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The excellence program in Germany (financed by the federation and the states) is expected to enhance the international competitiveness of science and research in German universities. This purpose is, however, being undermined by the fact that a homology of cartel, monopoly and oligarchy structures has emerged that implies an enormous distortion of competition and leads to the inefficient allocation of resources among institutions. This inefficiency is revealed by the discrepancy between the input of resources in absolute and in relative terms per personnel and between the input of resources and the output of publications, both in absolute and relative terms. Because the excellence program allocates resources according to the dominant pattern of cartel, monopoly and oligarchy, it will even strengthen the inefficient allocation of resources for research. Therefore it will not improve the international competitiveness of science and research in Germany but rather contribute to its further decline.
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