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Strong Business Location for Information
and Communication Technologies
IT & Telecom
INVEST IN AUSTRIA
Austria
www.investinaustria.at
IT & TELECOM
2
Berlin
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Vienna
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Paris
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Kiev
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Riga Moscow
Prague
Sofia
London
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Tirana
Skopje
Budapest
Zagreb
Tallinn
Amsterdam
Lisbon Madrid
Athens
Berne
Bucharest
Bratislava
Minsk
Vilnius
Helsinki
1h
2h
3h
All of Europe
by Air in 3 Hours
Austria’s central geographic location in Europe makes
it a business interface between East and West.
Sarajevo
Belgrade
Pristina
Podgorica
Imprint: Status: June 2015; Media owner and publisher: Austrian Business Agency, Opernring 3, A-1010 Vienna; Responsible for contents: René Siegl;
Editorial team: Karin Schwind-Derdak (ABA), Maria Hirzinger (Connect U); Design: www.november.at; Photos: Richard Tanzer, BMWFW, APA, Istockphoto,
Siemens Corporate Technology CEE, Bigstock, Runtastic, NXP Semiconductors Austria GmbH, Bernhard Bergmann, Joanneum Research, Frequentis, AIT,
Infineon Technologies Austria AG, TU Wien; Printed by: Gugler
Dynamic
Business Location
The Austrian business location stands out in international
comparison. Companies profit from a good business
environment, qualified employees and a modern infrastructure.
Austria ranks among the most prosperous and innovative countries in the European
Union. According to Eurostat’s Prosperity Index, Austria ranks second in the EU
behind Luxembourg. The business location scores points thanks to its modern
infrastructure, top-notch technologies, well-educated and highly-motivated emplo-
yees, and also offers a high reliability of energy supplies in addition to political, social
and economic stability. Moreover, Austria is the ideal East-West business interface in
a central geographical location.
Considerable investments in research, development and education secure Austria’s
innovative strength. With a share of 5.6 percent of graduates receiving degrees in
computer sciences, Austria is far ahead of the EU average of 3.4 percent. In parti-
cular, companies benefit from the future-oriented ICT sector. In spite of this good
positioning, we are continually working on creating even better conditions on behalf
of companies. In this spirit we would like to warmly welcome you to Austria.
Reinhold Mitterlehner
Vice Chancellor of the Republic of Austria
Federal Minister of Science, Research and Economy
Good Reasons for Research Location Austria
Strong Nervous System for Austria’s Economy
High Research Premium & Attractive Tax Advantages
Competence Centers
Clusters Drive Innovation
Specialized Staff? No Problem at All
East-West Interface
Technology Leader Based in Austria
Top Position in E-Government
Lively Start-up Scene
Red-White-Red Success Story
Actively Shaping the Future
Longstanding Research Cooperation
Bundled Research Strength
5
6
8
10
11
12
14
15
16
18
19
20
22
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Contents
INVEST IN AUSTRIA
3
Global competence
Technologies
•	 Semiconductors
•	 Embedded systems (real-time systems)
•	 Microelectronics and nanoelectronics
•	 Smart cards (near field systems)
•	 RFID
•	 IT security
The biggest players
Companies
•	 TTTech
•	 AVL
•	 Siemens Austria
•	 AMS
•	 LAM research
•	 Infineon Austria
•	 NXP Semiconductors Austria
•	 Frequentis
Research institutions
•	 Austrian Institute of Technology (AIT)
•	 JOANNEUM RESEARCH
•	 Institute of Science and Technology Austria
(IST Austria)
•	 Fraunhofer Austria
•	 Software Competence Center Hagenberg
IT & TELECOM
4
Programmed for success. Austria is a highly sought-after innovation location
within Europe, for example in the fields of semiconductors, smart cards and
near field systems, RFID and IT security. A large number of universities, univer-
sities of applied sciences, non-university research facilities, innovative spin-offs
and SMEs, industry clusters and R&D headquarters of multinational companies
ensure that state-of-the-art IT products are services are developed in Austria.
All advantages at a glance. One thing is sure: major successes are only pos-
sible under favorable conditions.
•	 Customized funding and financing of application-related R&D and basic research
•	 Ten percent research premium (twelve percent as of 2016) and attractive tax
advantages
•	 Competence centers and industry clusters comprise a dense network linking
the scientific and business communities
•	 An international research elite as well as soundly- trained specialists in infor-
mation and communications technologies
•	 Proximity to South East and Eastern Europe
•	 Excellent living and working conditions
Good Reasons for
Research Location Austria
ICT companies with an innovative spirit benefit from
the attractive competitive advantages offered by the
red-white-red business location.
Development of R&D spending in Austria,
Germany and the EU-28
% of GDP
Sources: Eurostat, Austrian Statistical Office
Austrian investments in R&D
EUR million, estimates for 2015
Total R&D spending: EUR 10,104.44 million
Source: Austrian Statistical Office, 2015
From abroad
Other
Federal
government
and provinces
1,529.31
3,657.26
Companies
4,764.87
153
1,5
2,0
2,5
3,0
2004 20082005 20072006 2009 2010 2011 2012 2013 2014 2015
Austria
EU-28
Germany
INVEST IN AUSTRIA
5
IT & TELECOM
6
Nothing works anymore without ICT. Information and communication
technologies permeate every sphere of life like a person’s nervous system.
They supply key technologies for the economy and are strong driving forces for
the development of our society. Austria promotes this area and has emerged
as a top business location for ICT. Many large international companies have
contributed to this, but Austrian companies have also achieved top positions on
global ICT markets. The pre-requisite is intensive research carried out in these
technological areas, supported by public sector funding programs and not least
by an attractive tax system.
Driving force of the economy. According to the Association of the Austrian
Electrical and Electronics Industries, Austria’s economy generated a production
volume of EUR 36.6 billion on the basis of applying ICT. In contrast to the overall
economic development, this sector expanded by 8.6 percent since 2010, precisely
the same as the value creation of the ICT sector. It rose from EUR 16.3 billion in
2010 to EUR 17.7 billion in 2014. At the same time, the number of employees
also strongly increased. 290,000 employees, for the most part highly qualified
specialists, work in Austria’s ICT sector, a rise of 17.9 percent since 2010.
Research as the basis of success. Research and development comprise the
foundation of success in the ICT sector – and research is in fact being conducted
in Austria. The Austrian Research Promotion Agency FFG ranks Austria among
the top 3 European ICT research locations. For example, the R&D quota in chip
manufacturing is in the range of 15 to 20 percent. Austria’s ICT companies also
perform outstandingly in EU framework programs. The rate of return from EU
funds most recently totaled 185 percent.
Targeted research funding. Corporate research is also supported by targeted
public sector funding programs, for example the umbrella program “ICT of the
Future.” A great deal of ICT research is also carried out in the competence
centers of the COMET (Competence Centers for Excellent Technologies) fund-
ing initiative endowed to the amount of EUR 1.5 billion, where companies and
academic institutions can jointly work on specified research projects.
Strong Nervous System
for Austria’s Economy
Extensive investments in research and development safeguard
Austria’s innovative strength.
INVEST IN AUSTRIA
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Strong players. Austria’s innovative strength in research and development also
results in technologies and solutions which successfully compete on the global
market. A large number of Austrian ICT suppliers have managed to achieve top
market positions in the world with their products. A broad range of products and
services are offered: from semiconductor production to app development, from
automation to access systems. Bundled Austrian competence is integrated into
many smartphones, for example circuit boards from AT&S, NFC components
from NXP or sensors from ams. Access systems for public space, for example
ski lifts, sports stadiums and airports, are frequently equipped with technology
“Made in Austria” by Skidata.
Good international company. The presence of international corporate groups
such as Infineon, Siemens, Philips and Microsoft strengthens Austria as a
research and ICT location. Microsoft has been represented by a subsidiary in
Vienna since 1991, and has operated its own R&D subsidiary in Graz, Vexcel
Imaging, since 2006. The German chip producer Infineon and the American
multinational company General Electric recently acquired a stake in the Austrian
technology company TTTech Computertechnik AG, which specializes in making
electronic networks more robust on the basis of security and real time technolo-
gies. Philips boasts a particularly longstanding tradition in Austria. In 1926 the
Dutch company established a foothold in Austria by setting up a sales company.
Today Austria is not only an interesting market for Philips, but an important
high-tech location with competence centers of global importance.
Source: Trend/News, February 2015
Top R&D companies
R&D expenditures in 2014
Company R&D in EUR million R&D in %
Infineon Technologies Austria AG (DE) 320 24.6
BMW Motoren GmbH (DE) 233 6.4
Siemens AG Austria (DE) 182 9.2
Voestalpine AG (AT) 130 1.2
AVL List GmbH (AT) 105 10.0
Kapsch Group Bet.GmbH (AT) 96 10.3
Bosch Robert AG (DE) 94 16.7
Andritz AG (AT) 93 1.6
Zumtobel Group AG (AT) 72 5.8
Bernecker + Rainer Industrie-Elektronik GmbH (AT) 70 13.9
Research and even more research. Austria has established a research-friendly
business environment thanks to tax advantages and funding programs. The
research premium of ten percent (12 percent as of 2016) for a company’s own
R&D as well as contract research serves as an innovation turbocharger for
companies in the ICT sector.
Tax advantages and financing. Moreover, the Austrian tax system lures inves-
tors with the tax-exempt apprenticeship allowance, tax loss carryforwards and
the possibility to transfer hidden reserves. The corporate income tax rate is a
company-friendly 25 percent, whereas the net worth and trade taxes are not
levied in Austria. Österreichische Kontrollbank (OeKB) and export funds also
provide favorable financing opportunities.
Broad-based research funding. Customized R&D research programs from the
Austrian Research Promotion Agency (FFG), Austria Wirtschaftsservice (aws) and
the Austrian Science Fund (FWF) are available to companies conducting research.
Funding is also offered by the federal provinces. Specific funding programs for the
ICT sector include ICT of the Future, FIT-IT and benefit.
High Research Premium and
Attractive Tax Advantages
Whoever carries out research in Austria pays lower taxes –
and benefits from a twelve percent research premium as well
as numerous funding programs.
Funding:
→ www.awsg.at
→ www.fwf.ac.at
→ www.bmwfw.gv.at
→ www.bmvit.gv.at
→ www.ffg.at
→ www.fit-it.at
→ www.foerderkompass.at
Corporate tax rates in 2015 *)
Taxes on undistributed profits
in percent
Source: Deloitte Resources, Corporate Tax Rates 2015 
*) incl. surcharges and local/national taxes
Ireland
Slovenia
Czechia
Poland
Great Britain
Sweden
Slovakia
Austria
Netherlands
Norway
Germany
Spain
Italy
France
Belgium
USA
Ireland
Czechia
Poland
Hungary
Netherlands
Austria
Great Britain
Italy
Belgium
Luxembourg
Germany
Spain
France
USA
12.514.1
17.016.2
19.017.0
19.018.9
30.0
21.020.9
25.0
22.0
22.0
25.0
27.0
30.0
31.4
33.3
34.0
35.0
BAK Corporate Taxation Index
Effective average tax burden in percent
Source: BAK Basel Economics and ZEW, 2014
24.8
23.8
22.4
24.6
24.7
29.3
31.2
32.5
41.1
IT & TELECOM
8
“The Austrian research premium is an extremely attractive funding
instrument in international comparison. The research premium is
tax-free and is distributed regardless of the company’s business
results. In this way, companies also benefit from a cash advantage
during a loss-making phase.”
Natascha Stornig, LeitnerLeitner Tax Audit Advisory
INVEST IN AUSTRIA
9
More than 50 competence centers. One of the most successful Austrian
funding initiatives is COMET (Competence Centers for Excellent Technologies).
The underlying aim is to further strengthen the cooperation between science
and industry and thus promote the development of joint research competencies
and to commercially realize research results.
Software engineering at the highest level. The Software Competence Center
Hagenberg (SCCH) is one of the largest independent software research cent-
ers in the country. It plays a pioneering role in software-related technological
research and development trends. Its priority areas are Process and Quality
Engineering, Rigorous Methods in Software Engineering, Knowledge-Based
Vision Systems, Software Analytics and Evolution and Data Analysis Systems.
Technologies for communications systems of the future. The Telecommuni-
cations Research Center Vienna FTW focuses on the research and development
of technologies for the communications systems of the future in the fields of
telecommunications, energy and transport.
Visual computing. Visual computing has long been a key technology for the
economy and society. Austria’s leading research and development company in
the field of visual computing is the VRVis Center for Virtual Reality and Visualiza-
tion Research GmbH.
Intelligent sensor systems. Carinthian Tech Research AG (CTR), the largest
non-university research center in the south of Austria, is an important partner
both domestically and internationally in order to transfer the latest scientific
findings in the field of sensor technologies into industrial practice.
Competence Centers –
a Win-Win Situation for Everyone
Strategic partnerships between the business community and
research facilities comprise Austria’s success model.
→ www.ffg.at
→ www.scch.at
→ www.ftw.at
→ www.vrvis.at
→ www.ctr.at
IT & TELECOM
10
Automotive, railway, traffic/transport, aerospace
Materials, packaging
Timber, furniture, accomodation, building construction
Health, life sciences, wellness
Food technology
Mechatronics, electronics, informatics, sensor technology
Renewable energy, environmental technology
Human resources, design, multimedia
Information, communication, processes, logistics
Clusters and networks
in the Austrian provinces and supraregional initiatives
Source: Cluster Platform Austria 2014
More than 60 industry clusters. Some 60 industry clusters in nine federal
provinces encompassing 7,000 companies and 825,000 employees enhance
Austria’s innovative strength. These cluster players are characterized by interna-
tionality and a high research ratio averaging 7.5 percent. Specialized firms, from
SMEs and spin-offs to international R&D headquarters intensively cooperate
with each other as well as with research institutions and talented developers.
Cluster Priorities
Upper Austria/Lower Austria:
Mechatronics Cluster (MC)
Device and equipment manufacturing, technology
component suppliers
Carinthia: SIC Software Internet Cluster IT security, e-commerce, open source solutions
Styria: RFID Hotspot RFID technology
Carinthia: ME2C Cluster Electronics, microelectronics and mechatronics
Tyrol:
Cluster Information Technologies Tyrol
IT in tourism and healthcare, IT security, focus on
networked systems and Industry 4.0
Upper Austria:
IT Cluster
Industry 4.0, IT security, new forms of mobility, digital
business
Clusters
Drive Innovation
Well-networked companies operating in the
Austrian business location leverage synergies and
are the driving force for new developments.
→ www.mechatronik-cluster.at
→ www.sic.or.at
→ www.sfg.at
→ www.me2c.at
→ www.standort-tirol.at
→ www.itcluster.at
INVEST IN AUSTRIA
11
Education expenditures
Annual expenditures per pupil/student in USD
Source: OECD, Education at a Glance, 2014
Switzerland
USA
Norway
Austria
Sweden
Netherlands
Japan
France
UK
OECD average
16,090
15,345
14,288
13,116
12,426
11,702
10,646
10,454
10,412
9,487
Commitment to the company
10 = Motivation of employees is high
Source: World Competitiveness Yearbook, 2014
Switzerland
Denmark
Malaysia
Austria
Japan
Germany
Netherlands
USA
UK
Czech Republic
1
2
3
5
6
9
17
18
25
39
7.94
7.87
7.68
7.59
7.56
7.49
6.62
6.56
6.30
5.42
Top-notch employees drive innovation. Not only are good ideas from R&D
needed to bring innovations to market, but also highly qualified specialized staff
for their practice-oriented implementation. Austria offers both. Application-
oriented education and training have a long tradition here, whether at the
numerous higher technical colleges, 34 universities or 21 universities of applied
sciences with more than 556 courses of study.
Priority given to education. Austria is in the front ranks of the OECD with
educational expenditures substantially higher than the OECD average. There is
hardly any other country in the world which matches Austria in the importance
attached to the professional development and further education of employees.
This is underlined by its 5th place ranking in the World Competitiveness
Yearbook 2014. The return on these investments is the utmost motivation and
productivity of the staff. According to the EU Commission in 2014 Austria is also
among the very best with respect to labor productivity per person.
Large pool of computer science specialists. Excellent educational facilities
at universities and research institutions of the Vienna and Graz Universities of
Technology, the University of Innsbruck, Johannes Kepler University Linz, the
University of Applied Sciences FH Campus Wien and the University of Applied
Sciences Technikum Wien, Austria’s largest purely technical university of applied
sciences, ensure a large pool of well educated IT specialists.
Specialized Staff?
No Problem at All
Austria offers practical professional development and further
education as well as a large pool of computer science experts.
IT & TELECOM
12
“COMET competence centers offer a broad spectrum of advantages
such as access to the latest scientific findings, effective know-how
and transfer based on their cooperation with companies on innovative
product developments and implementation in a company’s practical
operations within the context of cost-effective research projects
supported by public funding.”
Georg Stonawski, CEO VRVis
INVEST IN AUSTRIA
13
Top headquarter locations
Headquarters of international companies
Source: Wolf Theiss Rechtsanwälte GmbH, 2011, * 2014
Austria
Poland
Hungary
Czech Republic
Slovakia
341*
25
24
23
12
Headquarters in Austria
Head office of the parent company, in percent
Source: List compiled by Headquarters Austria
Germany
USA
Switzerland
France
Italy
Japan
Sweden
UK
Canada
Netherlands
34.0
18.4
7.1
4.2
3.9
3.6
3.6
3.2
2.9
2.9
Springboard to lucrative business. Privileged by its geographical location in
the heart of Europe, Austria has positioned itself as the business interface for
the growth markets of Central and Eastern Europe. Outstanding Central and
Eastern European know-how on the part of Austrian service providers, an histori-
cally matured cultural understanding of Austrians for the CEE region, political
stability and security as well as transparent laws make Austria an ideal East-
West business interface. More than 1,000 international companies coordinate
their Eastern European business operations from Austria, driving growth in the
CEE markets.
Austria: the leading headquarters location. Headquarters Location Austria
boasts a total of 341 headquarters, miles ahead of its CEE competitors i.e.
Poland, Slovakia, Czech Republic and Hungary. A survey carried out by the law
firm Wolf Theiss has shown that only 84 international headquarters have been
established in all of these four CEE countries combined.
East-West
Interface
Whoever works and researches in Austria does
this in direct proximity to dynamic growth regions.
IT & TELECOM
14
Considering South East and Eastern Europe, what does Siemens value
about Austria as an R&D location?
“For some time now Austria has been an important player in the Siemens
research landscape. The company not only values the high level of technological
competence but the good and matured relations to the target markets in Central
Eastern Europe. Naturally these are important pre-requisites for high-tech
projects and new market opportunities in Eastern Europe.”
What are the strengths of Siemens Corporate Technology CEE (CT R CEE)?
“Enormous competition prevails today among Siemens’ 100 research groups
worldwide. For this reason, it has been important for CT R CEE to have the
best minds achieve an outstanding performance in selected cutting edge
technologies. Our success is based, for example, on our know-how in the field
of application-specific chips (ASICs) and complex constraint-based configura-
tions. We decisively shape the technology strategy of the Group thanks to our
more than 1,000 highly qualified researchers and developers, for example on
future issues such as smart cities or rail-based public transport. Energy-efficient
solutions for cities of the future are being developed within the context of the
research company Aspern Smart City Research (ASCR), a joint venture with the
City of Vienna, the utility companies Wien Energie, Wiener Netze and Siemens.
The global headquarters for “Urban Transport“ are located in Vienna. Here
research is carried out on leading edge technologies for underground systems,
passenger trains, street cars and e-buses.”
Technology Leader Based
in Austria
Siemens Corporate Technology CEE is successfully
positioned in seven of the Group’s twelve global
technology fields.
Harald Loos, Head of “Siemens
Corporate Technology CEE“
→ www.siemens.at/innovationen
INVEST IN AUSTRIA
15
Above-average performance in e-government. Citizens and companies in
Austria can unbureaucratically establish contact with public authorities and
handle formalities online with the help of modern information and communica-
tion technologies. Austria outperforms the European average by far in the EU’s
e-government benchmark report. The Alpine Republic even ranks among the top
five for the indicators “transparency” and “key enablers”.
Outstanding offering. The initial point of contact for all issues relating to
e-government services is HELP.gv.at. This multiple award-winning online portal
has been offering online services for more than 15 years in accordance with the
“one-stop principle”. The corporate service portal USP is particularly tailored to
the needs of the business community. For example, business people can access
this platform and take care of many formalities online, for example for purposes
of tax or social insurance reporting and much more.
Platform Digital Austria. Since 2005 the platform Digital Austria has served as
the coordination and strategy committee for e-government. Based in the Federal
Chancellery of Austria, this platform is a unique worldwide model bundling all
business and governmental e-government projects.
Innovation Center EGIZ. Parallel to the platform Digital Austria, the e-govern-
ment Innovation Center (EGIZ) was also set up in the year 2005. This initiative
launched supports public authorities in further developing Austria’s ICT strategy
and conducts research pertaining to technical innovations in an e-government
environment.
Top Position in
E-Government
Austria plays in the Champions League when it comes
to the issue of e-government.
→ www.help.gv.at
→ www.usp.gv.at
→ www.digitales.oesterreich.gv.at
→ www.egiz.gv.at
IT & TELECOM
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“Austria is a top location for R&D in the field of embedded
computing and provides valuable economic impetus thanks to an
efficient funding landscape. The proximity to important educational
facilities enables TTTech to interest and internationally deploy highly
qualified employees.“
Stefan Poledna, Member of the Management Board of the Viennese
high-tech company TTTech
INVEST IN AUSTRIA
17
Innovations “Made in Austria“. Austria not only offers an optimal business
environment for multinational companies but also for start-ups. In addition to
established players such as TTTech and Runtastic, exciting new developments
have their roots in Austria and take their first steps from an Austrian base.
Examples include Tapkey, an NFC-based electronic access system, the Web
verification system of Jumio and the digital health solutions offered by mySugr.
Meeting place of the European start-up scene. The Pioneers Festival regularly
turns Vienna into the pivotal focal point of the European start-up scene. The festival
has emerged as an important meeting place for investors, entrepreneurs and compa-
nies, attracting more than 4,000 people to the Hofburg Palace in Vienna in 2015.
Support by incubators. Start-ups are provided with support by incubators,
amongst others, including i5invest. Since 2007 i5invest has served as a “start-
up factory” for Web and mobile projects. The companies can look back at 20
successful start-ups and more than ten successful exits, for example 123people
and Runtastic. University incubators also accompany young business people in
their efforts to translate their ideas into reality. One of them is INiTS, a company
founded by the University of Vienna, the Vienna University of Technology and
the Vienna Business Agency. Up until now the incubator has supported a total
of 160 start-ups. In 2014 INiTS was listed in the “Global Top 25” ranking of
university incubators by the Swiss research initiative UBI Index. It was rated
11th worldwide and 3rd in Europe.
Lively
Start-up Scene
Austrian start-ups assert
themselves internationally.
→ www.pioneers.io
→ www.inits.at
→ www.aplusb.biz
IT & TELECOM
18
Runtastic was founded in 2009, and has achieved a history of success
since then. How do you assess the underlying conditions for ICT start-ups
in the business location of Austria?
“I believe there are always challenges faced by startups, but not only in Austria.
In the meantime the issue has become a subject for public debate.
The world is rapidly changing, and there are always new opportunities. Innova-
tive ideas do not necessarily have to arise in San Francisco. This is also possible
in Europe and everywhere else in the world. For this reason, I think that it has
become somewhat easier in past years for start-ups from Austria and Europe to
climb the ladder of success.”
Considerable importance is attached to research and development in the
IT sector. What are Austria’s strengths here?
“The IT sector can look back at major successes in Austria. In particular, it
stands out due to its good universities of applied sciences (Hagenberg, Steyr)
and universities in this area. As the neighboring country of Germany and Swit-
zerland, both known for their top quality, we also benefit from this confidence.”
Ongoing success. Runtastic makes three applications available for the Apple
smart watch, amongst other innovations. In addition to “Runtastic”, the mobile
phone application for jogging, watch owners can also download the “Six Pack
App” and the “Butt Trainer”. Runtastic has 60 million registered users across
the globe, offering services and products to record and administer fitness data.
The company was established in 2009, and has had the Springer Group of
Germany on board as a strategic partner since 2013.
Red-White-Red
Success Story
The Austrian start-up Runtastic is on a path to success
with services focusing on recording and administering
fitness data.
Florian Gschwandtner, CEO and
co-founder of Runtastic
→ www.runtastic.com
INVEST IN AUSTRIA
19
NXP intensively conducts research and development work at Austria as
a business location. Near Field Communication (NFC) was developed in
Gratkorn, amongst other breakthroughs. What are the underlying condi-
tions conducive to production and research in the ICT sector in Austria,
and what do you personally value about Austria as a research location?
“Austria, especially the Graz region, offers interesting growth opportunities for
NXP Semiconductor, because we can find well educated specialized staff for the
semiconductor industry. The cooperation with local universities is excellent. We
also have no problem luring international experts.
Projects such as SeCoS, which we are implementing in collaboration with
JOANNEUM RESEARCH, are important to us in order to continually enhance
our innovative strength on the basis of new, external ideas. Furthermore, they
make our technology more visible in the general public thanks to innovative
applications, and thus strengthen Styria as an internationally recognized ‘RFID
hotspot’.”
Business meets science. An estimated 50 percent of all RFID chips used
around the world were developed in Austria. Within the context of the K-project
entitled Secure Contactless Sphere (SeCoS), RFID know-how on the part of the
business and scientific communities has been bundled under the leadership
of JOANNEUM RESEARCH since 2013. The objective is to develop a platform
which meets the most demanding requirements with respect to security and
protection of privacy and reduces component size, achieves previously unattain-
able carrier frequencies and data transfer rates and improves the accuracy of
object tracking.
Hardware, software and security concepts. NXP focuses on smart city
applications within the framework of the SeCoS project. The company’s work is
designed to make the use of public transportation even more convenient thanks
to the next generation of semiconductors and related contactless entrance and
exit systems. This opens up new possibilities for system operators to optimize
transport, thus comprising an important contribution to “green mobility.”
Actively Shaping
the Future
NXP carries out research in Austria on technologies
for the future. RFID and NFC are considered to be
trailblazers for the Internet of Things.
→ www.nxp.com
→ www.comet-secos.at
Volker Greager, Managing
Director NXP Semiconductors
Austria GmbH
IT & TELECOM
20
“Joint research carried out in the field of RFID is an outstanding
example for the profitable collaboration of scientific institutions
such as JOANNEUM RESEARCH and globally operating
companies such as NXP. Such close partnerships between
researchers and industry are a crucial success factor to position
innovations on the marketplace.”
Wolfgang Pribyl, Managing Director of JOANNEUM RESEARCH
INVEST IN AUSTRIA
21
Christian Flachberger,
responsible for security research
at Frequentis
Frequentis is an example of an Austrian company with an international
success story. Research and development play an important role in your
business operations. How is the business environment in Austria favorable
for research and development in the fields of embedded systems and IT
security?
”The particular challenge in security sensitive areas is to combine continuity, and
thus reliability and credibility, with agility and innovative strength. Austria offers a
diverse range of specialists organized in small groups, for example large non-
university research facilities such as the Austrian Institute of Technology (AIT),
JOANNEUM RESEARCH and Salzburg Research. Great emphasis is put on the
issue of embedded systems. Research competence is also found in universities
and universities of applied sciences. This expertise is bundled in Vienna and Linz,
with a focus on mechatronics and automation technology, as well as in Graz,
which specializes in avionics and the automotive sector. This is complemented by
the competence of semiconductor producers in the south of Austria.”
Business meets science. In numerous longstanding research partnerships,
the work carried out by Frequentis focuses on “Public Safety and Transport”
as well as “Air Traffic Management”. The global trend in both areas is to link
control centers of different organizations via overlapping and jointly administered
information spaces. Furthermore many of the employees are lecturers at uni-
versities and universities of applied sciences. This is how research partnerships
frequently develop, as well as dissertations and master’s theses.
Security at large events. Within the context of the “eviva“ project, Frequen-
tis developed a new type of system to ensure security at large events together
with the Austrian Institute of Technology and JOANNEUM RESEARCH. In this
case mass gatherings are observed from the air, the dynamics of people’s
movements are analyzed in near real time, and potentially critical patterns
are recognized before mass panic arises. Accordingly, timely precautionary
measures can be initiated.
Longstanding
Research Cooperation
Frequentis develops communications and information
solutions in security sensitive areas. Particular importance
is attached to research.
→ www.frequentis.com
IT & TELECOM
22
“The scientific excellence and internationally leading high-tech
development at AIT can only be translated into specific products
enabling the successful global positioning of Austria as an
industrial location thanks to the interaction with high performance
industrial partners in Austria such as Frequentis.”
Helmut Leopold, AIT - Austrian Institute of Technology
INVEST IN AUSTRIA
23
Sabine Herlitschka, CEO
of Infineon Technologies
Austria AG
Innovative and creative impetus. “Innovation is a major basis for the success
of Infineon Austria as well as for Austria as a technology location and knowledge
hub. Infineon was the most research-intensive company in the country in 2014
with R&D comprising 25 percent of total revenue. In the coming years we plan
investments and research expenditures in Austria to the amount of EUR 290
million. A good example is our project ‘Pilot Space Industry 4.0‘, a completely
new concept in Austria of networked and knowledge-intensive production at the
Infineon facility in Villach.”
Making the ICT infrastructure more secure. “High security standards in
the ICT infrastructure are indispensable with increased networking and the
exchange of large data volumes in the ‘Internet of Things‘ as well as Indus-
try 4.0. In the Austrian research location, we are working at our competence
center on contactless security chips in Graz to make electronic IDs, cash cards,
smart phones, laptops and tablets even more secure in order to fulfill future
requirements.”
Infineon Austria
R&D priorities in Austria
•	 Energy-saving power chips for industry, automobiles and consumer
electronics
•	 Contactless chips for card applications and security chips for payment
and e-government solutions
•	 Microelectronic mechanic systems (MEMS) for tire pressure sensors
and silicon microphones for smartphones
•	 Integrated switches for automobile radar systems
•	 Innovative manufacturing concepts and process technologies for
semiconductor production
Partnerships (selected). Vienna University of Technology, Graz University of
Technology, Johannes Kepler University Linz, University of Vienna, Alpen Adria
University Klagenfurt, University of Innsbruck, Austrian Institute of Technology,
JOANNEUM RESEARCH, Christian Doppler Research Association, Carinthian
Tech Research
Bundled
Research Strength
Infineon is working at its own competence center on
creating more security for cash cards, tablets etc.
→ www.infineon.com/austria
IT & TELECOM
24
“Austria ranks among the most technology-intensive economies.
Austria boasts internationally recognized expertise, especially when
it comes to ICT. The Austrian mix of basic and application research
enables the country to maintain its knowledge edge and contribute
to solving global problems.”
Sabine Seidler, Rector of the Vienna University of Technology
INVEST IN AUSTRIA
25
IT & TELECOM
26
ABA – Invest in Austria offers comprehensive services – competent consulting
on selecting a business location, support in contacts with public authorities
and funding bodies as well as on labor and tax issues and in the search for
cooperation partners. And it does so free of charge.
INVEST IN AUSTRIA
27
Best Consulting on
Business Location Issues
ABA – Invest in Austria is the investment promotion
consulting company of the Republic of Austria and the top
choice of international investors.
•	 Experienced investment consultants personally serve you and provide all
the necessary contacts required in Austria. Contact us at the beginning of
your expansion project so that you will be given optimal support.
•	 ABA – Invest in Austria offers customized information on Austria as a busi-
ness location – sectors, technologies and markets, political and economic
conditions.
•	 We are happy to advise you on important issues relating to site selection
such as labor and tax regulations, incentives or real estate prices.
•	 Employees of ABA – Invest in Austria assist and support you in handling
formalities such as applying for public funding or operating licenses – also in
cooperation with the regional investment promotion agencies in the federal
provinces.
•	 ABA – Invest in Austria also provides extensive services to support expan-
sion investments after project completion.
•	 Investors can also benefit from the cooperation partners within the interna-
tional network of ABA – Invest in Austria and the foreign trade centers of
the Austrian Federal Economic Chamber.
•	 Award-winning ABA. ABA – Invest in Austria has won several awards for its
consulting services: World’s Best Investment Promotion Agency, World Bank
Benchmarking (2009); Global Leader in Online Investment Promotion, World
Bank Benchmarking (2012); Second-Best Investment Promotion Agency and
third-place award for its program to strengthen Austria as a headquarters
location, FDI World Forum (2013).
•	 Specialized brochures. More detailed information on different topics and
industries can be found in numerous specialized brochures such as:
•	 Business Location Austria
•	 Bridge between East and West
•	 Automotive Industry
•	 Chemistry / Plastics
•	 Environmental Technologies
& Renewable Energies
•	 Headquarters Location Austria
•	 ICT / Telecom
•	 Life Sciences
•	 Logistics
•	 Machinery / Electronics / Mechatronics
•	 Research & Development
•	 Tourism
•	 Starting Business in Austria
•	 Tax Aspects of Investments in Austria
www.investinaustria.atINVEST IN AUSTRIA
Invest in Austria
In Austria:
ABA – Invest in Austria
Opernring 3
A-1010 Vienna
Tel.:	 +43-1-588 58-0
Fax: 	+43-1-586 86 59
E-Mail: office@aba.gv.at
Internet:
www.investinaustria.at
www.investinaustria.cn
www.investinaustria.ru
www.investinaustria.jp

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ABA Information- and Communications Technologies in Austria

  • 1. Strong Business Location for Information and Communication Technologies IT & Telecom INVEST IN AUSTRIA Austria www.investinaustria.at
  • 2. IT & TELECOM 2 Berlin Warsaw Vienna Ljubljana Rome Paris Oslo Stockholm Ankara Kiev Kishinev Riga Moscow Prague Sofia London Dublin Copenhagen Brussels Luxembourg Tirana Skopje Budapest Zagreb Tallinn Amsterdam Lisbon Madrid Athens Berne Bucharest Bratislava Minsk Vilnius Helsinki 1h 2h 3h All of Europe by Air in 3 Hours Austria’s central geographic location in Europe makes it a business interface between East and West. Sarajevo Belgrade Pristina Podgorica
  • 3. Imprint: Status: June 2015; Media owner and publisher: Austrian Business Agency, Opernring 3, A-1010 Vienna; Responsible for contents: René Siegl; Editorial team: Karin Schwind-Derdak (ABA), Maria Hirzinger (Connect U); Design: www.november.at; Photos: Richard Tanzer, BMWFW, APA, Istockphoto, Siemens Corporate Technology CEE, Bigstock, Runtastic, NXP Semiconductors Austria GmbH, Bernhard Bergmann, Joanneum Research, Frequentis, AIT, Infineon Technologies Austria AG, TU Wien; Printed by: Gugler Dynamic Business Location The Austrian business location stands out in international comparison. Companies profit from a good business environment, qualified employees and a modern infrastructure. Austria ranks among the most prosperous and innovative countries in the European Union. According to Eurostat’s Prosperity Index, Austria ranks second in the EU behind Luxembourg. The business location scores points thanks to its modern infrastructure, top-notch technologies, well-educated and highly-motivated emplo- yees, and also offers a high reliability of energy supplies in addition to political, social and economic stability. Moreover, Austria is the ideal East-West business interface in a central geographical location. Considerable investments in research, development and education secure Austria’s innovative strength. With a share of 5.6 percent of graduates receiving degrees in computer sciences, Austria is far ahead of the EU average of 3.4 percent. In parti- cular, companies benefit from the future-oriented ICT sector. In spite of this good positioning, we are continually working on creating even better conditions on behalf of companies. In this spirit we would like to warmly welcome you to Austria. Reinhold Mitterlehner Vice Chancellor of the Republic of Austria Federal Minister of Science, Research and Economy Good Reasons for Research Location Austria Strong Nervous System for Austria’s Economy High Research Premium & Attractive Tax Advantages Competence Centers Clusters Drive Innovation Specialized Staff? No Problem at All East-West Interface Technology Leader Based in Austria Top Position in E-Government Lively Start-up Scene Red-White-Red Success Story Actively Shaping the Future Longstanding Research Cooperation Bundled Research Strength 5 6 8 10 11 12 14 15 16 18 19 20 22 24 Contents INVEST IN AUSTRIA 3
  • 4. Global competence Technologies • Semiconductors • Embedded systems (real-time systems) • Microelectronics and nanoelectronics • Smart cards (near field systems) • RFID • IT security The biggest players Companies • TTTech • AVL • Siemens Austria • AMS • LAM research • Infineon Austria • NXP Semiconductors Austria • Frequentis Research institutions • Austrian Institute of Technology (AIT) • JOANNEUM RESEARCH • Institute of Science and Technology Austria (IST Austria) • Fraunhofer Austria • Software Competence Center Hagenberg IT & TELECOM 4
  • 5. Programmed for success. Austria is a highly sought-after innovation location within Europe, for example in the fields of semiconductors, smart cards and near field systems, RFID and IT security. A large number of universities, univer- sities of applied sciences, non-university research facilities, innovative spin-offs and SMEs, industry clusters and R&D headquarters of multinational companies ensure that state-of-the-art IT products are services are developed in Austria. All advantages at a glance. One thing is sure: major successes are only pos- sible under favorable conditions. • Customized funding and financing of application-related R&D and basic research • Ten percent research premium (twelve percent as of 2016) and attractive tax advantages • Competence centers and industry clusters comprise a dense network linking the scientific and business communities • An international research elite as well as soundly- trained specialists in infor- mation and communications technologies • Proximity to South East and Eastern Europe • Excellent living and working conditions Good Reasons for Research Location Austria ICT companies with an innovative spirit benefit from the attractive competitive advantages offered by the red-white-red business location. Development of R&D spending in Austria, Germany and the EU-28 % of GDP Sources: Eurostat, Austrian Statistical Office Austrian investments in R&D EUR million, estimates for 2015 Total R&D spending: EUR 10,104.44 million Source: Austrian Statistical Office, 2015 From abroad Other Federal government and provinces 1,529.31 3,657.26 Companies 4,764.87 153 1,5 2,0 2,5 3,0 2004 20082005 20072006 2009 2010 2011 2012 2013 2014 2015 Austria EU-28 Germany INVEST IN AUSTRIA 5
  • 6. IT & TELECOM 6 Nothing works anymore without ICT. Information and communication technologies permeate every sphere of life like a person’s nervous system. They supply key technologies for the economy and are strong driving forces for the development of our society. Austria promotes this area and has emerged as a top business location for ICT. Many large international companies have contributed to this, but Austrian companies have also achieved top positions on global ICT markets. The pre-requisite is intensive research carried out in these technological areas, supported by public sector funding programs and not least by an attractive tax system. Driving force of the economy. According to the Association of the Austrian Electrical and Electronics Industries, Austria’s economy generated a production volume of EUR 36.6 billion on the basis of applying ICT. In contrast to the overall economic development, this sector expanded by 8.6 percent since 2010, precisely the same as the value creation of the ICT sector. It rose from EUR 16.3 billion in 2010 to EUR 17.7 billion in 2014. At the same time, the number of employees also strongly increased. 290,000 employees, for the most part highly qualified specialists, work in Austria’s ICT sector, a rise of 17.9 percent since 2010. Research as the basis of success. Research and development comprise the foundation of success in the ICT sector – and research is in fact being conducted in Austria. The Austrian Research Promotion Agency FFG ranks Austria among the top 3 European ICT research locations. For example, the R&D quota in chip manufacturing is in the range of 15 to 20 percent. Austria’s ICT companies also perform outstandingly in EU framework programs. The rate of return from EU funds most recently totaled 185 percent. Targeted research funding. Corporate research is also supported by targeted public sector funding programs, for example the umbrella program “ICT of the Future.” A great deal of ICT research is also carried out in the competence centers of the COMET (Competence Centers for Excellent Technologies) fund- ing initiative endowed to the amount of EUR 1.5 billion, where companies and academic institutions can jointly work on specified research projects. Strong Nervous System for Austria’s Economy Extensive investments in research and development safeguard Austria’s innovative strength.
  • 7. INVEST IN AUSTRIA 7 Strong players. Austria’s innovative strength in research and development also results in technologies and solutions which successfully compete on the global market. A large number of Austrian ICT suppliers have managed to achieve top market positions in the world with their products. A broad range of products and services are offered: from semiconductor production to app development, from automation to access systems. Bundled Austrian competence is integrated into many smartphones, for example circuit boards from AT&S, NFC components from NXP or sensors from ams. Access systems for public space, for example ski lifts, sports stadiums and airports, are frequently equipped with technology “Made in Austria” by Skidata. Good international company. The presence of international corporate groups such as Infineon, Siemens, Philips and Microsoft strengthens Austria as a research and ICT location. Microsoft has been represented by a subsidiary in Vienna since 1991, and has operated its own R&D subsidiary in Graz, Vexcel Imaging, since 2006. The German chip producer Infineon and the American multinational company General Electric recently acquired a stake in the Austrian technology company TTTech Computertechnik AG, which specializes in making electronic networks more robust on the basis of security and real time technolo- gies. Philips boasts a particularly longstanding tradition in Austria. In 1926 the Dutch company established a foothold in Austria by setting up a sales company. Today Austria is not only an interesting market for Philips, but an important high-tech location with competence centers of global importance. Source: Trend/News, February 2015 Top R&D companies R&D expenditures in 2014 Company R&D in EUR million R&D in % Infineon Technologies Austria AG (DE) 320 24.6 BMW Motoren GmbH (DE) 233 6.4 Siemens AG Austria (DE) 182 9.2 Voestalpine AG (AT) 130 1.2 AVL List GmbH (AT) 105 10.0 Kapsch Group Bet.GmbH (AT) 96 10.3 Bosch Robert AG (DE) 94 16.7 Andritz AG (AT) 93 1.6 Zumtobel Group AG (AT) 72 5.8 Bernecker + Rainer Industrie-Elektronik GmbH (AT) 70 13.9
  • 8. Research and even more research. Austria has established a research-friendly business environment thanks to tax advantages and funding programs. The research premium of ten percent (12 percent as of 2016) for a company’s own R&D as well as contract research serves as an innovation turbocharger for companies in the ICT sector. Tax advantages and financing. Moreover, the Austrian tax system lures inves- tors with the tax-exempt apprenticeship allowance, tax loss carryforwards and the possibility to transfer hidden reserves. The corporate income tax rate is a company-friendly 25 percent, whereas the net worth and trade taxes are not levied in Austria. Österreichische Kontrollbank (OeKB) and export funds also provide favorable financing opportunities. Broad-based research funding. Customized R&D research programs from the Austrian Research Promotion Agency (FFG), Austria Wirtschaftsservice (aws) and the Austrian Science Fund (FWF) are available to companies conducting research. Funding is also offered by the federal provinces. Specific funding programs for the ICT sector include ICT of the Future, FIT-IT and benefit. High Research Premium and Attractive Tax Advantages Whoever carries out research in Austria pays lower taxes – and benefits from a twelve percent research premium as well as numerous funding programs. Funding: → www.awsg.at → www.fwf.ac.at → www.bmwfw.gv.at → www.bmvit.gv.at → www.ffg.at → www.fit-it.at → www.foerderkompass.at Corporate tax rates in 2015 *) Taxes on undistributed profits in percent Source: Deloitte Resources, Corporate Tax Rates 2015  *) incl. surcharges and local/national taxes Ireland Slovenia Czechia Poland Great Britain Sweden Slovakia Austria Netherlands Norway Germany Spain Italy France Belgium USA Ireland Czechia Poland Hungary Netherlands Austria Great Britain Italy Belgium Luxembourg Germany Spain France USA 12.514.1 17.016.2 19.017.0 19.018.9 30.0 21.020.9 25.0 22.0 22.0 25.0 27.0 30.0 31.4 33.3 34.0 35.0 BAK Corporate Taxation Index Effective average tax burden in percent Source: BAK Basel Economics and ZEW, 2014 24.8 23.8 22.4 24.6 24.7 29.3 31.2 32.5 41.1 IT & TELECOM 8
  • 9. “The Austrian research premium is an extremely attractive funding instrument in international comparison. The research premium is tax-free and is distributed regardless of the company’s business results. In this way, companies also benefit from a cash advantage during a loss-making phase.” Natascha Stornig, LeitnerLeitner Tax Audit Advisory INVEST IN AUSTRIA 9
  • 10. More than 50 competence centers. One of the most successful Austrian funding initiatives is COMET (Competence Centers for Excellent Technologies). The underlying aim is to further strengthen the cooperation between science and industry and thus promote the development of joint research competencies and to commercially realize research results. Software engineering at the highest level. The Software Competence Center Hagenberg (SCCH) is one of the largest independent software research cent- ers in the country. It plays a pioneering role in software-related technological research and development trends. Its priority areas are Process and Quality Engineering, Rigorous Methods in Software Engineering, Knowledge-Based Vision Systems, Software Analytics and Evolution and Data Analysis Systems. Technologies for communications systems of the future. The Telecommuni- cations Research Center Vienna FTW focuses on the research and development of technologies for the communications systems of the future in the fields of telecommunications, energy and transport. Visual computing. Visual computing has long been a key technology for the economy and society. Austria’s leading research and development company in the field of visual computing is the VRVis Center for Virtual Reality and Visualiza- tion Research GmbH. Intelligent sensor systems. Carinthian Tech Research AG (CTR), the largest non-university research center in the south of Austria, is an important partner both domestically and internationally in order to transfer the latest scientific findings in the field of sensor technologies into industrial practice. Competence Centers – a Win-Win Situation for Everyone Strategic partnerships between the business community and research facilities comprise Austria’s success model. → www.ffg.at → www.scch.at → www.ftw.at → www.vrvis.at → www.ctr.at IT & TELECOM 10
  • 11. Automotive, railway, traffic/transport, aerospace Materials, packaging Timber, furniture, accomodation, building construction Health, life sciences, wellness Food technology Mechatronics, electronics, informatics, sensor technology Renewable energy, environmental technology Human resources, design, multimedia Information, communication, processes, logistics Clusters and networks in the Austrian provinces and supraregional initiatives Source: Cluster Platform Austria 2014 More than 60 industry clusters. Some 60 industry clusters in nine federal provinces encompassing 7,000 companies and 825,000 employees enhance Austria’s innovative strength. These cluster players are characterized by interna- tionality and a high research ratio averaging 7.5 percent. Specialized firms, from SMEs and spin-offs to international R&D headquarters intensively cooperate with each other as well as with research institutions and talented developers. Cluster Priorities Upper Austria/Lower Austria: Mechatronics Cluster (MC) Device and equipment manufacturing, technology component suppliers Carinthia: SIC Software Internet Cluster IT security, e-commerce, open source solutions Styria: RFID Hotspot RFID technology Carinthia: ME2C Cluster Electronics, microelectronics and mechatronics Tyrol: Cluster Information Technologies Tyrol IT in tourism and healthcare, IT security, focus on networked systems and Industry 4.0 Upper Austria: IT Cluster Industry 4.0, IT security, new forms of mobility, digital business Clusters Drive Innovation Well-networked companies operating in the Austrian business location leverage synergies and are the driving force for new developments. → www.mechatronik-cluster.at → www.sic.or.at → www.sfg.at → www.me2c.at → www.standort-tirol.at → www.itcluster.at INVEST IN AUSTRIA 11
  • 12. Education expenditures Annual expenditures per pupil/student in USD Source: OECD, Education at a Glance, 2014 Switzerland USA Norway Austria Sweden Netherlands Japan France UK OECD average 16,090 15,345 14,288 13,116 12,426 11,702 10,646 10,454 10,412 9,487 Commitment to the company 10 = Motivation of employees is high Source: World Competitiveness Yearbook, 2014 Switzerland Denmark Malaysia Austria Japan Germany Netherlands USA UK Czech Republic 1 2 3 5 6 9 17 18 25 39 7.94 7.87 7.68 7.59 7.56 7.49 6.62 6.56 6.30 5.42 Top-notch employees drive innovation. Not only are good ideas from R&D needed to bring innovations to market, but also highly qualified specialized staff for their practice-oriented implementation. Austria offers both. Application- oriented education and training have a long tradition here, whether at the numerous higher technical colleges, 34 universities or 21 universities of applied sciences with more than 556 courses of study. Priority given to education. Austria is in the front ranks of the OECD with educational expenditures substantially higher than the OECD average. There is hardly any other country in the world which matches Austria in the importance attached to the professional development and further education of employees. This is underlined by its 5th place ranking in the World Competitiveness Yearbook 2014. The return on these investments is the utmost motivation and productivity of the staff. According to the EU Commission in 2014 Austria is also among the very best with respect to labor productivity per person. Large pool of computer science specialists. Excellent educational facilities at universities and research institutions of the Vienna and Graz Universities of Technology, the University of Innsbruck, Johannes Kepler University Linz, the University of Applied Sciences FH Campus Wien and the University of Applied Sciences Technikum Wien, Austria’s largest purely technical university of applied sciences, ensure a large pool of well educated IT specialists. Specialized Staff? No Problem at All Austria offers practical professional development and further education as well as a large pool of computer science experts. IT & TELECOM 12
  • 13. “COMET competence centers offer a broad spectrum of advantages such as access to the latest scientific findings, effective know-how and transfer based on their cooperation with companies on innovative product developments and implementation in a company’s practical operations within the context of cost-effective research projects supported by public funding.” Georg Stonawski, CEO VRVis INVEST IN AUSTRIA 13
  • 14. Top headquarter locations Headquarters of international companies Source: Wolf Theiss Rechtsanwälte GmbH, 2011, * 2014 Austria Poland Hungary Czech Republic Slovakia 341* 25 24 23 12 Headquarters in Austria Head office of the parent company, in percent Source: List compiled by Headquarters Austria Germany USA Switzerland France Italy Japan Sweden UK Canada Netherlands 34.0 18.4 7.1 4.2 3.9 3.6 3.6 3.2 2.9 2.9 Springboard to lucrative business. Privileged by its geographical location in the heart of Europe, Austria has positioned itself as the business interface for the growth markets of Central and Eastern Europe. Outstanding Central and Eastern European know-how on the part of Austrian service providers, an histori- cally matured cultural understanding of Austrians for the CEE region, political stability and security as well as transparent laws make Austria an ideal East- West business interface. More than 1,000 international companies coordinate their Eastern European business operations from Austria, driving growth in the CEE markets. Austria: the leading headquarters location. Headquarters Location Austria boasts a total of 341 headquarters, miles ahead of its CEE competitors i.e. Poland, Slovakia, Czech Republic and Hungary. A survey carried out by the law firm Wolf Theiss has shown that only 84 international headquarters have been established in all of these four CEE countries combined. East-West Interface Whoever works and researches in Austria does this in direct proximity to dynamic growth regions. IT & TELECOM 14
  • 15. Considering South East and Eastern Europe, what does Siemens value about Austria as an R&D location? “For some time now Austria has been an important player in the Siemens research landscape. The company not only values the high level of technological competence but the good and matured relations to the target markets in Central Eastern Europe. Naturally these are important pre-requisites for high-tech projects and new market opportunities in Eastern Europe.” What are the strengths of Siemens Corporate Technology CEE (CT R CEE)? “Enormous competition prevails today among Siemens’ 100 research groups worldwide. For this reason, it has been important for CT R CEE to have the best minds achieve an outstanding performance in selected cutting edge technologies. Our success is based, for example, on our know-how in the field of application-specific chips (ASICs) and complex constraint-based configura- tions. We decisively shape the technology strategy of the Group thanks to our more than 1,000 highly qualified researchers and developers, for example on future issues such as smart cities or rail-based public transport. Energy-efficient solutions for cities of the future are being developed within the context of the research company Aspern Smart City Research (ASCR), a joint venture with the City of Vienna, the utility companies Wien Energie, Wiener Netze and Siemens. The global headquarters for “Urban Transport“ are located in Vienna. Here research is carried out on leading edge technologies for underground systems, passenger trains, street cars and e-buses.” Technology Leader Based in Austria Siemens Corporate Technology CEE is successfully positioned in seven of the Group’s twelve global technology fields. Harald Loos, Head of “Siemens Corporate Technology CEE“ → www.siemens.at/innovationen INVEST IN AUSTRIA 15
  • 16. Above-average performance in e-government. Citizens and companies in Austria can unbureaucratically establish contact with public authorities and handle formalities online with the help of modern information and communica- tion technologies. Austria outperforms the European average by far in the EU’s e-government benchmark report. The Alpine Republic even ranks among the top five for the indicators “transparency” and “key enablers”. Outstanding offering. The initial point of contact for all issues relating to e-government services is HELP.gv.at. This multiple award-winning online portal has been offering online services for more than 15 years in accordance with the “one-stop principle”. The corporate service portal USP is particularly tailored to the needs of the business community. For example, business people can access this platform and take care of many formalities online, for example for purposes of tax or social insurance reporting and much more. Platform Digital Austria. Since 2005 the platform Digital Austria has served as the coordination and strategy committee for e-government. Based in the Federal Chancellery of Austria, this platform is a unique worldwide model bundling all business and governmental e-government projects. Innovation Center EGIZ. Parallel to the platform Digital Austria, the e-govern- ment Innovation Center (EGIZ) was also set up in the year 2005. This initiative launched supports public authorities in further developing Austria’s ICT strategy and conducts research pertaining to technical innovations in an e-government environment. Top Position in E-Government Austria plays in the Champions League when it comes to the issue of e-government. → www.help.gv.at → www.usp.gv.at → www.digitales.oesterreich.gv.at → www.egiz.gv.at IT & TELECOM 16
  • 17. “Austria is a top location for R&D in the field of embedded computing and provides valuable economic impetus thanks to an efficient funding landscape. The proximity to important educational facilities enables TTTech to interest and internationally deploy highly qualified employees.“ Stefan Poledna, Member of the Management Board of the Viennese high-tech company TTTech INVEST IN AUSTRIA 17
  • 18. Innovations “Made in Austria“. Austria not only offers an optimal business environment for multinational companies but also for start-ups. In addition to established players such as TTTech and Runtastic, exciting new developments have their roots in Austria and take their first steps from an Austrian base. Examples include Tapkey, an NFC-based electronic access system, the Web verification system of Jumio and the digital health solutions offered by mySugr. Meeting place of the European start-up scene. The Pioneers Festival regularly turns Vienna into the pivotal focal point of the European start-up scene. The festival has emerged as an important meeting place for investors, entrepreneurs and compa- nies, attracting more than 4,000 people to the Hofburg Palace in Vienna in 2015. Support by incubators. Start-ups are provided with support by incubators, amongst others, including i5invest. Since 2007 i5invest has served as a “start- up factory” for Web and mobile projects. The companies can look back at 20 successful start-ups and more than ten successful exits, for example 123people and Runtastic. University incubators also accompany young business people in their efforts to translate their ideas into reality. One of them is INiTS, a company founded by the University of Vienna, the Vienna University of Technology and the Vienna Business Agency. Up until now the incubator has supported a total of 160 start-ups. In 2014 INiTS was listed in the “Global Top 25” ranking of university incubators by the Swiss research initiative UBI Index. It was rated 11th worldwide and 3rd in Europe. Lively Start-up Scene Austrian start-ups assert themselves internationally. → www.pioneers.io → www.inits.at → www.aplusb.biz IT & TELECOM 18
  • 19. Runtastic was founded in 2009, and has achieved a history of success since then. How do you assess the underlying conditions for ICT start-ups in the business location of Austria? “I believe there are always challenges faced by startups, but not only in Austria. In the meantime the issue has become a subject for public debate. The world is rapidly changing, and there are always new opportunities. Innova- tive ideas do not necessarily have to arise in San Francisco. This is also possible in Europe and everywhere else in the world. For this reason, I think that it has become somewhat easier in past years for start-ups from Austria and Europe to climb the ladder of success.” Considerable importance is attached to research and development in the IT sector. What are Austria’s strengths here? “The IT sector can look back at major successes in Austria. In particular, it stands out due to its good universities of applied sciences (Hagenberg, Steyr) and universities in this area. As the neighboring country of Germany and Swit- zerland, both known for their top quality, we also benefit from this confidence.” Ongoing success. Runtastic makes three applications available for the Apple smart watch, amongst other innovations. In addition to “Runtastic”, the mobile phone application for jogging, watch owners can also download the “Six Pack App” and the “Butt Trainer”. Runtastic has 60 million registered users across the globe, offering services and products to record and administer fitness data. The company was established in 2009, and has had the Springer Group of Germany on board as a strategic partner since 2013. Red-White-Red Success Story The Austrian start-up Runtastic is on a path to success with services focusing on recording and administering fitness data. Florian Gschwandtner, CEO and co-founder of Runtastic → www.runtastic.com INVEST IN AUSTRIA 19
  • 20. NXP intensively conducts research and development work at Austria as a business location. Near Field Communication (NFC) was developed in Gratkorn, amongst other breakthroughs. What are the underlying condi- tions conducive to production and research in the ICT sector in Austria, and what do you personally value about Austria as a research location? “Austria, especially the Graz region, offers interesting growth opportunities for NXP Semiconductor, because we can find well educated specialized staff for the semiconductor industry. The cooperation with local universities is excellent. We also have no problem luring international experts. Projects such as SeCoS, which we are implementing in collaboration with JOANNEUM RESEARCH, are important to us in order to continually enhance our innovative strength on the basis of new, external ideas. Furthermore, they make our technology more visible in the general public thanks to innovative applications, and thus strengthen Styria as an internationally recognized ‘RFID hotspot’.” Business meets science. An estimated 50 percent of all RFID chips used around the world were developed in Austria. Within the context of the K-project entitled Secure Contactless Sphere (SeCoS), RFID know-how on the part of the business and scientific communities has been bundled under the leadership of JOANNEUM RESEARCH since 2013. The objective is to develop a platform which meets the most demanding requirements with respect to security and protection of privacy and reduces component size, achieves previously unattain- able carrier frequencies and data transfer rates and improves the accuracy of object tracking. Hardware, software and security concepts. NXP focuses on smart city applications within the framework of the SeCoS project. The company’s work is designed to make the use of public transportation even more convenient thanks to the next generation of semiconductors and related contactless entrance and exit systems. This opens up new possibilities for system operators to optimize transport, thus comprising an important contribution to “green mobility.” Actively Shaping the Future NXP carries out research in Austria on technologies for the future. RFID and NFC are considered to be trailblazers for the Internet of Things. → www.nxp.com → www.comet-secos.at Volker Greager, Managing Director NXP Semiconductors Austria GmbH IT & TELECOM 20
  • 21. “Joint research carried out in the field of RFID is an outstanding example for the profitable collaboration of scientific institutions such as JOANNEUM RESEARCH and globally operating companies such as NXP. Such close partnerships between researchers and industry are a crucial success factor to position innovations on the marketplace.” Wolfgang Pribyl, Managing Director of JOANNEUM RESEARCH INVEST IN AUSTRIA 21
  • 22. Christian Flachberger, responsible for security research at Frequentis Frequentis is an example of an Austrian company with an international success story. Research and development play an important role in your business operations. How is the business environment in Austria favorable for research and development in the fields of embedded systems and IT security? ”The particular challenge in security sensitive areas is to combine continuity, and thus reliability and credibility, with agility and innovative strength. Austria offers a diverse range of specialists organized in small groups, for example large non- university research facilities such as the Austrian Institute of Technology (AIT), JOANNEUM RESEARCH and Salzburg Research. Great emphasis is put on the issue of embedded systems. Research competence is also found in universities and universities of applied sciences. This expertise is bundled in Vienna and Linz, with a focus on mechatronics and automation technology, as well as in Graz, which specializes in avionics and the automotive sector. This is complemented by the competence of semiconductor producers in the south of Austria.” Business meets science. In numerous longstanding research partnerships, the work carried out by Frequentis focuses on “Public Safety and Transport” as well as “Air Traffic Management”. The global trend in both areas is to link control centers of different organizations via overlapping and jointly administered information spaces. Furthermore many of the employees are lecturers at uni- versities and universities of applied sciences. This is how research partnerships frequently develop, as well as dissertations and master’s theses. Security at large events. Within the context of the “eviva“ project, Frequen- tis developed a new type of system to ensure security at large events together with the Austrian Institute of Technology and JOANNEUM RESEARCH. In this case mass gatherings are observed from the air, the dynamics of people’s movements are analyzed in near real time, and potentially critical patterns are recognized before mass panic arises. Accordingly, timely precautionary measures can be initiated. Longstanding Research Cooperation Frequentis develops communications and information solutions in security sensitive areas. Particular importance is attached to research. → www.frequentis.com IT & TELECOM 22
  • 23. “The scientific excellence and internationally leading high-tech development at AIT can only be translated into specific products enabling the successful global positioning of Austria as an industrial location thanks to the interaction with high performance industrial partners in Austria such as Frequentis.” Helmut Leopold, AIT - Austrian Institute of Technology INVEST IN AUSTRIA 23
  • 24. Sabine Herlitschka, CEO of Infineon Technologies Austria AG Innovative and creative impetus. “Innovation is a major basis for the success of Infineon Austria as well as for Austria as a technology location and knowledge hub. Infineon was the most research-intensive company in the country in 2014 with R&D comprising 25 percent of total revenue. In the coming years we plan investments and research expenditures in Austria to the amount of EUR 290 million. A good example is our project ‘Pilot Space Industry 4.0‘, a completely new concept in Austria of networked and knowledge-intensive production at the Infineon facility in Villach.” Making the ICT infrastructure more secure. “High security standards in the ICT infrastructure are indispensable with increased networking and the exchange of large data volumes in the ‘Internet of Things‘ as well as Indus- try 4.0. In the Austrian research location, we are working at our competence center on contactless security chips in Graz to make electronic IDs, cash cards, smart phones, laptops and tablets even more secure in order to fulfill future requirements.” Infineon Austria R&D priorities in Austria • Energy-saving power chips for industry, automobiles and consumer electronics • Contactless chips for card applications and security chips for payment and e-government solutions • Microelectronic mechanic systems (MEMS) for tire pressure sensors and silicon microphones for smartphones • Integrated switches for automobile radar systems • Innovative manufacturing concepts and process technologies for semiconductor production Partnerships (selected). Vienna University of Technology, Graz University of Technology, Johannes Kepler University Linz, University of Vienna, Alpen Adria University Klagenfurt, University of Innsbruck, Austrian Institute of Technology, JOANNEUM RESEARCH, Christian Doppler Research Association, Carinthian Tech Research Bundled Research Strength Infineon is working at its own competence center on creating more security for cash cards, tablets etc. → www.infineon.com/austria IT & TELECOM 24
  • 25. “Austria ranks among the most technology-intensive economies. Austria boasts internationally recognized expertise, especially when it comes to ICT. The Austrian mix of basic and application research enables the country to maintain its knowledge edge and contribute to solving global problems.” Sabine Seidler, Rector of the Vienna University of Technology INVEST IN AUSTRIA 25
  • 26. IT & TELECOM 26 ABA – Invest in Austria offers comprehensive services – competent consulting on selecting a business location, support in contacts with public authorities and funding bodies as well as on labor and tax issues and in the search for cooperation partners. And it does so free of charge.
  • 27. INVEST IN AUSTRIA 27 Best Consulting on Business Location Issues ABA – Invest in Austria is the investment promotion consulting company of the Republic of Austria and the top choice of international investors. • Experienced investment consultants personally serve you and provide all the necessary contacts required in Austria. Contact us at the beginning of your expansion project so that you will be given optimal support. • ABA – Invest in Austria offers customized information on Austria as a busi- ness location – sectors, technologies and markets, political and economic conditions. • We are happy to advise you on important issues relating to site selection such as labor and tax regulations, incentives or real estate prices. • Employees of ABA – Invest in Austria assist and support you in handling formalities such as applying for public funding or operating licenses – also in cooperation with the regional investment promotion agencies in the federal provinces. • ABA – Invest in Austria also provides extensive services to support expan- sion investments after project completion. • Investors can also benefit from the cooperation partners within the interna- tional network of ABA – Invest in Austria and the foreign trade centers of the Austrian Federal Economic Chamber. • Award-winning ABA. ABA – Invest in Austria has won several awards for its consulting services: World’s Best Investment Promotion Agency, World Bank Benchmarking (2009); Global Leader in Online Investment Promotion, World Bank Benchmarking (2012); Second-Best Investment Promotion Agency and third-place award for its program to strengthen Austria as a headquarters location, FDI World Forum (2013). • Specialized brochures. More detailed information on different topics and industries can be found in numerous specialized brochures such as: • Business Location Austria • Bridge between East and West • Automotive Industry • Chemistry / Plastics • Environmental Technologies & Renewable Energies • Headquarters Location Austria • ICT / Telecom • Life Sciences • Logistics • Machinery / Electronics / Mechatronics • Research & Development • Tourism • Starting Business in Austria • Tax Aspects of Investments in Austria
  • 28. www.investinaustria.atINVEST IN AUSTRIA Invest in Austria In Austria: ABA – Invest in Austria Opernring 3 A-1010 Vienna Tel.: +43-1-588 58-0 Fax: +43-1-586 86 59 E-Mail: office@aba.gv.at Internet: www.investinaustria.at www.investinaustria.cn www.investinaustria.ru www.investinaustria.jp