Transcript Industrial and Innovation Policy in Austria

Industrial and Innovation
Policy in Austria
By
Daniel Föger
Hong Hai Luong
Industrial and Innovation Policy in Austria
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General Country Information
Economy
Industry and Innovation
The new EU members
General Country Information
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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 Economy
GDP / per Head 265 billion / 33.492 €
Exports:
142 billion €
Growth rate:
1.0 %
Unemployment: 4.1%
Industries:
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Food industry, Luxury commodities
Mechanical engineering
Steel construction, Chemicals
Technologically adv. automotive systems
Major trading partners
Germany
Other
countries
Italy
Hungary
Switzer
land
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
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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 startsup
• 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
Economic situation
20
Slovenia
15
Czech Republic
Slovakia
10
Hungary
5
0
Growth rate
Inflation
Unemployment
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
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?