The study, commissioned by the Bertelsmann Foundation, found that nearly one-third of inventions developed in Germany are now owned by foreign organizations. U.S. entities hold the largest share, while Chinese owners account for a significant portion of foreign-held German patents.

The trend is particularly evident in Germany’s mechanical engineering sector, where patent applications increased to 4,300 in 2022 from 3,300 in 2000. Researchers said Chinese companies have been especially active in acquiring technologies linked to the industry.

IW expert Oliver Koppel said international ownership of patents is a normal feature of global competition but argued that China pursues acquisitions strategically while maintaining relatively limited access for foreign investors in its domestic market.

The study also highlighted concerns about Germany’s declining innovation capacity. Germany ranked third globally in research and development spending in 2000, when its investment levels were roughly double those of China. By 2021, Germany had fallen to sixth place, while China’s research spending had increased twentyfold over the same period.

The findings are likely to intensify debate in Europe over technological sovereignty, foreign investment screening and the protection of critical industrial know-how.