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Austria – Investment Climate Reasons to Invest in Austria - Perspectives Peter Ch. Löschl, ABA – Invest in Austria November 2015, Moscow
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Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

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Page 1: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

Austria – Investment ClimateReasons to Invest in Austria - Perspectives

Peter Ch. Löschl, ABA – Invest in AustriaNovember 2015, Moscow

Page 2: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

Strong Economy in the Heart of Europe

Area: 83,872 km² People: 8.5 m. GDP growth: 0.5% (forecast 2015)

GDP / capita: € 36,980 R&D quota: 3.01% (forecast 2015)

Page 3: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

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)

Page 4: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

Vienna International Airport –The Leading Hub to CEE and SEE

Austrian Airlines:

23 countries

41 destinations

559 flights per week

Source: Vienna Airport

Page 5: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

20% New Austrians

Germany

Serb, Mont, Kos

Turkey

Bosnia Herz.

Romania

Croatia

Poland

Hungary

Czech Rep.

Slovakia

Russia

Italy

Foreign citizens Already naturalized 226,882

185,592

132,661

74,639

Source: Statistik Austria 2015

208,947

69,859

63,197

45,589

44,209

30,017

28,510

27,916

Page 6: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

You Know Austria Like This…

Page 7: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

… or Like That…

Page 8: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

… or Like That…

Page 9: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

… but Best Like That

Page 10: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

You Are Investing 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

Page 11: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

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

Page 12: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

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

Page 13: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

Highly Productive EmployeesLabor Productivity, GDP per person employed in PPS, EU-28=100

168,4

144,1

128,9

115,7

113,4

112,8

112,2

107,5

107,3

106,4

102,4

100,0

76,7

73,3

71,7

42,9

Luxembourg

Ireland

Belgium

France

Austria

Netherlands

Denmark

Euro area

Italy

Germany

United Kingdom

EU-28

Czech Republic

Poland

Hungary

Bulgaria

Source: European Commission, 11/2015

Page 14: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

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

Page 15: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

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

Page 16: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

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

Gemany

EU-27/28

* Forecast 2015

3.01 *

Page 17: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

Austrian Cluster Landscape

Economic and technologicalcooperation

More than 50 clustersApprox. 3,500 companiesApprox. 420,000 staff

Page 18: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

COMET – All Centers in Austria

Page 19: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

Innovation Hub Austria

OPEN INNOVATION

Excellencein professional Research and Development

StartUp Hub & Industrial Clusters

Uniqueeducational system

and access to Universities

Page 20: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

Via Two Main Program Lines

Subsidies for R&D Projects are Available

„Special programs“

„Top Down“

Thematic calls„Bottom-up“

Any topicAny time

„Basic programme“

Page 21: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

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

Page 22: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

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

Page 23: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

Economic and Social Stability

Reliable legal system Efficient public

administration High personal security Very low strike rate

Page 24: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

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

Page 25: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

Attraktive for More than300 Regional Headquarters

Page 26: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

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

Page 27: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

FFG StructuralPrograms

AplusBaccentbuild!CASTINiTSSPG – Science Park Graztech2bZAT – Zentrum für angewandte

Technologie

COIN – Cooperation andInnovation

Research Studio IraSME

Page 28: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

Company Incentives Stages

Pre-Seed Early Stage Later StageBasic

ResearchIncubator Seed Start Up First

StageSecond Stage

ThirdStage

IPO

Com

pany

Fou

ndin

g

Grant

Grant

Grant

Grant

Grant

Direct (soft) loans

Direct (soft) loans

Guarantees

Guarantees

Page 29: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

Newly Established Companies

Source: Austrian Economic Chamber

14.161

21.706 21.954

26.03528.322

31.001 30.304

32.712

35.27936.946 37.054

Page 30: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

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

Page 31: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

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

Page 32: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

5 Reasons for Companies to Invest in Austria

Competitive technologies & innovative business environment

Qualified & flexible employees

High stability & security

Central European location

Huge market potential

Page 33: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

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

Page 34: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

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

Page 35: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

ABA – Invest in AustriaYour Contact in Vienna

Peter Ch. LöschlTel: +43 1 588 58 [email protected]

Page 36: Austria – Investment Climate Reasons to Invest in Austria ... · Innovation Hub Austria OPEN INNOVATION Excellence in professional Research and Development StartUp Hub & Industrial

Economy 3.0

Source: Austrian Economic Chamber

Economy 1.0 Economy 2.0 Economy 3.0

Nature of need Physical survival Human prosperity Immaterial wealth

Driving force Development Actualization Recognition

Nature of work Manual labor Repetitive labor Intellectual or creative activity

Dominant sector Agriculture Industry Service industry

Most important form ofcapital

Land and natural capital Machines and material capital

People and intellectual capital

Stage of knowledge society Oral society Literate society Digital society

Geographical focus Local National Global

Key concept to satisfactionof needs

Production Consumption Barter

Purpose of the system Production Distribution Interaction

Market as… Food in return for work, indentifying markets

Goods in return for money, setting prices

Identities for / versus identities, identifying communities

Inherent values Hard work, obedience Rationality Identity

Employer-employeerelationship

Indipendent, but possiblysubject to feudal rule

Employees and employers Fellow entrepreneur

Customer as… Mass phenomena Recipient Co-producer

Property, definition and useof profit

Entrepreneur Entrepreneurs andshareholders

Customers, investors, employees, the public

Dominant politicalimperative

Democratization Liberalization Intellectualization