Austria Investment Climate Reasons to Invest in Austria - - PowerPoint PPT Presentation

Peter Ch. Löschl, ABA – Invest in Austria June 2016 Austria – Investment Climate Reasons to Invest in Austria - Perspectives

Strong Economy in the Heart of Europe  Area: 83,872 km²  People: 8.5 m.  GDP growth: 0.5% (forecast 2015)  GDP / capita: € 36,980  R&D quota: 3.01%

Top Investor: Austrian FDI in CEE Percentage of total investment in respective country and Austria‘s rank as investor, 2013 Croatia 1 27.3 Slovenia 1 21.6 Bosnia-Herz. 1 17.9 Romania 2 16.2 Serbia 1 13.9 Slovakia 2 13.2 Bulgaria 2 11.8 Czech Rep. 3 11.4 Macedonia 2 10.5 Albania 3 8.1 Hungary 4 7.8 Ukraine 5 3.2 Source: WIIW (Vienna Institute for International Economic Studies)

You Know Austria Like This…

… or Like That …

… or Like That …

… but Best Like That

You Are Investing in an Industrial Country Production sector as percentage of GDP, 2014 Germany 30.7 Austria 28.4 Switzerland 25.7 Japan 25.6 EU-28 24.4 Netherlands 21.4 USA 20.3 UK 19.9 France 19.5 Source: OECD, Eurostat 2015

You Are investing in an Industrial Country Production sector as percentage of GDP Agriculture 1% Tourism & Leisure Ind. 15% Production 29% Services 55% Source: Statistik Austria 2015

20% New Austrians Germany Foreign citizens Already naturalized 226,882 Serb, Mont, Kos 208,947 Turkey 185,592 Bosnia Herz. 132,661 Romania 74,639 Croatia 69,859 Poland 63,197 Hungary 45,589 Czech Rep. 44,209 Slovakia 30,017 Russia 28,510 Italy 27,916 Source: Statistik Austria 2015

Expert Staff for Sustainable Corporate Sucess in R&D  Dual educational system  Vocational schools (HAK, HTL unique to Austria)  21 Academies of applied sciences offering approx. 400 courses  22 public universities  12 private universities  Foreign language competencies  More than 1,000 extra-university research institutions

Austria‘s R&D Expenditures Grow Above Average * Forecast 2015 As percentage of GDP 2,9 Gemany 3.01 * 2,7 Austria 2,5 2,3 2,1 EU-27/28 1,9 1,7 1,5 1998 2000 2003 2004 2005 2006 2007 2008 2010 2012 2014 Source: Eurostat

Austrian Cluster  Economic and technological Landscape cooperation  More than 50 clusters Approx. 3,500 companies Approx. 420,000 staff

COMET – All Centers in Austria

Subsidies for R&D Projects are Available Via Two Main Program Lines „Top Down“ Thematic calls „ Bottom-up “ Any topic Any time „Basic programme“ „Special programs “

Austrian Expenditures in R&D Total 2015: 10,104.44 m. € Others 153 Foreign 1529.3 Federal 3114 Regions 443.2 Companies 4764.9 Source: Statistik Austria 2015

Investor-friendly Tax System Corporate tax rate: 25% Modern group taxation Tax premium for R&D: 12% No trade tax No net worth tax Double taxation treaties

Highly Productive Employees Labor Productivity, GDP per person employed in PPS, EU-28=100 Luxembourg 168,4 Ireland 144,1 Belgium 128,9 France 115,7 Austria 113,4 Netherlands 112,8 Denmark 112,2 Euro area 107,5 Italy 107,3 Germany 106,4 United Kingdom 102,4 EU-28 100,0 Czech Republic 76,7 Poland 73,3 Hungary 71,7 Bulgaria 42,9 Source: European Commission, 11/2015

No Strikes Working days lost to strikes per 1,000 employees – annual average 2005-2013 Switzerland 1 Austria 2 Poland 5 Sweden 5 Netherlands 8 USA 9 Germany 16 United Kingdom 23 Norway 53 Spain 66 Finland 76 Belgium 77 Canada 102 Denmark 135 France 139 Source: WSI - Hans Böckler Foundation 2015

Unmatched Quality of LIfe Maximum = 10 Switzerland 1 9,73 Norway 2 9,57 Austria 3 9,51 Germany 6 9,31 Netherlands 7 9,22 Belgium 15 8,68 USA 18 8,22 Japan 19 8,16 France 20 7,95 Czech Republic 22 7,80 United Kingdom 23 7,73 Italy 29 6,99 Poland 49 4,68 Hungary 56 3,94 Source: World Competitiveness Yearbook 2015

Attraktive for More than 300 Regional Headquarters

Vienna: HQ-Location for International Organizations and Top Conference City  Only UN headquarters in the EU  30 HQs of international organizations in Vienna  More than 14,000 international staff and diplomats (UN) are living in Vienna  Leading conference city (according to ICCA study)  Skilled HQ staff available

Globalized Economy Maximum = 100 Netherlands 1 91,70 Ireland 2 91,64 Belgium 3 90,51 Austria 4 89,83 Switzerland 5 87,01 Hungary 9 85,78 Czech Republic 17 83,60 France 19 82,61 UK 20 81,97 Poland 23 79,90 Italy 24 80 Germany 27 78,24 USA 34 75,71 Japan 48 67,86 Source: 2016 KOF Index of Globalization

FFG Structural Programs  AplusB accent build! CAST INiTS SPG – Science Park Graz tech2b ZAT – Zentrum für angewandte Technologie COIN – Cooperation and  Innovation  Research Studio  IraSME

Company Incentives Stages Pre-Seed Early Stage Later Stage Company Founding Basic Incubator Seed Start Up First Second Third IPO Research Stage Stage Stage Grant Grant Grant Direct (soft) loans Grant Grant Direct (soft) loans Guarantees Guarantees

Newly Established Companies 36.946 37.054 35.279 32.712 31.001 30.304 28.322 26.035 21.706 21.954 14.161 Source: Austrian Economic Chamber

Dynamic Growth of Startups Newly established companies in Austria 1993: 14,361 2013: 35,279 2014: 37,120 Newly established companies in Vienna 2013: 8,403 Thereof startups: 638 Share of startups: 7.6%

Factors for the Startup Hotspot Austria  High educational level for technical jobs  Differentiated funding system  Investment-friendly tax system – 12% tax credit for R&D expenditures

More Factors for the Startup Hotspot Austria  Self-organization in startup clusters and coworking spaces  Supporting network (early- stage investors, business angles, incubators)  “Limited company” with 5,000 € as minimum cash contribution

From Startup to Global Player  Bwin: founded in 1997, now 3,100 staff, biggest online gaming provider  Jajah: supplier of web-based telephony, 2009 acquired by Telefonica for 145 m. €  Runtastic: launched by 4 students in 2009, world leader in fitness tracking, bought by Adidas for 220 m. (2015)

From Startup to Global Player  Paysafecard: European market leader, first online means of payment approved by banking law  UBIMET: fastest growing private European supplier of meteorological services, stakeholder Red Bull (2012)  AFFiRiS: launching the first clinical tests for Parkinson vaccine in 2012

ABA-Invest in Austria Opportunities are our business  Advisory services for international investors  Owned by the Republic of Austria  25 expert staff  International & national networks  Offices in Tokyo & Shanghai

ABA – Invest in Austria Your Contact in Vienna Peter Ch. Löschl Tel: +43 1 588 58 52 office-cee@aba.gv.at www.investinaustria.at

Economy 3.0 Economy 1.0 Economy 2.0 Economy 3.0 Nature of need Physical survival Human prosperity Immaterial wealth Driving force Development Actualization Recognition Nature of work Manual labor Repetitive labor Intellectual or creative activity Dominant sector Agriculture Industry Service industry Most important form of Land and natural capital Machines and material People and intellectual capital capital capital Stage of knowledge society Oral society Literate society Digital society Geographical focus Local National Global Key concept to satisfaction Production Consumption Barter of needs Purpose of the system Production Distribution Interaction Market as … Food in return for work, Goods in return for money, Identities for / versus identities, indentifying markets setting prices identifying communities Inherent values Hard work, obedience Rationality Identity Employer-employee Indipendent, but possibly Employees and employers Fellow entrepreneur relationship subject to feudal rule Customer as … Mass phenomena Recipient Co-producer Property, definition and use Entrepreneur Entrepreneurs and Customers, investors, of profit shareholders employees, the public Source: Austrian Economic Chamber Dominant political Democratization Liberalization Intellectualization imperative