East German Industrial Research: Improved Competitiveness through Innovative Networks

Although the number of industrial R&D staff has been consolidated and the competitiveness and profitability of external industrial research institutions improved in East Germany, obvious differences between the features of East and West German innovation activities still exist; in particular those of R&D. Innovation activities in East Germany are characterised by a high share of small and medium-sized companies which often show a lack of potential for complex R&D projects. Both the share of industrial R&D staff and the industrial share of economic activity are lower than in West Germany. Moreover, less funds are available for R&D staff (Meyer-Krahmer et al. 1998; Pleschak et al. 2000).