Abstract
Germany faces challenges of demographics, decarbonisation, digitisation and deglobalisation. Innovative strength and securing skilled labour are crucial, but Germany is losing strength in research and patents. Demographic problems and declining STEM skills are exacerbating the situation. Immigration partly compensates for this, but the education system is not utilising the potential, especially among children from educationally disadvantaged households. What is needed is more STEM education, all-day school programmes, language support, more research spending at universities and more teaching capacity for international students. Federal policy should implement a quality package for early childhood education, an expansion of the “Startchancen” programme, a national STEM action plan and an additional digital pact.