"What strategies can we employ to transcend the Valley of Death, according to Professor Hanselka?"
Chatting with Fraunhofer President Holger Hanselka: On Germany's AI, Innovation Prowess, and Challenges Ahead
Europe: What's Germany's Current Standing on Innovation?
Professor Holger Hanselka: Countries like us don't easily fit into rankings. We're second among the major industrial nations, with certain regions even cracking the top 4 globally. But we can't rest on our laurels - our traditional industries can't sell worldwide without a fight. There's a question regarding our over-reliance on traditional sectors like automotive, isn't there?
Not necessarily. Case in point: German chip technology. Companies like Trumpf, Zeiss, and ASML are global leaders, and Zeiss has been around for more than 175 years. These companies constantly reinvent themselves. However, we struggle where regulations hold us back.
Can you provide an example?
Take biotechnology, for instance. We've set ethical values and standards, which is great. But it hamstrings us on certain biotech procedures like gene scissors or manipulation. This hindrance pushes scientific talent and business opportunities elsewhere. Similar issues surface in IT - we invented the first Zuse computer, but we missed out on scaling software like Microsoft did with operating systems or office applications.
Sounds bleak.
Nothing's bogged down. In software, end-user business is indeed lost for Germany and Europe. But we still compete in the software technology (B2B) arena, specifically for controlling machines and systems. Germany also leads in patents in Europe, especially in engineering sciences. (...)
How would you evaluate the predicament of German car manufacturers?
Mobility is a core human need, and individual mobility holds a high value in our democracies. So, I'm hopeful about the car industry. In an aging society, the need for medical technology and health technologies is booming. Robotics, automation, and Industry 4.0 are essential future fields, as are digitization, artificial intelligence (AI), and sustainable food technologies. The automotive industry is still dominated by internal combustion engines worldwide, and Germany and Japan still lead the charge. However, China's made strategic moves: They've focused on electric mobility and battery technology, where they outpace us in production, while we maintain a research edge. (...)
The tale of German mechanical engineering?
The German mechanical engineering sector remains competitive, but it's not without its challenges, such as skilled labor shortages, digitization, and uncertainties in raw material supply. To overcome these hurdles, we need robots and automation to address the shortage of skilled workers, digitalization backlogs, and more holistic approaches like digital twins, AI, and the blending of virtual and real worlds. I see great potential for the German mechanical engineering sector given our AI patent edge. (...)
Germany's energy conundrum, particularly due to high costs. Can R&D offer a glimmer of hope?
We've always relied on energy imports and always will. While we can generate renewable energy to cover part of our electricity needs, it doesn't solve the entire problem. Wind and solar power can't keep our cars running, for instance. It's vital to confront this head-on and consider alternative energy sources that won't leave us in the lurch.
What's your solution?
[More details on Germany's energy challenges and solutions can be found in the latest €uro issue.]
- Despite the challenges in biotechnology and IT, Germany remains competitive in the software technology (B2B) arena for controlling machines and systems, and leads in patents in Europe, especially in engineering sciences.
- In the automotive industry, Germany and Japan still lead the charge with internal combustion engines worldwide, but China has made strategic moves, outpacing Germany in production of electric mobility and battery technology, while Germany maintains a research edge.
