At least 950 million euros in the federal budget 2025 for industrial research

The German Industrial Research Association Konrad Zuse e.V. (Zuse Association) sees the planned cuts in the budget for ZIM and IGP and the unchanged approach for IGF and INNO-KOM compared to the previous year in the draft federal budget 2025 as a devastating signal for the innovation system and medium-sized businesses. It calls for practical industrial research – especially in these economically difficult times with tight public finances – not to be further weakened, but for at least 950 million euros to be made available for its funding in the 2025 federal budget. Furthermore, according to surveys by the Zuse Association, a continuous annual increase of at least five per cent is needed for practical, innovation-based and transfer-oriented industrial research with its closest links to medium-sized businesses in order to at least maintain the current level of innovation in Germany.

According to the figures in the draft budget for 2025, the funds for ZIM and IGP are to be reduced to 519.4 million euros (2024: 635.3 million euros) – a decrease of 115.9 million euros. 253.1 million euros are planned for IGF and INNO-KOM, which is unchanged from the previous year. However, experience with IGF and INNO-KOM shows that the funds for these funding programmes were already completely insufficient in the past – to the detriment of small and medium-sized enterprises and their international competitiveness. Important potential for innovation and transfer has therefore remained untapped for years, opportunities have been missed.

‘Cuts in innovation and transfer, and thus at the expense of small and medium-sized businesses, are the completely wrong signal, especially in economically difficult times,’ explains Prof. Martin Bastian, President of the Zuse Association, regarding the current draft of the 2025 federal budget. ’ In the short term, the next federal budget must therefore provide financial support for practical industrial research in line with demand, as well as the annual increase identified, in order to at least maintain the current, far too low level of innovation and the international competitiveness of small and medium-sized enterprises.’

Bastian also emphasises the importance and function of practical industrial research and of small and medium-sized enterprises in Germany: ‘Practical industrial research is one of the most important vehicles for transferring knowledge from science to small and medium-sized businesses. Small and medium-sized businesses are the backbone of the German economy and, through their taxes, make a significant contribution to financing the welfare state. The imperative of the moment is therefore to bring it back on a stable growth path by strengthening innovation across the board, thereby also making a tangible contribution to increasing its international competitiveness.’