German medium-sized companies fear a research emergency

Germany has a bridge problem. Of the almost 44,000 overpasses on highways across the country, almost 6,000 are in a critical condition, as shown by a response from the federal government to a small question from the FDP parliamentary group. In the coming years, numerous bridges will therefore have to be demolished and rebuilt. To ensure that these new buildings last longer and that the spare parts for bridges that can still be renovated are better protected, researchers have now devised a new corrosion protection concept.

The process was developed as part of a project by the Research Association for Steel Applications, or Fosta for short. It is one of 100 associations of the so-called industrial community research (IGF) in Germany. Around 25,000 small and medium-sized companies are organized in the IGF, which due to their small size are usually not able to maintain their own development departments or at least to finance research contracts with external bodies.

The development work of this world's largest research network has been funded since 1958 with funds from the Federal Ministry of Economics (BMWK), in 2022, for example, with around 200 million euros. At the end of the year, however, the funding commitment of the BMWK, led by Robert Habeck (Greens), expires. The research associations therefore fear for their future.

In almost 1900 projects, they are currently working with 1200 research institutions across all sectors, fundamentally and thus pre-competitively on new technologies for topics such as mobility and materials research or energy efficiency and sustainability. "This maintains and strengthens the competitiveness of medium-sized companies," says Fosta Managing Director Rainer Salomon.

"We are concerned that a research network that has grown over decades will be destroyed in a political coup without need." Salomon reports of "great unrest and uncertainty" within the network. "If joint research in industrial networks is no longer possible in the future, many medium-sized companies will be left behind."

The traffic light government does emphasize the importance of the IGF in its coalition agreement. And according to the Ministry of Economic Affairs, a reorganization is being worked on that is intended to put the program and its administration on a "procurement law-compliant and contemporary basis". "We, that is, those who are affected, are not involved in this process at all," criticizes Salomon.

You only found out about this in a roundabout way. And offers of talks are not accepted - after so many decades of cooperation. In a letter from the Research Association for Welding and Related Processes (DVS) to Minister Habeck, the words are quite sharp: "We currently see the real risk of major and irreparable damage to content and politics."

The fact that Ministerial Director Daniela Brönstrup announced to the umbrella organization Working Group of Industrial Research Institutions Otto von Guericke that there should be a project sponsor for the IGF in the future that has been advertised does not ease the situation. “In the end, this institution has to be paid for its administrative work. And these millions are then missing from the funding,” says Jens Jerzembeck, Managing Director of DVS Research.

In addition, he is concerned about future responsibilities. "So far, the research associations and thus the companies united there have decided which ideas are suitable for everyday use and have a chance on the market," says Jerzembeck. This ensures needs-based funding. “If different conditions apply in the future and institutional applicants are added, it would only be coincidence what is being worked on. Then we have research from the ivory tower instead of application-oriented work.”

Jerzembeck cannot understand the BMWK's approach. After all, it is about important application research. “Politicians like to describe medium-sized companies as the backbone of the German economy in election campaign speeches and Sunday speeches. When it comes down to it, obstacles are constantly put in the way of companies.” An innovative medium-sized company is the decisive factor for the future viability of the German economy.

This is even stated by the ministry's own evaluation of the IGF projects from 2021. "The IGF offers companies access to the latest findings for the further development of products, processes and services," it says. And these are "important prerequisites for maintaining and strengthening the competitiveness of small and medium-sized companies".

The Central Innovation Program for SMEs, or ZIM for short, is also causing a stir. First, the funding program worth around 700 million euros, which supports small and medium-sized companies in research and development with grants, was closed for many months - which, according to the Association of Innovative Companies (VIU), has brought numerous projects in medium-sized companies to a standstill.

And then before the restart in August, the access conditions were also restricted. Only one project approval at intervals of two years is now possible per company. The extension of project terms and the shifting of funds are also strictly restricted.

"This is a catastrophe," says a fire letter from the VIU to Minister Habeck, which is available to WELT AM SONNTAG. "That means a ban on research in the ZIM." Because more than 33,000 companies have a continuous need for development. "In the foreseeable future, this will lead to a significant weakening of competitiveness in the entire medium-sized economy."

The VIU is therefore calling for all access restrictions to be lifted and at the same time for a further increase in funding to one billion euros per year. State Secretary Udo Philipp (Greens) makes it clear in a letter of reply that there will be no more money or the restrictions will be lifted – because the federal budget is no longer available and because a large number of companies are benefiting and a renewed suspension of the acceptance of applications is to be prevented .

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