VCI: Strengthening Germany as a location of industry

Coalition agreement: Promise of tax incentives for research

The chemical industry wants a rapid and consistent implementation of the coalition agreement. Professor Dr. Ulrich Lehner (President of the German chemical industry association VCI) gave the following statement at a press conference in Frankfurt: "Tax incentives for research – as promised in the coalition agreement – should be introduced as soon as possible. Together with corrections in company taxation under the growth acceleration act, such incentives will strengthen innovation and investment of industry. This is a decisive prerequisite for coping with the crisis, because new products give the best impulses for more growth and crisis-proof jobs." According to Lehner, tax incentives for research need to be open to companies of all sizes, because today innovations come from alliances and networks.

In Lehner's view, the measures planned by the federal government are essential for Germany as a land of industry. With 24 percent, industry's contribution to the gross domestic product is higher in Germany than in any other industrial country. Some 6.1 million persons – over 22 percent of the total workforce in the German economy – have industry jobs. The government should consider these facts in a policy for innovation and invest­ment, which enables German industry to maintain its leading position in the world market – with a high share of product novelties. Lehner sees chemistry as the core of Germany as an industrial nation. He notes: "Carmaking, mechanical and electrical engineering, plastics and metal processing or construction – chemical products contribute to the performance and innovative abilities of many other industries. In particular, chemical products help improve their energy and resource efficiency."

Lehner believes that the federal government can reach its national climate targets only with industry contributing its full potential for innovation. He gives the following examples: solar cells of improved efficiency, better performing wind turbines, and serial-production vehicles running solely on electricity or fuel cells. Emphasizing that the chemical industy is at the centre of innovation, Lehner calls for cooperation between many industries along the entire value chain. Germany must remain a strong location of research and an internationally competitive production location for chemical companies. Lehner explains: "Much will depend on politicians finding the right balance. This means that both climate protection and competitive energy supplies for energy-intensive industries need to be ensured. Then, the chemical industry – together with other industries in Germany – can and will make important contributions to lasting and positive developments in our country."