Future-fit industrial policy in Germany

Germany’s industrial policy is at a turning point. The country faces converging crises – ecological degradation, geopolitical instability, and growing socio-economic divides. While industrial policy has re-emerged as a key economic policy instrument in Europe, Germany continues to rely heavily on sectoral funding programmes and fragmented strategies, lacking an overarching, forward-looking and evidence-based approach.

To respond to this challenge, ZOE Institute is working on an industrial strategy for Germany that paves the way for a socially just, ecologically sustainable, and resilient economy.  Our goal is to provide a coherent macroeconomic perspective that clearly identifies: (1) which industrial sectors are likely to phase out, (2) which ones require deep transformation to remain viable, and (3) which sectors should be strategically developed as future-fit industries that align with societal goals and long-term resilience.

In the current first phase, we are establishing the scientific foundation through a comprehensive analysis of Germany’s industrial sectors. To ensure both analytical depth and practical relevance, our approach combines quantitative analysis with qualitative validation through stakeholder input, laying the groundwork for evidence-based policy solutions. Based on this foundation, we aim to advance ecosystem building, narrative development, and on-the-ground application in subsequent project phases.

This initiative builds on years of experience working on industrial transformation at the European level. It adapts successful frameworks and methods to the specific needs and institutional context of Germany.