Bavaria remains Germany's start-up engine

The latest Next Generation Report clearly shows that Bavaria is maintaining its position as Germany's strongest start-up region. With 46 per cent growth in new start-ups and the top spot nationwide, the Free State is demonstrating how effective a well-connected innovation ecosystem can be.

Strong founding year 2025

In 2025, 3,568 start-ups were founded nationwide – 785 of them in Bavaria. This means that more than one in five start-ups is created in the Free State. Particularly noteworthy: Bavarian start-up growth was almost twice as high as the national average.

“Success happens not by accident”

Bavaria's Minister of Economic Affairs, Hubert Aiwanger, sees this positive development as the result of a long-term strategy. He emphasises that Bavaria offers founders optimal conditions – from coaching to infrastructure and networks to access to capital. The aim is to support young companies from the initial idea to successful implementation.

Demands on the federal government

To ensure that this momentum is sustained, Aiwanger links success to clear political demands. These include reducing corporate taxes to a maximum of 25 per cent, abolishing inheritance tax and introducing more flexible working time regulations. These measures are intended to strengthen Germany as a business location overall.

Click HERE to view the entire Next Generation Report.