1. 21.12.2020 · ZEW (pbo/sel)
    Research
    Innovation policy | Research and Development | United States
     China is no role model with its strongly mission-driven innovation policy.

    Expenditure on research and development (R&D) has increased significantly in Germany and China in recent years. The resulting output growth is, however, lower than expected in both countries. “This indicates that research productivity in both economies is too weak,” explains Dr. Philipp Boeing, senior researcher and China expert at ZEW Mannheim. In a ZEW policy brief published today, he and Paul Hünermund, PhD, assistant professor at the Copenhagen Business School, have analysed how investment in R&D is related to research productivity in Germany and China. They conclude that in order to achieve sustained growth rates in Europe, “an innovation policy is needed that takes a bottom-up approach and does not rely too heavily on mission-driven research policies. This is the only way to achieve breakthrough innovations that can compete globally with the leading industrialised countries. China’s strongly mission-driven innovation policy cannot serve as a role model in this regard.”

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  2. 16.12.2020 · ZEW (dre/sel)
    Research
    Digital Economy | Coronavirus
    Optimization of the app could be accelerated with the help of a living lab.

    The German digital contact-tracing app “Corona-Warn-App” is designed to facilitate and speed up the tracking of SARS-CoV-2 infections. However, the app does not currently meet this objective. “To have its full impact, the app needs to be more widely used and the user guidance needs to be much more geared towards effectiveness. In addition, the app would have to be continuously improved on the basis of a well-defined performance measurement,” says Dr. Dominik Rehse, head of the Junior Research Group “Digital Market Design” at ZEW Mannheim. In a recently published ZEW policy brief, he and a researcher from the University of Mannheim recommend setting up a living lab for the contact-tracing app. The lab should serve to systematically test the measures to promote the app’s dissemination, optimise its use and measure its success in order to significantly improve the app.

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  3. 15.12.2020 · ZEW (awh)
    Comment
    EU Commission | Regulation | Competition
    Professor Dr. Achim Wambach on the EU’s Digital Market Rules.

    Today, the EU Commission is set to unveil the Digital Services and Digital Markets Acts in Brussels. Professor Achim Wambach, president of ZEW Mannheim and member of the Monopolies Commission, comments on this matter: “The EU Commission’s efforts to establish new rules that take into account the fast-paced dynamics of digital markets and limit the market power of tech giants in advance is the right approach. In the future, it will be important to prevent individual companies in digital markets from becoming uncontrollably powerful in the first place.

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  4. 15.12.2020 · ZEW (msc/sel)
    China Economic Panel
    Greater China | Cyclical indicator | Short-term forecast
    CEP indicator down to 31.3 points in December.

    In the December survey (1–9 December 2020), the CEP indicator decreased by 23.7 points to a new reading of 31.3 points. Although this marks a sharp decline, expectations are still at a historically high level. The CEP indicator, based on the China Economic Panel (CEP) in cooperation with Fudan University, Shanghai, reflects the economic expectations of international financial market experts for China on a 12-month basis.

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  5. 14.12.2020 · ZEW (kki/deg)
    Research
    Coronavirus | Company insolvency
    The special question of the current ZEW Financial Market Test shows an increase in the number of zombie companies.

    Thanks to the measures adopted to mitigate the economic effects of the coronavirus, the German economy has largely stabilised. Nevertheless, financial market experts expect the number of company insolvencies and credit defaults to rise in the first half of 2021. Moreover, they assume that the number of so-called zombie companies – i.e. firms that are insolvent but artificially kept alive by loans ­– is likely to grow. These are the results of a special question featured in the most recent ZEW Financial Market Survey conducted by ZEW Mannheim in December 2020 among 174 financial market experts.

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  6. 10.12.2020 · ZEW (cra/deg)
    Research
    innovation capacity | Innovation
    The field of AI accounted for €7.6 billion in German companies in 2018.

    German companies achieved a turnover of more than 7.6 billion euros with world market innovations in artificial intelligence (AI) in 2018. As a result, this form of technology accounts for approximately ten per cent of German turnover of world market innovations, according to a study conducted by ZEW Mannheim on behalf of the Federal Ministry for Economic Affairs and Energy (BMWi). The turnover achieved by these companies does not, in fact, increase as a result of these businesses using artificial intelligence. However, AI has an evident impact on the return on sales which stands at 6.4 per cent – 1.3 percentage points higher – purely through the use of this technology. Companies that use AI are therefore able to yield profits of around 25 per cent.

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  7. 10.12.2020 · ZEW (fhe/deg)
    Comment
    ECB
    Professor Dr. Friedrich Heinemann on the Results of the ZEW Study on Securities Purchase Programs.

    The Governing Council of the European Central Bank (ECB) has decided to expand the size of its pandemic emergency purchase programme (PEPP) by 500 billion euros as well as to extend its earliest end date by nine months until March 2022. Furthermore, the Council has postponed the start of net repayments under the PEPP until 2024 at the earliest. The ECB is thus reacting to the renewed economic slowdown caused by the second wave of the COVID-19 pandemic. Professor Friedrich Heinemann, head of the ZEW Research Department “Corporate Taxation and Public Finance”, comments on this matter.

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  8. 08.12.2020 · ZEW (msc/fbr/jrr/sel)
    ZEW Indicator of Economic Sentiment
    Cyclical indicator | Short-term forecast | Business survey | Germany | Europe
    ZEW Indicator of Economic Sentiment for Germany

    The ZEW Indicator of Economic Sentiment for Germany increased in the current December survey, climbing 16.0 points to a new reading of 55.0 points. Economic expectations have thus largely recovered from the sharp decline witnessed in the previous month. The assessment of the economic situation in Germany worsened again, and currently stands at minus 66.5 points, 2.2 points lower than in November. The assessment of the situation thus falls slightly below the September 2020 figure (minus 66.2 points).

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  9. 08.12.2020 · ZEW (fhe/ahv/deg)
    Research
    Coronavirus | ECB
     The overweighting of countries took place long before the coronavirus crisis.

    The Eurosystem’s bond purchases since the beginning of the COVID-19 pandemic deviate significantly from the ECB’s capital key in terms of their allocation among eurozone countries. Relative to the capital key, Italian government bond purchases deviated by as much as 25 per cent between March and September 2020, while Spain’s share of purchases exceeded its national capital key by eleven per cent, Belgium’s by seven per cent, and Slovenia and France’s by three per cent each. These are the findings of a study on the ECB’s sovereign purchase programmes, conducted by researchers of ZEW Mannheim with the support of the Brigitte Strube Stiftung.

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  10. 02.12.2020 · ZEW (dos/deg)
    Research
    flood damages
     The new ZEW study investigates educational campaigns in the field of flood protection.

    Natural disasters such as floods are becoming increasingly more common as a consequence of climate change. Several federal state governments in Germany have therefore initiated large-scale awareness campaigns in cooperation with the insurance industry. The aim is to make households more aware of this matter so they can cover themselves against damages caused by floods. A study led by Dr. Daniel Osberghaus, researcher in ZEW’s “Environmental and Resource Economics” Department, shows, however, that these campaigns have hardly had an effect on private flood protection or insurance decision-making.

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