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Fraunhofer funding: basic depends on industrial. We try the institutes to achieve an industrial revenue between 25 and 55 % of their total income. Each euro they earn from industry is awarded quite significantly with some further institutional funding. The practical meaning is that if they don’t make enough industrial contracts, they will be cut in their basic funding.

Independence of institutes, a key success factor. One of the key success factor of Fraunhofer is the independence of the institutes. They are all considered as cost centers. The directors of the institutes themselves decide in which kind of technology to invest. Even though they are very free in deciding their strategy and their scientific outline, they have to follow some specific management rules under the Fraunhofer’s roof.

Transfer by “head” should never be underestimated. Usually a Fraunhofer career will not end in a Fraunhofer institute. Depending on the topic or the institute, after between five to ten years a researcher will move from the institute. This is a transfer that should never be underestimated. This is also an intended transfer of knowledge which Fraunhofer is more or less providing to German industry.