German companies are falling behind in the digital innovation race due to a combination of factors. A deeply ingrained culture of perfectionism often prevents them from adopting the “fail fast, learn quickly” mindset that drives Silicon Valley. This culture is further exacerbated by a lack of entrepreneurial spirit and a fear of risk-taking, which stifles innovation and inhibits the adoption of new technologies.
A lack of digital skills among the workforce is another significant barrier. Despite Germany’s renowned education system, there is a shortage of digital talent. This is compounded by the fact that German companies are not attractive enough to international digital experts, mainly due to language barriers and strict immigration laws.
Lastly, a failure to invest in digital infrastructure is hindering Germany’s digital progress. While other countries are rapidly advancing their digital infrastructures, Germany is lagging behind with slow internet speeds and poor network coverage.
In order to compete in the digital age, German companies need to foster a culture of innovation, invest in digital skills and infrastructure, and become more attractive to international talent. This will require a significant shift in mindset and a willingness to break away from traditional business practices.
Go to source article: https://global.handelsblatt.com/opinion/why-german-companies-fail-in-digital-innovation-901367