Importance Germany has a competitive advantage in producing hi-tech goods, thus exporting them and taking the lead in the global market. Germany's economic growth and its effective foreign trade policy are driven by industries that specialize in development and implementation of innovation technologies. In this respect, it is reasonable to study the main areas for developing industrial specialization of the German economy in order to ensure an effective foreign trade policy. This research focuses on economic relations originating from development of Germany's foreign trade through specializing in industrial production and innovation technologies. Objectives This research pursues identifying key competence of Germany's manufacturing sector in order to substantiate trends in its foreign trade development and determine prospects for cooperation with Russia in innovative industries. Methods The research draws upon the methods of comparison and analysis of statistical data, which allowed identifying the main factors of Germany's foreign trade development within the period of 2010 to 2013. Using the methods of economic analysis, we find key competencies of Germany's manufacturing sectors, which lay the basis for its innovative growth. Results The article reveals the specifics of implementing Germany's foreign trade policy, analyses composition of import and export for the period of 2010 to 2013. We figure out that high indicators of the German economy depend 90 percent on processing industries oriented at applying innovative technologies. Conclusions and Relevance The outcome of the research may prove helpful for experts to formulate a strategy for developing the Russian-German cooperation in foreign trade, and substantiate priority areas for the interaction of both nations in implementing joint aerospace projects.
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