ABSTRACT
The German production and innovation model in the industrial sector is grounded in a particular combination of highly qualified graduates from higher education institutions with highly trained skilled workers from the dual vocational system. A mix of skilled workers and higher education graduates shows the strongest innovation effects where knowledge exchange between different kinds of qualifications is supported by complementary human resources and organisational measures such as teamwork, job rotation and empowerment. The basis for the innovation processes is considerable investment in the education sector, in state-funded primary and applied research as well as corporate research and development. Innovations have to respect the economic, social and ecological balance. Innovations enable companies to emerge stronger from the crisis and to participate early in the economic recovery through new marketable products. Product innovations, service innovations, organisational and technical process innovations are important components of long-term corporate success.
