Newsletter registration

By using our website, you are agreeing to cookies being stored and Google Analytics being used on your device in order to offer the best possible service. You can find more information on thishere.
Austria.
Where Great Emphasis is Put on Research.

Foreign companies as a driving force for Austria

However, there is another group which is even more successful but which gets less attention, namely foreign companies which have set up business operations in Austria. They are clearly outnumbered. Only 3.2% of the firms operating in Austria are foreign owned.

Having said that, on average these firms are very large. Foreign companies employ 566,000 people, or one-fifth of all employees in Austria. This is an important factor in the economy. But above all, they are much more productive than domestic firms. Foreign-controlled firms generate a production output of EUR 130 billion, comprising a 28.5% share of total production.

Austria has comparatively high wage levels. However, due to the high productivity, foreign companies in Austria can pay above-average salaries. Their personnel expenses amount to EUR 33 billion, or 28.3% of total staff costs.

Foreign companies are indispensable when it comes to corporate research in Austria. They employ 40% of the entire workforce in Austria devoted to R&D, and account for close to 52% of corporate R&D expenditures.

Foreign-controlled firms even employ more than two-thirds of the people working in some individual sectors, for example 68% of the workforce involved in producing automobiles and automobile components, and 85% of the total number of people engaged in manufacturing pharmaceutical products.

Important indicator for the Austrian economy

In 2014, foreign-controlled companies accounted for more than one-quarter (26%) of the total investments made by all companies, which is an important indicator for the further business development of individual firms as well as for the economy as a whole. Many of them make a major contribution to Austria’s export successes. To name one example, more than three-quarters of all BMW vehicles in the world are propelled by engines produced in Upper Austria.

In other words, against the backdrop of a highly competitive environment, foreign companies manage to operate even more successfully than domestic firms. They are more productive, conduct research more extensively and pay their employees higher salaries. It is important to take this opportunity to thank these companies. Without them, the economic success of our country would not be possible in this form.

René Siegl

Managing Director
+43-1-588 58-223
r.siegl@aba.gv.at

Share on Facebook Share on Facebook Share on Twitter Share on Twitter Share on Linkedin Share on Linkedin

Testimonials

Events

Meet us at events, seminars and trade shows - worldwide.

Austria Map

Find the perfect location for your company

Vienna is the driving force for innovations in our company, and one of the growth drivers.

Ottobock Austria

Logo
More testimonials

news from the business location Austria

Less gold is sometimes better

Using an ultra-thin gold layer, scientists at the Vienna University of Technology succeeded in creating an almost optimal infrared absorber.

Support measures for companies affected by COVID-19

To stimulate the economy, either new programs may be established as a result of the draft law or existing support programs (e.g. aws, ÖHT) will be expanded. All measures introduced are intended to be applicable immediately and will be in force until the end of 2020. The measures currently introduced include the following areas:

More news All blog posts