Economy

Using synergy effects between universities, polytechnics and innovative enterprises and a strong network in different clusters offer small and medium-sized enterprises new opportunities in the future.
 

The basic structure of the Upper Austrian economy is based on a synergy between several large companies and numerous small and medium-sized enterprises (SME´s). During the economical changes of the past decades, this structure has shown itself to be highly effective both in an economic and a social sense. The EU-Membership enforced competition and innovation in Upper Austria. This can also be proved by economic dynamics: In 2005, a total of about 65,000 companies were active in Upper Austria, an increase of 40 per cent compared to 1995.
 

The economy is based on industry and the processing sector as well as trade and services. Tourism represents an additional source for employment and earner of foreign exchange. 85 per cent of tourist bookings in Upper Austria are in municipalities in rural areas.
 

With almost a third of the work force, manufacturing (steelmaking, chemicals, mechanical engineering, automotive products, general metalworking, pulp and paper industry, processing of agricultural products) is the dominating factor in the Upper Austrian economy. Thus Upper Austria is the number One industrial region of Austria: over 60 per cent of the regional gross domestic product is gained by the Upper Austrian industry. The entire Upper Austrian industry provides prosperity for approximately 400,000 people.
 

SECURE THE LEAD THROUGH INNOVATION
It is a result of many good ideas and even more work, that Upper Austria - the strongest region in Austria - is cutting such a good figure in the international  competition of locations. The key words are cross-linking and networking, e.g. the use of synergies between universities, polytechnics and the innovative enterprises. An important momentum in this mechanism is a blanket coverage by the technology network: In the last few years investments were made to build up technology and competence-centers as well as particularly strong networks of enterprises in several clusters - automotive sector, plastics, furniture and timber construction, mechatronic, health, food and ecoenergy - which create better basic conditions especially for small and medium-sized enterprises and thus open new future chances.
 

STRATEGIC PROGRAMME FOR AN INNOVATIVE LOCATION UPPER AUSTRIA
The future of the business location will go along with the development of new high-quality products and services. The new strategic programme "Innovative Upper Austria 2010" will enforce innovation and qualification: by strengthening research and development as well as cooperation in networks.
 

This package covers 600 million Euros, half of it is foreseen for research and development, and boosts the economic performance for 10,000 new enterprises and 20,000 modern working places.
 

BENEFITS OF ENLARGEMENT
With the enlargement of the European Union up to 25 Member States, the leading region of Austria in the areas of industry, exports and technology moved from a peripheral location into the heart of Europe. Particularly Upper Austria used the possibilities arising, because over a quarter of the Austrian exports are gained in enlargement countries - especially in the sector of eco-technologies new perspectives are opened because of the enormous catch-up demand in the new Member States.
 

INVESTMENTS IN HUMAN RESOURCES, RESEARCH AND INFRASTRUCTURE
Nowadays, arranged finances are location advantages. For a long time they were considered as a negligible location factor. In the 1990´s the consciousness continued to increase, that debts impair the quality of business locations. Upper Austria never was higly indebted and oriented itself earlier than others towards a zero-deficit and being free of debts since 2002. Thus the region can invest into the future: into research and development, education, technology and active labour market policy.