THE FUTURE OF POLICY-ENABLED INNOVATION
Class: Spring 2025 Munich
Abstract
Europe stands at a pivotal crossroad: Productivity is stagnating, inequality is rising, and demographic shifts are widening. Moreover, democratic values are increasingly being questioned, and Germany seems too paralyzed by its bureaucracy to respond adequately. At the same time, we have unprecedented rates of technological and economic growth, posing systematic opportunities for transformation and development. To strategically leverage these opportunities as drivers for meaningful change, we need policymakers to effectively enable innovation.
Looking back, well-crafted policies have catalyzed major innovation leaps such as the invention of the internet, bluetooth, satellite navigation, and the development of mRNA vaccines that made the rapid development of COVID-19 vaccines possible, saving millions of lives.
Accelerating developments pose uncertainty across all dimensions, with questions such as: What technologies will shape our daily lives in the coming years? How can we unlock AI’s potential to streamline public services? Are we over-regulating new technologies? Or do we underestimate the potential of technological transformation? What role can circular economy models play in achieving climate goals and ensuring the sovereignty of our supply chains? And crucially, how can Germany and Europe position themselves as magnets for global top talents and investments?
This report repositions policy as the key lever to navigate the world’s growing uncertainty. Policies can enable progress that our society needs, to iteratively find answers and turn chaos into structure. It organizes these considerations into three sections: trends, exploration, and ideation.
The introductory section outlines trends in technical, societal, environmental, legal, and economic areas to provide a clearer picture of expected developments in the coming years. Further, selected problem spaces outline specific challenges related to government efficiency, external dependencies, infrastructure, workforce, and overall Germany’s innovation ecosystem. Finally, the report presents a set of tangible ideas to inspire policymakers toward action.
With strategic foresight, regulatory agility, and collaborative ecosystems, policymakers can shape the conditions for Europe to thrive despite growing complexity. Citizens, businesses, and policymakers need to work closely together and collectively leverage and convert our pivotal crossroad into an unprecedented opportunity for innovation.
Partners
Digitalization must yield tangible progress for the people of
Bavaria — enhancing daily life, streamlining interactions with
public institutions, and fostering renewed economic vitality.
The Bavarian State Ministry for Digital Affairs (StMD), founded
in 2018 as Germany’s first dedicated ministry for digitalization,
stands at the forefront of this transformation with clarity of
purpose and strategic foresight.
Under the leadership of Digital Minister Dr. Fabian Mehring,
the StMD serves as the architect of a modern, resilient,
and future-oriented Bavaria. In close collaboration with
industry, academia, and civil society, the ministry embraces its
responsibility to actively shape Bavaria’s digital present — and
future — in the best interests of its citizens.
Visit www.stmd.bayern.de for more information.
