In tertiary education there are multiple tracks you can choose the more academically focused universities, more industry focused universities of applied sciences and higher certificates in the profession you learned (my father for example got a master painter certification, which allowed him to train apprentices and taught him a lot of the skills to run his own business).
But what's more important the school system starts splitting people up into workers and academics as soon as they start their secondary education: - The kids that perform better in school go to the "Gymnasium" which leads them to get a high school degree (Abitur or Matura) which allows entry to universities focused on academics. - The kids that perform worse go to a junior high school and start an apprenticeship and go to vocational school after finishing junior high. The academically stronger kids also have the option to get a high school degree at vocational school that allows them to enter a university of applied science (Fachabitur or Berufsmaturität).
Of course there are ways to change between the two tracks but most people follow one of the given paths. And I'd say even the more "ivory-tower" universities at least in STEM are really industry focused with companies having a big presence on campuses.