How Germany has Established Itself as a World Leader in Technology?

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The European Commission describes Germany as “a world leader in technology”, but how did the country achieve such status? It’s chequered past – most notably World War II – will not and should never be forgotten, but it is an undeniable truth that some of the nation’s technological advances can be traced back to that conflict, which precipitated the need for a constant striving for improvement.

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And the reunification of Germany in 1990 allowed both East and West to come together – a meeting of minds that has helped propel the nation to the very forefront of technological advancement and innovation over the subsequent three decades. So, what is Germany doing so well to maintain its standing as a global leader in that department? 

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Research and Development

As a nation, Germany spends around €80 billion on research and development every year, making it the second-highest investor in the world behind the United States. Such enormous sums signify the country’s commitment to unearthing inventive and pioneering technologies, products and services, which can then be shared worldwide, further strengthening its position as a global powerhouse. 


A few years ago, Germany took the decision to abolish higher education tuition fees, making their programmes a more attractive prospect to a wider range of people. That includes international students, who flock from all over the world and make up approximately 10% of all scholars in the country. Such an influx of bright minds, with alternative approaches and fresh ideas, will continue to help diversify Germany’s working demographic and thus the quality of its output. 

Advances in Employee Care

Germany also looks after its workforce, implementing many methods to assist its employees in enjoying as comfortable an environment as possible. At Porsche, for example, engineers wheel around the factory floor on specially designed chairs, which have key tools like drills, screwdrivers and soldering irons built into the arm rests. Such features encourage greater productivity and allow Germany to stay ahead of the competition.

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According to the World Economic Forum’s Global Competitiveness Report, Germany ranks as the most innovative economy in the world, scoring 87.5 out of 100, while it was the third-strongest performer overall, behind only the USA and Singapore. Being able to translate that initial innovation into a product or service that can be marketed quickly is the key and, particularly in the likes of the automotive industry, Germany continues to set the standards in that regard.

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