commerce (DIHK), to ensure that the innovative strength of German SMEs is secured and strengthened in a comprehensive, competent and passionate manner.