Germany is providing roughly 3.9 million euros in funding to Fraunhofer Institutes

The state government of Baden-Württemberg has set its sights on the expansion of applied research and the establishment of new institutes as part of its innovation policy. This strategic move is aimed at ensuring that excellent research leads to tangible progress for Small and Medium-sized Enterprises (SMEs), as stated by Dr. Nicole Hoffmeister-Kraut, the Minister of Economic Affairs, Labour, and Tourism.

The Fraunhofer Society, an institution with a strong presence in Germany, operates 76 research institutes and facilities across the country. In Baden-Württemberg, the Society's research institutions have been a central innovation factor for decades, particularly for the SME sector. The state government is investing in the expansion and development of the Fraunhofer Society, InnBW, DLR, and other institutes of applied research, providing funds for buildings and equipment.

Eight projects have been selected for funding, totalling around 3.9 million euros, between 2025 and 2028. These projects, chosen for their high level of innovation, practical transfer formats, and broad economic impact, focus on hydrogen technologies, AI-supported material data analysis, digital construction industry, and related fields.

Key technologies of the Fraunhofer Society are well-represented in Baden-Württemberg, with institutes from each of the seven institute alliances located there. The regions of Stuttgart, Freiburg, and Karlsruhe are particular foci, with five, five, and three institutes respectively.

The goal is to strengthen the transfer of knowledge and technology from research to medium-sized companies in Baden-Württemberg, future-proofing the Innovation Location Baden-Württemberg. The Fraunhofer Society generates an annual research volume of approximately 3.4 billion euros, with around 600 million euros in Baden-Württemberg alone.

Approximately 32,000 employees work across the country, with around 6,100 in Baden-Württemberg. The research institutions of the Fraunhofer Society cover all important technology fields, including energy research, production research, materials research, security, mobility, learning systems and artificial intelligence, quantum sensorics, and bioeconomy and environmental technologies.

The Dual Budget 2025/2026 provides special funds for the promotion of collaborations between the institutes of the Fraunhofer Society and medium-sized companies. The projects are aimed at helping SMEs, especially during times of technological change, by providing excellent partners from research. All selected projects aim to develop new solutions together with companies, test them in practice, and establish them sustainably.

The projects cover a wide range of themes, including hydrogen technologies, AI-supported material data analysis, and the digitization of the construction industry. The support aims to ensure that SMEs in Baden-Württemberg remain at the forefront of innovation, driving economic growth and technological progress in the region.

Germany is providing roughly 3.9 million euros in funding to Fraunhofer Institutes