POSITION PAPER | INNOVATION | COMPETITIVENESS
Strengthening innovative power, remaining competitive Priorities of German industry for the next Research Framework Programme and the European Competitiveness Fund
13 January 2026 Executive Summary Europe is at a crossroads: climate change, technological change, geopolitical conflicts and demographic challenges are profoundly changing our society and economy. At the same time, the innovation gap between Europe and the US and China continues to grow. Europe's innovative capacity is declining, as Mario Draghi and Manuel Heitor have shown and made clear in their reports: To ensure that Europe remains self-determined and economically strong in the future, competitiveness and the promotion of innovation must be at the heart of the European economic agenda, and more money must be invested in research and innovation. The BDI welcomes the fact that the next research framework programme and the European Competitiveness Fund are intended to strengthen Europe's competitiveness. For the upcoming negotiations, German industry recommends the following measures: Policy recommendations at a glance: ▪
Budget and financing: German industry is calling for significant budget increases through appropriate prioritisation in the next multiannual financial framework for research and innovation in order to secure Europe's innovative strength and global competitiveness. The total budget for the 10th EU Framework Programme for Research and Innovation should amount to EUR 200 billion, with an increase in Pillar 2 to at least 56% of the total budget in order to close Europe's innovation gap in the transition from industry to research.
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Industrial orientation and strategic focus: In terms of programme design, industry is calling for a stronger focus on applied research with industry-driven priorities and a clear focus on economic scaling. The interlinking of FP10 and ECF should be clearly defined, and national and European measures must be more closely interlinked.
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European partnerships and cooperation: European partnerships should be more industry-led and remain innovation- and results-oriented, without mandatory financial contributions from companies. Cooperation with associated and like-minded third countries is indispensable for key technologies.
Lukas Martin | Innovation, Security and Technology | T: +3227921017 | l.martin@bdi.eu | www.bdi.eu