Policy Brief n.48 -Production and Innovation in the Automotive Industry: A comparison of Germany and Italy 

31/10/2025
Even though Germany and Italy are considered traditional automotive countries with well-known brands, the development of vehicle production in the last 25 years has been very different in the two countries
Number: 299
Year: 2025
Author(s): Thomas Puls, Enno Kohlisch and Oliver Koppel

Without active research in the future-oriented fields of electrified powertrains and autonomous driving, it will be more than difficult to maintain the production location in the future. A Policy Brief by Thomas Puls, Enno Kohlisch, and Oliver Koppel  

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Executive Summary 

The global automotive industry is undergoing a period of radical change. However, this is having very different effects on the various production locations. It is becoming apparent that this time around, all of the traditional Western European automotive countries will be on the losing side. 

 However, since the turn of the millennium, these countries have experienced very different developments, which is having a major impact on their positions in the current transformation. 

This paper therefore aims to compare the situations of the automotive industries in Germany and Italy, which have pursued very different strategies since the turn of the millennium. 

Particular focus is placed on comparing the research performance of the two countries, as measured in terms of transnational patent applications.  

Without active research in the future-oriented fields of electrified powertrains and autonomous driving, it will be more than difficult to maintain the production location in the future. 

IEP@BU does not express opinions of its own. The opinions expressed in this publication are those of the authors. Any errors or omissions are the responsibility of the authors.

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