Post by Jan Mischke

Partner at McKinsey Global Institute

It's time to reimagine #productivity growth and #competitiveness in Germany! After almost a lost decade of growth, it's time for radical rather than incremental change. Much has been written about required changes in the policy environment - from defragmenting Europe to simplifying regulation and bureaucracy, more dynamic labor markets, and affordable energy. Business cannot wait - and has true agency. Our new analysis shows that in a sample of 16'000 firms covering a third of Germany GDP, just 29 (!) account for half of productivity growth. What sets those apart are bold strategic moves from decisive portfolio shifts to accelerating innovation, scaling new business models, and operational transformation. If every CEO of large incumbents and dynamics scale-ups alike made one bold decision in 2026 - and policy leaders made one bold reform each to enable successful implementation, Germany's growth problems would be solved. It's been a pleasure to work on this research with my co-authors Fabian Billing, Jan Krause, Florian Heineke. Read more at https://lnkd.in/e-S3VDc4

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