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Austrian research intensity expected to be 2.76 per cent of GDP in 2010

According to the latest forecasts of Statistics Austria, EUR 7.805 bn will be spent on research and development (R&D) in 2010 in Austria. Compared with 2009, the total amount of the Austrian Gross Expenditure on R&D (GERD) will rise by 3.4 per cent and reach 2.76 per cent of the Gross Domestic Product (GDP).

43.3 per cent (approximately EUR 3.38 bn) of total R&D expenditure will be financed by businesses, which contribute the largest part of all sources of funds. 41.2 per cent (around EUR 3.22 bn) will be contributed by the public sector (federal government approximately EUR 2.74 bn, “Länder” (regional governments) approximately EUR 389 mn, other public institutions such as local governments, chambers, social insurance institutions approximately EUR 85 mn). 15.0 per cent will be financed from abroad and 0.4 per cent from the private non-profit sector (around EUR 34 mn). The funds from abroad (circa EUR 1.17 bn) come mainly from European enterprises belonging to the same enterprise group as the domestic enterprise that performs R&D and which have chosen Austria as an R&D location. Funding from abroad also includes payments from the European framework programmes for research, technological development and demonstration.

For comparative purposes the Gross Expenditures on R&D are expressed as a percentage of the GDP (“research intensity”). Since 1981 this indicator rose from 1.10 per cent to 2.76 per cent in 2010 for Austria. It has exceeded the EU average considerably in the last years. The most recent comparable European data are available for 2008. Thus this indicator is 1.90 per cent for the European Union (EU-27) and 2.68 per cent for Austria.

For this estimate of the Austrian Gross Domestic Expenditures on R&D the final results of the R&D survey 2007 as well as current information on business trends were used. In 2010 R&D financing of the business enterprise sector will – after a decline in 2009 – remain on the same level and outperform the survey results of 2007 (EUR 3.34 bn) only slightly.

As R&D funding from abroad mainly comes from European multi-national enterprises that belong to the same enterprise group as the R&D performing firm in Austria, Statistics Austria expects – according to latest economic forecasts – a bigger decline for this indicator. After a larger slump of 5.4 per cent from 2008 to 2009 a small decline is forecasted for 2010. R&D funds from abroad will sum up to EUR 1.17 bn and therefore be 0.6 per cent less than 2009 and 4.5 per cent less than the survey result 2007.

According to the information available to Statistics Austria about the development of the R&D-relevant budget parts and further R&D promotion measures – especially the refunds of the federal government via the research premium – the financing by the federal government will continue to rise and amount to EUR 2.74 bn in 2010. Public funding by the federal state between 2007 and 2010 shows an average annual growth rate of 12.7 per cent; the growth rate from 2009 to 2010 was 10.9 per cent.

Based on the results of the R&D census surveys and other currently available documents and information, in particular the federal and regional budget appropriations and outlays for R&D as well as most recent macro-economic data, Statistics Austria annually conducts the global estimate of the Austrian Gross Domestic Expenditure on R&D (GERD). In the framework of the compilation of the global estimate retrospective revisions and updates are carried out, based on most recent data available. Financing of R&D expenditures is presented in full accordance with the definitions of the Frascati Manual which are in worldwide use (OECD, EU). In line with these definitions and guidelines foreign funding from R&D performed in Austria is included, on the contrary Austrian payments for R&D performed abroad is excluded.

Please consult our German website for tables and charts containing further information.