Germany's Digital Mittelstand: A New Path Beyond Silicon Valley

This article explores why Germany struggles to replicate the Silicon Valley model and proposes the concept of a "Digital Mittelstand." The author argues that Germany's culture, emphasizing craftsmanship and quality, clashes with Silicon Valley's fast-growth, high-risk ethos. The article highlights the resilience of Germany's Mittelstand (SMEs), focusing on niche markets and high-quality products. The author suggests the German government should foster a "Digital Mittelstand" through salary grants, streamlined regulations, increased VAT exemptions, and English-language support, encouraging an innovation model better suited to Germany's culture and economic strengths, thereby maintaining competitiveness in the digital age.