As global competition for high-value investment intensifies, Germany’s appeal to Japanese companies rests on industrial depth, research excellence and long-term predictability. Julia Braune, CEO of Germany Trade & Invest, the country’s international economic promotion agency, explains how Japanese businesses have strengthened Germany’s economy, where the most promising opportunities are emerging and what a more technology-intensive investment partnership could achieve by 2030.

Bridges: Over 165 years, Germany and Japan have built a relationship grounded in industrial trust and shared standards. How has Japanese investment strengthened Germany as a business location?

Braune: Germany’s position as a leading industrial nation is rooted in its strong manufacturing base, engineering expertise and innovative SMEs. Japanese companies have complemented and reinforced these strengths through long-term investment, advanced manufacturing expertise and a strong commitment to quality and continuous improvement.

These firms often cooperate with German universities and research institutes, creating dense innovation ecosystems. They make Germany better connected globally, and they use Germany as their European headquarters. This increases trade flows, logistics activity and cross‑border project financing.

Finally, companies from Japan that expand to Germany contribute to workforce development by emphasizing technical mastery, continuous improvement and long‑term employee retention. For me, this is one of the great strengths of our economic partnership.

Which parts of the German economy are best placed to attract the next generation of Japanese investment, particularly in research and advanced production?

Primarily those sectors that combine scientific excellence, industrial depth and strong policy support. Topping the list is advanced manufacturing, particularly robotics, automation systems and precision machinery. I should point out that Germany is by far the European leader in robotics.

A second major area I’d name is energy transition technologies such as hydrogen, battery materials, fuel‑cell systems and power electronics. Germany’s transition to clean energy, its national hydrogen strategy, large industrial clusters and strong engineering create the perfect conditions for joint R&D and pilot‑scale production.

Germany’s growing chip manufacturing sector offers opportunities for Japanese suppliers. Germany is also fully committed to transitioning to electric mobility. As automotive OEMs shift toward electric and software‑defined vehicles, Japanese providers of sensors, powertrains, lightweight materials and battery‑safety systems can benefit.

What does GTAI see as the decisive factor that turns Japanese interest in Germany into a long-term investment commitment?

In my conversations with Japanese companies, three factors often come up: predictability, partnership and performance. If I had to choose one decisive factor, it would be predictability. Japanese firms value environments where regulatory frameworks, industrial policies and infrastructure planning remain stable over decades. Germany provides investors with the confidence that no policy shifts will undermine their projects.

The Japanese businesspeople I know also look for ecosystems featuring collaboration with universities, research institutes and industrial partners. Moreover, they choose Germany because it can deliver world‑class engineering talent, efficient logistics and high‑quality suppliers.

By 2030, what would a stronger Japanese investment footprint in Germany ideally look like in terms of scale, quality and economic impact?

We at Germany Trade & Invest would like to see greater scale and higher technological intensity by 2030. We think that more Japanese companies could be operating in Germany, particularly in the high‑tech sectors.

Quality is equally important. A stronger Japanese business footprint in Germany would mean Japanese companies conducting more core R&D activities.

Japan’s strengths in advanced manufacturing and automation complement Germany’s engineering expertise, research landscape and access to the European market. Our ideal scenario is a reciprocal partnership that creates lasting value for both sides.