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Why is Germany the world’s most innovative country?


A recent Bloomberg was conducted, considering all the countries across the world, which depicts the most innovative countries in the world by their index value, learn more. Among all the 60 countries considered in the list, Germany ranks on top. Germany breaks South Korea’s six-year streak of becoming the world’s most innovative countries in the world, www.askvenue.com.my.

This ranking was based on factors like research and development, expenditure, number of domestic high-tech companies, number of domestic patent applications etc. Singapore and Denmark were also part of this list where they were tagged as the most improved among the top 10countries.

Positive ratings, Patent activities and high-tech density and high-valued manufacturing were the four significant factors that became the reason for their first position on the chart, breaking South Korea’s 6-year long streak. It is due to their slump and bleak productivity, that pushed the country down to the second position.

The Bloomberg Innovation Index

To create this list of rankings, the Bloomberg, as mentioned above, takes into account, a number of factors that not only contributes to an innovative economy but also the overall development of the country. Some of the major factors include:

  • Research and Development
  • The efficiency of tertiary education
  • High-tech density
  • High-tech manufacturing
  • Patent activity
  • Productivity and manufacturing

All these taken into account together reveals a score that sets the country in the number one position regarding innovation.


What exactly makes Germany the most innovative country?

Germany has not only been marked as the topmost innovative country, but it also holds the fifth position for:

  • Value-added manufacturing
  • Patent activity
  • High tech density

According to the words spoken by the chief economist Carsten Brzeski, the manufacturing of elements and products from Germany is what contributed to taking up the number one position and making the country so innovative. The country has invented an MP3 player and a fuel cell that would produce 295.32 per million population.

Having said that, despite taking up the number one position in innovation, Germany still falls short in the service sector and design. A significant amount of their goods and products is spent on their economy because car manufacturing is the primary source of their economy. Hence, their recent climatic change and sustainable development have also seen a significant change in their development.

Most of the country’s funds are spent on the manufacturing sector and industry. Hence their tertiary sector is kind of neglected. This could be a dangerous step as the economy is slightly shifting towards the service sector.

Bottom line

Germany’s innovative ideas like digitally networked mobility, electric mobility and driverless cars are the key factors that led to the economic and creative upliftment of the country. To achieve all the targets and the financial mark, the government spends nearly 2.9% of its GDP on Research and Development. All these would’ not be possible without the public and private researchers, for which Germany was ranked the third position.

Tips for Investing while living in Germany


Germany is a country that is popularly called an investing hub. The activity of investment is so much in the country such that flows in the blood of every German, and it is considered as an entrepreneurial exercise. It consists of a wide range of investment culture, and the products often range in quality. One best way of investment in Germany is through automated investment platforms. These automatic investments automatically pay dividends, funds, shares and bonuses. They also provide the perks of low associated annual costs.

Germans are always on the fence for allowing foreigners, especially Americans, to invest in their bonds, shares and other equities. This is due to the penalties that could be incurred. But nowadays, these investment options are available to the German-American residents and investors as well.


Tips for investing

One of the traditional means of investing while living in Germany is through commercial products and the availability of different schemes in the savings bank. However, this way is associated with higher levels of risk because of the way in which the banks operate – they’re sales oriented. In addition to this, the German banks only operate with minimal oversight and the career progression o the customers highly depend on their ability to see financial products.

Hence, it is imperative for the customers to bear in mind that the selection of the banks is limited to specific products from investment providers. The disinvesting in products are generally prolonged when required. This is because Germans typically have a higher quality and a more expensive legal team than any investor can have.

A standard bank in Germany generally recommends the extension of a client’s investment funds, when their credit ratings favour it. This is a disadvantage that is bored by the individual investor and not by the bank. Hence, it is generally recommended to use a leveraged position than simply using valuable funds.

Tips for investing

Potential investment products

If you’re looking for investment products in Germany, then there are a range of them and the products’ suitability is matched with their temperament of the investor. Having said that, it is highly not recommended to invest in incurring capital losses for a shorter time frame or an investment plan. Here are some of the potential investment products:

  • Cash saving or a bank deposit where the bank has to be supported or backed by the government schemes.
  • A guarantee pension plan
  • An insurance company deposit
  • Investment funds or mutual funds, which are generally assigned with the risk category of 1.
  • Long-term investments in the German government projects that are subsidized.
  • Certificates or the instruments called Zertifikate, which are mainly used to mark or indicate all the movements.
  • Hedge funds or also the private equity investments
  • Investment in residential properties

Closed-ended funds that basically operate on the maturity rates of the finance but is generally associated with higher risk levels.