Do We Need IPCEI?

An Important Project of Common European Interest (IPCEI) is a program in the EU that allows participating member states to subsidise the research and innovation of private companies. This paper addresses the question to what extent does IPCEI contribute to a better innovation climate. The paper argues that Germany does not need IPCEI. More than direct subsidies, an innovation-friendly climate in Germany necessitates appropriate tax and capital market conditions, robust research universities, reasonable data accessibility and less technology skepticism.