Dresden is the state capital of Saxony and serves as its political center. It is home to most of the state's government-run cultural institutions and also several universities. Dresden is also known as the "Florence on the Elbe" due to its Baroque and Mediterranean architecture and scenic location on the river Elbe.
Dresden forms the center of the most economically successful region in the newly-formed German states. The city mainly houses companies from the microelectronics, information, biotechnology and electrical engineering sectors, which capitalize on the close proximity to the universities. The city's areas of expertise lie in the following areas: