Search
Contact
21.05.2021 | KPMG Law Insights

Pact No. 3: “Pact for Research and Innovation (PFI)”.

Pact No. 3: “Pact for Research and Innovation (PFI)”.

The PFI is now undergoing its fourth update since it was first adopted in 2005. If the press release of the Joint Science Conference (GWK) is to be believed, the PFI is also recognized internationally as a “guarantor of stability and at the same time development dynamics”. There is not much change to the expiring pact. Probably the most important innovations concern the first individual target agreements with the research organizations, the requirement for “science-adequate controlling” and the length of planning security.

The German Research Foundation and the four major research organizations (Fraunhofer-Gesellschaft, Helmholtz Association, Leibniz Association and Max Planck Society) will receive financial security until 2030. The federal and state governments will provide funding of around 120 billion euros by 2030. The annual increase of three percent will be maintained until 2025. Around an additional 17 billion euros will be made available as a result of dynamization alone. The participation of the states in the financing meets the requested adjustment of the PFI in accordance with the coalition agreement. In this, it was stated that the federal states should be involved again in the future. This return to state participation is to be implemented in stages. First, the states step in to fund the increase using the 2015 formulae. Starting in 2024, they will then also participate in the previous financing in annual increments on the basis of the old keys. This will result in an additional burden of several million euros for the federal states.

The current DFG program allowance of 22 percent of the costs will remain in place after 2021 – initially for another five years.

Clear target agreements will be made with the research organizations for the years 2021-2025. These are agreed upon and implemented on an individual and organization-specific basis, but are guided by five research policy objectives, which are taken from the GWK press release on the PFI:

  1. Promote dynamic development
    (Addressing high-risk research, strengthening and developing appropriate tools).
  1. Strengthen transfer to business and society
    (Transfer and utilization of ideas, research results and knowledge through intensive exchange with business, society and politics)
  2. Deepen networking
    (science organizations among themselves as well as with universities)
  3. Attracting and retaining the best minds
    (Creation of contemporary concepts for attractive conditions throughout the entire scientific career)
  4. Strengthen infrastructures for research
    (strategic planning and sustainable financing of infrastructures, opening up for use beyond the institution itself, taking into account the needs of universities).

These target agreements serve to create binding framework conditions for research and innovation. The goal is stable growth of the research organizations and their strategic further development. The focus is on networking with universities, companies and social institutions, among others.

The research organizations are required to carry out “science-adequate controlling” in order to monitor the achievement of objectives. This includes regular reporting to the GWK. In this report, the achievement of the objectives is to be presented in a comprehensible manner on the basis of meaningful indicators. For the period after 2025, the target agreements are to be reviewed in due course and adjusted if necessary.

It remains to be seen how the so-called “strategy room” will be implemented. The federal government plans to withhold a certain amount from PFI for cross-organizational initiatives, including with universities. The form this will take is uncertain and is still to be fleshed out with the states. Regardless of whether this project succeeds, however, the federal government has now already pledged funding.

Funding for research organizations is secured through 2030, and the organizations can look forward to a significant amount of additional funding. The PFI agreement once again highlights the importance of research in Germany.

Explore #more

13.11.2025 | KPMG Law Insights

Implementing AI in the legal department – these are the success factors

Artificial intelligence (AI) only benefits the legal department if it is implemented correctly. The technology promises to automate time-consuming routine work and fundamentally improve the…

13.11.2025 | KPMG Law Insights

First omnibus package to relax CSDDD, CSRD and EU taxonomy obligations

On November 13, 2025, the EU Parliament voted on its negotiating position regarding the so-called omnibus package, which provides for a relaxation of the CSRD,…

12.11.2025 | In the media

KPMG Law Statement in In-house Counsel: More stability under the umbrella of corporate governance

There is a lot of talk about “corporate governance” in the face of multiple crises and regulatory tendencies on the part of legislators. But what…

07.11.2025 | Deal Notifications

KPMG Law and KPMG advise Diehl Defence on the acquisition of the Tauber Group

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) and KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG) advised Diehl Defence on the acquisition of the Tauber Group. KPMG Law provided legal…

07.11.2025 | KPMG Law Insights

Changes to the H-1B visa and their consequences for US hiring and secondment practices

President Trump’s administration has introduced two significant changes to the highly popular H-1B visa program for skilled workers: The previous random lottery will be replaced…

07.11.2025 | In the media

KPMG Law Statement on HAUFE: Confusion surrounding the EU Deforestation Regulation – and what companies should do now

Possibly, perhaps, under certain circumstances, the EU Deforestation Regulation (EUDR) will not be binding for large and medium-sized enterprises on December 30, 2025 and for…

06.11.2025 | KPMG Law Insights

External personnel: authorities tighten checks with AI support

AI is a blessing for many companies, but it can also quickly become a curse, especially when authorities use the technology to uncover legal violations…

06.11.2025 | KPMG Law Insights

Deforestation regulation – simplification instead of postponement?

In September, the EU Commission wanted to postpone the EUDR deforestation regulation. On October 21, 2025, it published a comprehensive proposal to simplify the EUDR

05.11.2025 | KPMG Law Insights

Employer of Record now not subject to authorization after all – change of heart at BA

On October 1, 2025, the Federal Employment Agency (BA) updated its technical directives and made a U-turn with regard to the so-called employer-of-record model: In…

03.11.2025 | KPMG Law Insights

CO₂ contracts for difference: Participation in the preliminary procedure is a prerequisite for funding

Companies can apply for funding in the preliminary procedure for the climate protection contracts program until 1 December 2025. The funding from the Federal Ministry…

© 2024 KPMG Law Rechtsanwaltsgesellschaft mbH, associated with KPMG AG Wirtschaftsprüfungsgesellschaft, a public limited company under German law and a member of the global KPMG organisation of independent member firms affiliated with KPMG International Limited, a Private English Company Limited by Guarantee. All rights reserved. For more details on the structure of KPMG’s global organisation, please visit https://home.kpmg/governance.

 KPMG International does not provide services to clients. No member firm is authorised to bind or contract KPMG International or any other member firm to any third party, just as KPMG International is not authorised to bind or contract any other member firm.

Scroll