German chemical producers to raise R&D spending – survey

26 August 2010 16:43  [Source: ICIS news]

TORONTO (ICIS)--Germany’s chemical producers plan to raise their research and development (R&D) spending by 4% this year, according to survey figures released on Thursday by a chemical trade group.

Last year, the country’s chemical industry spent €8.3bn ($10.5bn) on R&D, unchanged from 2008, despite the economic crisis, Frankfurt-based VCI said.

“If you cut back on R&D during a crisis, you will lose out to competitors in the recovery,” said Andreas Kreimeyer, the BASF executive board member who heads VCI’s R&D portfolio.

Going forward, a particular research focus for Germany’s chemical producers was electro-mobility, which included research on battery technology, low-weight car components, raw materials and recycling, he added.

Kreimeyer said that Japan, South Korea and China, all had a five-year lead in battery technology.

However, he was confident that with government support, Germany could catch up with its Asian competitors.

At the same time, Kreimeyer called on Germany’s government to introduce tax incentives for R&D.

While the government needed to save and cut debts, investment in R&D was the basis for growth and future tax revenues, he said.

VCI represents about 1,650 Germany-based chemical firms.

($1 = €0.79)

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By: Stefan Baumgarten
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