From global Market Leader to Onlooker – How Perspective Blindness is Paralyzing Germany's Economy

Germany – once a pioneer of industrial excellence – is in danger of falling behind in times of disruptive change. For decades, quality, efficiency, and incremental improvement were considered the recipe for success of the German economy. But this model is increasingly faltering. Technological progress is not advancing linearly, but in leaps and bounds – and requires not optimization, but transformation.

The problem lies not only in external upheavals, but in the system itself: in its inertia, its skepticism towards radical innovation, and its deep-rooted risk aversion. In the automotive industry, for example, the adherence to combustion engines and the neglect of digital vehicle architectures has led to startups like Tesla setting the pace – while German OEMs have to catch up.

A key obstacle: Perspective Blindness. Those who only think in terms of like-minded people remain trapped in their echo chamber. Diversity of mindsets, cultural backgrounds, and experiences is becoming an entrepreneurial survival strategy. Because disruptive innovation requires more than good technology – it needs new perspectives.

Dominant hierarchies, linear thinking, and a fixation on short-term efficiency often prevent the necessary change. The diesel scandal impressively demonstrates how dangerous silence out of fear of authority can be – resulting in billions in losses and reputational damage.

The solution lies in ambidexterity – the ability to optimize and innovate simultaneously. Companies must learn to master both: perfecting the existing while simultaneously daring to try radically new things. The government, in turn, must create frameworks that reward long-term thinking and transformation – instead of preserving short-term stability.

Germany needs a new economic model – a Plan B. One that not only rethinks industrial policy, but also changes the mentality: away from a security-oriented mindset and toward strategic openness. Because the greatest danger is not the failure of new things – but clinging to the old while the world keeps turning.

In our latest study "From global market leader to onlooker – How perspective blindness is paralyzing Germany's economy" we analyze the impacts of perspective blindness in business, highlighting examples from specifically the German automotive industry and show how it can be overcome. (Releasing Soon)

Title:

Vom Weltmarktführer zum Zaungast

Wie Perspektivenblindheit die deutsche Wirtschaft lähmt

Release Date:

12 June 2025

Authors:

Dr. Rainer Scholz; Volker Walprecht; Tobias Merten