The Fraunhofer Society, headquartered in Germany, is one of the leading organizations for applied research. Since its founding as a nonprofit association in 1949, it has held a unique position within the science and innovation system. With more than 30,000 employees, Fraunhofer operates 74 institutes and independent research facilities in Germany. Fraunhofer plays a central role in the innovation process — with a research focus on key technologies relevant to the future and the transfer of research results to industry to strengthen our economy and benefit our society.
Large and medium-sized companies constitute the core customer group. They draw on Fraunhofer’s expertise to enhance their competitiveness through new technologies. For years, Fraunhofer has been among the most active patent applicants in Germany and Europe. An international patent portfolio forms the basis for technology transfer through research projects, spin-offs, and licensing. In addition, Fraunhofer addresses societal goals in key technology areas through interdisciplinary and international collaborations within specific market contexts. Examples include developments in the fields of microelectronics, artificial intelligence and quantum technology, health, the circular economy, and new materials, as well as in energy, critical infrastructure security, and the defense sector.
Fraunhofer is an attractive and well-established player in the field of publicly funded consortium projects with industry partners. Furthermore, the Fraunhofer Society makes a significant contribution to strengthening Germany’s position as a hub for innovation and business and ensuring its long-term viability. Its activities create jobs in Germany, boost investment in the economy, give companies a competitive edge, and increase societal acceptance of modern technology. International collaborations with leading research partners and companies worldwide ensure direct exchange with the most influential scientific and economic regions.
The Fraunhofer Society’s annual budget totals €3.6 billion. Of this amount, €3.2 billion comes from Fraunhofer’s core business model: contract research. Institutional funding from the federal and state governments — which accounts for no more than one-third of the total, compared to other public research institutions — serves merely as the foundation. Fraunhofer secures at least two-thirds of its contract research through competitive bidding, from contracts in the private sector as well as from public clients. The resulting strong incentive to secure new business — compared to organizations that are largely funded by institutions—fosters entrepreneurial thinking and action. In this way, the Fraunhofer Society ensures that it continuously develops solutions for current and future economic and societal needs. In 2025, operating revenue totaled €966 million.
Highly motivated employees are the most important factor in Fraunhofer’s success. That is why the research organization provides the freedom for employees to work independently, creatively, and in a goal-oriented manner. By specifically promoting professional and personal development, Fraunhofer supports career opportunities in both academia and the business world.
The Fraunhofer Society, recognized as a nonprofit organization, is named after the Munich scholar Joseph von Fraunhofer (1787–1826). Driven by his thirst for knowledge and entrepreneurial mindset, Joseph von Fraunhofer evolved from a glass grinder into a scientific pioneer who, as an inventor and entrepreneur, transformed ideas into market-ready products and brought them to market. His innovative spirit and market orientation—the belief that research and practical application go hand in hand—shape the work of the Fraunhofer Society, which remains committed to his legacy.
-> www.fraunhofer.de
Fraunhofer Institute for Cognitive Systems IKS
