"We have highly talented people, a tremendous level of grit that has made us world champions in many disciplines and an very entrepreneurial mindset."

But we do not have a government (or political will) that has an initiative to capitalize on these successes and great qualities. Only one party, the FDP has a comprehensive digital strategy and the past coalition governments have been content to claim credit for the successes of digital companies whom have succeeded without their help. The "talent shortage" you mention above is not due to a low number of graduates-- rather by high levels of out-migration of Germany's most talented and skilled people (the German diaspora is the world's fifth largest) and the government's complicity in shearing higher education costs to the bone. The sad reality is that the German government has been too conservative in looking ahead and slow to prepare for the innovation and future of tomorrow. A majority of German emigrants hold higher degrees and many have sought greener pastures in the US, Switzerland and the UK. Rather than supporting local conditions for entrepreneurship and growth, the country has been content to see them go.