For all variables except R&D expenditure and Number of researchers, the data are prepared by the Deutsche Bundesbank. The data are based on annual stock surveys of direct investment (nonresidents’ assets in the economic territory), which cover all enterprises in Germany directly owned by foreigners or, from 2002, indirectly owned by foreigners through foreign majority-owned resident enterprises. From 2002 onwards, the submission of reports is required of every German enterprise with a balance sheet total of more than EUR 3 million; from 1999 until 2001, enterprises in Germany with a balance sheet total of more than EUR 500 000 were covered in which a non-resident (or several economically linked non-residents) holds 50% or more of the shares or voting rights of the German enterprise; reports were also required of German enterprises with a balance sheet total of more than EUR 5 million in which a non-resident (or several economically linked non-residents) held at least 10% but less than 50% of the shares or voting rights in the German enterprise concerned. Prior to 1999, the enterprises covered were those with foreign participating interests of more than 20% and with a balance sheet total exceeding EUR 500 000.