Despite the continuing buzz around blockchain, its adoption in the DACH region (Germany, Austria, and Switzerland) remains limited. A recent study by researchers from the Technical University of Munich, the University of Mannheim, and ZEW Mannheim reveals that less than 1% of companies in this area actively use blockchain technology.

“This means that blockchain remains a niche technology even 15 years after its introduction” says Professor Hanna Hottenrott from TUM School of Management, head of  ZEW’s “Economics of Innovation and Industrial Dynamics”  Department and co-author of the study.

According to Christoph Gschnaidtner, also from TUM School of Management and main author of the study, “some sectors, mainly the financial industry, consulting firms, and the ICT sector show significantly higher adoption rates resulting in blockchain clusters in and around major financial hubs.” These clusters foster innovation and collaboration, which in turn also attracts newly founded blockchain ventures amplifying the effect even further.  

Research Insights

Analyzing websites of approximately 1.4 million companies, the study by Christoph Gschnaidtner, Robert Dehghan, Hanna Hottenrott, and Julian Schwierzy highlights how blockchain usage is concentrated in specific industries and locations. Proximity to financial centers not only encourages knowledge sharing and resource pooling but also eases access to capital and investment. This environment is crucial for the growth of blockchain technology, yet its overall adoption across the DACH region remains rather low.

Innovative Web Analysis Approach

The research employed deep learning techniques to analyze the textual content of company websites, identifying blockchain-related activities. By using a natural language processing (NLP) model, the researchers could accurately determine the presence and context of blockchain technology mentions, offering a novel way to assess the spread of digital innovations that are otherwise hard to track.

Overall, while geographical clusters and proximity to global financial centers were – using an innovative, state-of-the-art research approach – found to be major factors driving the adoption of blockchain technology, its widespread adoption in the DACH region is still work in progress.

To the study: Adoption and Diffusion of Blockchain Technology