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

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

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

3 20% New Austrians Germany Serb, Mont, Kos Turkey Bosnia Herz. Romania Croatia Poland Hungary Czech Rep. Slovakia Russia Italy Foreign citizens Already naturalized 226, , , ,661 74,639 69,859 63,197 45,589 44,209 30,017 28,510 27,916 Source: Statistik Austria 2015

4 Top Investor: Austrian FDI in CEE Percentage of total investment in respective country and Austria s rank as investor, 2013 Croatia 1 Slovenia 1 Bosnia-Herz. 1 Romania 2 Serbia 1 Slovakia 2 Bulgaria 2 Czech Rep. 3 Macedonia 2 Albania 3 Hungary 4 Ukraine Source: WIIW (Vienna Institute for International Economic Studies)

5 You Know Austria Like This

6 or Like That

7 or Like That

8 but Best Like That

9 You Are Investing in an Industrial Country Production sector as percentage of GDP, 2014 Germany 30.7 Austria 28.4 Switzerland Japan EU Netherlands USA UK France Source: OECD, Eurostat 2015

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

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

12 Austria s R&D Expenditures Grow Above Average As percentage of GDP * Forecast ,9 2,7 2,5 2,3 2,1 1,9 1,7 Gemany Austria EU-27/ * 1, Source: Eurostat

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

14 COMET All Centers in Austria

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

16 Austrian Expenditures in R&D Total 2015: 10, m. Foreign Others 153 Federal 3114 Companies Regions Source: Statistik Austria 2015

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

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

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

20 Highly Productive Employees Labor Productivity, GDP per person employed in PPS, EU-28=100 Luxembourg Ireland Belgium France Austria Netherlands Denmark Euro area Italy Germany United Kingdom EU-28 Czech Republic Poland Hungary Bulgaria Source: European Commission, 11/2015

21 No Strikes Working days lost to strikes per 1,000 employees annual average Switzerland Austria Poland Sweden Netherlands USA Germany United Kingdom Norway Spain Finland Belgium Canada Denmark France Source: WSI - Hans Böckler Foundation 2015

22 Unmatched Quality of LIfe Maximum = 10 Switzerland 1 Norway 2 Austria 3 Germany 6 Netherlands 7 Belgium 15 USA 18 Japan 19 France 20 Czech Republic 22 United Kingdom 23 Italy 29 Poland 49 Hungary Source: World Competitiveness Yearbook 2015

23 Attraktive for More than 300 Regional Headquarters

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

25 Globalized Economy Maximum = 100 Netherlands 1 Ireland 2 Belgium 3 Austria 4 Switzerland 5 Hungary 9 Czech Republic 17 France 19 UK 20 Poland 23 Italy 24 Germany 27 USA 34 Japan Source: 2016 KOF Index of Globalization

26 Peaceful Country 1 = state of peace is high Iceland 1 Denmark 2 Austria 3 Czech Rep. 6 Switzerland 7 Germany 16 Hungary 19 Netherlands 21 Poland 22 Italy 39 France 46 UK Source: 2016 Global Peace Index

27 Newly Established Companies 154 per Working day Source: Austrian Economic Chamber

28 Startup Ecosystem Model Savannah s Startup Ecosystem

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

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

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

32 ABA Invest in Austria Your Contact in Vienna Peter Ch. Löschl Tel: office-cee@aba.gv.at

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