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Abstract
The development of economic, ecological, social, cultural and political conditions has a lasting influence on the development of individual regions and economic areas, and is in turn influenced by them. Background conditions in Germany have changed over the last few years, with reunification and the upheavals in Eastern Europe, the prospective completion of the Singh European Market and the increasingly insistent new challenges in the areas of the environment and transport. This paper gives some examples of the changes taking place in some of these background conditions, and discusses their foreseeable future regional impacts in the FRG. In the last 10 years, Baden‐Württemberg in south‐west Germany has been considered as one of the most successful examples in Europe of regional structural adaptation combined with a dynamic innovation system. The characteristics of the economic development of this region and their causes are dealt with.