Germany is one of the most knowledge-intensive and innovative countries on Earth. In this study we focus on the innovative performance of its sixteen federal states with reference to eight indicators. The most innovative states lie in the south, while the east trails in terms of absolute levels. However, interdisciplinarity and regional industrial diversity cushion negative effects of structural change on the regions and offer alternative sources of sustained economic growth. Looking at the dynamic of innovation it is apparent that the states in the east of Germany – spearheaded by Saxony – are on the right course.
