http://www.foreignaffairs.com/articles/67899/steven-rattner/the-secrets-of-germanys-success.
Germany also has a very influential government. Germany's government has many social programs or benefits that are provided for its people. For example, they have German federalism, much as in the United States and Switzerland, binds the country's external unity with its internal diversity. Preserving that regional diversity is the traditional task of the federal system. This function today acquires new substance in the form of regional responsibilities such as the protection of monuments and historical sites, the preservation of architectural traditions, and the promotion of regional culture. But the main purpose of federalism is to safeguard the nation's freedom. The federal structure also enhances the democratic principle. .
Once again the innovative capability of German business proved to be the driving force in economic recovery. Germany currently spends around 2.6 percent of its gross domestic product, clearly above the EU average of 1.9 percent (2008), on research and development (R&D). Together with the federal states and business the Federal Government is planning to increase spending on research and development to three percent of the gross domestic product by 2015. The US$ 49 billion spent on company-financed R&D also puts Germany in a top position. The inventive spirit is also as strong as ever: In 2009 investors companies from Germany registered some 11 percent of worldwide patents " third place in the world ranking. .
For this reason Germany continues to be one of the leading nations in several promising technologies. These include biotechnology, nanotechnology, and computer science, as well as high-tech fields such as biometry, aerospace, electrical engineering, and logistics. .
http://www.tatsachen-ueber-deutschland.de/en/economy/main-content-06/innovations-for-the-markets-of-the-future.
