[kmmlng]

It is true that Germany (and Europe as a whole) suffers from a less than ideal investment and innovation landscape. The companies you mentioned, however, worked on products that barely make any sense. It is clear that those kinds of companies will not (and should not) survive outside of 0% interest paradigms.

[lnsru]

I think, other countries would help these companies pivoting to defense/military applications. Munich in Germany is basically stuck during rush hour. Flying ambulance or cop car sounds good to me. And such application would be with high probability successful export product.

[tobias3]

We already have Airbus Helicopters development and production in that area (Donauwörth).