2024 Annual Report

Preface: Challenges as an incentive for evidence-based policy and business advice

Prof. Jakob Edler
Prof. Marion A. Weissenberger-Eibl

Dear Reader,

As a year, 2024 was both exciting and challenging. It was marked by many fascinating research projects but also multiple crises and global uncertainties. A stagnating economy, political changes and budget cuts at national level, coupled with global crises such as ongoing wars in Ukraine and the Middle East, the US election, and the continuing climate crisis - all this formed the framework to our systems and innovation research. These challenges were a very strong incentive for our evidence-based advice for politics and business.

In 2024, we again handled more than 400 projects and were able to produce outstanding studies, get people thinking and enrich decision-making in politics and the economy with new concepts and new evidence. In this annual report, we present a small selection of the research conducted at ISI as examples demonstrating the high quality and thematic diversity of our work.

Once again, we are proud that our researchers’ impact on science was evidenced by a very high rate of excellence in scientific publications. At this point, we would like to mention our anthology Systems and Innovation Research in Transition, which was compiled by an institute-wide team and describes the policy advice history of our innovation and systems research.

Our ties with stakeholders, clients and people from politics, business and society have become even closer. The highlights of 2024 were invitations to the German President, Frank-Walter Steinmeier, and to the Vice-Chancellor and Federal Minister for Economic Affairs and Climate Action, Robert Habeck.

Close contact to politics is important to us. We strengthened these ties and our dialogue with policymakers by opening a representative office in Berlin. We launched this with a stakeholder workshop in October 2024. We plan to hold regular events and discussions to foster the ties and understanding between science and politics.

Our location in Heilbronn has been further strengthened by the steadily growing Joint Innovation Hub (JIH), successful cooperation with clients in the fields of Foresight Technologies & Business Intelligence, Innovation Eco-Systems and Metaverse & Habitats, and funding from the Dieter Schwarz Foundation and regional project partners.  The JIH is part of a Fraunhofer initiative intended to strengthen the region as a leading hub for research and innovation and to make a decisive contribution to shaping the future in Europe and the world in the fields of innovation, digitalization, artificial intelligence and sustainable systems.

We are delighted that our employees were appointed to important committees and received high-ranking awards including Prof. Rainer Walz’s invitation to join the ESIR Expert Group and the prestigious innovation award, the 2024 Rudolf Diesel Medal, which was presented to our institute director Prof. Marion Weissenberger-Eibl.

On the international stage, Fraunhofer again organized numerous events last year including the Conference on Science, Technology and Innovation Indicators (STI) in Berlin and the final event marking the conclusion of the green hydrogen project “HYPAT - Global H2 Potential Atlas“, which was funded by the German Federal Ministry of Education and Research BMBF.

How will our systems and innovation research develop in 2025? In the interview with the chair of our board of trustees, Dr. Mirjam Storim (Head of Technology & Innovation Management, Research & Innovation Ecosystem at Siemens AG), we take a look at the current state of systems and innovation research.

The incorporation of the Leipzig location into Fraunhofer ISI from January 2025 has widened our research portfolio to include the Departments of Regional Development and Innovation Policy and Knowledge and Technology Transfer. This is a valuable addition to our scientific and practical activities. With Fraunhofer ISI in Leipzig we have another excellent regional anchor in Saxony as well as in Baden-Württemberg.

We would like to take this opportunity to sincerely thank all our clients and project partners for their cooperation. We look forward with confidence to 2025 and the tasks that await us.

We hope you enjoy reading this annual report and find our shared success and developments inspiring.

With kind regards

From the directors of Fraunhofer ISI 

Prof. Jakob Edler, and Prof. Marion A. Weissenberger-Eibl

ISI research and its impacts in 2024: Selected project examples

 

Development of a funding instrument

Carbon contracts for difference

Fraunhofer ISI is supporting the German Federal Ministry for Economic Affairs and Climate Action (BMWK) in developing the “Carbon contracts for difference” funding program to aid the decarbonization of industry.

 

Increasing the responsiveness of electrified industrial processes

FlexIPro

The project for the Competence Centre on Climate Change Mitigation in Energy-Intensive Industries (KEI) explored how companies in Germany can make their energy use more flexible and responsive. Using energy system models and based on five case studies, it was possible to demonstrate that flexible hybrid energy supply, for example in combined electricity-natural gas systems, is a key technology that provides companies with the gateway to transformation and supports the integration of renewable energies into the energy system.

 

Measuring innovativeness

Innovation Indicator

The indicator-based empirical study serves as an information base for many decision-makers in Germany and is compiled annually in collaboration with BDI - the Federation of German Industries, Roland Berger and ZEW - Leibniz Centre for European Economic Research.

 

The Federal Agency for Disruptive Innovations

Evaluation of SPRIND

The Federal Agency for Disruptive Innovations (SPRIND), a new key actor in the German innovation system, was analyzed with regard to its overall concept, funding approach, process efficiency, governance, and the effectiveness of its funding instruments in promoting disruptive innovations. The evaluation also considered the organization and configuration of SPRIND, especially its organizational structure, management and HR concept.

 

Focus Study for EFI

Quantum Technologies and Quantum Ecosystems

The potential, research activities and innovation policy in quantum technologies were examined for the Commission of Experts for Research and Innovation (EFI). The technology fields of quantum sensors, communication and computing were analyzed, international innovation strategies compared and political recommendations for action derived.

 

Pathways toward sustainable agricultural trade

MATS

In collaboration with project partners from science and practice, a vision and a roadmap were developed in a foresight process, focusing on the sustainable development goals and human rights in agricultural trade. 

 

Focus Study for EFI

Innovations in Water Resources Management

An overview of Germany’s technological performance in water resources management was prepared for the Commission of Experts for Research and Innovation (EFI) and the need for economic and innovation policy action was discussed. The focus was on water scarcity and water pollution and the question of which instruments are useful for promoting innovations.

 

Participation using Lego Serious Play

Dialogue on Mobility Data

Participatory workshops documented citizens’ preferences for the provision, sharing and use of mobility data.

Interview with Mirjam Storim: “Evidence-based debate for society and politics”

How will systems and innovation research change in the face of the latest geopolitical challenges?

I am certain we will see new priorities being set in systems and innovation research that would not exist without the most recent geopolitical problems. I think these will include at least the following:

First, research will (have to) address how and where innovations emerge today and can have lasting success under the premise of the increasing efforts being made in the direction of decoupling. What effect does separation have on basic and applied research? What happens if international standardization efforts are even less successful?

Second, I believe systems and innovation research will increasingly (have to) deal with which technology leaps are to be expected from military innovations to civilian domains. We will - especially in Germany - need a theory-led, evidence-based discussion of this topic from science for society and politics - a quick reference to “dual-use goods” no longer does justice to the dynamics of innovations for the protection of “national security”.

I also want to mention a third possible change: In times like these, it is possible that systems and innovation research will take a back seat to disciplines like conflict, peace and security research. This could have an effect on public funding and orders for contract research.

What course would you like to see set? Which concrete measures should be taken?

The most important thing is to remain vigilant, know what questions need asking and proactively influence these based on excellent scientific research! It would certainly also be advisable to cultivate and expand the existing networks. Think about the Chinese company DeepSeek, which recently presented its Large Language Model (LLM) - Chinese, open source, based on significantly lower chip performance than previous LLM. It might not be everything it appears to be at first sight, but what is certain is that many did not expect this innovation from China so quickly. Are innovation researchers keeping abreast of these innovations even if they are being developed a long way away? Do we have the right sources, the right connections?

Which research fields will become more relevant for contract research?

Digital technologies, their application and their relevance for the competitiveness of companies and nations continue to be very important and their relevance will increase in the future. These include artificial intelligence and data analytics, digital twin technologies, simulation, fundamental innovations in quantum technologies or neuromorphic computing, chip models but also solutions to increase cyber security and trust. The latter results from an increased need for assurance and security. In this context, research fields like energy and raw material security and technology sovereignty also come to mind. At present, the global political situation is pushing innovative approaches for increasing sustainability and circular economy models into the background, but I am firmly convinced that these will make a comeback.

Personnel and organizational changes

 

Representative office in Berlin opened

Fraunhofer ISI opened its new representative office in Berlin on May 15, 2024. Several offices and a conference room for meetings and events are now available to Fraunhofer ISI staff on the premises of Fraunhofer HHI in Salzufer 6. 

At Fraunhofer ISI, interdisciplinary teams conduct research on behalf of business, politics and science and develop recommendations for action for important decisions. The new office in Berlin means that researchers are closer to and can engage in more intensive interaction with many political clients.

 

Changes in the Board of Trustees

In 2024, we welcomed Tanja Gönner (Managing Director of the BDI) and Prof. Peter Schäfer (Ministry of Economic Affairs, Labor and Tourism Baden-Württemberg) as new members of the Board of Trustees at Fraunhofer ISI. Welcome! We are looking forward to working together.

We said goodbye to Prof. Patrizia Nanz (President of the European University Institute) and Dr. Ludwin Monz (formerly of Heidelberger Druckmaschinen AG). Thank you very much for your commitment and all the best for the future!

Farewell to Harald Bradke

At the end of September 2024, we bid farewell to Prof. Harald Bradke, who had been working at Fraunhofer ISI since 1989 and most recently headed the Competence Center Energy Technology and Energy Systems (from 2025: Department of Energy Technology and Energy Systems) together with Prof. Martin Wietschel.

Harald Bradke was a valued colleague who played a leading role at our institute for 35 years with his commitment and international acclaim and significantly influenced research in the field of energy during this time. We would like to thank him sincerely for his many years of service and wish him all the best for his well-deserved retirement!

 

Clemens Rohde is the new co-head

Prof. Clemens Rohde has become co-head of the Competence Center Energy Technology and Energy Systems (from 2025: Department of Energy Technology and Energy Systems). Together with Prof. Dr. Martin Wietschel, he is responsible for the department's research on the efficient use of energy and the development of new technologies for a sustainable energy system. Clemens Rohde has been with Fraunhofer ISI since 2010 and was already Deputy Head of the Competence Center from 2020 to 2024, and he also headed the Energy Efficiency Business Unit from 2012. He also teaches as an honorary professor at the Technical University of Darmstadt.

 

Jakob Wachsmuth heads the Renewable Energies Business Unit

On September 1, 2024, Dr. Jakob Wachsmuth took over as head of the Renewable Energies business unit in the Energy Policy and Energy Markets Competence Center (since 2025: Department of Energy Policy and Energy Markets). Jakob Wachsmuth studied at the University of Bonn and obtained his doctorate in mathematical physics. He then worked as managing director of the Smart Grids Platform Baden-Württemberg, among other things. He joined Fraunhofer ISI in May 2015. His work focuses on the evaluation of climate policy targets, the design of funding instruments, the analysis of energy system scenarios, the hydrogen market ramp-up and the transformation of gas infrastructures.

 

Martin Wietschel appointed as a member of the board of directors at CINES

Prof. Martin Wietschel was appointed to the board of directors of the Fraunhofer Cluster of Excellence “Integrated Energy Systems” (CINES) in 2024. CINES pools the energy research expertise across Fraunhofer and conducts research on systemic issues of the energy transition. The board of directors determines the Cluster’s strategy and research program among other things. Martin Wietschel has been conducting research at Fraunhofer ISI on the sustainable energy sector, energy system analyses and hydrogen for more than two decades. He has been Head of the Department of Energy Technology and Energy Systems since 2020 (until 2024: Competence Center Energy Technology and Energy Systems).

 

Matthias Gotsch is the new sustainability officer

On October 1, 2024, Prof. Matthias Gotsch took over from Dr. Frank Marscheider-Weidemann, who has retired, as officer for climate neutrality and sustainability. Together with Lena Kappler, Matthias Gotsch has since been taking care of ecological issues at the institute. The new role of Sustainability Officer, introduced in 2022, is intended to help pursue the Fraunhofer-Gesellschaft's climate neutrality goals. Matthias Gotsch has been at Fraunhofer ISI since 2012 and, as a project manager, often works cross-departmentally on topics at the interface between sustainability and digitalization.

 

 

Susanne Bieker is a Fraunhofer Research Manager

Dr. Susanne Bieker was appointed a Fraunhofer Research Manager on March 14, 2025, by Fraunhofer President Prof. Holger Hanselka. Susanne Bieker has been a research scientist in the Department of Sustainability and Infrastructure Systems since 2018 and heads the cross-cutting topic “Transformation and innovation systems for urban areas”. In the “Fraunhofer Research Manager” program, she worked with colleagues from Fraunhofer ISE and Fraunhofer IBP on business model innovations to accelerate the energy transition using low-light photovoltaic modules (LL-PV). Research managers act as ambassadors for entrepreneurial thinking in the Fraunhofer institutes.

 

Activities of Marion A. Weissenberger-Eibl

The institute’s director, Prof. Marion A. Weissenberger-Eibl, was awarded the Rudolf Diesel Medal in the category “Best Innovation Promotion” in July 2024 (Photo).

In addition, she was invited by the German President to an open debate about China and its innovative strength and was reappointed for another four years to the Federal Government’s German-Chinese Dialogue Forum, of which she has been a member since 2014.

 

Activities of Jakob Edler

The institute’s executive director, Prof. Jakob Edler, was a guest of the German President at the Autumn Conference of the German Science and Humanities Council (photo).

In November, Jakob Edler was invited to an event hosted by the Federal Minister for Economic Affairs, Robert Habeck, which he opened with a keynote speech on the topic of research and innovation.

In September, Jakob Edler held the opening keynote speech at the STI Conference 2024.