Medium-sized research companies have great potential to achieve the investment target of 3.5 percent of GDP for research and development (R&D) set by the German government. This is the result of a study carried out for the BMBF. The greatest potential for achieving the 3.5 percent target lies particularly with medium-sized companies that are either located in the research- and knowledge-intensive sectors of the economy or have been investing in research and development for some time. This is the result of a study commissioned by the Federal Ministry of Education and Research (BMBF). The study was carried out in cooperation with the Fraunhofer Institute for Systems and Innovation Research ISI, Prognos AG and the Centre for European Economic Research ZEW. Within the framework of the study, the Prognos experts calculated the macroeconomic effects of higher R&D expenditures. One possible way to mobilize this potential could be to increase the internal financing of R&D in companies. Indirect measures such as tax incentives for R&D, but also direct measures such as an increase in the funding volume or an expansion of the funded companies, especially in less research-intensive sectors, could be considered. Read the report (PDF, in German only, Website Frauenhofer Institut) Authors: Rainer Frietsch, Christian Rammer, Michael Astor, Marius Berger, Stephanie Daimer, Martin Hud, Cordula Klaus, Christian Lerch, Jan Limbers, Peter Neuhäusler Adobe Stock - CleverStock About us Prognos – Providing Orientation. Prognos is one of the oldest economic research centres in Europe. Founded at the University of Basel, Prognos experts have been conducting research for a wide range of clients from the public and private sectors since 1959 – politically independent, scientifically sound. Learn more