Best federal state for companies: Saxony overtakes Bavaria

The south performs poorly in childcare

Each of the five categories in the ZEW study comprises several sub-items. For example, "work and human capital" includes the quality of schools, universities and childcare. In the latter respect, Bavaria and Baden-Württemberg perform particularly poorly, ranking twelfth and thirteenth respectively.

In addition to the three factors mentioned above, the researchers also compared two other categories: "Taxes" and "Institutions". The former leader, Bavaria, only came first in "Taxes". This category included the level of trade tax rates, the taxation of real estate and the quality of financial administration. Under the heading "Institutions", the ZEW summarized the efficiency of the administration and the cultural offerings.

Bavaria spends the most money on the future

In an additional analysis of the state budgets, however, Bavaria is still at the top. The economists rated the "future orientation" of the state budgets. Bavaria spends the highest proportion on education, science, research and culture, closely followed by Baden-Württemberg, Saxony-Anhalt, Thuringia and Saxony.

On the other hand, there is expenditure on administration, social affairs or family and youth, which, according to the authors, will yield little or no fruit in the future. According to the study, Rhineland-Palatinate brings up the rear among the thirteen territorial states in this respect as well.

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