Romer asked, for example, what motivates companies to do research and development. The framework conditions, such as patent protection, are a crucial factor. Government support for research can also play a role. Germany certainly has room for improvement in this area. Thus, it is gratifying that the Federal Government has addressed this issue and has tax concessions in the works.
As the legislative process rolls on, it is vital that the rules are not worded in a way that is too complicated and overly detailed. This would be an important signal that we are serious about creating an innovation-friendly environment. We should also view the topic of innovation through the lens of the two major challenges facing Germany: digital transformation and demographic change.