German Bundestag – Germany expandable as a location for biotech companies

Berthold U. Wigger, Chair of Finance and Public Management at the Karlsruhe Institute of Technology, found that the state was using the money to solve problems that it had created itself. Instead, it is more important to improve the tax environment. “Researching companies react very quickly to general conditions. Germany has become a high-tax country,” says Wigger, adding that this does not work as a locational advantage. In addition, the state should not do one thing: promote individual projects, said Wigger. Instead, he must improve the framework and adjust the tax system.

Viola Bronsema, Managing Director of BIO Deutschland eV, said that even with funding for biotech companies through the Important Project of Common European Interest (IPCEI) program, health in Germany is still difficult. Everyone has known how important the industry is since the outbreak of the corona pandemic at the latest. “We lack a financing ecosystem for young companies and start-ups,” says Bronsema. Although Germany is already good at promoting innovation, investments in new companies must increase: “At Biontech, we have seen that it works.”

Iris Plöger, member of the executive board of the Federation of German Industries, pointed out that IPCEI is a European project. More far-sightedness is needed in research funding in order to achieve greater independence. In Germany, the conditions for companies in the biotech industry must also be improved across the board: “Because industry always goes where the location factors are right.” It is therefore necessary to provide better incentives if Germany is a strong location in want to be in this area.

Andreas Eckert, Managing Partner of Eckert Venture Capital and Early Phase Financing GmbH, shared the opinion of expert Wigger that tax law needs to be worked on in order to create better conditions for companies. However, he did not believe that Germany could develop into one of the best locations for the pharmaceutical industry: “We will never have a big biotech nation, we missed the train.” The industry is extremely international and reacts very fluidly – companies relocate their locations very quickly to where the best conditions are.

Dorothee Stamm, Deputy Chairwoman of the Federal Association of Medical Technology, criticized the fact that data protection in Germany is too often given priority over health protection. There is insufficient access to health data that is important for research and development. The reason for this is the “very strict interpretation of the General Data Protection Regulation”. It is a major problem for companies in the industry if, for example, data from different sources cannot be combined. In addition, the industry has an export rate of 66 percent, so more international standards are needed, “no German or European special paths,” says Stamm.

Alexandra Krieger, Head of Controlling and Compliance at the Mining, Chemical and Energy Industrial Union, reported on the great potential of the industry. A trend of growth can be observed, which has developed positively in the past and has remained unbroken even in difficult times. In order to further increase the potential, however, the processes in Germany would have to be improved. Many things take too long, and there is no complete financing chain, said Krieger. This means that “germ cells from Germany are made big in the USA.”

Jörg Schaaber from the Buko Pharma campaign “Health – global and fair” was of the opinion that state funding is only justified “if useful products are promoted that would otherwise not be created”. The previous federal government had already described itself as a “Global Health Champion”; Basic research will continue to be “very heavily funded,” says Schaaber. “But what gets lost is the question of public investment: If the state subsidizes so much, what does it get back?” asked the expert.

The hib message on the application of the CDU / CSU parliamentary group: