The research results presented in this book are part of the continuous reporting on the technological performance of the German economy. The indicators of technological performance show a high efficiency of the German innovation system in the short term. With respect to the medium and longer term, however, the expansion of the R&D-intensive sectors, R&D activities in general and start-ups do not seem to be strong enough, and the service sector lacks prominent features in international comparison. While there are potentials, they are not sufficiently being mobilised. The strength of the German innovation system lies in advanced technologies. But Germany is also the technological leader in some areas. Being a "fast follower" by quickly integrating new technologies in innovative products and processes should prove a successful strategy. Innovation policy should promote solutions in all parts of the economy and society.