Essay: The state of health of non-university materials research in Germany is summarized in an influential and refreshingly frank report that was published by the Wissenschaftsrat of the German government earlier this year. The methods, findings and recommendations of this report, which looked at the National Research Centers, Max Planck Institutes and Fraunhofer Institutes, among others, are briefly presented here. The conclusions drawn will be of interest to all materials scientists concerned with the future development of this crucial economic sector.