Germany leads the world in technologies for the circular economy - East Asia is catching up fast
Innovations in battery recycling and circular construction drive German transformation forward
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Germany is the world leader in technologies for the circular economy. In terms of the absolute number of patents in this area, only the USA is ahead of Germany; in terms of the economic relevance of patents, Germany is even the global leader. However, this leading position is increasingly under threat. Although the East Asian countries of China, South Korea and Japan are still well behind in some areas, they are far more dynamic in terms of innovation than Germany. Germany therefore now needs a reliable legal and financial framework for new innovation impetus.
Between 2010 and 2024, companies and research institutions worldwide registered almost 62,000 technological patents in the field of the circular economy, for example for the recycling of metals and plastics or the production of chemical products from renewable raw materials. This is the result of a new study commissioned by the Bertelsmann Stiftung, which for the first time allows a global evaluation of technological developments in this future field. With 10,700 patents, Germany accounts for just under 17 percent of global patent applications in this period. Only the United States, with 14,000 patents, performed even better. Japan is in third place in the global ranking with 8,600 patent applications. It is followed by France, Italy and the UK, as well as China and South Korea.
However, Germany's leading position is coming under increasing pressure because China, South Korea and Japan are catching up fast. In recent years, they have shown above-average momentum in the patenting of innovations in the field of the circular economy. In China, for example, almost five times as many patents were successfully registered in 2021 as in 2010. South Korea and Japan are also well above Germany, with three times and twice as many patents respectively in the years under comparison. Only 1.3 times as many patents were registered here in 2021 as in 2010 - the lowest figure among the top nations. "The circular economy is elementary for the long-term resilience and competitiveness, but also for the ecological transformation of the German and European economy," says Marc Wolinda, economic expert at the Bertelsmann Stiftung. "We therefore believe it is extremely important for the German government to quickly agree on an action program to implement the National Circular Economy Strategy in order to create a reliable legal and financial framework for new innovation impetus."
Germany leads the world in terms of the quality of patents
However, it is not just the sheer number of patents that shows how well Germany and other countries are technologically positioned for the circular economy, but also their quality and economic relevance. As an indicator of this, the Prognos AG study commissioned by the Bertelsmann Stiftung examines how often a country's patents are cited in other patent applications, i.e. whether they are relevant for new innovation cycles. In this respect, Germany is currently in the lead. German patents have been cited almost 15,000 times in the past 15 years. Japan is in second place with 9,960 citations, followed by the United States (9,900 citations). Italy, France and the UK follow at a considerable distance in next place. South Korea (1,734) and China (1,386) are even further behind.
Innovations in battery recycling and circular construction drive transformation forward
Two examples of important fields of innovation in the German economy are battery technologies and recycling as well as circular construction. Battery recycling is a key topic for the future, especially in light of the expansion of e-mobility and the existing major dependencies on China. Innovative approaches such as automating the dismantling of vehicle batteries and the use of second-life applications enable the efficient reuse of valuable raw materials and reduce dependence on international supply chains. Battery recycling is the only field of technology considered in the study in which the German share of global patents has recently increased. Unlike in other fields of technology, innovation in batteries is concentrated on a few large corporations.
In circular construction, the picture in Germany is quite different. Significantly more players are registering patents here, and they are spread across the country. With 20 percent of global patents, Germany has the highest global market share in this technology field of the circular economy. As there is great potential for transformation in the reuse of materials in the construction sector, this innovative strength is a positive sign. Around half of all raw materials removed are found in buildings, and more than a third of the waste generated comes from construction and demolition measures. What's more, many raw materials come from Germany itself, meaning that the supply chains are largely in our own hands.
"Battery recycling and circular construction are important future fields for the German economy. Building on this, the German government needs to set clear industrial policy goals that strengthen the circular economy and related sectors. In addition to targeted research funding, we need reliable demand from public procurement to help innovative circular products penetrate the market," says Wolinda. "If Germany quickly and significantly increases its innovation momentum again, it will succeed in defending its leading international position."
Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.
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The topic world Battery Technology combines relevant knowledge in a unique way. Here you will find everything about suppliers and their products, webinars, white papers, catalogs and brochures.