Fraunhofer-Gesellschaft and BDI call for swift regulatory action to speed up transfer of research to industry in Germany; strengthen technological sovereignty

August 28, 2026 Page 1 | 3 Press release — Joint position paper by Fraunhofer and the Federation of German Industries Freedom to Innovate as a Driver of Industrial Growth: Technology Transfer Needs Swift Regulatory Action Germany’s excellence in research can generate sustained innovation, value for industry and technological sovereignty only if the policy and regulatory framework speeds up the transfer of research findings into industrial appli- cations. The Freedom to Innovate initiative set out in the coalition agree- ment aims to accelerate the industrial application of research and strengthen Germany’s competitiveness. In a joint position paper, the Fraun- hofer-Gesellschaft and the Federation of German Industries (BDI) therefore call for the initiative to be implemented swiftly—primarily through regula- tory measures under existing law rather than through new legislation. Holger Hanselka, President of the Fraunhofer-Gesellschaft, explains: “Amid intense global competition, Germany’s capacity for innovation is at stake. To safeguard our prosperity, excel- lent research alone is not enough—we must turn research findings into value for industry much faster. That is precisely the goal of the Freedom to Innovate initiative, which we see as a key industrial policy tool for strengthening competitiveness. Our joint position paper with the BDI makes one thing clear: Rather than passing one new law after another, we should use the options already available for targeted regulatory action—which would provide immediate re- lief.” Hanselka adds that bureaucratic barriers must be removed throughout the entire inno- vation process and that research and industry need more room to maneuver so that they can scale up new technologies in Germany. “Achieving technological sovereignty requires re- search, industry and government to work together.” In their joint position paper, the Fraunhofer-Gesellschaft and the BDI set out specific recom- mendations and regulatory measures that can be implemented quickly to strengthen Ger- many’s innovation ecosystem and safeguard its technological leadership. Freedom to innovate as a strategy to boost competitiveness Germany’s ability to scale up innovations and capture their economic benefits depends largely on the regulatory environment. The Freedom of Innovation Act will be critical to competitive- ness, helping to accelerate the industrial application of research, create jobs and strengthen technological sovereignty. Excellent research alone is not enough—what counts is what we make of it. Many of the most effective policy changes do not require new or additional

August 28, 2026 Page 2 | 3 funding programs. Instead, they can be made without new legislation—by streamlining pro- cedures, updating regulations, clarifying responsibilities and aligning funding conditions. Excellent research matters—but impact is what makes the difference Innovation policy cannot be judged by publications or technological excellence alone. What matters is whether it creates value for industry, jobs and technological leadership in Germany. This requires the entire innovation pipeline to work—from research through demonstration and piloting to industrial scale-up. Bridging the valley of death Valuable time and innovation potential are currently being lost between research break- throughs and industrial scale-up. To bridge this gap, research institutions need the latitude to build demonstrators and pilot plants and to produce limited pilot and small-batch runs until industry has ramped up enough production capacity. This will accelerate market validation, reduce companies’ development risks and facilitate the adoption of new technologies. These efforts should be supported by a national intellectual property (IP) strategy and nationwide technology monitoring to spot global developments early and make strategic decisions. Why speed matters for Germany as an industrial hub Lengthy funding procedures, inconsistent federal and state rules and fragmented processes that switch between digital and paper formats are slowing innovation. The time from applica- tion to funding decision must be systematically reduced, funding requirements standardized and processes digitized end to end. Researchers and companies should spend more time on innovation and less on administration. Within the existing European framework, it must also become much easier to use data for research and innovation. That calls for consistent inter- pretation of the rules, standardized procedures and test environments that provide legal cer- tainty—including for AI applications and the use of health data. Research, industry and government must join forces Freedom to innovate requires collective action. Research develops new technologies, busi- nesses bring them to market, and government provides a sound legal framework. Swiftly im- plementing the proposed regulatory measures could unleash significant economic momentum without requiring additional funding and strengthen Germany’s position as an innovation hub over the long term. Going forward, innovation policy will be judged above all by how quickly new technologies reach the market. Click here for the position paper.

The Fraunhofer-Gesellschaft, headquartered in Germany, is one of the world’s leading organizations for applied research. It plays a major role in innovation by prioritizing research on cutting-edge technologies and the transfer of results to industry to strengthen Germany’s industrial base and for the benefit of society as a whole. Founded in 1949, the Fraunhofer-Gesellschaft currently operates 74 institutes and research units throughout Germany. Its roughly 30,000 employees, predominantly scientists and engineers, work with an annual business volume of 3.6 billion euros; 3.2 billion euros of this stems from contract research.

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Contact — Monika Landgraf Fraunhofer-Gesellschaft, Munich Director of Corporate Communications Phone: +49 89 1205-1333 presse@zv.fraunhofer.de