Enhancing Innovation in Germany by Strengthening the Growth Finance Ecosystem

Abstract

Insufficient access to capital for high-tech growth companies is one of the key weaknesses of Germany’s innovation system. This weakness is becoming a serious competitive disadvantage, especially in the context of the radical technological innovation, new business models and rapid growth demanded by the digital transformation.

In a joint project with KfW and Deutsche Börse, acatech brought together a range of actors from the financial sector with high-tech growth companies and representatives of academia and industry in order to carry out a detailed analysis of the status quo and formulate recommendations for government, academia and industry.

The study’s recommendations are not confined to the mobilisation of traditional venture capital. They also highlight alternative forms of financing and in particular the interfaces between high-tech growth companies, established businesses and academic institutions. These interfaces are one important key to build a strong competitive position in Germany with regard to industrial digitalisation.

Keywords: venture capital, growth financing, enhancing innovation, artificial antelligence, growth companies

JEL Classification: F21, F43, G24, G28, M13, M21, O 00, O16, O32, O38, O52