Economic Growth, Innovation and Government R&D: A Case Study on the German Nuclear Sector

Abstract: This paper looks at the potential economic outcomes of Germany’s Anti- Nuclear policies, especially the policies of the early 2000’s and those made in 2011 in the wake of the Japanese nuclear disaster at Fukushima, in which research and development (R&D) funding has been increasingly shifted away from the nuclear sector. This paper discusses the German case after it is established through theory and economic history that there is a link between economic growth, innovation, and government involvement in R&D and the innovation process. With this link established it is determined that the shift away from nuclear R&D could potentially be offset by increases in the R&D effort for renewable energy sources. However, it is recommended that a minimal government interest in nuclear R&D should be maintained so as to not miss out on potential innovative nuclear breakthroughs and to maintain equality in knowledge and technological levels internationally.