Intellectual property appears to be at the heart of the incoming German coalition government's plans for economic revival. Protecting tech innovations may be key to competing more effectively with Asian markets, German politician and EU lawmaker Andrea Wechsler says, predicting that the new national IP strategy should simplify patenting for startups and support tech transfer, while navigating defense and trade shifts.
As Germany’s new coalition government promises to bring the country out of an economic slump, intellectual property will play a key role in its plans, according to one German member of the European Parliament.Andrea Wechsler told MLex that a promised IP strategy for Germany should fit Europe’s largest economy to compete with Asian markets. This is especially important when it comes to the prominent German car industry, led by the likes of Volkswagen, Mercedes-Benz and BMW.
“Without a strong IP system, Germany risks losing technological leadership to China and Korea, particularly as automotive transformation quickens,” Wechsler, a law professor, told MLex.
Two weeks ago Germany's Social Democratic Party and conservative Christian Social Union and Christian Democratic Union political parties agreed on a joint political program, following national elections held in February (see here).
Wechsler, a member of the CDU, said that Germany must defend its position as Asian markets grow. Around 70 percent of all global IP protection filings came from Asia in 2024, according to a report by the World Intellectual Property Organization.
A new European Patent Office report shows in addition that companies from South Korea, China and Japan made more than 26 percent of European patent applications in 2024 (see here). Korean tech giant Samsung and Chinese competitor Huawei are the top companies applying for patent protection in Europe, the report notes.
EU leaders and economists have called for Europe to protect strategic industries and reduce dependence on foreign powers. Wechsler believes that Germany’s IP push must line up with these EU sovereignty goals to shield the bloc from Asian tech dominance and future supply chain shocks.
— IP strategy —
Weeks of negotiations fed into a 146-page document laying out the German coalition government's program and stressing the priorities for the EU’s biggest economy.
Under its policy for research and innovation, the government in Berlin is pushing to slash red tape when it comes to research with the aim of supporting lab innovations that can reach the market.
The plan promises to cut small-scale funding bureaucracy, simplify rules in tax and procurement law and speed up approval processes for funding. Researchers may see more flexibility in managing project funds and lighter oversight from funding agencies.
The government also said it would develop a national strategy for intellectual property, but it provided no further details.
According to Wechsler, this could mean simpler patenting processes for start-ups and smaller businesses or incentives for IP commercialization through easier technology transfer and financing possibilities backed by a company’s IP value.
The IP strategy may also boost support for tech businesses covering industries such as AI, robotics and mobility, Wechsler said, in the hope of fostering “stronger integration between IP, research, and industrial policy to maintain Germany’s leading role in Europe.”
— Defense and trade —
In mid-March, the German parliament took the historic decision to pump military budgets and military technology investments amid turmoil in Europe after US President Donald Trump threatened to pull out of financing Ukraine’s defense against Russia's war.
The coalition links innovation with defense, Wechsler said. She expects Germany to encourage "dual-use" innovations, or technologies such as AI, drones and satellites that have both civilian and military applications. This could also include facilitating IP licensing models tailored for defense startups and small to medium-sized enterprises, she added.
The incoming government likely to be led by the CDU’s leader, Friedrich Merz, will also have to navigate a global trade war triggered by anticipated US tariffs on international goods.
The European Commission is responsible for negotiating EU-wide trade deals, but the German coalition's trade agenda sees it pushing the EU executive to fast-track these by splitting off “EU-only” elements — such as tariff cuts and market access — from broader deals that require approval from EU member states (see here).
The national IP strategy would need to protect German industries from technology expropriation abroad and provide mechanisms for retaliatory protection where needed, Wechsler said. “Trade tensions, especially export controls, impact Germany’s export-driven economy: A balanced, rule-based IP and trade approach is critical,” she said.
It should also focus on making supply chains more resilient, promoting the tech sovereignty that the EU seeks, the lawmaker said, especially in semiconductors, green tech and mobility innovations: “IP is no longer just about innovation — it’s about economic security."
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