Innovation and International Competition

The KlimaF-I project analyses the importance of research and innovation (R&I) measures for achieving climate policy goals. Both the scientific and the application-related political perspectives are taken into account. The aim of the project is to gain a profound understanding of the significance of R&I measures for the achievement of climate policy goals, regarding systemic and cross-measure effects. The focus of the project is on German climate policy, which interacts closely with European climate policy.

The research project studies the effects that China’s growing economic engagement has on African economies, and how China’s economic presence is perceived by African citizens. To this effect, the key dimensions of trade, investment, aid, debt, and migration flows from China to Africa (and vice versa) are analyzed.

The Cluster for Economic Research on Africa focuses on enterprises and entrepreneurial potential in African markets, trade and investment policy, and issues of macroeconomic development, stability, and public finance. This research will strengthen evidence-based policy advice for German and European Africa policy and also engage and address African partners.

A new study by the Kiel Institute indicates that Beijing heavily subsidizes its domestic industries, particularly in sectors such as green technologies like electric mobility or wind power. Estimates suggest that China's overall subsidies range between three to nine times that of other OECD countries such as the USA or Germany. According to the analysis of new data, one of the major beneficiaries is the electric car manufacturer BYD. This reflects BYD's significant expansion in both technological and production capacities, as well as its increasing competitiveness.

Public investments in the development of lagging-behind regions reduce support for right-wing populist parties. This is shown by recent research results from the Kiel Institute. The influence of EU Regional Policy on the outcomes of European elections has been investigated. In funded regions, the vote share of right-wing populist parties fell by 15 to 20 percent, on average, that is 2 to 3 percentage points. At the same time, trust in democratic institutions increased, while dissatisfaction with the European Union (EU) decreased. Support for left-wing populist parties was not affected.

Dr. Wan-Hsin Liu, expert on China, international trade and investment at the Kiel Institute for the World Economy, comments on the economic policy options for the EU and Germany in light of the upcoming presidential election in Taiwan: