Overview

• The German chemical and pharmaceutical industry will spend €16.5 billion on research and development in 2025, marking a €400 million increase from 2024 and a new record high.
• Despite the record investment, the sector's R&D budget growth lags behind other industries due to Germany's declining global competitiveness.
• Companies are increasingly offshoring R&D activities, citing high domestic energy costs and regulatory challenges.
• Germany now trails the US, Japan, China, and South Korea in global patent applications for chemical and pharmaceutical innovations.
• Industry leaders are urging reforms in STEM education, energy policy, and bureaucracy to strengthen Germany's position as a research and innovation hub.