Erlangen, Germany

Capital City

With a population just under 118,000, Erlangen punches well above its weight as an economic powerhouse. The city's economy is dominated by the activities of Siemens AG and its affiliated companies, as well as the Friedrich-Alexander University - a combination that has made Erlangen one of the most attractive business locations in Germany. However, the bureaucracy can be a persistent headache, with the city council fielding a high number of referendums in recent years. For those drawn to a thriving, innovation-driven economy and willing to navigate the red tape, Erlangen offers an appealing option.