German Pharma Industry Calls for Action to Maintain Competitiveness

Germany's robust industrial health sector, a significant economic contributor with a gross value exceeding 100 billion euros, is facing increasing international competition. In response, the Industriegewerkschaft Bergbau, Chemie, Energie (IGBCE) union, in collaboration with eight pharmaceutical companies, has published a position paper outlining six key recommendations aimed at bolstering the nation's innovation capacity and competitiveness. The paper was adopted during the "Gesunde Industriepolitik – Fortschrittsdialog" (Healthy Industrial Policy – Progress Dialogue) event in Berlin, where strategies for securing the future of the industrial health sector were discussed.

The paper highlights that while Germany possesses strong university and non-university research institutions, excellent basic research findings are too rarely translated into market-ready health innovations that provide tangible benefits for patient care. "Research must progress beyond the laboratory," according to the authors. In this regard, representatives from IGBCE and the pharmaceutical companies emphasized the need for research, clinical development, and industrial implementation to proceed in tandem. Establishing robust cooperation and partnerships with research institutions, universities, startups, and other stakeholders is deemed essential.

Discussions during the event underscored the necessity for clear political signals and stable framework conditions. Six concrete recommendations for a "healthy industrial policy" were formulated. A central proposal involves conditional research funding, suggesting that public funds should be directed towards clusters, research facilities, startups, or companies that adhere to social standards (e.g., fair wages) and ecological standards, necessitating clear, measurable objectives and control mechanisms.

Furthermore, the paper advocates for bundling various public funding sources and supplementing these with private capital to create a seamless financing chain across all value creation stages and regions. The planned "Deutschlandfonds" (Germany Fund) is identified as a potentially valuable instrument, with the specific recommendation that allocated funds should also flow into health research, requiring a dedicated biotech or life science fund. The overarching goal of these proposals is to solidify Germany's position as a leading hub for health innovation.