The Engine of the Future

This article was originally published in German by Süddeutsche Zeitung and has been translated into English by our editorial team.

Companies that systematically invest in innovation do not only grow in the short term. Instead, their efforts secure long-term returns and sustained market power. Management analyses by McKinsey & Company show that top-performing companies leverage internal innovation to expand existing strengths while simultaneously developing new business fields.*

In disruptive times, this combination can make the difference between a thriving market leader and a diminished niche player. On an economic level, international data** shows a clear connection between innovation-intensive activities, productivity gains, and long-term growth. At the same time, long-term studies indicate that a high degree of innovative capability goes hand in hand with strong resilience in the face of market turbulence. Companies that establish robust processes—setting clear priorities, investing consistently, and fostering a culture of experimentation—are better able to withstand shocks and use periods of disruption as opportunities.

Particularly in times of digital transformation, it is evident that progress increasingly depends on the ability to connect knowledge and break old patterns. Companies that collaborate with start-ups, research institutions, or even competitors can significantly accelerate their development cycles. They create an open innovation ecosystem in which ideas reach market maturity more quickly and are conceived more sustainably. Those who understand innovation as a collective task gain not only technologically but also culturally: through more agile teams, bolder leadership, and a workforce that does not fear change but actively shapes it.

Innovation today extends far beyond product novelties or technical finesse. The true drivers of tomorrow often lie in business models, sustainability strategies, and data-based services. Artificial intelligence, automation, and green technologies are redefining entire industries and challenging traditional companies to rethink their DNA. The concept of innovation itself has shifted from “new for the sake of the new” to meaningful, responsible advancement. Those who consistently align innovation with societal relevance not only strengthen their competitive position but also build trust among customers, partners, and investors. Arguably the most important currency of the future.

For the fourth time, Creditreform has conducted an analysis on behalf of the SZ Institute identifying the “Most Innovative Companies 2025.”

The analysis is a snapshot as of August 31, 2025. First, a set of basic criteria was defined that companies needed to meet in order to be included. Companies had to be headquartered in Germany and provide annual financial statements for the year 2023 (according to HGB, IAS, or US GAAP). The balance sheet categories “Internally generated industrial property rights and similar rights and assets” and “Total assets” had to be completed in the 2023 statements. Additionally, the companies’ creditworthiness index was evaluated. Only companies with an index between 100 and 499, and without being newly founded or insolvent, could be included. As the final criterion, the number of employees was assessed: eligible companies needed to employ more than nine people in 2023.

After applying the selection criteria, the dataset consisted of 2,786 companies - around 400 more than in the previous year’s ranking.

To make actual innovation performance visible in comparison, further qualitative and quantitative criteria were examined. The ratio of “Internally generated industrial property rights and similar rights and assets (HGB-BilMoG, IAS, US-GAAP) / Total assets” had to exceed a minimum value of 12 percent. This ratio serves as an indicator of internal research activity and reflects how companies approach innovation. Companies that fell below this threshold were eliminated, as were those with a creditworthiness index of 249 or worse. Furthermore, companies with poor payment behavior (payments outside agreed terms, even with discount utilization) or a balance sheet rating of CR11 or worse were excluded. The final ranking was based on each company’s creditworthiness index.

The detailed evaluation identified 245 companies distinguished by their exceptional innovative strength.

Leading the ranking is Deutsche Telekom AG, which is also globally recognized as one of the leading telecommunications companies. Last year, the parent company of Europe’s largest telecom provider, headquartered in Bonn, was not in the top ten.

Second place goes to AVS Abrechnungs- und Verwaltungs-Systeme GmbH, which enters the top ten for the first time. The company specializes in the development and operation of customized digital customer loyalty and voucher systems, focusing on retail, tourism, and publishing. Its expertise includes subscription, customer, and city cards, gift vouchers, and loyalty program platforms.

Third place is held by Elma Schmidbauer GmbH, which climbed an impressive 15 positions compared to the previous year. The company specializes in ultrasonic and steam cleaning for watch mechanisms, has a 75-year history, and is now run by the third generation of the founding family, employing around 270 people.

Fourth and fifth place go to CAS Software AG, last year’s leader and an expert in software solutions for SMEs, and INOVA Semiconductors GmbH, which develops, manufactures, and distributes semiconductor components. Compared to 2024, INOVA improved by one rank.

In sixth place is Human Med AG from Schwerin (previously 4th), a specialist in the development and manufacturing of medical devices and accessories and a self-described global leader in waterjet-assisted liposuction technology.

Seventh place was secured by Thomas Breit Steuerberatung, based in Hamburg. A newcomer to the top ten, it previously ranked 11th in 2024.

Eighth place goes to Cortex Biophysik GmbH (previously 5th), the world market leader in mobile spiroergometry, a diagnostic method measuring cardiovascular and lung function under physical stress.

Ninth place is taken by Urban GmbH & Co. KG, which moved up from 19th place. The company from Wüsting has specialized in innovative solutions for modern calf and lamb rearing since 1984.

Rounding out the top ten is ARTES Biotechnology GmbH, not present in last year’s ranking. The company provides services in the production and optimization of microbial recombinant production strains, with a focus on yeast cultures.

The IT sector dominates the ranking as a future-oriented industry, representing 35 percent of the companies awarded, followed by industrial firms (8 percent) and mechanical engineering (7 percent). Research and development (6 percent) and electrical/electronic sectors (5 percent) are also strongly represented. The broad variety of industries—from medical technology to automotive to financial services—underscores the cross-sector innovative strength of the German economy.

The geographical distribution of innovation in Germany is concentrated in urban hubs: Berlin, Munich, Cologne, Hamburg, and Frankfurt form the leading innovation centers. These metropolitan areas combine key success factors such as highly skilled talent, excellent research infrastructure, and dynamic start-up ecosystems, creating fertile ground for innovation-driven companies.

Tallence also shared its key takeaways from the event, emphasizing the unmatched value of in-person collaboration. “As one of the industry’s key anchor events, DTW is a can’t-miss opportunity to experience the power of in-person collaboration at its best,” said Nicole Schroeder, Head of Marketing at Tallence. According to Nicole, the event brings together top minds from across the telecom ecosystem, fostering the exchange of ideas and the advancement of innovation. “DTW isn’t just hosting Catalysts – the event itself is a Catalyst,” Nicole noted, highlighting the way it accelerates collaboration and drives industry momentum.