Reference Message Network reported on April 9 that the website of the British "The Economist" weekly published an article titled "How to Revitalize Germany's Economy" on March 31. The author is Roland Busch, President and CEO of Siemens AG in Germany. The following is a translated version of the content:
Is Germany ready to start anew? For a long time, Germany has been reluctant to embrace change and has relied solely on its glorious historical legacy for development. However, this model can no longer be sustained.
Currently, geopolitical changes, new and old conflicts, and deep adjustments in supply chains are reshaping the global competitive landscape. As countries like the United States and China restructure their industrial layouts and enterprises move production to key markets, "hyperglobalization" is gradually being replaced by "glocalization." German companies can relocate factories, but the German economy cannot pivot accordingly. Therefore, Germany must forge new growth paths.
Meanwhile, technological transformation is sweeping across the market, reshaping economic power. The boundaries between hardware and software are becoming increasingly blurred, a trend not only evident in the operating modes of various products such as cars and smartphones but also profoundly reflected in the revolution of manufacturing methods brought about by software and artificial intelligence.
Such times should be an opportunity for Germany. Germany boasts profound industrial theoretical knowledge and leads the world in terms of technical levels in industrial artificial intelligence, automation, and software.
However, Germany cannot keep up with development solely by patching up old systems. While increasing investment in security, infrastructure, and innovation is a bold start, it remains insufficient. Structural reforms are equally important, focusing on three aspects: removing obstacles to stronger economic growth, building a world-class innovation ecosystem, and implementing Europe's economic plan.
Firstly, promoting economic growth. Although Germany has introduced some reform measures recently, the existing system still appears overly cumbersome and inefficient. In Germany, obtaining a business license takes an average of 120 days, twice the average of developed economies. Approving projects such as high-voltage transmission lines or railway expansions may take ten years or even longer. Germany urgently needs to streamline laws, improve their quality, and establish a public administration that can keep pace with innovation.
Secondly, innovation. Germany possesses advanced machine manufacturing technology and must now enhance its industrial level further through industrial artificial intelligence. In the future, "Made in Germany" should integrate artificial intelligence entities, adaptive robots, and smart factories that redefine industries. To achieve this goal, a collaborative innovation ecosystem involving startups, industrial enterprises, tech companies, and universities is needed.
In this process, data acquisition and sharing play a decisive role. The prosperity of digital ecosystems depends on the widespread availability of data rather than artificially created data scarcity. However, an unprecedented retreat is occurring in the digital economy sector. Due to regulatory restrictions, the scale of industrial data storage and sharing in Europe is shrinking continuously. Germany must reverse this unfavorable trend and actively advocate more enlightened and innovation-friendly data policies.
In the process of converting innovation into profits, venture capital is a critical missing link. In 2022, Germany's venture capital accounted for only 0.09% of GDP, approximately one-eighth of that in the United States and below the EU average. To gain global competitiveness, Germany's venture capital funds need to increase at least fivefold.
The third task is to implement Europe's economic plan. Germany's future is closely linked to Europe, and Germany will benefit from a strong and competitive European Union. However, some current EU regulatory measures do not promote economic growth but hinder it to a certain extent.
Europe must act swiftly. It should immediately announce the suspension of some regulatory measures to avoid stifling innovation in its infancy. At the same time, prepare to introduce a second "Comprehensive Act," including postponing the implementation of the "Artificial Intelligence Act," "Cyber Resilience Act," and abolishing the "Data Act" to clear obstacles for innovations leading the future.
Europe needs to deepen integration. Currently, internal regulatory barriers in the EU severely hinder economic development, equivalent to imposing a 45% tariff on industrial products and a 110% tariff on services. This is undoubtedly self-harm economically.
Germany has taken a bold first step. However, real transformation cannot be achieved by merely breaking one taboo. This requires rewriting the fundamental rules of the entire system. Germany has the talent, technology, and industrial foundation to take control of its own destiny. However, opportunities are fleeting. (Translated by Wang Dongdong)
Original source: https://www.toutiao.com/article/7491235737719800329/
Disclaimer: The article reflects the views of the author alone. Please express your attitude by clicking the "Like/Dislike" buttons below.