An IW study shows Germany falling behind in the patent race in future fields such as AI and defense, with almost a third of German patents held by foreign owners. The decline threatens Germany’s innovation leadership, economic growth, and tech sovereignty in high‑value sectors. German Institute of the German Economy (IW), German policymakers, foreign patent holders, AI and defense industries. Expect policy debates on boosting domestic R&D, revising foreign‑ownership rules, and launching incentives to increase home‑grown patent generation. An IW study reveals that Germany is losing ground in the global patent race, especially in artificial intelligence and defense sectors, while nearly one-third of its patents are now owned by foreign entities. This trend signals a potential erosion of Germany’s technological base and could affect its long‑term industrial strength. Policymakers may need to act quickly to bolster domestic R&D and protect intellectual property to prevent further decline.
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