Technology and innovation policy requires up-to-date information on the performance of businesses and public institutions in the field of research and innovation for effectively designing strategies and instruments. This project will determine the position of the Federal State of Lower Saxony in the areas of research and technological development (R&D), product and process innovation and sectoral structures of production and employment. The analyises will be used to derive conclusions for innovation policy. The role of ZEW in this project is to analyse innovation activities of firms in Lower Saxony. By applying a matching approach, peculiarities of Lower Saxonian firms compared to firms in other German Federal States will be identified.