ABA Invest
Content
Investment promotion
Austria – an attractive location for foreign investors
The BMWFW has an efficient institution at its side to promote investment in Austria: the Austrian
Business Agency (ABA – Invest in Austria) provides international investors with professional
consultancy services.
Consultancy services with a global base
ABA, a consulting firm owned by the Republic of Austria, supports international investors planning to
locate in Austria by providing extensive services free of charge. ABA is headquartered in Vienna and
has an extensive network of consultants.
Remarkably successful
ABA was remarkably successful in attracting international companies to locate in Austria: On balance,
ABA – Invest in Austria has concluded projects attracting total investments of EUR 6.529 billion,
creating 45,679 jobs, since its founding in the year 1982.
The business results in 2012 achieved by ABA – Invest in Austria are on spite of a difficult business
environment are positive. The number of international companies setting up business operations in
Austria in 2012 rose by 10 percent compared to the previous year. On balance, 201 international
companies established business operations in Austria in 2012, the second best results in the 31-year
history of the company. On balance, a total of 2,385 new jobs were created, a considerable increase
of 31 percent compared to 2011. The total investment volume arising from these projects amounted
to EUR 282.37 million. This figure comprises a slight decline of 4.7 percent, which can be attributed
to the difficult economic situation and the consequences of the sovereign debt crisis.
Country ranking: Germany once again the top investor nation, boom in Italian projects
Germany, which is traditionally the most important investor nation for ABA – Invest in Austria, once
again led the rankings in 2012, accounting for 63 investment projects (2011: 71). Following a decline
in 2011, the number of potential investment projects being pursued or processed by ABA-Invest in
Austria totals 149, again significantly higher than the prior-year level of 138. In the meantime, Italy
gained considerable ground, with the number of investment projects climbing by 38 percent. In
2012, ABA provided professional assistance to 22 Italian firms setting up business operations in
Austria, compared to 16 in 2011. In particular, interest on the part of Italian companies strongly
increased in the second half of 2012. Inquiries of firms from Northern Italy interested in locating in
Austria tripled within just a few months. Accordingly, at the end of 2012, ABA was processing 103
Italian projects aimed at setting up companies in Austria (2011: 85).
Investments projects from BRIC countries almost doubled, Russia leads the way
The interest displayed by BRIC countries, which are also becoming increasingly important as an
export partner to Austrian firms, is increasing considerably. In 2012 the total number of business
location projects from Brazil, Russia, India and China almost doubled from 14 to 26 projects. In
particular, Austria is gaining in importance as a business location for Russian companies. Eleven new
investment projects were implemented in 2012, almost twice the comparable level of six Russian
companies setting up business operations in Austria in the previous year. Six business location
projects were from Brazil, and seven from China. Two other business location projects were from
India.
Greater demand for Austria as a research location
The marketing campaign “Research Location Austria” initiated and financed by the Federal Ministry
of Science, Research and Economy, which is designed to position Austria as a business location for
innovations, bore fruit, as the increasing number of research-related projects demonstrates. In 2012,
ABA provided professional assistance to fourteen companies carrying out R&D in locating in Austria
(2011: ten).
Broad range of services
ABA offers both general information about Austria as a business location and provides specific
consultancy services to foreign investors looking for a site in Austria, assisting them also in
completing formalities such as applications for financial support or facility permits. In providing these
services, ABA works closely with the industrial location agencies in the Austrian Länder (federal
states).
The BMWFW regards the task of setting the parameters for Austria to be a competitive and
attractive location as an important and weighty responsibility.
Answers:
Q:
Why should a company choose Austria as a business location?
Here are the top 5 reasons for locating in Austria
High qualification und motivation of workforce
Efficient R&D incentives
EU member state and best connections to Central and Eastern Europe
Only 25% corporate tax, no trade tax, no property tax
Lowest strike rate, high stability
Q:
Isn't Austria too expensive?
The increase of labor costs was more than compensated by the strong productivity growth. Unit
labor cots in Austria have developed more favorably than the EU average thanks to moderate wage
increases and significant productivity increases.
On average, unit labor costs in the period 2006 to 2011 rose by only 0.7 percent annually, compared
to higher cost increases registered in Germany (2.5 percent) and Austria’s EU trading partners (1.5
percent).
In an EU-comparison, Austria is one of the top performers with respect to labor productivity per
person employed. According to the EU Commission, Austria’s labor productivity is only surpassed by
Luxembourg, Ireland and Belgium.
Q:
Austria is well known for its scenery and cultural highlights. Is it also a good place to do
business?
As a business location Austria offers may advantages like
attractive conditions for companies
complete overhaul of public system
above the average purchasing power of Austrian consumers
80% of facility approval procedures within 3 months
central location
close ties to the growth markets in Central and Eastern Europe
some 1,000 international companies have their CEE headquarters in Europe
productivity
highest productivity growth in Europe for decades
education
practical training in technical and business education
highest level of graduates from secondary education worldwide
tax benefits
moderate corporate tax rate
efficient system of R&D incentives
security
political and social stability
availability of highly qualified workforce despite low level of unemployed
stable currency
lowest strike rate in European Union
Q:
Why is Austria the ideal location when targeting Central and Eastern Europe? Isn't it better to
locate directly in CEE?
know how
traditional Eastern Europe know how of Austrian companies
management consultants tax advisors and carrier companies benefit from wide-ranging contacts
and competencies in East-West business, knowing exactly "who, how and with whom."
highly developed infrastructure
A high-quality transportation and telecommunications infrastructure also support the rapid
transfer of goods and information
motivation
Austrian workers are not only among the best educated - they're also highly motivated.
stability
almost no strikes and high personal security - Austria offers a stable home base for business in
unknown markets
affordable office space
in a comparison of European capitals Vienna is among the cheapest regarding office rents.
neutral status
with an "image competition" raging between the Eastern nations, headquarters on "neutral
ground" in Austria is a distinct advantage
quality of life
peak performance can only be produced when your employees feel comfortable in their
surroundings
Q:
Austria is said to be rather bureaucratic. Can companies be successful here?
Several reforms have entered into force during the last years, making Austria even more attractive as
a business location.
Austria is a European leader for eGovernment services. Since 2006, it has been in the top ranks of EU
member states with respect to the development and nationwide implementation of eGovernment.
According to the eGovernment ranking 2010, Austria offers 100 percent “full online availability” for
public sector services.
4.
Attractive research premium
Companies carrying out research in Austria pay lower taxes. At the beginning of 2011 the underlying
conditions conducive to entrepreneurial innovation were further improved when the research
premium for expenditures relating to a company’s own research and development as well as
contract research was increased from eight to ten percent. The research premium is paid out in cash.
5.
Research promotion country Austria
The central funding agency for research-intensive companies is the Austrian Research Promotion
Agency (FFG), which facilitates quick access to funding services for companies operating in all
business sectors which are based in Austria, including subsidiaries of foreign industrial groups. This is
achieved via headquarter programs, standard and start-up funding as well as 30 other special
initiatives. Other funding organizations include Austria Wirtschaftsservice GmbH (aws) and the
Austrian Science Fund (FWF), which provides support to basic research as the counterpart to
industrial or commercial research.
6.
Strong partners: the business and scientific communities
“A knot cannot be tied with one hand only” is an old Mongolian jewel of wisdom which is becoming
increasingly important in innovation competition. For this reason, companies and research facilities
in Austria have been involved in strategic partnerships for many years in the form of competence
centers and specific industry clusters. These are designed to exploit synergies and future potential,
and create strong networks to work on developing trend-setting, future-oriented and profitable
solutions.
More than 40 competence centers
One of the most successful Austrian funding initiatives is COMET (Competence Centers for Excellent
Technologies). For many years COMET has succeeded in promoting the targeted and sustainable
cooperation between industry and science with respect to the top technologies in the country by
creating suitable framework conditions. Today 46 such competence centers bundle their
internationally sought-after R&D know-how, thus ensuring attractive competitive advantages, also
for foreign investors. During the entire duration of the COMET funding initiative (2006-2019), a total
of EUR 1.5 billion will be invested in industry-related research by the Federal Ministry for Transport,
Innovation and Technology and the Federal Ministry of Economy, Family and Youth as well as the
federal provinces, companies and research institutions.
Excellent examples are the “Research Center Pharmaceutical Engineering“ (RCPE) in Graz for
pharmaceutical process and product development, or “ONCOTYROL”, the competence center for
cancer therapy located in Innsbruck, which aims to translate its research results in the fields of
genomics, proteomics and metabolomics to clinical cancer medicine.
The “Austrian Center for Medical Innovation and Technology (Acmit)“, a competence center in
Wiener Neustadt in the field of medical robotics, is opening new perspectives for buttonhole surgery
(minimally invasive surgery), whereas “Bioenergy 2020+“ boasts several research facilities in Austria
and successful innovations in environmentally-friendly energy production from biomass.
Austria – an attractive location for foreign investors
The BMWFW has an efficient institution at its side to promote investment in Austria: the Austrian
Business Agency (ABA – Invest in Austria) provides international investors with professional
consultancy services.
Consultancy services with a global base
ABA, a consulting firm owned by the Republic of Austria, supports international investors planning to
locate in Austria by providing extensive services free of charge. ABA is headquartered in Vienna and
has an extensive network of consultants.
Remarkably successful
ABA was remarkably successful in attracting international companies to locate in Austria: On balance,
ABA – Invest in Austria has concluded projects attracting total investments of EUR 6.529 billion,
creating 45,679 jobs, since its founding in the year 1982.
The business results in 2012 achieved by ABA – Invest in Austria are on spite of a difficult business
environment are positive. The number of international companies setting up business operations in
Austria in 2012 rose by 10 percent compared to the previous year. On balance, 201 international
companies established business operations in Austria in 2012, the second best results in the 31-year
history of the company. On balance, a total of 2,385 new jobs were created, a considerable increase
of 31 percent compared to 2011. The total investment volume arising from these projects amounted
to EUR 282.37 million. This figure comprises a slight decline of 4.7 percent, which can be attributed
to the difficult economic situation and the consequences of the sovereign debt crisis.
Country ranking: Germany once again the top investor nation, boom in Italian projects
Germany, which is traditionally the most important investor nation for ABA – Invest in Austria, once
again led the rankings in 2012, accounting for 63 investment projects (2011: 71). Following a decline
in 2011, the number of potential investment projects being pursued or processed by ABA-Invest in
Austria totals 149, again significantly higher than the prior-year level of 138. In the meantime, Italy
gained considerable ground, with the number of investment projects climbing by 38 percent. In
2012, ABA provided professional assistance to 22 Italian firms setting up business operations in
Austria, compared to 16 in 2011. In particular, interest on the part of Italian companies strongly
increased in the second half of 2012. Inquiries of firms from Northern Italy interested in locating in
Austria tripled within just a few months. Accordingly, at the end of 2012, ABA was processing 103
Italian projects aimed at setting up companies in Austria (2011: 85).
Investments projects from BRIC countries almost doubled, Russia leads the way
The interest displayed by BRIC countries, which are also becoming increasingly important as an
export partner to Austrian firms, is increasing considerably. In 2012 the total number of business
location projects from Brazil, Russia, India and China almost doubled from 14 to 26 projects. In
particular, Austria is gaining in importance as a business location for Russian companies. Eleven new
investment projects were implemented in 2012, almost twice the comparable level of six Russian
companies setting up business operations in Austria in the previous year. Six business location
projects were from Brazil, and seven from China. Two other business location projects were from
India.
Greater demand for Austria as a research location
The marketing campaign “Research Location Austria” initiated and financed by the Federal Ministry
of Science, Research and Economy, which is designed to position Austria as a business location for
innovations, bore fruit, as the increasing number of research-related projects demonstrates. In 2012,
ABA provided professional assistance to fourteen companies carrying out R&D in locating in Austria
(2011: ten).
Broad range of services
ABA offers both general information about Austria as a business location and provides specific
consultancy services to foreign investors looking for a site in Austria, assisting them also in
completing formalities such as applications for financial support or facility permits. In providing these
services, ABA works closely with the industrial location agencies in the Austrian Länder (federal
states).
The BMWFW regards the task of setting the parameters for Austria to be a competitive and
attractive location as an important and weighty responsibility.
Answers:
Q:
Why should a company choose Austria as a business location?
Here are the top 5 reasons for locating in Austria
High qualification und motivation of workforce
Efficient R&D incentives
EU member state and best connections to Central and Eastern Europe
Only 25% corporate tax, no trade tax, no property tax
Lowest strike rate, high stability
Q:
Isn't Austria too expensive?
The increase of labor costs was more than compensated by the strong productivity growth. Unit
labor cots in Austria have developed more favorably than the EU average thanks to moderate wage
increases and significant productivity increases.
On average, unit labor costs in the period 2006 to 2011 rose by only 0.7 percent annually, compared
to higher cost increases registered in Germany (2.5 percent) and Austria’s EU trading partners (1.5
percent).
In an EU-comparison, Austria is one of the top performers with respect to labor productivity per
person employed. According to the EU Commission, Austria’s labor productivity is only surpassed by
Luxembourg, Ireland and Belgium.
Q:
Austria is well known for its scenery and cultural highlights. Is it also a good place to do
business?
As a business location Austria offers may advantages like
attractive conditions for companies
complete overhaul of public system
above the average purchasing power of Austrian consumers
80% of facility approval procedures within 3 months
central location
close ties to the growth markets in Central and Eastern Europe
some 1,000 international companies have their CEE headquarters in Europe
productivity
highest productivity growth in Europe for decades
education
practical training in technical and business education
highest level of graduates from secondary education worldwide
tax benefits
moderate corporate tax rate
efficient system of R&D incentives
security
political and social stability
availability of highly qualified workforce despite low level of unemployed
stable currency
lowest strike rate in European Union
Q:
Why is Austria the ideal location when targeting Central and Eastern Europe? Isn't it better to
locate directly in CEE?
know how
traditional Eastern Europe know how of Austrian companies
management consultants tax advisors and carrier companies benefit from wide-ranging contacts
and competencies in East-West business, knowing exactly "who, how and with whom."
highly developed infrastructure
A high-quality transportation and telecommunications infrastructure also support the rapid
transfer of goods and information
motivation
Austrian workers are not only among the best educated - they're also highly motivated.
stability
almost no strikes and high personal security - Austria offers a stable home base for business in
unknown markets
affordable office space
in a comparison of European capitals Vienna is among the cheapest regarding office rents.
neutral status
with an "image competition" raging between the Eastern nations, headquarters on "neutral
ground" in Austria is a distinct advantage
quality of life
peak performance can only be produced when your employees feel comfortable in their
surroundings
Q:
Austria is said to be rather bureaucratic. Can companies be successful here?
Several reforms have entered into force during the last years, making Austria even more attractive as
a business location.
Austria is a European leader for eGovernment services. Since 2006, it has been in the top ranks of EU
member states with respect to the development and nationwide implementation of eGovernment.
According to the eGovernment ranking 2010, Austria offers 100 percent “full online availability” for
public sector services.
4.
Attractive research premium
Companies carrying out research in Austria pay lower taxes. At the beginning of 2011 the underlying
conditions conducive to entrepreneurial innovation were further improved when the research
premium for expenditures relating to a company’s own research and development as well as
contract research was increased from eight to ten percent. The research premium is paid out in cash.
5.
Research promotion country Austria
The central funding agency for research-intensive companies is the Austrian Research Promotion
Agency (FFG), which facilitates quick access to funding services for companies operating in all
business sectors which are based in Austria, including subsidiaries of foreign industrial groups. This is
achieved via headquarter programs, standard and start-up funding as well as 30 other special
initiatives. Other funding organizations include Austria Wirtschaftsservice GmbH (aws) and the
Austrian Science Fund (FWF), which provides support to basic research as the counterpart to
industrial or commercial research.
6.
Strong partners: the business and scientific communities
“A knot cannot be tied with one hand only” is an old Mongolian jewel of wisdom which is becoming
increasingly important in innovation competition. For this reason, companies and research facilities
in Austria have been involved in strategic partnerships for many years in the form of competence
centers and specific industry clusters. These are designed to exploit synergies and future potential,
and create strong networks to work on developing trend-setting, future-oriented and profitable
solutions.
More than 40 competence centers
One of the most successful Austrian funding initiatives is COMET (Competence Centers for Excellent
Technologies). For many years COMET has succeeded in promoting the targeted and sustainable
cooperation between industry and science with respect to the top technologies in the country by
creating suitable framework conditions. Today 46 such competence centers bundle their
internationally sought-after R&D know-how, thus ensuring attractive competitive advantages, also
for foreign investors. During the entire duration of the COMET funding initiative (2006-2019), a total
of EUR 1.5 billion will be invested in industry-related research by the Federal Ministry for Transport,
Innovation and Technology and the Federal Ministry of Economy, Family and Youth as well as the
federal provinces, companies and research institutions.
Excellent examples are the “Research Center Pharmaceutical Engineering“ (RCPE) in Graz for
pharmaceutical process and product development, or “ONCOTYROL”, the competence center for
cancer therapy located in Innsbruck, which aims to translate its research results in the fields of
genomics, proteomics and metabolomics to clinical cancer medicine.
The “Austrian Center for Medical Innovation and Technology (Acmit)“, a competence center in
Wiener Neustadt in the field of medical robotics, is opening new perspectives for buttonhole surgery
(minimally invasive surgery), whereas “Bioenergy 2020+“ boasts several research facilities in Austria
and successful innovations in environmentally-friendly energy production from biomass.
