Some 100 guests from the world of business, science and politics attended an event in the Mercedes-Benz subsidiary in Munich organized by the Austrian Trade Commission, ABA-Invest in Austria and the Vienna Business Agency. The event focused on profit-making partnerships in the field of research and development.
According to Bernhard Bachleitner business location consultant of the national investment promotion agency ABA-Invest in Austria, considers the tax environment and research incentives to be key reasons why German companies are increasingly establishing research and development facilities in Austria or exploring opportunities to acquire strategic stakes. “In addition to far-reaching direct funding schemes, innovative companies in Austria can take advantage of the 12 percent research premium to achieve a tax deduction on R&D expenditures. This bonus is paid to companies in bar or as a tax credit”, Bachleitner said.
With a research ratio of more than three percent and ongoing dynamic growth, Austria is in the top ranks in Europe with respect to the share of research expenditures as a percentage of its gross domestic product. “Tax models for cross-border business operations are also attractive for international companies”, he added. More than 8,500 German multinationals and medium-sized companies have their own subsidiary in Austria. Total German direct investments in Austria amount to more than EUR 40 billion.
Good framework and funding possibilities
Stefan Poledna of TTTech stated that Austria makes objectively good incentive systems and different types of public funding available for technology startups. “Austria is a very good location for research-intensive companies. This applies to both the conditions existing as a result of public sector funding policies as well as the very good university-level education”, he said. In addition to the above-mentioned benefits, financing can also be arranged via Austria Wirtschaftsservice (AWS) and the Austrian Research Promotion Agency (Forschungsförderungsgesellschaft FFG). In the meantime, TTTech supplies technologies for autonomous driving to automobile component suppliers and producers such as Audi and Magna, delivers cabin pressure control components to the airplane manufacturer Boeing and also supplies NASA with components for the communication system of the Orion space capsule (Mars mission).