Germany is the home of such great games as The Settlers of Catan, Alhambra, and Carcassonne. In fact, they invented the genre of game known as "German-style Board Games," including these strategy games similar to Catan. The stores' game sections are full of them here and there is even a highly prestigious annual Game of the Year award.
(btw...you can play a short version of Catan online here)
The German toy industry also is very well known for its stuffed animals (by Steif) and model cars/construction machines (Siku and others).
But for the younger kids, there are some quite interesting toys and games out there by Goliath Toys. I remember Ants in the Pants and Hungry Hungry Hippos, but they've taken the interactive part a step further. My descriptions would be so inadequate....you just have to watch the short commercials.
These are not SNL-style spoofs....they are made for real products you can buy on Amazon.de here.
Kackel Dackel ("Pooping Dachshund")
Schweine Schwarte ("Pork Rind")
Snotty Snotter (no translation needed)
Fliese Fliege ("Fly Tiles"??)