Investments and innovations ensure employment growth and a higher demand for well-qualified workers in the country.

On behalf of the Baden-Württemberg Regional Directorate of the Federal Employment Agency, the IAW has conducted a new study examining the effects of investment and innovation on employment trends and employee qualifications in Baden-Württemberg between 2008 and 2023.

The three most important findings of the new IAW study are:

• Although the proportion of companies investing will fall from over 60 percent to below 50 percent between 2008 and 2023, it is positive that over half of the companies that do invest are making expansion investments and thus focusing on growth.
• Innovative companies are focusing in particular on product and process improvements rather than on new products or markets that promote growth. However, it is positive that the proportion of companies with innovations will rise from just under 40 percent to around 50 percent between 2008 and 2023. Industry is particularly innovative and is more involved than average in research and development.
• Investments (especially expansion investments) and innovations (especially product innovations) are ensuring that the demand for skilled workers is increasing.

Press release no. 2 from the Federal Employment Agency (in German).

The IAW short report 2/2025 (in German) can be found here.