Over 1,000 more patents were issued in 2004 than in the preceding year, representing an impressive 7% increase, according to officials at the Munich-based German Patent and Trademark Office.

Automotive and electrical engineers received were particularly inventive this year, the officials said, hailing the news as powerful evidence that the future is bright for Germany’s knowledge economy.

"The high volume of patent applications demonstrates that German ingenuity is alive and well," said Juergen Schade, German’s patent chief.

Internationally, Germany ranks behind only the United States and Japan in the number of patent applications filed annually, a figure seen as an important indication of scientific innovation.

In addition, German firms including engineering giant Siemens and chemical industry leader BASF are among the companies who submit the largest number of patent applications to the World Intellectual Property Organization.

The new figures come as German leaders who see high-tech innovation as their best hope for triggering greater economic growth promote efforts to increase public funding for research and development.

That "innovation offensive" has won praise from business leaders including Roland Berger, the founder of the highly-regarded management consultancy that bears his name.