Strong Nervous System for the Austrian Economy
Semiconductors for the world, robotics for industry and data communications for NASA:
information and communication technologies provide additional impetus to Austria as a
business location.
Information and communication technologies (ICT) have penetrated all areas of our daily life, like a
nervous system. They are key technologies in our economy and the main driving force behind the
development of our societies. Austria is promoting this important field of technology and has evolved
into a top business location for the ICT sector. Many large international companies have done their
share and have been steadily investing in the country. However, many medium-sized Austrian
enterprises have also achieved top positions on the global ICT market. The main pre-requisite is
intensive research carried out in these technological areas, supported by the public sector on the basis
of funding programs and last but not least an attractive tax system.
ICT as an economic factor
The ICT sector in Austria generates about 7.6 percent of
total value creation. However, as generic technologies,
ICT also impacts other sectors and enhances their
productivity. An overall production value of EUR 31
billion including indirect effects can be assigned to the
ICT sector. On balance, the ICT industry secures about
226,000 jobs in Austria (source: Association of the
Austrian Electrical and Electronics Industry).
14,050 companies in the ICT sector
= 4.6 percent of all Austrian firms
Revenue: EUR 21.8 billion
= 7.6 percent of Austria’s GDP
79,500 employees
= 3 percent of the entire workforce
Data 2010, Source: Status of ICT in Austria,
Competence Center Internet Society (Version 2013)
Strong commitment of multinationals
Thanks to their commitment to Austria as a business location, multinational companies make a major
contribution to the strength of the ICT sector and its high level of research intensity.
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Infineon Technologies Austria has been given global business responsibility within the German
semiconductor group for six production lines. According to the business magazine trend, Infineon was the
most research-intensive industrial company in Austria in 2013 (see ICT hotspots).
Philips operates a high-tech facility in Vienna, manufacturing products in the fields of Healthcare, Consumer
Lifestyle and Lighting, as well as a competence center for research and development.
Microsoft has been represented in Austria with its own subsidiary since 1991 and has also owned Vexcel
Imaging, its own R&D subsidiary in Graz, since 2006.
Siemens Austria is one of the leading suppliers of automation and software solutions for industry.
Sony DADC produces storage media for game consoles of the Japanese group and exports them to Europe,
Africa and Australia.
Top positions on the global market thanks to Austrian know-how
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AT&S is a globally positioned producer and technology leader on the
market for high quality circuit boards.
austriamicrosystems ranks among the leading semiconductor
developers in the world. Its microchips have now found their way into
almost every area of life e.g. mobile phones, audio/video players, ebook readers, heart pacemakers, computer tomography and digital
radiology.
BEKO is the leading Austrian supplier of comprehensive cross-industry
systems solutions for industrial companies, the public sector, the
telecommunications and financial sectors.
Bernecker & Rainer, specializing in process automation, develops
control systems for industrial facilities which are used just as much by
packaging companies such as Tetrapak as automotive firms such as
Audi and BMW.
Kapsch TrafficCom is a global supplier of intelligent traffic systems. It
has reference projects in 44 countries in its core business of electronic
toll systems.
Runtastic, an Upper Austrian start-up, has been able to attract 110
million customers for its mobile phone App for joggers. The Springer
Group acquired a stake in Runtastic in 2013.
SkiData, part of the Swiss Kudelski Group since 2001, is the leading
supplier of access control systems in the public sphere, and boasts
some 10,000 customers, from ski lifts and sports stadiums to airports.
A large number of Austrian ICT
suppliers and appliers have
achieved a top global market
position with their products. The
broad spectrum ranges from
semiconductor producers and
App providers to automation
specialists and developers of
access systems. The strength of
Austria as an ICT powerhouse is
also reflected in the widespread
use
of
information
and
communication technologies by
the companies themselves. 98%
have Internet access, and more
than 93% boast broadband
connections (Source: Statistics
Austria).
Solid basis thanks to intensive research
The pre-requisite for the success on global markets is intensive research. The Research Promotion
Agency ranks Austria among the top three European ICT locations. Total research expenditures were
already put at EUR 1.37 billion in 2006. Austria’s ICT firms also perform outstandingly well in EU
framework programs. The coefficient of financial return from EU funding recently totaled 185 percent.
Corporate research is also supported by targeted public sector funding programs, for example the
umbrella initiative “ICT of the Future“. A great deal of ICT research is carried out by the competence
centers involved in the Competence Centers for Excellent Technologies (COMET) funding program
featuring a budget of EUR 1.5 billion. Companies and academic institutions work together in specified
research programs. Many of these centers put a strong focus on ICT research.
ICT research in competence centers
■ LCM: Linz Center of Mechatronics: intelligent networking of informatics, mechanics and electronics
■ Virtual Vehicle: efficient vehicle development and mobility concepts based on simulation (Graz)
■ VRVis: Center for Virtual Reality and Visualization (Vienna)
■ SCCH: Software Competence Center Hagenberg, software engineering at the highest level
■ Evolaris: Competence Center for Mobile Communication and Innovation (Graz and Vienna)
■ KNOW: Competence Center for Knowledge-Based Applications and Systems (Graz)
■ SBA 2: Secure Business Austria, Research Center for Information Security (Vienna)
ICT hotspots in Austria
Strong international player: Infineon Technologies Austria
Every third smartphone in the world is equipped with a silicon microphone produced by Infineon’s
Austrian subsidiary in Villach. Infineon Technologies Austria is a flagship company in Austria’s ICT
sector, specializing in power electronics and energy-saving chips. In 2013, the company won the
Austrian State Award for Innovation, honoring its development of a wafer boasting a diameter of 300
millimeters, which in turn increased its efficiency by 30 percent.
An Austrian pioneer: Frequentis
As a medium-sized enterprise, Frequentis has evolved into the number one global supplier of control
center solutions. Frequentis, a specialist for communication and information systems in security-critical
areas, played a key role in the 1990s in introducing fully digital voice communication systems in air
traffic control. Later on, its diversification in other business segments led to a contract to set up an
integrated communications system for Scotland Yard.
A high-tech start-up: TTTech
The Viennese company TTTech, a spin-off of the Vienna University of Technology, will be involved
when people start their journey to Mars in 2030 or later. Thanks to its technology TTEthernet, it is
represented in the new space capsule Orion developed for this purpose by NASA. TTEthernet ensures
absolute fail-proof real-time communication, and is based on the experience gained by TTTEch from its
collaboration from all major manufacturers in the aviation sector. Audi is also working with TTTech on
developing a self-driving car.
A software biotope: Hagenberg
The Softwarepark Hagenberg near Linz is a small Austrian Silicon Valley, a biotope for start-ups in the
software sector. Founded in 1989 as a spin-off of Johannes Kepler University of Linz, it has become a
perfect example of efficient networking, linking education, research and the corporate sector. Some
1,050 experts work at twelve research facilities in the software park and 70 companies, offering 23
courses of studies. A total of 1,560 people study at the university of applied sciences as well as at the
university institutes.
Broad-based research promotion, attractive tax system
Public authorities provide support to the ICT sector via:
_ non-theme-specific funding by the Austrian Research Promotion Agency (FFG)
_ direct funding in the thematic umbrella program “ICT of the Future” of the Austrian Research
Promotion Agency
_ the competence center funding program COMET
_ the pre-seed and seed funding programs for company founders of the Austrian funding bank AWS
In addition, Austria offers an investment-friendly tax system featuring a ten percent tax credit for
investments in research as well as a uniform corporate tax rate of 25 percent.