Germany invests a lot of money in education and research

German society is ageing, a growing number of people are retiring, causing a problem and big companies are struggling to find bright minds, writes Stephan Lanzinger
Germany is famous for its innovative industries. Products made in Germany are in high demand worldwide, from cars, machines to household appliances. Why is Germany so innovative? The most important reason is, it invests a lot of money in education and research.After all, you need bright minds to develop good products. It is also a very stable country with excellent infrastructure.
The German economy has been flourishing for years and continues to hire more people. Unemployment figures have therefore been falling. However, since German society is ageing, a growing number of people are retiring, causing a big problem and big companies are struggling to find bright minds. It is already impossible to fill vacancies in certain regions and sectors with suitable skilled workers. This applies to technology, engineering and health. The situation is worsening in southern and eastern Germany in particular. Many companies are acutely affected by the shortage of skilled workers. More than 60 % of organisations see this as a threat to their business growth. In 2010, only 16% regarded the shortage of skilled workers as a business risk. Today, this shortage is the biggest obstacle.
Stephan Lanzinger, Science Counsellor from the Embassy of the Federal Republic of Germany
An important factor that will have a decisive influence on the prevailing shortage of skilled workers, especially in the future, is Germany's ageing society. According to current projections, the working age population-people above 20 and under 65-will drop by 3.9 million to 45.9 million by 2030. By 2060, there will be 10.2 million fewer people of working age.
Nearly 352 out of 801 sectors are currently confronted with a shortage of skilled workers. The so-called STEM areas (Science, Technology, Engineering and Mathematics) are particularly affected, especially mechanical, automotive and electrical engineering; supply and disposal technology; IT, software development and programming; and also the health sector.

Without immigration from other countries, this shortage would be even greater. Germany attracts skilled workers primarily from European countries, but immigration from other regions, including India, is increasing. According to a recent report, Germany will need 400,000 foreign skilled workers every year to maintain its current level. Germany's 400 universities have a key role to play in this regard. They train the bright minds that will maintain the country's innovative strength in the future. And because this is so important, Germany has invested heavily in its universities in the recent years, with great success. According to the latest THE World University Rankings, 47 German universities are counted among the very best in the world.
Since universities are crucial in securing skilled workers, Germany's higher education sector is not profit-oriented. Students are not recruited by the size of their purse. What is required are smart, ambitious students who will devote themselves to their studies wholeheartedly. Tuition fees are virtually unknown. This also applies to foreign students. Various scholarship programmes round off this attractive package. In addition, knowledge of German is not a must. There are already around 2,000 English-language master's and PhD programmes.
Nevertheless, learning German will make one's life so much easier. Currently, there are about 360,000 foreign students in Germany, including 17,500 from India. And the trend is rising. Indian graduates have excellent career opportunities. Many of them study subjects in which there is a shortage of skilled workers. After graduating from a German university, they can stay in the country for 18 months to look for a job. In addition, more and more German companies are investing in India, opening up additional career opportunities. It is a win-win situation.
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