Germany must leave its comfort zone

© Roche Pharma AG

Germany has voted — the political landscape is being reshaped. But while coalition talks, speculation over cabinet posts and debates about multi-billion-euro special funds dominate the headlines, a far more important question remains unanswered. Will Germany dare to embrace a new beginning and real reform — or will we remain stuck in our comfort zone?

The boom years are over

Looking at our current economic situation, one thing is clear: standing still is not an option. Germany is no longer among the top rankings of the world — other countries, having deliberately created innovation-friendly environments, have long surpassed us. In the global competitiveness ranking, we were still in sixth place in 2014. Today, you have to scroll down quite a bit to find Germany, which sits in 24th place. The consequences are palpable: German industry is suffering, our economy is shrinking — and with it, the foundation of our prosperity and social security systems is beginning to erode. The ‘boom years’, in which we could sit back as export champions and still collect a global prosperity dividend, are over. We can no longer afford business as usual.

This is the starting point for the new government — and its trial by fire without a grace period. The future coalition will be judged on whether it acts swiftly and decisively, tackles structural reforms with courage, and sparks a spirit of economic renewal. Ultimately, the question is: how will we generate prosperity in the future?

The good news: the prerequisites for a new start are still in place.

Germany’s industry is ready for the future

I am convinced that it is within our power to ignite a new economic renaissance: ‘Made in Germany’. We still have abundant creativity, outstanding scientists, engineers and research institutions of global standing. And we still have industries based here that are committed to innovation and shaping the future — industries that want to roll up their sleeves, not pack up and leave.

My own industry, the industrial health sector, stands as proof of how innovation and the future can be built in Germany. This sector provides over one million people with highly skilled, secure and well-paid jobs. It conducts research, develops and produces groundbreaking future technologies locally — technologies that make healthcare more efficient, more sustainable and better — and exports them from Germany to the world. It is, not least, one of the few industries in Germany that continues to grow steadily even in times of crisis, supporting our economy and social systems and creating prosperity.

In short: the industrial health sector is a key industry that is good for Germany — and it shows what is possible when we invest boldly and consistently in progress and innovation.

We still have abundant creativity, outstanding scientists, engineers and research institutions of global standing

What are we missing? An innovation culture

At the same time, my industry sees daily where Germany stands in its own way — how difficult it is for innovation to thrive here. We all know that Germany is often too analog, too complicated, too hesitant. What may be frustrating for citizens navigating bureaucracy becomes a serious competitive disadvantage on the world stage. Take clinical research as an example: Germany has fallen behind in the number of clinical studies — partly because approval processes here take months instead of weeks. Other countries have become more attractive, deliberately reducing regulatory hurdles, attracting research and investment, and thereby creating the strategic markets of tomorrow.

But excessive regulation is not our only problem. We lack a culture of innovation. Germany regulates, scrutinizes and delays because we too often view innovation as a risk — rather than as an opportunity for a sustainable future.

Germany regulates, scrutinizes and delays because we too often view innovation as a risk — rather than as an opportunity for a sustainable future.

My industry experiences this as well. When we look at global pharmaceutical and innovation clusters, we see ecosystems embedded in well-functioning healthcare systems — ecosystems that recognize and reward both breakthrough and incremental innovations as progress. In Germany, on the other hand, healthcare innovations that offer new hope to patients with serious and often life-threatening conditions are discussed almost exclusively in terms of cost. The value of innovative therapies is artificially capped for the sake of short-term savings, instead of addressing well-known inefficiencies in the healthcare system, such as sluggish digitalization. Furthermore, a strong healthcare industry is often met with suspicion rather than welcomed as an engine for economic growth and sustainable prosperity. All of this reflects a fundamental lack of trust in the value of innovation.

We need a bold push for innovation

Restoring confidence in Germany’s potential as an innovation hub is the most important task facing the next government. But trust cannot be built through symbolic gestures — it requires decisive action.

Reducing bureaucracy, accelerating approval processes and creating competitive digital infrastructure are not abstract reform goals; they are prerequisites for an attractive place to do business. Yes, investment is needed — public spending has a role to play. But pouring money into expensive subsidies is no substitute for the structural reforms Germany truly needs. Even multi-billion-euro special funds will evaporate if they aren’t directed toward areas that drive lasting growth. Those who think and regulate in small increments risk being left behind.

That is why Germany needs a bold push for innovation more than ever — one that places future technologies ‘made in Germany’ at the center of its strategic priorities and creates long-term planning security for private investment.

That is why Germany needs a bold push for innovation more than ever — one that places future technologies ‘made in Germany’ at the center of its strategic priorities and creates long-term planning security for private investment. This will not arise in isolated political circles. Innovation cannot be decreed; it emerges when politics and industry pull together and pave the way. Industry is ready.

The previous federal government and the healthcare industry have already proven that this is possible. With the National Pharma Strategy in 2023, a common goal was defined and a common path was taken. Above all, mutual trust was built — trust that triggered billions in private investment into Germany as an innovation hub in a very short time. Now it is crucial to continue on this path — with further reforms toward an innovation-friendly healthcare system that keeps pace with medical progress.

Time for a real new beginning

Germany can reinvent itself — of that, I am certain. But it will take courage, determination and a bold, ambitious push for innovation. Politics and industry must come together now to chart the course for the future. The foundations are there; what’s needed is the will to unlock our full potential. One thing is clear: if we fail to invest in innovation today, we will find ourselves dependent tomorrow on the countries that do. What is solid today will become quicksand, and the entire structure will give way. We need to leave our comfort zone and actively shape our future. The moment for a true new beginning has arrived.