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Companies and Markets

Companies are an important pillar of our economy because they create jobs, prosperity and growth. It is the task of politics to support companies in adapting to a changing environment - for example, to promote research and development. 

About the topic

The structure of the German and international economy is constantly changing. Companies are challenged to adapt to new realities brought about by digitization, for example. But they are also driving innovation and thus actively shaping change. Politics can support companies in this task by setting the framework conditions favorably. This includes, for example, adjusting the rules for competition, reducing bureaucracy and always maintaining a balance between established companies, such as traditional SMEs, and startups that enrich Germany as a business location with new business models.

German Economic Institute (IW) German Economic Institute (IW)

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Why Do Companies Invest in Germany?
IW-Trends No. 2 11. July 2026 Hubertus Bardt et al.

Why Do Companies Invest in Germany?

The growth of Germany’s capital stock is slowing, as current investment increasingly fails to keep pacewith steadily rising disposals. In particular, private investment – which accounts for well over fourfifths of total gross fixed capital formation – has been alarmingly low in recent years.

Hubertus Bardt / Michael Grömling / Thomas Schleiermacher / Susanne Seyda IW

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Making transformation risks measurable
IW-Report No. 16 13. April 2026 Lukas Fußhöller / Malte Küper

Making transformation risks measurable

The decarbonization of German industry requires fundamental transformations of production processes.

Lukas Fußhöller / Malte Küper IW

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The Role of the Private Sector in Germany's Overall Defence Strategy – The Results of a Company Survey
IW-Trends No. 4 26. January 2026 Hubertus Bardt et al.

The Role of the Private Sector in Germany's Overall Defence Strategy

The present study analyses the role of the private sector in Germany's national civil and military defence strategy in the light of the deteriorating security situation in Europe.

Hubertus Bardt / Simon Gerards Iglesias / Alexander Radunz / Klaus-Heiner Röhl IW

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What Has Been Achieved in Eastern Germany and Where Are the Biggest Economic Issues?
IW-Trends No. 3 2. October 2025 Klaus-Heiner Röhl

35 Years of Reunification: What Has Been Achieved in Eastern Germany and Where Are the Biggest Economic Issues?

Over the past 35 years, significant progress has been made in the economic reconstruction in the federal states in Eastern Germany.

Klaus-Heiner Röhl IW

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Event 14. October 2026 Alexander Radunz

Expert Workshop on the Industrial Accelerator Act

The German Economic Institute (IW) and Frontier Economics are pleased to invite you to a rapporteur & stakeholder workshop on the Industrial Accelerator Act (IAA) in Brussels.

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The Honesty-Attitude-Behavior Gap: A Cross-Country Comparison
IW-Trends No. 3 29. September 2026

The Honesty-Attitude-Behavior Gap: A Cross-Country Comparison

Dominik Enste / Jennifer Potthoff / Augustin Renz

Honesty reduces transaction costs and is therefore a prerequisite for effective economic cooperation.

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Event 28. September 2026 Sandra Parthie / Alexander Radunz

Online-Veranstaltungsreihe „Von Brüssel nach Berlin”: Regionalentwicklung und Industriepolitik

Wir laden Sie herzlich zu einer weiteren Online-Veranstaltung unserer Veranstaltungsreihe „Von Brüssel nach Berlin“ ein. Mit ihr wollen wir in loser Folge Themen aus der europäischen in die deutsche Hauptstadt tragen.

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Complementary Capabilities for Circular Practices: Firm-Level Evidence in Germany on the Role of Digitalization and Innovation
External Publication 16. September 2026

Complementary Capabilities for Circular Practices: Firm-Level Evidence in Germany on the Role of Digitalization and Innovation

Sarah Lichtenthäler / Adriana Neligan in Journal of Circular Economy

The transition to a circular economy (CE) requires firms to reconfigure business models, processes and capabilities.

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Making Apprenticeships a Success: From Marketing to Hiring
IW-Report No. 38 11. September 2026

Making Apprenticeships a Success: From Marketing to Hiring

Paula Risius / Dirk Werner / Philip Herzer / Fritz Orange / Regina Flake / Franziska Arndt / Yasin Küçükyavuz / Edgar Schmitz

In-company vocational training is a key factor in securing skilled labour. The first step in investing in future employees is to approach and recruit new apprentices. For many companies, filling the apprenticeship positions they offer is a challenge.

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Transatlantic Subnational Innovation Competitiveness Index 3.0
Expertise 11. September 2026

Transatlantic Subnational Innovation Competitiveness Index 3.0

Axel Plünnecke et al

Innovation and competitiveness drive productivity, economic growth, and welfare growth.

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GTIPA Perspectives: Making AI Policy to Drive Innovation
External Publication 9. September 2026

GTIPA Perspectives: Making AI Policy to Drive Innovation

Vera Demary

Germany’s federal structure leads to a diverse landscape of AI policies across the country. While the EU AI Act establishes a general framework for AI policy throughout the continent, Germany’s federal government is responsible for national AI policies.

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AI skills demand in the EU
Expertise 8. September 2026

AI skills demand in the EU

Jan Büchel / Jan Engler / Armin Mertens

More and more companies in Europe are using artificial intelligence (AI) technologies. In 2025, one in five companies in the EU with 10 employees or more used at least one major AI technology, up from 8% in 2023 (Eurostat, 2026a).

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European Minimum Wage Directive and Strengthening Collective Bargaining Coverage
Expertise 25. August 2026

European Minimum Wage Directive and Strengthening Collective Bargaining Coverage

Hagen Lesch / Lennart Eckle / Sandra Vogel

The EU Minimum Wage Directive recommends that EU Member States achieve a collective bargaining coverage of 80 per cent to ensure adequate minimum wages.

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Critical Raw Materials: Corporate Exposure, Supply Risks and Adaptation Strategies
IW-Trends No. 2 6. August 2026

Critical Raw Materials: Corporate Exposure, Supply Risks and Adaptation Strategies

Adriana Neligan / Cornelius Bähr / Hubertus Bardt / Edgar Schmitz

Critical raw materials are vital inputs for key technologies and thus for industrial competitiveness.

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