Austria Investment Climate Reasons to Invest in Austria - - - PowerPoint PPT Presentation

Austria – Investment Climate Reasons to Invest in Austria - Perspectives

Peter Ch. Löschl, ABA – Invest in Austria June 2016

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%

Top Investor: Austrian FDI in CEE

Percentage 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)

You Know Austria Like This…

… or Like That…

… or Like That…

… but Best Like That

You Are Investing in an Industrial Country

Production 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

You Are investing in an Industrial Country

Production sector as percentage of GDP

Production 29% Services 55% Tourism & Leisure

• Ind. 15%

Agriculture 1% Source: Statistik Austria 2015

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

Expert Staff for Sustainable 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 universities
• 12 private universities
• Foreign language competencies
• More than 1,000 extra-university

research institutions

Austria‘s R&D Expenditures Grow Above Average

As 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 *

Austrian Cluster Landscape

• Economic and technological

cooperation

• More than 50 clusters
• Approx. 3,500 companies
• Approx. 420,000 staff

COMET – All Centers in Austria

Via Two Main Program Lines

Subsidies for R&D Projects are Available

„Special programs“ „Top Down“ Thematic calls „Bottom-up“ Any topic Any time „Basic programme“

Austrian Expenditures in R&D

Total 2015: 10,104.44 m. €

Federal 3114 Regions 443.2 Companies 4764.9 Foreign 1529.3 Others 153 Source: Statistik Austria 2015

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

Highly Productive Employees

Labor 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

No Strikes

Working days lost to strikes per 1,000 employees – annual average 2005-2013

1 2 5 5 8 9 16 23 53 66 76 77 102 135 139 Switzerland Austria Poland Sweden Netherlands USA Germany United Kingdom Norway Spain Finland Belgium Canada Denmark France

Source: WSI - Hans Böckler Foundation 2015

Unmatched Quality of LIfe

Maximum = 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

Attraktive for More than 300 Regional Headquarters

Vienna: HQ-Location for International Organizations and Top Conference City

• Only UN headquarters in the EU
• 30 HQs of international
• rganizations 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

Globalized Economy

Maximum = 100

91,70 91,64 90,51 89,83 87,01 85,78 83,60 82,61 81,97 79,90 80 78,24 75,71 67,86 Netherlands 1 Ireland 2 Belgium 3 Austria 4 Switzerland 5 Hungary 9 Czech Republic 17 France 19 UK 20 Poland 23 Italy 24 Germany 27 USA 34 Japan 48

Source: 2016 KOF Index of Globalization

FFG Structural Programs

• AplusB

accent build! CAST INiTS SPG – Science Park Graz tech2b ZAT – Zentrum für angewandte Technologie

• COIN – Cooperation and

Innovation

• Research Studio
• IraSME

Company Incentives Stages

Pre-Seed Early Stage Later Stage

Basic Research Incubator Seed Start Up First Stage Second Stage Third Stage IPO

Company Founding

Grant Grant Grant Grant Grant Direct (soft) loans Direct (soft) loans Guarantees Guarantees

Newly Established Companies

Source: Austrian Economic Chamber

14.161 21.706 21.954 26.035 28.322 31.001 30.304 32.712 35.279 36.946 37.054

Dynamic Growth of Startups

Newly established companies in Austria 1993: 14,361 2013: 35,279 2014: 37,120 Newly established companies in Vienna 2013: 8,403 Thereof startups: 638 Share of startups: 7.6%

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

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

From Startup to Global Player

• Bwin: founded in 1997, now

3,100 staff, biggest online gaming provider

• Jajah: supplier of web-based

telephony, 2009 acquired by Telefonica for 145 m. €

• Runtastic: launched by 4

students in 2009, world leader in fitness tracking, bought by Adidas for 220 m. (2015)

From Startup to Global Player

• Paysafecard: European market

leader, first online means of payment approved by banking law

• UBIMET: fastest growing

private European supplier of meteorological services, stakeholder Red Bull (2012)

• AFFiRiS: launching the first

clinical tests for Parkinson vaccine in 2012

ABA-Invest in Austria

Opportunities are our business

• Advisory services for international

investors

• Owned by the Republic of Austria
• 25 expert staff
• International & national networks
• Offices in Tokyo & Shanghai

ABA – Invest in Austria Your Contact in Vienna

Peter Ch. Löschl Tel: +43 1 588 58 52

• ffice-cee@aba.gv.at

www.investinaustria.at

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 of capital 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 satisfaction

• f 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-employee relationship Indipendent, but possibly subject to feudal rule Employees and employers Fellow entrepreneur Customer as… Mass phenomena Recipient Co-producer Property, definition and use

• f profit

Entrepreneur Entrepreneurs and shareholders Customers, investors, employees, the public Dominant political imperative Democratization Liberalization Intellectualization