Comment by ar0

I think the author misses a key ingredient when he talks about the “lack of skills”: German companies are notoriously stingy (or frugal, however you want to call it) when paying their engineers. Combined with a hesitation to greatly differentiate pay between great and average staff (due to culture and also the “Gesamtarbeitsverträge” between employers and unions), this means that really great and innovative employees will be able to earn far more in nearby Switzerland or far Silicon Valley. I’m always a bit sceptical when (allegedly free-market loving) managers talk about a skill shortage: remember, economic theory states that in a free market there will be no shortage, because prices will rise to accommodate supply and demand.