1. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 1 INNOVATION aus TRADITION Foreign Direct Investments in Austria and Styria Figures, Facts and Strategies Graz, 23.04.10 JOANNEUM RESEARCH Center for Economic and Innovation Research Dr. Christian Hartmann

2. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 2 Overview Foreign Direct Investments in Austria – a success story? The regional cutting across the cake – how well did Styria so far? The attraction of FDI to Styria – from adhocracy and luck to strategy

3. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 3 Overview Foreign Direct Investments in Austria – a success story?

4. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 4 Austrian FDI outflows in % of Gross Capital Formation WorldAustria Source: UNCTAD, WIR, BMWFJ

5. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 5 Austrian stocks of outward investments in % of GNP WorldAustria Source: UNCTAD, WIR, BMWFJ WorldAustria

6. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 6 Austrian FDI outflows by countries/regions (in shares of total) Source: OENB, JOANNEUM RESEARCH

7. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 7 Austrian FDI outflows – a closer look on Central and Eastern Europe, (shares of total) 1997-2007 Source: OENB, JOANNEUM RESEARCH

8. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 8 Stocks of Austrian outward investments by economic sectors Source: OENB, JOANNEUM RESEARCH

9. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 9 Austrian FDI inflows in % of Gross Fixed Capital Formation WorldAustria Source: UNCTAD, WIR, BMWFJ

10. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 10 World Austrian stocks of inward investments in % of GNP Austria Source: UNCTAD, WIR, BMWFJ

11. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 11 Austria FDI inflows by countries of origin, 1997-2007 (shares of total) Source: OENB, JOANNEUM RESEARCH

12. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 12 Stocks of Austrian inward investments by economic sectors Source: OENB, JOANNEUM RESEARCH

13. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 13 Summary Austria managed sucessfully in the last two decades to catch up with world average both in terms of stocks and flows of outward investments Stock of investments were in 2007 with 37.9 % of GNP clearly above the world average, but… …still well below the reference value of EU-27 (44.2 % of GNP) Austria has established itself as a major investor in CEEC countries Austria is holding the number 1 position as investor (28 % market share in 2008) in South Eastern Europe In the NMS-10 Austria is holding the third place (11 % market share in 2008) Austria was also able to catch up to world average in attracting inward investments Increasing importance of the service sector Business Services (39 %) and Financial Services (23 %) account for more than two thirds of stocks in 2007

14. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 14 Overview The regional cutting across the cake – how well did Styria so far?

15. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 15 Stocks of FDI in the Austrian Provinces 2007 Stocks of outward FDI Stocks of inward FDI Source: OENB, BMWFJ

16. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 16 FDI inflows to Austrian Provinces, 1997-2007 (in M of EUR) Source: OENB, JOANNEUM RESEARCH

17. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 17 Styria: FDI inflows by country of origin (shares of total) Source: OENB, JOANNEUM RESEARCH

18. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 18 FDI inflows and outflows in Styria – 1997-2007 (in M of EUR) Source: OENB, JOANNEUM RESEARCH

19. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 19 Summary The lions share of FDI flows and stocks goes to …. Vienna The city is holding in 2007 more than two thirds of the stocks of inward investments to Austria The city has established itself as a major international location of regional headquarters Styria did since 1997 not particularily well in attracting FDI inflows compared to other Austrian Provinces In 2007 Upper Austria attracted inflows of EUR 12,403 M compared to Styria with EUR 3,589 M The picture remains unchanged if stocks of FDI are discussed Germany as a former major investor has been dramatically loosing ground in Styria

20. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 20 Overview The attraction of FDI to Styria – from Adhocracy and luck to strategy

21. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 21 The past In the 1990s Foreign Direct Investments in Styria were mainly driven by chance Anecdote: a helicopter flight leading to an industry location decission… Nevertheless FDI were functioning effectively as nuclei for cluster development E.g. the Eurostar investment was a starting point for the Automotive Cluster in Styria Structural Funds period 2000-2006 integrated the issue of FDI into a more strategic planning approach Measure 1.1: Attracting new companies to the area Since the year 2000 studies helped to develop an elaborated and clearcut strategy Headquarters in Styria Study in 2004 Reasessment of Styrian Business Locations in the framework of the TECNOMAN project from 2004 to 2005

22. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 22 Business Locations in Styria Source: Schrenk 2007

23. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 23 The present Location Management Concept since 2009; objectives are: Attraction of Headquarters to the region Attraction of Centers of Competence Strategic Approach Benchmarking of other regions Attraction of firms that complement regional clusters and value chains Ressources Five years project with an overall volume of EUR 4,1M Dedicated department at the Styrian Regional Economic Promotion Agency Database of available regional business locations

24. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 24 Schematic Overview of relevant interfaces for regional location management Source: SFG 2009

25. JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: pr@joanneum.at, web: http:// www.joanneum.at ISO 9001 zert ISO 9001 zertifiziert 25 Thank you for your attention Dr. Christian Hartmann JOANNEUM RESEARCH Forschungsgesellschaft mbH Center for Economic and Innovation Research A-8010 Graz, Elisabethstraße 20 Tel.: +43/316/876 DW 1487 (Fax: DW 9-1487) http://www.joanneum.at/rtg http://www.joanneum.at/rtg