German engineering is still of really high quality and there are lots of companies (especially in mechanical engineering) that make use of this knowledge.
But the German gouvernment has missed the information revolution and many powerful companies (Deutsche Telekom, TV companies, etc.) see anything that has to do with the internet as danger for their business models - thus they lobby a lot for laws against anything that endangers their business models and especially internet startups. See for example > http://www.uni-muenster.de/Jura.itm/hoeren/materialien/Skrip... to see how complicated the law has become there - full of legal mines.
For the same reason the idea to found a public corporation that builds a modern fiber network which internet providers can rent on equal terms (an idea that is discussed) will probably never be done.
So I should choose my preferred living place on the premise of maximizing profitability for my ISP? I don't think so.