Innovation depends on cooperation between different institutes and the business sector. Division of labour between subsidised institutes on the one hand, which are more heavily engaged in pure research, and private service industries on the other which are more focussed on rendering production-related consultancy and implementing services is a precondition for achieving a higher level of innovation in Europe. The DIW Berlin has come to this conclusion in its recent weekly report 30/2001 based on its study of research and innovation systems in six European countries.
All over these countries basic public financing is currently decreasing while project-oriented research is on the increase. The DIW Berlin is in favour of cooperation among all participants, and considers a more service-oriented attitude of research institutes - while maintaining basic public financing - as useful in putting research results to work in the industrial process of innovation.