German corporations' innovation prowess erodes due to insufficient communication / Germany, second only to China in patent applications, underinvests in boosting innovation image.
German firms take pride in their innovative prowess but often overlook the investment in corresponding communication and image building, a study by YouGov reveals. Fink & Fuchs, the communications consultancy behind the study, points out that less than a quarter of these companies focus on communicating their innovations. Germany isn't short on innovation—it ranked second worldwide in patent applications in 2024, just behind the USA. However, the success of innovations depends on attracting international investors and effective marketing communication.
With the changing global economic landscape, German companies risk missing out on a significant opportunity by not investing in innovation reputation. As major investors reallocate funds due to U.S. customs chaos, financial experts like Deutsche Bank CEO Christian Sewing see a growing pro-European sentiment. To capitalize on this potential, companies must strengthen their innovation reputation, warns CEO of Fink & Fuchs AG, Alexandra Groß, emphasizing that neglecting innovation communication can render companies virtually invisible in competition.
Communication's importance is recognized, but action falls short. Over 87% of decision-makers surveyed consider communication crucial or very important for business success. They also prioritize a clear management position and communication with stakeholders. However, only 17% of companies use both internal and external communication resources, and only 29% publish news several times a month.
German companies seem to have an "attitude-behavior gap" in their communication, risking missed opportunities to strategically strengthen their reputation with stakeholders, differentiate themselves from competitors, and secure their long-term success. This dilemma is also evident in innovation communication: While 51% rate their own company's innovative strength highly, less than a quarter communicate strongly about it.
Successful innovation communication demands attention-grabbing media relations, digital campaigns, network activation, and dialogue with stakeholders in the innovation environment. It allows companies to shape the agendas of politics, science, and media favorably. Creative launch campaigns, PR stunts, and lead generation campaigns can subsequently engage the target audience. Top-level positioning further elevates personalities who credibly represent innovation and change. Such strategies not only bring competitive advantages to companies but also enhance the international perception of Germany as an innovative economic location.
Despite the positive self-assessment, only 37% of respondents consider Germany an innovative country. Communicating innovation strengths consistently can address these misconceptions, improving Germany's standing as an innovation powerhouse in the global market. Being strategic, content-based, and continuous in innovation communication would be crucial, says Groß, emphasizing that it should be a fixed component of every future strategy.
- The strategic investment in innovation communication is crucial for German companies to capitalize on the growing pro-European sentiment among major investors, as neglecting this aspect can render them virtually invisible in competition.
- Effective innovation communication, encompassing attention-grabbing media relations, digital campaigns, network activation, and dialogue with stakeholders, allows companies to elevate their standing as an innovative economic location and shape the global market's perception of Germany.
