research premium as a success factor

The research premium continues to be a success factor for Austria’s competitiveness as a business location. Companies can apply for the 14% research premium for research and development expenditures. This research premium was increased from 12% to 14% in 2018. Since then, a significant expansion in corporate research activities has been evident.

In 2017, applications for € 713 million were submitted, compared to about € 758 million in 2019 and 2020. The € 1 billion threshold was surpassed in 2021. In 2022, companies applied for a bonus of € 1.8 billion for more than 9,100 research projects. Approx. 80% of the firms applying for the research premium are small and medium-sized enterprises. The Tax Amendment Act 2022 resulted in the implementation of important improvements for the benefit of companies, including the ability to issue partial assessment notices and the assessment base expanded to include an “entrepreneur’s wage”

The research premium is an important business location factor and attracts innovative companies to Austria. In international competition, attractive conditions are necessary for research and development activities as a means of further enhancing the innovative strength of the national economy. The new regulations also increasingly enable startups and SMEs which conduct research to benefit from the research premium.

© Bundesministerium für Arbeit und Wirtschaft

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Life Sciences in Austria – The Ecosystem

The life sciences ecosystem in Austria is characterized by a dynamic and diverse landscape. It encompasses a broad range of activities, from basic research and applied research to company formation and marketing. This ecosystem is of special importance for innovative strength and competitiveness.

Life Sciences Startups: Innovations for the Future

Startups play an important role in the Austrian life sciences sector. Thanks to their innovative strength and frequently a close cooperation with research institutions, they make a major contribution to developing new therapies and technologies. Three particularly exciting young companies will be briefly showcased here.

AI for the simulation of biological processes

A research team of the Institute of Artificial Intelligence at the Medical University of Vienna and CeMM has been able to demonstrate that a large language model such as GPT-4 can be effectively applied as a simulator for biological systems. The team developed a knowledge-based simulation method based on structured inputs in GPT-4.