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
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?