About Fraunhofer

The Fraunhofer-Gesellschaft

The Fraunhofer-Gesellschaft, headquartered in Germany, is a leading organization for applied research. It plays a pivotal role in innovation by focusing on cutting-edge technologies and transferring research results to industry in order to strengthen Germany as a business location and benefit society. Since its founding as a nonprofit in 1949, Fraunhofer has held a unique position in the German research and innovation ecosystem.

With more than 30,000 employees at 74 institutes and independent research units in Germany, Fraunhofer operates with an annual budget of 3.6 billion euros. Contract research, Fraunhofer's mainstay, generates 3.2 billion of this budget. Unlike other public research organizations, institutional funding from federal and state governments accounts for no more than one-third of Fraunhofer's contract research budget. Institutional funding is thus merely the base of Fraunhofer’s main business model and serves as the foundation for groundbreaking pre-competitive research that will become important for industry and society in the years ahead.

What truly sets Fraunhofer apart is its high share of industrial revenue, which ensures close collaboration with the private sector while keeping Fraunhofer's research focused on the market. Fraunhofer raises at least two-thirds of its contract research budget competitively from private-sector contracts and public project funding. In 2025, industrial revenue alone accounted for 966 million euros. 

Last updated: April 2026

Opening film for the 2024 Fraunhofer research awards

Ideas and innovations, drive and inventiveness, are more important than ever. Government, industry and society are facing major challenges and changes: from geopolitical conflicts and demographic change through to economic turmoil and the climate and energy crises.

But these challenges also open up new opportunities to shape our future with skills and expertise − so that we can find answers to the central questions of our time and emerge stronger from these crises.

For 75 years, Fraunhofer has worked hand in hand with partners from industry, research and the public sector to put innovations into practice. That’s because knowledge transfer is the backbone of our innovation system.

Since Fraunhofer was founded in 1949, our mission has been to act as supporter, guide and driving force for industry. The proven Fraunhofer model provides the basis for this transformation process and is our reliable compass for successful, market-driven transfer.

We take responsibility for a future worth living in by taking economically, ecologically and socially sustainable actions − and upholding the principle of diversity. In this way, we contribute to a strong society that is economically and politically sovereign.