For a Strategic, European and Competition-Oriented Industrial Policy

The competitiveness of German industry is under significant pressure. While politicians acknowledge the need for change, their proposed solutions remain vague and lack a clear strategic direction. Current approaches focus on tax relief, broad investment subsidies for domestic firms or targeted cost reductions, such as lower electricity prices. While these measures may improve production conditions, they fail to address the fundamental issue: the technological investment trap. To overcome the current investment stagnation, a European, strategic and competition-oriented industrial policy is essential. Germany's and Europe's longterm competitiveness depends on targeted investments in innovative technologies and futureoriented projects while avoiding market-distorting subsidies and inefficient financial support.

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Publication Details

Journal
Intereconomics
Published
2025-08-01
DOI
https://doi.org/10.2478/ie-2025-0042
Citations
1
Primary Topic
Global trade and economics
Type
article
Field-Weighted Citation Impact
3.09
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article

For a Strategic, European and Competition-Oriented Industrial Policy

Tomaso Duso, Martin Gornig, Alexander Schiersch
1 citations
Intereconomics
Global trade and economics
3.09
article

For a Strategic, European and Competition-Oriented Industrial Policy

Tomaso Duso, Martin Gornig, Alexander Schiersch
article en
1 citations

Abstract

The competitiveness of German industry is under significant pressure. While politicians acknowledge the need for change, their proposed solutions remain vague and lack a clear strategic direction. Current approaches focus on tax relief, broad investment subsidies for domestic firms or targeted cost reductions, such as lower electricity prices. While these measures may improve production conditions, they fail to address the fundamental issue: the technological investment trap. To overcome the current investment stagnation, a European, strategic and competition-oriented industrial policy is essential. Germany's and Europe's longterm competitiveness depends on targeted investments in innovative technologies and futureoriented projects while avoiding market-distorting subsidies and inefficient financial support.

IntereconomicsVol. 60(4)
German Institute for Economic Research (DE)
Openalex Percentile: Top 8%
Global trade and economics
3.09
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