Germany + Austria: Two key components for economic success
More than half of the surveyed business leaders positively rate Austria as a place for research, development and production. Austria successfully asserts itself as a research and business location in so many ways in the minds of German decision makers – whether this involves flexible labor laws or praise for the unbureaucratic interaction between the business community and public authorities. Very pragmatic aspects such as good access to the Central European market, Austria’s role as an East-West business interface and the high level of productivity are naturally on the long list of competitive advantages.
Attractive business promotion model
Germany’s economic policymakers also attach particular importance to the quality of business promotion initiatives for the benefit of companies. This refers to direct support measures as well as the research tax credit which was increased to 14 percent as of January 1, 2018. All companies carrying out research can make use of this regardless of their size, sector or corporate structure. It therefore comes as no surprise that almost two-thirds of German managers consider this support to be better than what is available in their own country.
The numerous measures and programs “Made in Austria” also pay off. In an EU comparison, Austria has been in the top ranks for years with respect to tax incentives for research. Heavyweights of the German economy are also playing a leading role. For example, Bosch operates important automotive technology development competence centers in Vienna, Linz and Hallein, employing 700 engineers. Siemens has a workforce of more than 10,000 in the fields of electrification, automation and digitalization. Infineon is the most research-intensive company in Austria, investing 23 percent of its revenue in R&D.
Germany is the top investor in Austria
By the way, this impressive growth story continues. In 2017 a total of 344 foreign companies were supported by ABA in setting up business operations in Austria. The investment volume rose by 2.6 percent to EUR 724 million.
For many years German companies in particular have highly valued the good conditions prevailing in Austria and are traditionally number one when it comes to new business location projects. A total of 9,000 German companies are already active in Austria.