Germany's most populous and economically strongest state offers startups a large sales market and, with its high density of industrial and commercial companies, many potential customers and partners. Furthermore, a strong information and communications technology (ICT) sector is clearly driving digital transformation in the state. Many startups benefit from networking and entrepreneurial concentration as they develop their business models. Another important location factor is the large number of universities and research institutions, which provide a large talent pool of well-trained specialists.