Austria's Research Investment Indicates Global Competitiveness

Austria is positioning itself strongly in the global research landscape, with recent statistics showing a promising increase in research and development (R&D) investments. The nation is projected to achieve a research quota of 3.35% of its nominal Gross Domestic Product (GDP) in 2024, amounting to approximately 16.1 billion euros. This figure places Austria among the leaders in Europe, reflecting a significant commitment to enhancing its research capabilities.

The increase in the research quota is noteworthy, especially given that the nominal GDP growth was only 1.8%. In contrast, R&D expenditures are expected to rise by around 5.5%, marking 2024 as a milestone year for Austria's investment in research.

Despite these positive developments, Austria faces challenges in its high-tech export sector. In 2022, the export rate of high-tech goods from Austria was about 7.7%, significantly lower than that of Germany (10.6%), Hungary (14.4%), and France (15.6%). This underscores a critical area for improvement, particularly as Austria is characterized by a high percentage of low and medium-low technology exports, which constituted nearly 40% of its total exports.

In terms of funding sources for research, approximately 49% of R&D expenditure in Austria is financed by businesses, which equates to around 7.9 billion euros. Foreign companies contribute an additional 16%, while government funding accounts for about 34%, amounting to 5.6 billion euros. Notably, funding through the research premium is expected to reach 1.1 billion euros, representing 6% of total R&D funding.

As Austria strives to improve its position in the global market, the government is focused on developing a comprehensive industrial strategy that prioritizes research and innovation. This strategic approach aims to ensure a competitive economic environment that can sustain job security and foster wealth creation for the future.