A current estimate by Statistics Austria regarding gross domestic spending on research and development by public authorities in Austria in 2009 shows an amount of approximately 3.1 billion EUR (approximately 2.55 billion EUR from the federal government, 402 million from the provinces, and 104 million EUR from other public institutions like municipalities and chambers). The grand total of spending on R&D conducted in Austria amounts to approximately 7.7 billion EUR, which is 2.73 percent of the gross domestic product (GDP). At 2.55 billion EUR, research funding by the federal government is 8.9 percent higher than in 2008. Compared to the numbers from 2006, it shows that with a quota of 2.46 percent then, Austria was already well above the EU average (EU 27) of 1.84 percent.

Public Authorities as Competent Partners

Especially in times of crisis, the public authorities’ responsibility for funding research and development grows. For many years, the private sector with its high R&D growth rates had been the driving force behind the financing of research and development in Austria. In light of the financial and economic crisis, however, these dynamics came to an abrupt halt; now, the federal government is taking on the leadership role regarding the development of R&D funding. In the domestic research promotion landscape, a trio has established itself at the federal level, consisting of the Austrian Science Fund (FWF), the Austrian Research Promotion Agency (FFG) and the national promotional bank Austria Wirtschaftsservice (AWS), which provides a differentiated funding portfolio in this institutional context.

The Research Promotion Agencies

With the establishment of FFG (Forschungsförderungsgesellschaft; the Austrian Research Promotion Agency) in 2004, the promotional and consulting institutions in the field of national and international application-oriented research and technology promotion were combined into one. In addition to its five operational areas (General Programmes, EU Preparatory Funding, Structural Programmes, Thematic Programmes and ASAP, the Austrian Space Applications Programme), FFG’s task portfolio contains a wide range of services including consulting and information services, contact establishment, and technology transfer activities. The intensified funding of joint ventures between science and economics significantly increased the presence of non-commercial research organizations in the structural and thematic programmes, which more than doubled the share of research institutions and universities (from 18 to 39 percent) since the establishment of FFG. In 2002, AWS (Austria Wirtschaftsservice GmbH) was founded – a national promotional bank for the development of business-related economic promotion, the support offerings of which consist of granting subsidies and loans, taking over liabilities, providing consulting services, and more. In 2008, AWS funded a total of 5,182 projects with a total investment volume of 10.8 billion EUR.

Austria’s main institution for the promotion of basic research is the Austrian Science Fund, FWF (Fonds zur Förderung der wissenschaftlichen Forschung), which at the same time acts as the main promotional agency for university-based research. FWF’s promotional programme includes individual project funding and transnational funding activities as well as the support of special research areas and national research networks. In 2008, a total of 1,639 applications for the support of scientific projects in the autonomous field were submitted, for a total investment volume of 389 million EUR. Of these projects, 703 received funding. The average volume of approved projects was approximately 233,000 EUR. For individual projects, the approval rate was 39 percent of the requested amount. [ IN ]