Baden-Württemberg minister warns firms against cutting R&D, pushes high-tech strategy with AI and robotics focus

Baden-Württemberg’s economics minister has told companies to maintain research and development spending even as the economy sputters, while her ministry refines a new high-tech strategy targeting seven key technology fields.

Minister’s warning

Speaking in Stuttgart, Nicole Hoffmeister-Kraut (CDU) said some firms were considering cutting R&D budgets to lower costs.

Even in a sluggish economy, companies should not ease up on investing in their future viability.

She called that the wrong path, insisting the state must remain a high-tech location.

R&D spending and strategy

The state’s R&D spending now stands at 5.6 percent of GDP, according to the economics ministry. The new high-tech strategy aims to promote artificial intelligence, quantum technology, humanoid robots, microelectronics, hydrogen technology, biotechnology and environmental protection technologies.

Above all in this area, science, industry and start-ups are to be more closely interlinked with the support of the state.

Three standout startups

The minister highlighted three companies as examples of the state’s potential. Neura Robotics of Metzingen builds humanoid robots for industrial use and recently closed a funding round of up to $1.4 billion. Black Forest Labs from Freiburg is among Europe’s fastest-growing AI firms, developing models for image generation and editing. Mannheim-based Osapiens produces supply-chain transparency software that scans for risks and verifies quality standards.

Faster product cycles

Hoffmeister-Kraut noted that the time from idea to market-ready product has halved in recent years.

We in Baden-Württemberg have to become even faster in order to defend and expand our position as a high-tech location.

The goal is for products developed in the southwest to also be manufactured there over the long term.