Research expenditure: chemistry with a record in research – but pressure from Asia

The German chemical and pharmaceutical industry increases its research outputs at a record level – and at the same time warns of foreign competition. Investments in research and development are likely to grow to 16.5 billion euros this year, the Association of the Chemical Industry (VCI) in Frankfurt announced. That is 400 million euros more than 2024 and a new maximum value.

“The chemical and pharmaceutical companies have not put their research output on hold- despite massive economic problems in recent years,” said Thomas Wessel, Chairman of the Research and Education Committee in the VCI. However, the growth of the research levels is lower than in other industrial branches. The reason is the lack of competitiveness in Germany. “Part of the company’s commitment no longer takes place here, but at other locations worldwide.”

Strong competition from Asia

The chemical and pharmaceutical industry has a strong position in research, according to the VCI. However, in terms of the global patent applications in chemistry and pharmace, Germany is not only behind the leaders USA and Japan. China and South Korea have now also passed.

The domestic chemistry innovation location must become more attractive, said Wessel. For example, promoting mathematics, computer science, natural science and technology in schools is necessary, and more security is needed for employees in academic career.

The pharmaceutical and chemical industry traditionally spends a lot of money on research – for example on new medication or materials for industry. According to VCI, around 46,000 people work in the research laboratories in the industry, almost ten percent of the employees. Over 60 percent of the funds for research and development come from the pharmaceutical industry. In addition, the funds of the chemical industry promote academic research and chemistry lessons in schools, and since 1950 more than 530 million euros flowed.