1. Industrial and Innovation Policy in Austria By Daniel Föger Hong Hai Luong

2. Industrial and Innovation Policy in Austria General Country Information Economy Industry and Innovation The new EU members

3. General Country Information Size: 83,858 km² Population: 8,1 million Language: German Capital: Vienna (1,54mio.)

4. General Country Information Political System: Federal State with 9 Federal Provinces (Bundesländer)

5. Industrial and Innovation Policy in Austria General Country Information  Economy Industry and Innovation The new EU members

6. Austria’s Economy GDP / 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

7. Major trading partners

8. Economic growth international

9. Inflationrate: Austria and EU

10. Unemployment: Austria and EU

11. 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

12. Industrial and Innovation Policy in Austria General Country Information Economy  Industry and Innovation The new EU members

13. 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

15. 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

16. 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%)

17. 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

18. 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

19. 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.

20. 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

22. Industrial and Innovation Policy in Austria General Country Information Economy Industry and Innovation  Austrias Neighbours: The new EU members

23. On 1.1.2004 the EU will have 10 new members

25. 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

26. 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%

27. 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%

28. 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

29. Thank you for your attention! Questions and Comments?