About two thirds of Germany’s overall R&D spending comes from the private sector, the importance of which has increased significantly since the early 1980s. This is followed by nearly 30 % from the public sector and about 5 % from foreign sources. Third sector spending plays an insignificant role in overall research spending in Germany amounting to less than 1 %. The private sector mainly funds its own research, but increasingly is also providing funding for research in HEIs as well as in other public and third sector organisations. Public funding is provided at the federal as well as state levels mainly for research in HEIs, followed by research in other public research organisations and the third sector, and, to a lesser extent, for research in the private sector. The majority of international funding goes to the private sector.