How German Industries Are Constantly Searching for Innovation within Their Business


Germany is renowned for its innovation and engineering. Over the past decade, the country has made major changes to its safety practices and boosted its innovation to drastically improve productivity.

Today, the European country is considered one of the leaders in business. Below, we’ll look at how German industries are setting their sights on innovation and improvement within their company.

Germany surpasses US in terms of innovation

When you think about the most innovative countries, China and the US are typically the key players that come to mind. However, many experts argue that Germany wins the innovation war hands down.

The country isn’t just proven to be innovative in one particular area. Instead, its innovation spans multiple industries such as experimental software engineering, sustainable energy and molecular biotech. The US has even worked alongside the German think-tank Fraunhofer Society, to establish seven institutes within America. As for China, the country often uses German produced machinery to create its products.

Germany is renowned for its particular advancements within the safety sector. From advanced safety relay devices from RS Components, to improved security technologies which are said to be growing at a fast pace; the country excels in the safety sector.

Boost in economy linked to Mittelstand

A lot of the success Germany has seen in terms of innovation, is said to be credited to Mittelstand. This is a term used to describe export oriented medium sized businesses.

It focuses largely on manufacturing, consisting of 75% of the country’s entire workforce. Many of its success stories are considered “hidden champions”. This means, companies which experience sales under €5 million, but which are in the top three companies within their sector. Interestingly, 70% of these firms are located in rural or smaller city areas.

Consistent training provided to employees

Another reason German companies are renowned for their innovation, is because of the consistent training provided to employees. They are frequently trained up in the newest technologies, helping to push productivity and efficiency. Studies have shown that providing employees with adequate training, improves their performance and their satisfaction within the company.

The above are just some of the reasons Germany is leading the way in terms of innovation. Companies within the country are continually seeking out innovation and improvement. It is this strive for success and progression which is taking the country ahead of the likes of the US and China.


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