Watch without advertising in the ifo Media Library: https://www.ifo.de/mediathek/2024-11-... Prof. Dr. Dr. hc Clemens Fuest, President of the ifo Institute 06.11.2024 https://www.ifo.de/veranstaltung/2024... 06:06 Agenda 06:20 Current economic situation 06:21 ifo business climate slightly increased after four consecutive declines: Expectations remain marked by skepticism 07:05 Joint diagnosis autumn 2024: German economy in upheaval - economic situation and growth weak 08:37 R&D expenditure volume: Europe invests too little 09:50 European countries are falling behind in R&D expenditure: Difference caused by private R&D expenditure 11:26 Research and development: Europe in the medium-tech trap 11:28 ifo publications 2024 on the medium-tech trap 11:33 Europe in the medium-tech trap 16:51 Concentration of R&D expenditure in Europe on medium-tech industries 18:35 Higher expenditure on high-tech industries in the USA and China, especially in the IT and software sector 20:19 Innovation output: patents 21:39 Companies in the high-tech sector invest more in R&D 22:12 Net sales by technology level: medium technology dominates in Europe 22:37 Profits by technology level: high-tech highly profitable in the USA 24:04 Path dependency? USA dominates in the computer industry 24:31 Path dependency? EU dominates (albeit less) in vehicles 24:53 Corporate dynamics and medium-tech positioning 26:46 Consequences: productivity development 27:15 Competitiveness: labor productivity in relation to the USA 28:28 Development of economic output 2000-2024 29:24 Importance of the automotive industry 29:34 Structural change 2001-2021 in Germany: Increasing importance of the automotive sector within the manufacturing industry 30:19 Motor vehicle manufacturing with 16% share of total value added in the manufacturing industry 30:31 But: employment and working hours in motor vehicle manufacturing have been declining since 2017/2018 30:58 Production in the automotive industry declining - 13.4% below 2015 in Germany in 2023 31:39 How can Europe escape the medium-tech trap? 31:47 Adjustment in training and qualifications 31:54 Number of students in mathematics and natural sciences declining - despite increasing total number of students 32:22 Increase in the number of students in computer science - but from a low starting level 32:33 Value-added production steps remain in Germany so far, despite declining production 33:07 Automotive industry: Shift from manufacturing to IT-related professions 33:47 Innovation policy at EU level 34:12 Structure of Horizon Europe - Breakdown of average EU R&D expenditure 35:32 Technologies: State funding only makes sense when there is a long way to market readiness (e.g. TLR 1-4) 35:54 Different governance is needed to realize ambitions 37:06 Reforms at EU level 37:09 Agenda at national level 37:28 National level: Broad agenda for more innovation and company dynamism This year's event deals with the challenges and opportunities of artificial intelligence in companies. How is AI already being used successfully? What is still holding companies back from using it and how can existing obstacles be overcome? ifo Institute – Leibniz Institute for Economic Research at the University of Munich eV