Martin Gornig, a senior economist at the German Institute for Economic Research (DIW), has launched sharp criticism against Germany's industrial policy approach, which has historically championed the principle of 'technology neutrality'. According to him, the government's refusal to favor specific technologies has backfired, triggering a decline in the competitiveness of national industry, particularly in the automotive sector.
Gornig believes that this neutral policy has hindered German companies from investing fully and focusing on the development of future technologies, such as electric vehicles (EVs), which are now dominated by Chinese manufacturers. As a result, the once-superior image of German cars is gradually fading in the eyes of global consumers due to a lack of innovation and efficiency.
Furthermore, he emphasized that imposing import tariffs on Chinese electric vehicles is not a long-term solution. Instead, excessive protection risks making domestic industry complacent and reluctant to make crucial technological adjustments. "Germany needs competitive pressure to drive progress, not just trade protection," Gornig asserted.
As a way forward, Gornig suggests that Germany and Europe shift away from mass-production competition toward the development of specialized technologies or 'niche markets'. Fields such as construction robotics are cited as having great potential, where Germany still has the capacity to lead the global market. However, this strategy requires government courage to take risks in defining and promoting technologies that are strategic for the future of national industry.
