Germany must take the lead in Europe's innovation move

Munich

THE mood in Germany is bleak, and not just because of the country's current economic slowdown. Long famed for its engineering know-how and high-quality industrial products, the German economy is now in danger of falling behind as software and data become increasingly crucial to future prosperity. And the recent news that US technology company Apple is now worth more than the entire DAX index of 30 leading German companies has no doubt deepened the gloom among business leaders and policymakers. If German firms don't adapt quickly, some may struggle to survive.

New digital technologies, including the Internet of Things and artificial intelligence, could profoundly disrupt German companies' traditional business models - especially in sectors such as machine-building, automobiles, and chemicals. Compounding the…