1. 11.11.2021 · ZEW (msf/deg)
    Digital Economy | Sovereignty | Competitiveness
    Diagram on the survey of the information economy and the manufacturing sector.

    Germany and Europe are lacking digital sovereignty. This jeopardises the ability of the German economy and its European partners to respond effectively to future challenges, to innovate and to remain competitive. This is the result of a study by ZEW Mannheim, which is based on a comprehensive evaluation of the existing literature and a representative company survey. On behalf of the Federal Ministry for Economic Affairs and Energy, ZEW researchers surveyed more than 1,200 companies from the information economy and manufacturing industry.

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  2. 11.11.2021 · ZEW (csp/deg)
    Tax avoidance | Tax planning | Tax fairness | Corporate taxation
    Coins standing in a glass on a wooden shelf.

    European companies will be obliged to disclose their country-related profits and income taxes in the form of so-called country-by-country reporting in the future. A corresponding draft directive was approved today by the Parliament of the European Union. The aim of the directive is to detect and curb tax avoidance practices. The announcement of a preliminary political agreement on 1 June 2021 to introduce such a directive had already led to noticeable reactions on the capital market: A current study by ZEW Mannheim, in cooperation with the University of Mannheim, identified cumulative average abnormal returns between ‑0.499 and ‑0.699 per cent for up to two days after the announcement. This corresponds to a cumulative loss in firm value of 48 to 65 billion euros.

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  3. 10.11.2021 · ZEW (pbo/bpe/deg)
    Research and Development | China
    Red Traditional Chinese building in front of blue sky.

    With the 14th Five-Year Plan, the Chinese government has set itself the ambitious goal of creating a more innovation-based economy and becoming the world’s leading nation in science and technology by 2050. To this end, gross expenditures on research and development (R&D) are targeted to grow by at least seven per cent annually between 2021 and 2025. There are plans to stimulate more R&D in companies through extensive subsidies and other policy incentives. However, this is not the end of the story. As a recent study by ZEW Mannheim shows, misappropriation of subsidies has been widespread in China in the past and has long stood in the way of efficient use of state funding. Therefore, as early as 2006, a seminal change in China’s innovation and industrial policy took place and numerous measures were introduced to improve funding instruments and curb their misuse. “Should such measures become even more effective in the future, China will turn into an increasingly innovative competitor on the world market and at the same time become more attractive as an R&D location for foreign companies,” says Dr. Philipp Boeing, China expert at ZEW, commenting on the results of the study.

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  4. 09.11.2021 · ZEW (awh/msc/fbr/deg)
    ZEW Indicator of Economic Sentiment
    ZEW Indicator of Economic Sentiment | ZEW Financial Market Survey | Business survey | Short-term forecast | Cyclical indicator | Business cycle research | Germany | Europe
    ZEW Index November 2011 stands at 31.7 points

    The ZEW Indicator of Economic Sentiment for Germany increased in the current November 2021 survey, climbing 9.4 points to a new reading of 31.7 points. This is the first time since May that the indicator has recorded a rise. The assessment of the economic situation in Germany has worsened again in the current survey, falling by 9.1 points to a level of 12.5 points.

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  5. 08.11.2021 · ZEW (awh/tko/rha)
     ZEW logo on the occasion of the 30th anniversary of the institution.

    The ZEW – Leibniz Centre for European Economic Research celebrated its 30th anniversary on Monday, 8 November 2021. Since its foundation in 1991, the institute has become one of the most important voices in economic research and policy advice. “Specialising in empirical microeconomics has been ZEW’s trademark from the very beginning. This means that we have always focused on people, firms and markets in our research and that we have also kept an eye on feasibility when providing advice,” says ZEW President Professor Achim Wambach. “All research departments have developed their own unique competencies and are internationally respected. At the same time, ZEW has recently expanded its research in the area of market design. Here, we address questions on how markets can be organised intelligently to ensure a competitive and sustainable economy in the long run.”

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  6. 05.11.2021 · ZEW (ibe/deg)
    Digitisation | Coalition government | Digital Economy
    ZEW-Economist Irene Bertschek

    According to a report in the Handelsblatt, the so-called traffic light coalition partners SPD, FDP and the Greens, named after the traditional colours of the parties, have agreed not to create a digital ministry. Professor Irene Bertschek, head of the ZEW Research Department “Digital Economy”, has commented on that matter:

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  7. 04.11.2021 · ZEW (cgd/bch/deg)
    Energy efficiency | Building | Facility management | Climate protection | Tax Incentive
     Blue symbol for energy efficiency in buildings

    French policies to support households in refurbishing their homes for energy savings purposes differ considerably in terms of their cost-effectiveness. This is shown by a recent analysis by ZEW Mannheim. “The result is that the white certificates scheme (energy efficiency certificates involving energy suppliers) is the most cost effective,” explains ZEW researcher Dr. Claire Gavard, one of the authors of the study.

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  8. 03.11.2021 · ZEW (ssi/rha)
    Business tax | Innovation | Research and Development

    An increase in local business taxes has a negative impact on innovation in companies and economic growth in Germany. Higher taxes cause companies to reallocate their research and development (R&D) activities or abandon them altogether. As a result, the number of newly registered patents decreases, and with it the competitiveness in the market. This is the conclusion of an international team of researchers who examined how changes in local business tax rates slowed innovation over a 30-year period. “Higher taxation on companies leads them to reduce their investment in research and development, regardless of the company’s size. It is worthwhile for policymakers to take a closer look at this matter. So far, tax incentives for R&D have often been closely linked to the size of a company,” says Professor Sebastian Siegloch, head of the ZEW Research Department “Social Policy and Redistribution”. Under the Research Allowance Act implemented in Germany in 2019, all businesses conducting R&D have access to research allowances, which is a reasonable approach.

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  9. 02.11.2021 · ZEW (fhe/rha)
    Public Budget | Expenditure | Public Expenditure
    ZEW on a “future quota”

    In the coming years, public budgets in Germany will have to earmark considerable resources for long-term goals in the areas of climate, education and innovation policy. These are in competition for budgetary resources with policy areas that have an immediate benefit today and therefore enjoy strong political support. On behalf of the Federal Ministry of Education and Research, ZEW has now designed and calculated a “future quota” for the federal budget. This quota reflects the extent to which the budget provides funds for policies that will only generate benefits in the medium or long term. For 2019, which is the last federal budget before the pandemic, the study calculated that the “future quota” of the federal budget was at 18.3 per cent. ZEW recommends that such a quota be used as a compass for the budgets of the federal and state governments to counteract a budgetary present bias.

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  10. 31.10.2021 · ZEW (mkn/rha/sel)
    ZEW policy brief | UN climate change conference | Climate protection | Emission reduction
    ZEW policy brief on the establishment of a climate club

    Successful climate protection requires more effective incentive schemes that motivate countries to increase their efforts to reduce greenhouse gas emissions. According to ZEW, the UN Climate Change Conference in Glasgow (COP26) offers a good opportunity to negotiate or even establish a climate club. This would be an important step towards raising the level for ambitious climate protection. For the ZEW economists, on the other hand, it is questionable whether the gradual increase in country-specific climate change mitigation efforts agreed in the Paris Climate Agreement is really sufficient to achieve the global climate protection target. According to calculations by Climate Action Tracker, many countries have hardly shown any ambition to further reduce their emission targets. At the same time, only a few signatory countries to the Paris Agreement are on track with the 2-degree target. The reason for the hesitation of many countries certainly also lies in the underlying free-rider incentives that emanate from contributions by others to their own ambition levels.

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