Research & development in Germany

Research and development (R&D) advance and progress. The term encapsulates applied from which emanate new products, processes and services. Research and development are elementary for companies to keep them future-proofed and competitive.

Where does research and development take place?

• Universities and higher education institutions: basic and applied research are conducted here. Students, academics, and develop innovative solutions.

• Companies: R&D is essential for competitiveness in business. Companies develop products and technologies to be successful market contenders.

• : tend to focus on specific academic, scientific and technical challenges.

• Governmental organisations: state institutions conduct research into matters of national interest, such as health, environment and security.

What does the R&D department in companies do?

R&D promotes innovation and growth in companies. Usually by means of:

• Product development: products are developed or optimised to align with market demand.

• Process optimisation: more efficient and cost-effective production methods increase competitiveness and reduce expenditure.

• Technological development: innovative technologies are developed or existing ones improved.

• Market research: market trends and customer requirements are analysed to ensure that R&D activities are correspondingly aligned.

What types of research and development are there?

R&D can be subdivided into three categories:

• Basic research: creates new knowledge without direct commercial objectives. It forms the basis for subsequent applications.

• Applied research: uses the findings from basic research to solve specific problems.

• Development: applies research results to develop or improve products or processes.

Our strong R&D sector in Germany is one of the most valued location factors. This is also substantiated by our research and development expenditure: it amounted to €121.4 billion nationally in 2022 .