The incorporation of neighbouring rural communities over the past 60 years has made Dresden the fourth largest urban district in Germany after Berlin, Hamburg, and Cologne.
Three major sectors can be seen as dominating the Dresden economy:
The semiconductor industry was built up in 1969. Major enterprises today are AMD, Infineon Technologies (now partly owned by Qimonda), ZMD and Toppan Photomasks. Their factories attract many suppliers of material and cleanroom technology enterprises to Dresden.
The pharmaceutical sector came up at the end of the 19th century. The Sächsisches Serumwerk Dresden (Saxon Serum Plant, Dresden), owned by GlaxoSmithKline, is a world leader in vaccine production. Another traditional pharmaceuticals producer is Arzneimittelwerke Dresden (Pharmaceutical Works, Dresden).
A third (traditional) branch is that of mechanical and electrical engineering. Major employers are the Volkswagen Transparent Factory, EADS Elbe Flugzeugwerke (Elbe Aircraft Works), Siemens and Linde-KCA-Dresden.
Tourism is another sector of the economy enjoying high revenue and many employees. There are 87 hotels in Dresden, a noted site for heritage tourism.