Fraunhofer Society

The so-called "Fraunhofer model" has been in existence since 1973 and has led to the society's continuing growth. Under the model, the Fraunhofer Society earns about 70% of its income through contracts with industry or specific government projects. The other 30% of the budget is sourced in the proportion 9:1 from federal and state (Land) government grants and is used to support preparatory research.

Thus the size of the society's budget depends largely on its success in maximizing revenue from commissions. This funding model applies not just to the central society itself but also to the individual institutes. This serves both to drive the realization of the Fraunhofer Society's strategic direction of becoming a leader in applied research and to encourage a flexible, autonomous, and entrepreneurial approach to the society's research priorities.

The institutes are not legally independent units.[5] The Fraunhofer model grants a very high degree of independence to the institutes in terms of project results, scientific impact and above all for their own funding.[5] On the one hand, this results in a high degree of independence in terms of technical focus, distribution of resources, project acquisition, and project management. On the other hand, this also generates a certain economic pressure and a compulsion to customer and market orientation. In this sense, the institutes and their employees act in an entrepreneurial manner and ideally combine research, innovation, and entrepreneurship.

Numerous innovations are the result of research and development work at the Fraunhofer institutes. The institutes work on practically all application-relevant technology fields, i.e. microelectronics, information and communication technology, life sciences, materials research, energy technology or medical technology.[6][7] One of the best known Fraunhofer developments is the MP3 audio data compression process.[8] In 2018, the Fraunhofer-Gesellschaft reported 734 new inventions. This corresponds to about three inventions per working day. Of these, 612 developments were registered for patents. The number of active property rights and property right applications increased to 6881.[9]

The Fraunhofer Society currently operates 76 institutes and research units. These are Fraunhofer Institutes for:[10]

• Advanced Systems Engineering – IEM
• Algorithms and Scientific Computing – SCAI
• Applied Information Technology – FIT
• Applied and Integrated Security – AISEC
• Applied Optics and Precision Engineering – IOF
• Applied Polymer Research – IAP
• Applied Solid State Physics – IAF
• Battery Cell Production – FFB
• Biomedical Engineering – IBMT
• Building Physics – IBP
• Cell Therapy and Immunology – IZI
• Ceramic Technologies and Systems – IKTS
• Chemical Technology – ICT
• Communication, Information Processing and Ergonomics – FKIE
• Computer Graphics Research – IGD
• Digital Media Technology – IDMT
• Digital Medicine – MEVIS
• Electron Beam and Plasma Technology – FEP
• Electronic Nano Systems – ENAS
• Energy Economics and Energy System Technology – IEE
• Environmental, Safety and Energy Technology – UMSICHT
• Embedded Systems and Communication – ESK
• Experimental Software Engineering – IESE
• Factory Operation and Automation – IFF
• High-Frequency Physics and Radar Techniques – FHR
• High-Speed Dynamics (Ernst-Mach-Institut) – EMI
• Industrial Engineering – IAO
• Industrial Mathematics – ITWM
• Information Center for Regional Planning and Building Construction – IRB
• Integrated Circuits – IIS
• Integrated Systems and Device Technology – IISB
• Intelligent Analysis and Information Systems – IAIS
• Interfacial Engineering and Biotechnology – IGB
• International Management and Knowledge Economy – IMW
• Laser Technology – ILT
• Machine Tools and Forming Technology – IWU
• Manufacturing Engineering and Applied Materials Research – IFAM
• Manufacturing Engineering and Automation – IPA
• Material and Beam Technology – IWS
• Material Flow and Logistics – IML
• Materials Recycling and Resource Strategies – IWKS
• Mechanics of Materials – IWM
• Microelectronic Circuits and Systems – IMS
• Microstructure of Materials and Systems – IMWS
• Microsystems and Solid State Technologies EMFT – EMFT
• Molecular Biology and Applied Ecology – IME
• Non-Destructive Testing – IZFP
• Optronics, System Technologies and Image Exploitation – IOSB
• Open Communication Systems – FOKUS
• Photonic Microsystems – IPMS
• Physical Measurement Techniques – IPM
• Process Engineering and Packaging – IVV
• Production Systems and Design Technology – IPK
• Production Technology – IPT
• Reliability and Microintegration – IZM
• Secure Information Technology – SIT
• Silicate Research – ISC
• Silicon Technology – ISIT
• Solar Energy Systems – ISE
• Structural Durability and System Reliability – LBF
• Surface Engineering and Thin Films – IST
• Systems and Innovation Research – ISI
• Technological Trend Analysis – INT
• Telecommunications, Heinrich-Hertz-Institut – HHI Archived 15 February 2019 at the Wayback Machine
• Toxicology and Experimental Medicine – ITEM
• Transportation and Infrastructure Systems – IVI
• Wind Energy Systems – IWES
• Wood Research, Wilhelm-Klauditz-Institut – WKI

• The MP3 compression algorithm was invented and patented by Fraunhofer IIS.[8] Its license revenues generated about €100 million in revenue for the society in 2005.[14]
• The Fraunhofer Heinrich Hertz Institute (HHI) was a significant contributor to the H.264/MPEG-4 AVC video compression standard, a technology recognized with two Emmy awards in 2008 and 2009.[15] This includes the Fraunhofer FDK AAC library.[16]
• As of May 2010, a metamorphic triple-junction solar cell developed by Fraunhofer's Institute for Solar Energy Systems holds the world record for solar energy conversion efficiency with 41.1%, nearly twice that of a standard silicon-based cell.[17]
• Fraunhofer is developing a program for use at IKEA stores, which would allow people to take a picture of their home into a store to view a fully assembled, digital adaptation of their room.
• E-puzzler, a pattern-recognition machine, which can digitally put back together even the most finely shredded papers. The E-puzzler uses a computerized conveyor belt that runs shards of shredded and torn paper through a digital scanner, automatically reconstructing original documents.[18]
• OpenIMS, an Open Source implementation of IMS Call Session Control Functions (CSCFs) and a lightweight Home Subscriber Server (HSS), which together form the core elements of all IMS/NGN architectures as specified today within 3GPP, 3GPP2, ETSI TISPAN and the PacketCable initiative.
• Powerpaste, a magnesium- and hydrogen-based gel, that releases hydrogen fuel suitable for fuel cell consumption when it reacts with water has been developed by the Fraunhofer Institute for Manufacturing Technology and Advanced Materials (IFAM).
• Roborder, an autonomous border surveillance system that uses unmanned mobile robots including aerial, water surface, underwater and ground vehicles which incorporate multi-modal sensors as part of an interoperable network.[19]

A German stamp: 50 years of the Fraunhofer Society

The Fraunhofer Society was founded in Munich on March 26, 1949, by representatives of industry and academia, the government of Bavaria, and the nascent Federal Republic.

In 1952, the Federal Ministry for Economic Affairs declared the Fraunhofer Society to be the third part of the non-university German research landscape (alongside the German Research Foundation (DFG) and the Max Planck Institutes). Whether the Fraunhofer Society should support applied research through its own facilities was, however, the subject of a long-running dispute.

From 1954, the Society's first institutes developed. By 1956, it was developing research facilities in cooperation with the Ministry of Defense. In 1959, the Fraunhofer Society comprised nine institutes with 135 coworkers and a budget of 3.6 million Deutsche Mark.

In 1965, the Fraunhofer Society was identified as a sponsor organization for applied research.

In 1968, the Fraunhofer Society became the target of public criticism for its role in military research. The criticism continued in the following decades and became a topic of public debate, including the need to improve resilience, defence capabilities and the protection of civilians and against cyber-attacks. In 2022, Frauenhofer also benefited from the € 100 billion in special funding for the German armed forces.[20][21]

By 1969, Fraunhofer had more than 1,200 employees in 19 institutes. The budget stood at 33 million Deutsche Mark. At this time, a "commission for the promotion of the development of the Fraunhofer Society" planned the further development of the Fraunhofer Society (FhG). The commission developed a financing model that would make the Society dependent on its commercial success. This would later come to be known as the "Fraunhofer Model".

The Model was agreed to by the Federal Cabinet and the Bund-Länder-Kommission in 1973. In the same year, the executive committee and central administration moved into joint accommodation at Leonrodstraße 54 in Munich.

The Fraunhofer program for the promotion of consulting research for SMEs was established, and has gained ever more significance in subsequent years.

In 1977, the political ownership of the society was shared by the Ministries of Defense and Research.

By 1984, the Fraunhofer Society had 3,500 employees in 33 institutes and a research budget of 360 million Deutsche Mark.

By 1988, defence research represented only about 10% of the entire expenditure of the Fraunhofer Society.

By 1989, the Fraunhofer Society had nearly 6,400 employees in 37 institutes, with a total budget of 700 million Deutsche Mark.

In 1991, the Fraunhofer Society faced the challenge of integrating numerous research establishments in former East Germany as branch offices of already-existing institutes in the Fraunhofer Society.

In 1993, the Fraunhofer Society's total budget exceeded 1 billion Deutsche Mark.

In 1994, the Society founded a US-based subsidiary, Fraunhofer USA, Inc., to extend the outreach of Fraunhofer's R&D network to American clients.

Its mission statement of 2000 committed the Fraunhofer Society to being a market and customer-oriented, nationally and internationally active sponsor organization for institutes of applied research.

In 1999, Fraunhofer initiated Fraunhofer Venture, a technology transfer office, to advance the transfer of its scientific research findings and meet the growing entrepreneurial spirit in the Fraunhofer institutes.

Between 2000 and 2001, the institutes and IT research centres of the GMD (Gesellschaft für Mathematik und Datenverarbeitung – Society for Mathematics and Information technology) were integrated into the Fraunhofer Society at the initiative of the Federal Ministry for Education and Research.

The year 2000 marked a noteworthy success at Fraunhofer-Institut for Integrated Circuits (IIS): MP3, a lossy audio format which they developed. For many years afterwards, MP3 was the most widely adopted method for compressing and decompressing digital audio.

In 2002, ownership of the Heinrich-Hertz-Institut for Communications Technology Berlin GmbH (HHI), which belonged to the Gottfried William Leibniz Society e. V. (GWL), was transferred to the Fraunhofer Society. With this integration, the Fraunhofer Society budget exceeded €1 billion for the first time.

In 2003, the Fraunhofer Society headquarters moved to its own building in Munich.

The Fraunhofer Society developed and formulated a firm specific mission statement summarizing fundamental targets and codifying the desired "values and guidelines" of the society's "culture". Amongst these, the society committed itself to improving the opportunities for female employees and coworkers to identify themselves with the enterprise and to develop their own creative potential.

In 2004, the former "Fraunhofer Working Group for Electronic Media Technology" at the Fraunhofer-Institut for Integrated Circuits (IIS) gained the status of an independent institute. It becomes Fraunhofer-Institut for Digital Media Technology IDMT.

New alliances and topic groups helped to strengthen the market operational readiness level of the institutes for Fraunhofer in certain jurisdictions.

In 2005, two new institutes, the Leipzig Fraunhofer-Institut for Cell Therapy and Immunology (IZI), and the Fraunhofer Center for Nano-electronic technologies CNT in Dresden, were founded.

In 2006, the Fraunhofer Institute for Intelligent Analysis and Information Systems (IAIS) was founded as a merger between the Institute for Autonomous Intelligent Systems (AIS), and the Institute for Media Communication (IMK).

In 2009, the former FGAN Institutes were converted into Fraunhofer Institutes, amongst them the Fraunhofer Institute for Communication, Information Processing and Ergonomics FKIE and the Fraunhofer Institute for Radar and High Frequency Technology FHR.[22]

In 2012, the cooperation of Fraunhofer with selected research-oriented universities of applied sciences based on the "Application Center" model started. The first cooperation was started with the Technische Hochschule OWL in Lemgo and led to the foundation of the Fraunhofer IOSB-INA in late 2011.

• 
  Fraunhofer-Institut (IME) in Schmallenberg
• 
  Fraunhofer - Dresden - FEP - IFAM - IKTS - IWS

• Walther Gerlach (1949–1951)
• Wilhelm Roelen (1951–1955)
• Hermann von Siemens (1955–1964)
• Franz Kollmann (1964–1968)
• Christian Otto Mohr (1968–1974)[23]
• Heinz Keller (1974–1982)
• Max Syrbe (1982–1993)
• Hans-Jürgen Warnecke (1993–2002)
• Hans-Jörg Bullinger (2002–2012)
• Reimund Neugebauer (2012–2023)[24]

• National Network for Manufacturing Innovation
• Open access in Germany

• Official website (in German)
• Official website (in English)
• Official website (US)
• Official website (UK)
• Official website (DE) (in English)