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Austria’s Industrial Strategy 2035—what it means for the business location

18. February 2026

With Austria’s new Industrial Strategy 2035, the Federal Government is setting a clear framework for competitiveness over the next decade. The stated aim is to bring Austria into the top 10 most competitive economies in the world.

At the heart of the Industrial Strategy are better conditions for researchresearch (), innovation, production and exports, exactly where sustainable growth is created and where decisions are made about whether companies invest, expand and win international markets from Austria. 

Wolfgang Hattmannsdorfer, Federal Minister for Economic Affairs, Energy and Tourism: “With the Industrial Strategy, we are setting a clear direction for the first time: with 114 concrete measures, clearly defined key technologies and measurable implementation, we are strengthening innovation, resilience and competitiveness—and making an unambiguous commitment to Austria as a manufacturing location.”

Which key technologies is Austria focusing on? 

A major strength of the Industrial Strategy is its clear prioritisation. It defines nine key technologies in which Austria intends to grow in a targeted way:

These fields represent high value creation, technological sovereignty and strong global demand. By 2029, the Federal Government will provide a funding budget of € 2.6 billion for these priorities—sending a strong signal to companies, researchers and investors that Austria intends to actively shape these future sectors. 

What incentives are planned for research and development? 

Innovation needs not only ideas, but also reliable framework conditions. The Industrial Strategy addresses this in several ways to make investment easier and speed up development processes. The research premium is to be further developed, procedures modernised and bureaucratic hurdles reduced. 

At the same time, the TWIN Transition programme for international greenfield investments will be continued, and the expansion of COMET centresCOMET centres () and applied top-level research will be driven forward. This further strengthens the bridge between research and industry—an essential factor for the competitiveness of the location. 

How will energy costs fall for companies? 

A competitive industrial base needs reliable energy and infrastructure conditions. A core element of the Industrial Strategy is therefore an industrial electricity price from 1 January 2027: for up to 50% of consumption, companies are to receive electricity at prices up to 5 cents per kWh lower. This will be complemented by halving the electricity charges. 

Structural improvements are also planned: a one-stop shop is intended to accelerate major infrastructure projects. Austria is positioning itself as a model region for automated mobility. For energy-intensive manufacturing and digital infrastructure in particular, this is a decisive location factor—and a clear commitment to predictability and competitiveness. 

How will it become easier for international skilled workers to come to Austria? 

No industrial strategy works without people. That is why further development of the Red-White-Red CardRed-White-Red Card () is a central element. The process is to be fully digitalised and designed as a genuine one-stop shop, including a link to the ABA database. 

Facilitations for third-country students, US researchers and a pilot project for adult apprentices show that Austria is actively competing internationally for skilled workersAustria is actively competing internationally for skilled workers (). The review of the shortage occupation list will also help the labour market respond more flexibly to emerging needs. 

What is Austria doing to speed up permits and support start-ups? 

Simplification runs through the Industrial Strategy as a common thread. Reporting and notification obligations are to be reduced, national funding procedures simplified, and application processes consistently digitalised. 

A flagship future project is the launch of the Red-White-Red Location Fund from 2027. Designed as a fund-of-funds model, it is intended to support startups and scaleupsstartups and scaleups () in a targeted way and mobilise private capital—an important step in bringing innovation to market faster. 

What else is the Austrian Federal Government planning in the coming years?

The Industrial Strategy also takes geopolitical shifts into account. Reforms to export controls, revisions to the Foreign Trade Act and the War Materials Act, reductions in non-wage labour costs, and an amendment to the Supply Security Act are intended to increase industrial resilience and strengthen Austria’s capacity to act internationally. 

What role does the ABA play in implementing the Industrial Strategy? 

As part of the Industrial Strategy, the Austrian Business AgencyAustrian Business Agency () will also be repositioned. Austria’s national business location agency will in future take on an even more central role as a centre of expertise and service point for international location and investment projects, as well as for attracting international skilled workers and top talent. The focus will be on three strategic priorities: 

  • Targeted location marketing in key technologies, with the ABA acting as a service point for future investments 

  • Building and expanding ABA talent hubs to attract top talent from Latin America and South-East Asia, with a clear focus on IT, engineering, energy, mobility and life sciences 

  • Innovation through digitalisation, based on “Your easy access to Austria”, combining tailored advice with digital services 

More on the Austrian federal government's Industry Strategy 2035: https://www.bmwet.gv.at/en/Topics/Business-Location/industrial-strategy.htmlhttps://www.bmwet.gv.at/en/Topics/Business-Location/industrial-strategy.html ()

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