Peter Ch. Löschl, ABA – Invest in Austria 2017 Austria – Investment Climate Reasons to Invest in Austria - Perspectives

Strong Economy in the Heart of Europe Area: 83,872 km² People: 8.77 m. GDP growth: 1.5% (2016) GDP / capita: € 36,405 R&D quota: 3.07%

„New“ Austrians Largest foreign population groups Source: Statistik Austria 2016

Top Investor: Austrian FDI in CEE Percentage of total investment in respective country and Austria‘s rank as investor, 2014 Source: WIIW (Vienna Institute for International Economic Studies)

You Know Austria Like This…

… or Like That…

… or Like That…

… but Best Like That

You Are Investing in an Industrial Country Production sector as percentage of GDP, 2015 Source: OECD, Eurostat 2016

You Are investing in an Industrial Country Production sector as percentage of GDP Source: Statistik Austria 2016

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

Austria‘s R&D Expenditures Grow Above Average As percentage of GDP * Forecast 2016 Germany Austria 3.07 * EU-28 Source: Eurostat

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

COMET – All Centers in Austria

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

Austrian Expenditures in R&D Total 2016: 10,744.16 m. € Source: Statistik Austria 2016

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

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

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 Investor friendly tax system simple and investor friendly tax system 25 % flat rate group taxation (allows losses incurred in foreign subsidiaries to be offset with Austrian mother company / favourable holding company regulations no trade tax no net wealth tax, no inheritance & gift tax from August 2008 Attractive tax breaks for R&D double tax treaties

Profit from Highly Productive Employees Labor productivity GDP per person employed in PPS, EU-28 = 100 Excellent education system – cradle for start-ups Great talentpool – young entrepreneurs – start-ups Entrpereneurial spirit / flexibility Source: European Commission, Eurostat (11/2016)

No Strikes Working days lost to strikes per 1,000 employees – annual average 2005-2014 Source: WSI - Hans Böckler Foundation 2016

Unmatched Quality of LIfe Maximum = 10 Source: World Competitiveness Yearbook 2016

Attraktive for More than 300 Regional Headquarters

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

Globalized Economy Maximum = 100 Source: 2016 KOF Index of Globalization

Peaceful Country 1 = state of peace is high Source: 2016 Global Peace Index

Newly Established Companies 162 per working day 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Austrian Economic Chamber

Startup Ecosystem Model © Savannah‘s Startup Ecosystem

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

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

New Impetus for the „Land of Founders“ Founding years facilitated: no non wage labor costs for the first three employees during a period of three years Seed financing of Austria Wirtschaftsservice (aws) increased by EUR 20 m. aws Business Angel Fund: additional EUR 20 million for startups New risk capital premium for investors: investments of up to EUR 250,000 per year are supported, 20% of the investment amount is reimbursed

New Impetus for the „Land of Founders“ Digital one-stop-shop: founding process is quicker, less expensive, online Founding fellowships for academic spin- offs: financing of salary costs, access to the academic infrastructure New startup visa: existing rules for self- employed key workers will be extended to startups Secure specialized staff: programmers and other IT specialists gets work permits 24 hour quick check for funding applications requests of the Austrian Research Promotion Agency (FFG) and aws

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 Austrian Business Agency Federal inward investment agency (MOEA) 2 overseas offices (Tokyo and New York) Information on: Austrian business climate Tax and labor regulations Potential suppliers Identify suitable office space and site locations Assistance with government authorities ► make it easy for investors in Austria

ABA – Invest in Austria Your Contact in Vienna Peter Ch. Löschl Tel: +43 1 588 58 52 office-cee@aba.gv.at www.investinaustria.at