New law gives innovation agency Sprind more freedom

Rafael Lagoon

The Sprind boss is satisfied with the draft law.

(Photo: Sprind)

Berlin In the future, the federal agency for disruptive innovations (Sprind) should be able to decide independently how and which innovators it supports. This is shown by a draft law of the so-called “Freedom Act” from the house of Research Minister Bettina Stark-Watzinger (FDP), which is available to the Handelsblatt. This provides that the agency, which was founded a good three years ago, will be able to act much more freely in the future: The content control by the research ministry should be abolished, and within certain limits unhindered participation in start-ups, cooperation with other investors and even profits should be possible be.

In addition, Sprind boss Rafael Laguna de la Vera will in future also be allowed to pay “competitive” salaries to employees who help him in the search for inventors with top ideas.

The agency initiated by Angela Merkel is intended to promote people whose ideas enable completely new products or processes – so-called disruptive innovations or “leap innovations” that bring lasting economic benefits. The federal government founded it in 2019 based on the model of the much larger US Darpa, which has played a central role in innovations “made in the USA” for decades. So far, your central instruments have been the organization of competitions and the founding of 100 percent subsidiaries for top innovations.

However, it quickly became apparent that Sprind, constrained by German budgetary law, “could not fully develop its potential,” Stark-Watzinger told the Handelsblatt. Therefore, “we are now freeing the Sprind from unnecessary bureaucratic shackles and giving it a lot of freedom”. This is an important signal for Germany as a location for innovation and will enable more breakthrough innovations.

Treasury has slowed down so far

The background to this is the growing backlog of Germany as a location for innovation: a study by the BDI just showed that the Federal Republic of Germany only ranks tenth internationally in terms of innovative ability – behind countries such as Switzerland, Singapore and Denmark. An analysis of 500 companies worldwide by the auditing company EY showed: Nowhere is spending on research and development increasing as quickly as in the USA. Germany is falling behind – especially in key technologies such as chip production or AI.

>> Read also: Germany falls behind when it comes to innovation

The present law was already announced in the coalition agreement. But because the Treasury Department then slowed down, Laguna had already threatened to be fired. In the ministry of Christian Lindner (FDP) it is difficult to grant a state agency completely unusual freedoms, it was said behind the scenes. The present draft has now already been coordinated with the Ministers for Economy, Justice and Finance. Stark-Watzinger wants to work to ensure that he is now advised in parliament in a timely manner, she said.

Bettina Stark-Watzinger (FDP)

The research minister has already coordinated with the other ministries and now wants to bring the law into the Bundestag.

(Photo: Reuters)

Sprind director Laguna was “very happy” that the traffic light kept its promise to “immediately and substantially improve the legal and financial framework for the Sprind so that it can act and invest more freely”. This is an important step in reorganizing German innovation funding. In addition to the new scope for funding instruments, it is particularly important that Sprind no longer has to stick slavishly to budget years, but can also “invest funds over the course of the year”.

In concrete terms, Sprind should be allowed to shift 30 percent of its annual budget of currently 180 million euros to next year if necessary. At least half of the income – for example from loan repayments or the sale of subsidiaries – should again benefit the promotion of further breakthrough innovations.

In addition, Sprind should be allowed to acquire or sell shares in other companies of up to 25 percent or a value of ten million euros without the consent of the federal government. The Ministry of Finance must decide on larger investments within three months. If the stakes are more than 25 percent, but no more than ten million euros, approval under the draft law is deemed to have been granted if the Ministry of Finance does not comment on this within this period.

The agency has already had an unusual privilege: the head of its supervisory board is not, as is usual in other federal institutions, an envoy from the ministry. Instead, it is chaired by Peter Leibinger, Vice President of the Swabian high-tech company Trumpf.

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