For the first time in a long while, economic researchers are predicting growth again for the business year of 2010. How do you assess Austria’s chances for growth for 2010 and 2011?
The federal government’s quickly implemented stimulus packages have made it possible for Austria to pull through the crisis better than other countries in the euro area. Now, we have to strengthen the current upward trend in order to prevent a relapse. One thing is clear: 2010 will pose even greater challenges than 2009, because the restructuring that was started in many sectors has to be continued consequently. Therefore, we support businesses with targeted subsidies to further the development of new products and new export markets – for example, in the area of ecological innovation, where Austrian companies have already achieved a technological lead.
Austria has made numerous efforts to counteract the economic and financial crisis and has compiled one of the largest packages of measures within the EU. What does this support programme include?
The federal government has secured financing of businesses through customized loans and the assumption of liabilities, while at the same time spurring domestic consumption through initiatives such as an extensive tax reform, a sustainably effective eco bonus for exchanging old cars, and the successful subsidy initiative for thermal upgrades to existing buildings. Additional manoeuvring room is also provided by a modern short-time work model, which - combined with training measures - was able to help companies keep important specialists on board despite a slowdown in business.
Is Austria an attractive business location for international investors even in times of crisis?
In light of the current trends, Austria has excellent chances of emerging from the crisis stronger, giving it the opportunity to play up its traditional advantages as a business location even more in the future - to mention a few of them: modern infrastructure, high-quality technologies, a well-trained and highly motivated workforce and optimal access to the important markets of Eastern and South-Eastern Europe. Added to this is the steadily growing creative industry, which is continuously celebrating international successes in areas such as design, architecture and film.
What are the main reasons for companies to settle in Austria? What are Austria’s winning instruments and arguments?
Austria offers political, social and economic stability, paired with a high quality of life. In addition, the conditions for investors are excellent, with factors such as a moderate corporate tax rate, an efficient administrative system and a wide-ranging research promotion system. Furthermore, companies in the research sector in particular can claim multiple tax benefits.
What significance does research have in Austria? Where are your funding priorities?
Austria as a business location does not need to shy away from international comparison, since expenditures for research and development are continuously on the rise. The main goal of the federal ministry of economy is to further increase the number of research companies, which is also why the Innovation Cheque programme is being expanded. This initiative supports small and medium-sized enterprises with up to 5,000 EUR to help them begin enlisting the services of research institutions. Top-level research is also heavily supported. The expansion of the COMET centres is creating additional jobs, which makes Austria even more attractive for researchers from all over the world as well as for branch establishments by international companies. In addition, with the support of the federal ministry of economy, the Christian Doppler Society is funding application-oriented basic research, thereby providing businesses with effective access to new knowledge. Innovations in the service industry as well as the creative industry will also have a special funding priority in the future. |
