Swiss economic think-tank Prognos looked at all 413 cities and regions in Germany and determined that Hamburg, Berlin and Munich are the places most hospitable to business. However, when it came to grading the various regions of Germany, 11 of the top 25 were in Baden-Württemberg.
According to the report, the mechanical engineering and health-related businesses have flourished in the area. Many small- to medium-sized businesses have been able to tap the global markets while being based in the state.
Adding to the prospects for success, Prognos pointed to the number of post-secondary institutions to train future generations in places such as Heilbronn and Esslingen.
But while the future looks rosy for Germany's southwest, Prognos noted that its formerly communist eastern region are still lagging behind the western states even 20 years after reunification.