Innovation expenditure in Saxony increases by almost ten percent

Saxony's companies once again invested more money in research and development (R&D) in 2023. Expenditure rose to around 1.9 billion euros, according to the latest report on the innovation behavior of Saxony's economy. Including expenditure on the preparation, production and market launch of innovations, total expenditure amounted to 4.6 billion euros - almost ten percent more than in 2022.

"Innovating means investing in the future," said Minister of Economic Affairs Dirk Panter (SPD). It is encouraging that the positive trend of recent years is continuing. According to Panter, small and medium-sized enterprises (SMEs) in particular are contributing to the innovation dynamic. They invest an above-average amount in research and development in relation to turnover. This gives them "a good starting position for future growth from research and development activities".

Electrical industry sets standards

For the first time, the report also analyzed innovation activities in the electrical industry/instrument technology, mechanical and vehicle engineering and information and communication sectors. These three sectors accounted for almost 60 percent of total R&D expenditure in Saxony in 2023. The electrical and instrument engineering industry alone was responsible for 40 percent. At around seven percent of turnover, their R&D intensity was above the state average and at the national level.

About nine percent of Saxon companies awarded research contracts to third parties in 2023 - a slight increase compared to previous years. At 15 percent, the proportion of companies with continuous R&D activities was above the national average of 13 percent. Occasional R&D activities were also recorded more frequently at eleven percent than the national average (nine percent).

Panter praises Saxony's innovative strength

"The results of the survey on the innovative behavior of the Saxon economy are a sign of the innovative strength in the Free State," emphasized Panter.

The report is based on a company survey on innovation activity in 2023. The survey is part of the nationwide innovation survey conducted by the Centre for European Economic Research (ZEW) on behalf of the Federal Ministry of Education and Research. In Saxony, it is evaluated annually by the Ministry of Economic Affairs.