excellence in innovation and r & d reasons to invest in austria · startup hub & industrial...
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Excellence in Innovation and R & DReasons to Invest in Austria
You Know Austria Like This…
… or Like That…
… or Like That…
… but Best Like That
Strong Economy in the Heart of Europe
Area: 83,872 km² People: 8.6 m. GDP growth: 0.8% (forecast 2015)
GDP / capita: € 36,980 R&D quota: 3.01% (forecast 2015)
GDP Industry: 28.4 %GDP Services: 70.3 %GDP Agriculture: 1.3 %
Invest in an Industrial CountryProduction sector as percentage of GDP, 2014
30.7
28.4
25.7
25.6
24.4
21.4
20.3
19.9
19.5
Germany
Austria
Switzerland
Japan
EU-28
Netherlands
USA
UK
France
Source: OECD, Eurostat 2015
You Are investing in an Industrial CountryProduction sector as percentage of GDP
Production 29%
Services 55%
Tourism & Leisure Ind. 15%
Agriculture 1%
Source: Statistik Austria 2015
Top Industries in Austria
Source: Austrian Economic Chamber
Production sold in 2014, in billion €
10,12
10,62
13,36
13,59
15,01
33,40Machinery /Metal goods
Chemicals
Vehicles
Electrical /Electronics
Gas / Heatsupply
Mineral oil
Profit from Highly Productive Employees
263
132
130
128
124
124
108
107
107
100
Luxembourg
Ireland
Netherlands
Austria
Sweden
Germany
Great Britain
Euro area
France
EU-28
Source: European Commission, Eurostat (06/2015)
Labor productivityGDP per person employed in PPS, EU-28 = 100
Expert Staff forSustainable Corporate Sucess in R&D
Dual educational system Vocational schools (HAK, HTL
unique to Austria)
21 Academies of applied sciences offering approx. 400 courses
22 public universities12 private universities Foreign language competencies More than 1,000 extra-university
research institutions
„New“ Austrians
Source: Statistik Austria 2016
Largest foreign population groups
176,517
116,739
116,053
93,966
82,971
70,255
63,608
57,604
35,355
31,151
25,324
Germany
Serbia
Turkey
Bosnia Herz.
Romania
Croatia
Hungary
Poland
Slovakia
Russia
Italy
Research andDevelopment in Austria
More than EUR 10 billion were invested in R&D in Austria in 2015
With 3.01 % of GDP Austria is above the EU average of 2.03 percent
Research premium: 12%
Austria‘s R&D Expenditures GrowAbove AverageAs percentage of GDP
Source: Eurostat
1,5
1,7
1,9
2,1
2,3
2,5
2,7
2,9
1998 2000 2003 2004 2005 2006 2007 2008 2010 2012 2014
Austria
Germany
EU-27/28
* Forecast 2015
3.01 *
Austrian Expenditures in R&DTotal 2015: 10,104.44 m. €
Federal 3114
Regions 443.2
Companies 4764.9
Foreign 1529.3
Others 153
Source: Statistik Austria 2015
Comprehensive Funding System
Austrian Research Promotion Agency (FFG): promotes R&D by companies along the entire innovation chain
Austrian Science Fund (FWF): promotion of basicresearch
Austria Wirtschaftsservice GmbH (AWS): funding bank for corporate business development
Innovation Hub Austria
OPEN INNOVATION
Excellencein professional Research and Development
StartUp Hub & Industrial Clusters
Uniqueeducational system
and access to Universities
Austrian Cluster Landscape
Economic and technologicalcooperation
More than 50 clustersApprox. 3,500 companiesApprox. 420,000 staff
COMET – All Centers in Austria
Factors for the Startup Hotspot Austria
High educational level for technical jobs Differentiated funding system Investment-friendly tax system
– 12% tax credit for R&D expenditures
Dynamic Growth of Startups
Newly established companies in Austria1993: 14,6312013: 36,9462014: 39,738
Newly established companies in Vienna2013: 8,403Thereof startups: 638Share of startups: 7.6%
More Factors for the Startup Hotspot Austria
Self-organization in startup clusters and coworking spaces Supporting network (early-stage
investors, business angles, incubators) “Limited company” with 5,000 €
as minimum cash contribution
Startup EcosystemIncubators / Accelerators
• Pioneers Festival• A1 Start Up Campus• Frequentis Startup Centre• Cisco “Entrepreneurs in Residence” (EIR)• Erste Bank Go! GründerCenter• I5invest• Impact Hub• AustrianStartups• Founder centers at universities (Vienna University of Economics and Business,
Vienna University of technology, University of• Natural Resources and Life Sciences, Vienna, Entrepreneurship Center
Network, etc.)• Numerous others such as Slax (LeitnerLeitner), Blue Minds Company, ORF-
Accelerator, etc.
From Startup to Global Player
Bwin: founded in 1997, now3,100 staff, biggest online gaming provider
Jajah: supplier of web-basedtelephony, 2009 acquired byTelefonica for 145 m. €
Runtastic: launched by 4 students in 2009, world leaderin fitness tracking, bought byAdidas for 220 m. (2015)
From Startup to Global Player
Paysafecard: European marketleader, first online means ofpayment approved by bankinglaw
UBIMET: fastest growingprivate European supplier ofmeteorological services, stakeholder Red Bull (2012)
AFFiRiS: launching the firstclinical tests for Parkinson vaccine in 2012
Success Stories
ITAInfotope Information and Communications Technologies focuses on safeguarding networks and users from cyber threats.
LOCK 8Smart phones serve as electronic keys for intelligent bicycle locks. A special app locates bikes by GPS.
Next SocietyThe startup based in Vienna and NYC develops the most intelligent networking assistant for professionals.
East-West Business Interface in the Heart of Europe
Ideal access to EU markets – bestconnections to West / East Europe
Excellent traffic connections
Over 300 CEE headquarters
Know-how of Austrian service providers
20 % of Austrians have migration background
Vienna International Airport –The Leading Hub to CEE and SEE
Austrian Airlines:
23 countries
41 destinations
559 flights per week
Source: Vienna Airport
Attractive for More than300 Regional Headquarters
Vienna: HQ-Location for International Organizations and Top Conference City
Only UN headquarters in the EU 30 HQs of international
organizations in Vienna
More than 14,000 international staff and diplomats (UN) are living in Vienna
Leading conference city (according to ICCA study)
Skilled HQ staff available
Top Investor: Austrian FDI in CEEPercentage of total investment in respective country and Austria‘s rank as investor, 2013
27.3
21.6
17.9
16.2
13.9
13.2
11.8
11.4
10.5
8.1
7.8
3.2
Croatia 1
Slovenia 1
Bosnia-Herz. 1
Romania 2
Serbia 1
Slovakia 2
Bulgaria 2
Czech Rep. 3
Macedonia 2
Albania 3
Hungary 4
Ukraine 5
Source: WIIW (Vienna Institute for International Economic Studies)
Economic and Social Stability
Reliable legal system Efficient public
administration High personal security Very low strike rate
No StrikesWorking days lost to strikes per 1,000 employees –annual average 2005-2013
12
55
89
1623
5366
7677
102135
139
SwitzerlandAustriaPoland
SwedenNetherlands
USAGermany
United KingdomNorway
SpainFinland
BelgiumCanada
DenmarkFrance
Source: WSI - Hans Böckler Foundation 2015
Investor-friendly Tax System
Corporate tax rate: 25%Modern group taxation
Tax premium for R&D: 12%
No trade tax
No net worth tax
Double taxation treaties
5 Reasons for Korean Companies to Invest in Austria
Competitive technologies & innovative business environment
Qualified & flexible employees
High stability & security
Central European location
Huge market potential
Attractive for Korean Companies
Unmatched Quality of LIfeMaximum = 10
9,73
9,57
9,51
9,31
9,22
8,68
8,22
8,16
7,95
7,80
7,73
6,99
4,68
3,94
Switzerland 1
Norway 2
Austria 3
Germany 6
Netherlands 7
Belgium 15
USA 18
Japan 19
France 20
Czech Republic 22
United Kingdom 23
Italy 29
Poland 49
Hungary 56
Source: World Competitiveness Yearbook 2015
Who We Are
Consulting company for international investors
Owned by the Ministry of Economic Affairs
25 experienced employees
International network with offices in Shanghai and Tokyo
National network
Vigorous Support forInternational Investors
Cost free consulting services :
Company foundation
Legal and tax aspects
Location search
Incentives
Regulations
Business contacts
… making your entry in Austria easy
ABA – Invest in AustriaWe are looking forward to supporting you.
www.investinaustria.at