MIPIM 2019 (24.1 MB)

VIENNA AT NIGHT
Fotos: A. Karnholz, hurca
burg ranked second and third, respectively. As
in 2017, the information and communication
technology (ICT) sector led the way accounting
for 56 of the newly-established companies, and
the business-related services sector, which attracted
55 companies, also stood out in 2018.
Location loyalty
Domestic companies as well are also constantly
confirming their commitment to Austria
as a business location: Voest, for example,
is investing around 350 million Euros in a new
stainless steel plant in Kapfenberg, the first
one in Europe in 40 years incidentally. Beginning
in 2021, the fully-digitized plant will produce
around 205,000 tonnes of the most demanding
high-performance steel annually. In
the long term the investment will secure more
than 3000 highly-qualified jobs in the region.
In the nearby Leoben, the logistics company
Knapp is also taking a further investment step:
around 3.9 million Euros will be supplied for
the expansion of the company building. The
current workforce of 580 employees is to be
increased to 1000 by 2025. Like these two
examples, numerous other companies, including
many world market leaders and hidden
champions, are remaining loyal to their homeland.
There are various reasons for believing
in Austria as a business location: One of the
most important characteristics is that it is a
quality location. Because the performance
matches the requirements, the companies are
also willing to accept the high labour costs. In
addition, the Alpine republic still scores with
its proximity to Central and Eastern Europe,
as more than 360 Eastern European headquarters
indicate. Other strengths include labour
productivity well above the Eurozone average,
low strike rates, political and legal stability
and high living, social and environmental
standards. The practice-oriented dual education
system and a large number of universities
and advanced technical colleges provide the
highly sought-after, well-trained skilled workers.
Stable energy supplies - also in the form
of ecologically-sustainable energy - are also
becoming increasingly significant. The rising
consumer demand of private households,
based on strong employment growth and
income tax relief, as well as increasing investments
in equipment also confirm the strength
of Austria as a business location.
Innovative Austria
The same applies to the innovative strength
of domestic companies, which is reflected in
rising innovation expenditure and a correspondingly
steady increase in the research quota.
The share of research expenditure in the gross
domestic product is estimated to have risen
from 3.16 to 3.19 per cent in the previous year.
This means that since 2014 the research ratio
has already exceeded the EU target of three
percent by 2020. A total of 12.3 billion Euros
has been invested in research and development
in 2018 - an increase of 5.6 percent compared
to 2017. All this is also reflected in various
location rankings: Austria, for example, ranks
22nd among 140 nations in the current World
Economic Forum (WEF) ranking.
Still some catching up to do
However, it’s not time to rest on one's laurels
just yet, as there are some points in which
MIPIM 2019
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