In the fiscal year of 2016, the Mannheim Centre for European Economic Research (ZEW) proved it has a competitive edge. Despite the strong national and international competition for third-party funding, the proportion of ZEW funding originating from third-party sources remained on a high, steady level in 2016 at 44 per cent (2015: 46 per cent). 19 per cent of the institute’s financial resources were obtained from research projects for the European Union. Thanks to the successful handover of the ZEW Presidency and the excellent evaluation the institute received from the Leibniz Association in the year of its 25th anniversary, ZEW was able to strengthen its already prominent position as one of the leading economic research institutes in Europe. The founding of the new Research Group “Market Design” demonstrates the traditionally innovative character of ZEW, one of the institute’s distinguishing features.