Working Paper

Technology and Economic Performance in the German Economy


  • Siebert
  • H.
  • Stolpe
  • M.
Publication Date

Germany remains Europe's largest and most diversified source of new technology, but still lags in the fastest growing areas of today's high technology. After World War II, West-German technology policy sought to rebuild the institutions which had supported Germany's leadership in the high-tech industries of the early twentieth century - automobiles, machinery, electrical engineering, chemicals and pharmaceuticals. Increasingly, however, those institutions are seen as failing to respond to new technological stimuli. In addition, Germany's bank-centered capital and inflexible labor markets have long constrained the opportunities of innovative firms for equity-based growth and the incentives for academic brains to set up in private business. Promising changes in technology policy and capital market conditions can be observed only since the mid-1990s.

Kiel Institute Expert


JEL Classification
L5, O3, O4, O5

Key Words

  • Economic Growth and Aggregate Productivity
  • Economywide Country Studies
  • Regulation and Industrial Policy
  • technological change
  • Technologischer Wandel