Industrial and Innovation Policy in Austria

By

Daniel Föger

Hong Hai Luong

Industrial and Innovation Policy in Austria

• General Country Information

• Economy

• Industry and Innovation

• The new EU members

General Country Information

• Size: 83,858 km²• Population: 8,1 million• Language: German• Capital: Vienna

(1,54mio.)

General Country Information

• Political System:

Federal State with 9 Federal Provinces (Bundesländer)

Industrial and Innovation Policy in Austria

• General Country Information

Economy• Industry and Innovation• The new EU members

Austria’s EconomyGDP / per Head 265 billion / 33.492 €

Exports: 142 billion €

Growth rate: 1.0 %

Unemployment: 4.1%

Industries:– Food industry, Luxury commodities– Mechanical engineering– Steel construction, Chemicals– Technologically adv. automotive systems

Major trading partners

Germany

Switzer land

Italy

Other countries

Hungary

Economic growth international

Inflationrate: Austria and EU

Unemployment: Austria and EU

Economic slow down

• Low economic growth

• High bureaucracy

• Many industries are still overregulated– Attempts to liberalise industries

• Powerful trade unions

• Budget deficit– 1,5% of the GDP 2003

Industrial and Innovation Policy in Austria

• General Country Information• Economy

Industry and Innovation• The new EU members

Industrial and Innovation Policy

Responsibilities:• Ministry of Education, Science and Culture• Ministry of Transport, Innovation and

Technology• Ministry for Economic Affairs and Labour

Austrian Council for RTD was established in July 2000

Austrian Council for R&D

• advices the federal government

• defines long-term national RTD strategy

• monitors implementation of this strategy

• Propose national RTD programmes in the international framework

• Improve co-operation between science and industry

• Strength Austria`s Position international

Vision and Strategy

• National Research and Innovation Plan (NRIP)

• Increase the RTD quota:

1,8% of GDP in 2000 2,5% in 2005

3,63 bill. € to 6,1 bill € (at present:1,95%)

Activities of Austrian Council for R&D

• Distribution of 509 mil. € special funds for RTD

• Campaign to raise public awareness for science, technology and innovation

• Human resources: – quality manpower– International mobility of researcher– Employment of foreigners in Austria

Activities of Austrian Council for R&D

• Initiative to promote emerging technology fields

• Initiatives on promoting innovative starts-up

• Universities: recommended to finance university research infrastructure

Future Activities of Austrian Council for R&D

• The council will further call for

– Increase in RTD funding– Realisation of additional long-term non

budgetary RTD funding (also private investors)

– Exploitation of external sources, e.g. dividend distributed by the Austrian National Bank or through privatisation revenues from national and „Länder“ governments.

Furthermore:

• Optimize structural reforms of the Austrian Innovation System

• Allocation of special funds for RTD (600 mil. € for 2004-2006) in close cooperation with experts and stakeholders

Industrial and Innovation Policy in Austria

• General Country Information• Economy• Industry and Innovation

Austrias Neighbours:

The new EU members

On 1.1.2004 the EU will have 10 new members

0

5

10

15

20

Economic situation

Slovenia

Czech Republic

Slovakia

Hungary

Slovenia 3,2 7,5 6,5

Czech Republic 1,9 1,8 9,2

Slovakia 3,8 3,3 17,8

Hungary 3,3 5,3 5,9

Growth rate Inflation Unemployment

Austria – Gateway to Eastern Europe

• Already in 1994 Austrian Federal Economic Chamber published:

• ”Austria – Gateway to Eastern Europe”– active establishment of Austrian companies in EE

• Initiative: ”Export 1 – 24”– Support for SMC to strenghten their

competitiveness – encourage confindence in EU - expansion

• 15.000 subsidiaries, represantative offices and joint ventures have been set up

Trade &Foreign direct investments of Austria

• Central and Eastern Europe as second largest trading partner– 17% of exports flowing into the region– Export to new EU members in 2002: – 9,7 Billion € (+ 5,9%)

• FDI in East Europe 2002: 2,6 Billion €– In total: 12,2 Billion €– FDI Market share in Eastern Europe: 10,2%

Austria’s FDI Focus in 2002

• FDI Focus on Czech Republic and Slovenia– In 2002: 40% of all FDI went to Czech

Republic

• Trade with Slovenia in 2002:– Export: 1,4 billion € (+ 9%)– Import: 784 million € (+1,9%)– Austria as biggest FDI with 32,3%

Why this boom?

• ”First mover advantage”– Even for small and medium sized enterprises

• ”Unique competitive advantages for companies”– Geographical location,– Common cultural heritage & History– Understanding of CEE language & business– Extensive network of financial institutions

Thank you for your attention!

Questions and Comments?