Burgenland is among those Austrian regions that in the last 15 years have benefitted the most from the fall of the Iron Curtain and the eastern European expansion of the EU. Since the beginning of the Goal 1 subsidy programme in 1995, a massive jolt has gone through the region. Ever since then, investments, construction, research and business start-ups have been sprouting up all throughout the province. Among other projects, six technology centres, some schools and research facilities were created. A study by economic researchers from Vienna’s Economica Institute about “Burgenland’s economic location factors” shows that since 1995, Burgenland has seen significantly greater economic dynamics in gross value added as well as economic growth than other provinces. The experts say that Burgenland’s gross regional product has grown by 3.1 percent annually in this time period (1995-2006). This places the eastern-most province – in a tie with Vorarlberg – in the top position in the comparison of Austrian provinces. Even during the economically difficult phase since September of 2008, Burgenland was able to noticeably dampen the effects of the crisis due to its close connection to the growth regions in the neighbouring Eastern EU member states. Although real growth shrank by 2.9 percent, the authors of the study claim that without the expansion effect, that number would be at minus 4.1 percent.

Burgenland has Benefitted the Most

For Franz Steindl, Provincial Councillor for Economic Affairs, this is clear evidence that the province’s economic strategy is correct and that the work of their business settlement agency, WIBAG, is successful. Steindl: “In more than a few areas, we have improved our previous rank in comparison with the other Austrian provinces and could achieve a good position in the provincial ranking. We have benefitted from the eastern enlargement and the EU membership to a great extent. However, we cannot rest on what we have achieved; the existing potential has to be exploited even more. Specialization in niches, flexibility and promptness as well as the high level of quality from our enterprises are a competitive advantage, which also needs to be maintained in the future by setting targeted measures.” To that effect, Burgenland is also relying on the Central European Region and its comprehensive cluster and research initiatives. Steindl: “Networking and collaboration between science and economy is the order of the day.” The drastic structural change that Burgenland has undergone in the past decade is set to result in a research initiative, which will be an additional innovation boost, especially for the province’s technology centres.

Technology Centres as Drivers for Development

One of the core areas of the positive economic development are the province’s technology centres; most notably, the Eisenstadt Technology Centre, which is the main location of the information and communication technology cluster ICT-Burgenland. Here, IT companies work closely together with the University of Applied Sciences for Information and Communication Technologies, also located in Eisenstadt. The Plastics Cluster of Burgenland is a showcase project as well; after all, the participating companies were among the first ones to establish collaborations and promote joint projects with Hungarian companies. The location of Güssing in turn has developed into an exemplary region with regards to renewable energies throughout the last few years, featuring a technology centre, a biomass power plant and various sustainable facilities. In order to maintain and further strengthen this status, the Technikum Güssing was created, which offers laboratory space to scientists and researchers as well we office and seminar rooms. The celebratory opening took place just before the turn of the year. Thanks to its existing research and development resources in the field of renewable energy, Güssing is the ideal location for the COMET K1 Competence Centre BIOENERGY 2020+, which is supported in its R&D efforts through funding from the federal government and the provinces of Burgenland, Lower Austria and Styria.

Burgenland Fund for Labour, Growth and Innovation

To effectively counteract the economic crisis and give business owners additional incentives for the creation of new jobs and the modernization of their facilities, the province of Burgenland initiated a fund for labour, growth and innovation in July of 2009, for which 100 million EUR was allocated. Governor Hans Niessl: “This fund represents an aggressive labour and growth policy with a focus on research and innovation. It will bring new momentum to Burgenland’s continued advancement.” Revenues from the province’s most important shares (in companies like the Bad Tatzmannsdorf Spa, energy supplier BEWAG, and WIBAG) should be made available to subsidise the settlement of flagship projects in structurally weak regions and the creation of jobs. Niessl: “As the Goal 1 subsidy period comes to an end, the subsidy scenarios in Burgenland are being redesigned. Therefore it is essential that additional funds be available to the province for economic stimulus actions.”

In addition to the 501 million EUR in funds that were received between 2000 and 2006 as part of the Goal 1 subsidies (EFRE and ESF), the government of Burgenland will have another 444 million EUR in subsidy money at its disposal during the “phasing out” period which will last until 2013. Among other things, these funds are intended for research and development, business start-ups, new business settlements and company takeovers, internationalization, environmentally-friendly economic development and infrastructure upgrades. [ IN ]