Germany
Government spending on R&D in Germany has increased approximately 50% between 2005 and 2015, according to a study by the Commission of Experts for Research and Innovation. The federal government set a target of R&D accounting for 1.15% of GDP by 2025, but based on the minimal increases in R&D spending over the past 12 years, it is unlikely that the goal will be met. The missing of the mark is attributed to higher federal expenditures associated with R&D, with the government contributing 59%, or €14.90 billion ($15.8 billion), of total funding in 2015, as opposed to the 41%, or €10.18 billion ($10.78 billion), contributed by state governments. In 2016, a €15.8 billion increase was announced for federal R&D spending; however, if state governments do not contribute more than they have in the past, the yearly R&D share is estimated to fall to a 0.84% share of the country’s GDP.
Historically, the majority of public R&D expenditure has been allocated to academia, which represented 39% in 2015. Since 1991, the sector with the largest decrease in R&D expenditure has been defense, which has fallen 11.1% over the last 25 years. Energy, agriculture and nutrition research have flourished since 2005, with an average annual growth rate of 8.4% between 2005 and 2015.
