Germany’s Competitive Edge: Interview with Achim Hartig - Managing Director, GTAI | Chair, OECD IPA Network, Germany

Meeting highlight:

• Germany Remains a Strong Investment Hub: Despite global uncertainties, major pharmaceutical firms like Lilly, Daiichi Sankyo, and Roche continue to invest heavily in Germany, attracted by its stable environment, strong regulatory framework, and robust R&D ecosystems.  
• Strategic Focus on Resilience and Autonomy: Lessons from the pandemic have led Germany to prioritize healthcare resilience. This includes strengthening supply chains, fostering innovation through ecosystems like the BioNTech-Pfizer model, and supporting VC funding for health startups to fuel long-term autonomy.  
• Digital Health Infrastructure is Opening New Markets: Reforms such as electronic patient records (EPA) and data-sharing for research are creating significant investment opportunities. These changes also improve healthcare access and enable broader participation, particularly through digital services. 
• AI is Driving Innovation Across Healthcare: Germany is embracing AI for its transformative impact— from personalized medicine and drug discovery to imaging and robotics. The convergence of AI with health data analytics is seen as key to maintaining global competitiveness. 
• Germany and Europe Must Cooperate to Compete Globally: Achim Hartig advocates for a shift from national competition to European cooperation in investment promotion, envisioning a unified European investment agency to better attract global capital and position Europe as an integrated innovation powerhouse. 

EF: It has been two years since we last connected. What changes have you observed in the landscape over that period, and what are your current priorities? 

AH: Considering that we are managing substantial FDI from a variety of industries, I can draw a direct comparison with the healthcare and pharmaceutical sectors. Just as in the past, significant investments in Germany have continued. Major investments include a €2.3 billion investment by Lilly and €1 billion by Daiichi Sankyo, along with additional rounds of €600 million by Roche, €150 million by AbbVie, and €1.3 billion by Sanofi. Clearly, companies remain committed to investing in Germany’s pharmaceutical industry. 

In a broader sense, although these figures pertain specifically to pharmaceuticals, the overall healthcare sector is even larger, and digital healthcare services are emerging as a rapidly expanding field. The stable growth experienced over the past two years is driven in part by increasing global uncertainty. This uncertainty prompts companies to diversify their supply chains and seek secure regions for production and research and development, with Europe—and Germany, in particular—standing out as a hub of excellence with robust industry ecosystems. 

Moreover, shifting demographics in Europe, and especially in Germany, offer opportunities for healthcare and pharmaceutical service providers. As populations age and healthcare needs evolve, these sectors are poised to grow, even if they are not the fastest in rapid expansion. Changes in the regulatory environment have also played a role; regulators have slowly embraced digital services, opening up new segments where such services can be prescribed by doctors and reimbursed by health insurers. These factors collectively have created new markets and spurred innovation in Germany over the last two years. 

EF: How do you think Germany can capitalize on geopolitical shifts as EU policymakers push for more strategic autonomy? 

AH: The pandemic clearly highlighted the risk of relying on just a handful of supply chains or vendors. Germany, in response, has been actively working to strengthen its national and broader European ecosystems. It is difficult to draw a sharp line between the two since Germany is deeply embedded in a network of international supply chains and R&D collaborations across Europe. Rather than viewing Germany in isolation, it makes more sense to see it as a central hub within a wider European framework. 

During the pandemic, we recognized the urgent need for greater autonomy, and in some ways, we began to build that capacity in real time. Take the example of BioNTech and Pfizer. Beyond developing a successful vaccine, BioNTech established over 1,200 contracts with local partners within Germany to support its production and delivery. That level of coordination reflects the strength and potential of Germany’s innovation ecosystem in pharmaceutical manufacturing. We are really focused on building long-term resilience in both the pharmaceutical and healthcare sectors. The BioNTech example shows that Germany can support complex, high-level innovation through local networks and partnerships. 

At the same time, Germany is making it easier for venture capital to enter the market, opening up new pathways for startups to grow. Many of these startups are not yet profitable but are developing cutting-edge solutions that could reshape the industry. Supporting them helps inject fresh innovation into existing value chains and gives rise to future market leaders. 

So, in short, there are two key dimensions here: first, Germany is leveraging its well-established ecosystem to drive collaboration and innovation; second, it is creating conditions for new players to enter and thrive, further strengthening the resilience and future competitiveness of the healthcare and pharmaceutical sectors. 

EF: How important is a strong digital health infrastructure for attracting investment? 

AH: This is a medium-term goal for Germany. While we may not be the fastest in adopting digital technologies, we are now seeing concrete steps being taken in the right direction. One key development is introducing the electronic patient record, or ePA, which is an important milestone. 

But the impact goes beyond just the ePA. What is promising is how Germany is beginning to make health data accessible for research and development. The regulatory framework is evolving to allow data from electronic patient records to be combined with information from health insurance providers, enabling its use in research while still upholding Germany’s strong data protection standards. That balance of maintaining privacy while unlocking value for research is a breakthrough. 

This shift opens up new market opportunities in several ways. First, it allows digital services to become more efficient and targeted, which, in turn, makes them more attractive and scalable. Second, digital healthcare solutions improve access to care for individuals who may struggle to reach a doctor—whether due to geography, mobility, or other constraints—and digital tools provide an alternative that brings more people into the healthcare system. With a population of over 83 million, the potential to expand access and grow the market is significant. 

Of course, artificial intelligence will likely come into this conversation as well. It is a cross-cutting enabler that links across sectors and disciplines, and it will certainly play a role in advancing the digital health ecosystem. However, in terms of digital health specifically, these developments mark a strong starting point—one that lays the foundation for new market segments and broader healthcare access in the near future. 

EF: How do you assess the current trends in AI?  

AH: Ultimately, it comes down to data analytics and solution generation. We are seeing that the development of AI models is accelerating at a remarkable pace. Whether you look at Perplexity, OpenAI, Claude, Meta, or others, they are all pushing to reduce error rates and improve the accuracy of their outputs. 

This is especially relevant in highly complex fields, such as genome analysis, genetic data interpretation, personalized medicine, and molecule design in the pharmaceutical industry. The potential here is truly transformative, and it is difficult to fully grasp how far this might take us. 

AI is becoming a unifying force across domains—from medical imaging and drug discovery to surgical robotics and assistive technologies like exoskeletons. At this point, the scope of its applications seems limitless. 

EF: Are there any specific collaborations or initiatives underway to bring stakeholders together and help incentivize new investments in Germany? 

AH: Yes, we do have a dedicated program that specifically targets digital companies and startups. Our core mission is, of course, to support them in establishing a presence in Germany. But beyond that, we also connect them to one of the many digital hubs across the country—there are more than 20 of these hubs, each focused on different sectors, including healthcare and pharmaceuticals. 

This gives startups the opportunity to test their business models and potentially learn from established industry players. At the same time, it works the other way around—the industry also benefits by learning from the fresh ideas and agility of startups. 

By actively supporting the development of these ecosystems and by attracting foreign direct investment—especially Greenfield investments—while also helping startups integrate into these networks, we create an environment where meaningful partnerships can take shape and thrive. 

EF: When you engage with these companies and work on building partnerships, how do you communicate the continued attractiveness of investing in Germany? 

AH: There are several layers to how we communicate Germany’s continued attractiveness as a business location. 

The first layer involves addressing how Germany is generally perceived as a place to do business. Right now, there is a lot of commentary, particularly from domestic companies, about challenges such as rising energy costs and regulatory complexity. However, it is important to recognize that foreign companies often view Germany through a different lens. When they assess global investment opportunities, they compare countries based on factors like political stability, legal reliability, and economic strength. These fundamentals often narrow their choices significantly. 

For companies looking specifically at Europe, the list of viable options becomes even more focused. And when you consider sectors like healthcare and pharmaceuticals, only a few countries emerge as truly attractive—typically Germany, France, and perhaps Switzerland. Germany consistently stands out due to its strong market size, regulatory predictability, and industrial infrastructure. 

Beyond those fundamentals, we also highlight Germany’s proven track record of building up industries and its deep expertise in the life sciences sector. Being located within one of Europe’s most economically powerful regions, alongside France and Switzerland, makes Germany a strategic base for companies looking to expand across the continent. 

When we speak to companies or potential partners, we frame the conversation around this layered view: from macroeconomic and geopolitical strengths to sector-specific expertise and ecosystem advantages, Germany offers a compelling case for continued investment and innovation. 

EF: What do you hope to see from the new government from an investment perspective? 

AH: It is essential that we maintain the level of openness we are currently seeing. For instance, when I mentioned earlier that Germany has begun to open up access to health data, it reflects a broader mindset, one that actively fosters collaboration between science and industry. This spirit of openness and connectivity needs to be cultivated further. 

I am confident that the new government will carry this forward in its policy agenda. The result of this mindset is an increased capacity for innovation, which in turn strengthens our ability to build resilience, not only within the pharmaceutical and healthcare sectors but across all areas of the German economy. 

To me, that is the most critical point. Driving innovation through openness is where our focus needs to remain.