Bautzen is home to a broad diversity of important industries. It is a leading location for machine tools production, manufacturing plant engineering, rail vehicle manufacture and plastic parts production. Internationally active manufacturing companies such as Bombardier Transportation and Edding, as well as the capable construction industry and a broad range of skilled trades, are characteristics of the economic structure of the area.

New companies in the area of innovative information technology and data processing like itelligence AG have put Bautzen firmly on the map as a location for future technologies.