After the Thirty Years' War, Nuremberg's finances were exhausted. In 1806, the Imperial City, which in the meantime had dwindled to a population of only 25,000 inhabitants, was incorporated in the Kingdom of Bavaria. Both this integration in a larger state and the entrepreneurial spirit of its citizens led to a new economic rise of the city. One symbol for this period is the "Adler" (Eagle): in 1835, the locomotive manufactured in England went from Nuremberg to Fürth, the first German railway to start operation.
The manufacture of pencils and toys and metal working prospered. Entrepreneurs such as Theodor von Cramer-Klett (founder of MAN) and Sigmund Schuckert (Siemens-Schuckert) influenced the economic life of the city.
South of the railway line, large industrial precincts and housing schemes were built, and in 1881 the city had over 100,000 inhabitants. "Red" Nuremberg was the largest industrial city in Southern Germany and a stronghold of the labour movement.