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?