The project examines how innovation activities and innovation success are evolving in the German manufacture of machinery and equipment n.e.c. and whether they are becoming increasingly concentrated among a smaller group of firms. To this end, data from the German Innovation Survey are analysed in greater depth and combined with a survey of VDMA member companies. Particular attention is paid to developments in the sales shares generated by product innovations and market novelties, as well as to potential reasons why firms reduce or discontinue innovation activities. In addition, developments in the machinery and equipment industry are compared with those in other manufacturing industries.