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Business Location Austria

Taking a holiday trip comes to mind for many people who hear the word “Austria”. However, Austria is first and foremost a land of industry, which accounts for 30% of the country’s GDP compared to 15% generated by tourism. Mechanical engineering, electrical and vehicle industries, chemical products and the food industry comprise the leading sectors in Austria. Many companies in these business areas are among the top global players or are even world market leaders, such as Rosenbauer, Miba, Lenzing and Red Bull

Euro in R&D expenditures in Austria in 2020
Euro in research tax credits were applied
Euro GDP per capita

Austria's green tech sector
on the path to success 

In order to master the ecological challenges of the world, we need innovative climate and environmental protection solutions. Austria's green tech sector offers precisely that: With an R&D ratio of 5%, it is home to market-leading green tech pioneers from diverse areas e.g.,  from waste management and recycling to industrial production and the circular economy.  

After all, environmental technologies, energy efficiency and the generation of alternative energies have a long tradition in Austria. For instance, 70% of the required electricity is produced by hydropower. This pioneering spirit means that Austrian companies can offer tried and tested technologies whereas other countries are only just starting out. In 2021, Austria ranked third in the EU’s Eco-Innovation Index and is thus one of the green innovation leaders in Europe. 

companies in the Austrian environmental technology sector create 51,000 jobs
6 %
is the annual growth rate
72 %
export ratio demonstrates the disproportionately high export orientation of Austria's environmental technology sector
global market leaders in the green tech sector


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Green tech in Austria:
5 good reasons to locate your company here

  1. 01

    In the Eco-innovation Index, Austria ranked 3rd in an EU comparison in 2021 with regard to ecological renewal. In the category "value creation / environmental protection and resource management," Austria actually tops the rankings. Moreover, according to the Environmental Performance Index of 2022, Austria ranks 8th worldwide for sustainability, environmental protection and vitality of the ecosystems.

  2. 02

    Austria is leading the way with top-level research with respect to hydrogen, a crucial future-oriented segment. For example, the world's largest pilot plant for hydrogen electrolysis is located in Linz. It will soon facilitate CO2-free steel production. In Villach, the companies Infineon and Linde are constructing a plant for sustainable hydrogen which will make chip production climate neutral. Furthermore, research facilities such as HyCentA are promoting the further development of hydrogen technology so that it can be used for mobility and industry on a large scale.

  3. 03

    Young Austrian entrepreneurs are increasingly putting sustainability on their agendas. 34% or a third of all young entrepreneurs are focusing on ecological challenges. More than 150 climate tech startups in categories ranging from mobility and the circular economy to nutrition and agriculture are further driving this development.

  1. 04

    The Green Tech Valley in the south of Austria hosts globally known pioneers and technology leaders in the green tech sector. The focus is on their green innovations in the green tech sector, in particular in the fields of renewable energies and the circular economy.

  2. 05

    Austria already set new standards on the domestic electricity market at an early stage. 78.2% of the Austrian electricity production is derived from renewable energy sources (as of 2020), making Austria the current leader in the EU. The Renewable Energy Expansion Act (EAG) stipulates the underlying conditions for the expansion of green electricity over the next ten years and provides a comprehensive system of funding. Funding amounts to € 1 billion annually until 2030. The EAG points the way to 100% green electricity in the year 2030 and comprises one of the pivotal instruments in the energy transition.  

Success Stories


Bosch is increasingly relying on Austria as an engineering location – most recently in the fields of automobile radar systems, artificial intelligence and electrolysis for green hydrogen. 

Austria convinces with business location advantages such as the exceptional funding offering and the highly qualified skilled workers.

Helmut Weinwurm CEO of Robert Bosch AG and representative of the Bosch Group in Austria
© Bosch/Höfinger
© Bosch/Höfinger

Did you know...

Austria is pursuing the goal of ensuring 100% electricity from renewable energy sources by the year 2030 and already becoming climate neutral by 2040.

...that 78.2% of Austria’s gross electricity consumption is already derived from renewable energies while everyone else is only talking about making the transition?

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Are green solutions and a liveable future the focal points of your business? INVEST in AUSTRIA will support you in launching your green tech company in Austria.

Get in touch

Artificial intelligence –
this is what tomorrow’s
economy will look like

Artificial intelligence is a key area of successful business operations, something Austria recognised a long time ago. Companies in Austria offer an optimal basis for the development and innovative use of AI in various sectors, for example Industry 4.0.

Austrian firms are not only developers but also users of innovative AI technologies. The country has pitted itself against international competition for decades, both in terms of production and service. For this reason, it has always relied extensively on digitalisation. This is now paying off also with regard to artificial intelligence.

Research on AI has a long tradition in Austria, for example in the fields of logical systems, neuronal networks, robotics and systems capable of understanding speech. Naturally, Industry 4.0 represents the top priority, for instance in predictive maintenance. The most important AI research fields in Austria include robotics and autonomous driving, in addition to knowledge-based and learning systems. Austrian research has made pattern recognition, image and video analysis as well as language-processing systems a top priority.

Did you know...

Professor Sepp Hochreiter is one of the world's leading experts in the field of artificial intelligence. He already made important contributions as early as the 1990s, laying the foundations for voice recognition technology which is in use today across the globe. He and his team conduct world-leading research in the field of deep learning at the Artificial Intelligence Lab of the Linz Institute of Technology (LIT), facilitating the industrial use of artificial intelligence. Companies such as Google, Amazon, Audi and Janssen are applying his findings.

...that fundamental AI research for speech recognition technology used globally today actually originated in Austria?

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Cyber security
Security in the digital world

Cybersecurity is of great importance for the economy and overall prosperity. Austria has made it a clear-cut priority. The government, industry and academic are working together to meet this challenge. Some 35 companies in Austria currently offer advanced cybersecurity solutions for the public sector, critical infrastructure, industry and companies. The growth rate is 6-9% up until 2023.   

The fact that Austria is internationally recognised as a high-tech location for cybersecurity is also due to the know-how of the Austrian Institute of Technology (AIT) and its reputation in the European research landscape. The research and business communities are setting new standards with Austrian IT security solutions, contributing towards preserving future global competitiveness as well.

Quantum technology
Innovation from Austria

Austria is one of the top international business locations for quantum research and technology. In order to strengthen its position in this future-oriented field, the Austrian Federal Government supports research and development as a means of unfolding new potential applications. Accordingly, the country in its role as a leading voice in quantum technology will increasingly become the go-to business location for future-oriented companies.

The most recent example is the newly-opened research laboratory in Villach, where Infineon tests industrially produced quantum chips in short cycles, namely days instead of weeks. This represents a huge step on the path to developing and producing marketable quantum computers. However, it must be noted that quantum research has a long tradition in the country: The Austrian quantum physicist Anton Zeilinger who lives and conducts research in Austria has long been a famous figure in the scientific community for his experiments on quantum entanglement.

Did you know...

A fibre optic network i.e., the Austrian Quantum Fiber Network (AQUnet) is now being built with the aim of becoming the model for a possible future quantum Internet.

...that quantum technology is one of Austria's strongest scientific fields?

Success Stories


By establishing the Center of Excellence for Data & AI in Vienna, we succeeded in positioning the Austrian facility as a crucial factor for the future for our further international growth.

The entire success story is available here.

Austria offers an attractive option for international talents thanks to its central location in Europe and high quality of life.

Florian Berger CEO Crayon Austria
© Crayon Austria GmbH
© Crayon Austria GmbH

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Are you planning to hit the ground running in future areas such as AI or quantum technology? The ABA will help you in the search for the ideal partners and possibilities in Austria.

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Autonomous Driving and Flying

Research Location Austria.
Where innovation moves mountains.

Why Austria?

  • Gateway to 760 million customers in the heart of Europe
    Austria – an industrialised nation
    One of the EU’s most prosperous member states – High purchasing power

  • Highly motivated employees – Ranked third worldwide
    Labour productivity 16% above the EU average
    Practical training – Schools and businesses work hand in hand

  • First-class universities and research centres
    14% research tax credit and direct research funding
    Innovative companies, startups and scaleups

  • Business-friendly tax system and extensive incentive portfolio
    High-performance infrastructure and modern eGovernment
    Stability and security – hardly any strikes, low crime rate

  • Austria – the country with the highest quality of life
    Favourable cost of living, unmatched public transport
    Cultural and culinary heights – and genuine mountaintops

Wienblick Prater
Copyright: © Markus Schieder / (bottom)


Business Location Austria

Where innovation moves mountains

We simply get it done – for you!

We provide you with information quickly, to the point, and reduce the complexity so that you choose Austria for settlement, job or film shoot.

  1. 01

    We think left and right and research across the board. Then we filter out the essentials for you to get the best solution as quickly as possible.

  2. 02

    Our support is top-notch. We understand your challenges and provide pinpointed help - with positive energy and in fifteen languages.

  3. 03

    Nobody in the country can match our business location know-how and networking competence. Confidential and for free. With us, you will be sustainably successful in Austria.

Frau mit Schutzbrille
© Cavan Images / Westend61
Austria research and development (R&D) has taken an enormous leap forward over the past two decades. The increase in the R&D/GDP ratio from 1.53% in 1994 to 3,26% at present clearly shows the progress made. Accordingly, Austria boasts one of the most dynamic developments in Europe with respect to R&D.

Systematic investments on the part of domestic and international companies in Research Location Austria, for example in biologics, are making a major contribution to this upward trend along with the commitment of the public sector. This is underlined by the broad-based promotion and funding of Austrian research and an innovation-friendly tax system.

What specifically can companies in Austria profit from?

  • Attractive funding
  • Research premium since 2018 on even 14% for companies based in Austria
  • Business-friendly tax system with low costs
  • Bundled know-how of international experts
  • Strong links of the business and scientific communities

6 reasons to perform research in Austria

Innovative companies from across the globe enjoy optimal conditions in Austria.

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Frau vor Statistiken
Copyright: © Image Source RF / Monty Rakusen / Westend61 (top) / © Christian Vorhofer / Westend61 (bottom)

Research ratio and research expenditures

In the 2020 EU GDP ranking of research spending, Austria is in third place behind Sweden (3.51%) with 3.22%.

Austria is one of the few European countries to have exceeded the EU's stated research policy goal of a research quota of three percent by 2020. This year, Austria once again occupies a top position on the EU average.

Overall, Austria will increase its spending on research and development to 14.1 billion euros according to forecasts (as of April 2022). This puts spending above the forecast increase in gross domestic product of plus 9.3% and corresponds to an estimated research ratio of 3.26% of gross domestic product (GDP).

7.16 billion euros (50%), and thus the largest share of research spending, is borne by companies.

Current developments in research

Be always up-to-date about the latest developments and read our news or sign up to our newsletter.
Read more about Carinthia, a El Dorado for researchers and developers in southern Austria, in our blog. 


All information in compact form: facts, tips and contact points for your questions on research and development.

Autonomous Driving and Flying

Research Location Austria.
Where innovation moves mountains.

Life Sciences in Austria

Research Location Austria.
Where innovation moves mountains.
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