Austria

IT Geographics

Executive Summary

Austria launched its first business incubators in 1986. It is now the site of at least two major technology clusters. Overall, Austria has been slow to develop parks and clusters due to its lack of intense IT activity and the fact that the activity has been localized in only 2-3 regions. This section will describe the concentrations of IT activity in Austria and its incubators, technology parks, and finally the clusters.

From Incubators…

Business incubators provide new companies with space and services to support their growth and success. Most are located near and/or affiliated with universities and institutions of higher learning.

In 1986, Austria launched its first incubators in Linz (Upper region) and Graz (Lower region); by 2002, the Austrian association (VTÖ) identified 75 business incubators, 15 of which were technology centers. Business incubators, parks and clusters are governed by the initiatives and regulations of the regional government. Styria, Lower and Upper Austria (denoted by * on map) have been the regions most populated by incubators, parks and clusters.

…to Technology Parks…

Technology parks are a set of buildings comprised of mature firms, research facilities, and/or laboratories. Again, these are located near universities or research centers and aim to foster innovation and application of new technology to a particular industry.

One of the most successful parks, Techno-Z Salzburg, was established in 1987 for new technology-focused firms. Since its establishment, it has branched into a system of parks, four in Salzburg, one in Upper Austria, and a cross-border venture in Bavaria (Germany). In June 2004, Austria entered into another joint venture with China to establish a technology park in Austria (location undisclosed at this point). This agreement will allow Chinese technology firms to enter the European and international markets.

…and finally clusters.

Clusters are networks of mature firms, within the same industry or industries that are very closely related. These are also located near universities or research centers and generally customers and suppliers of the firms are as well. Cooperation within the cluster produces intense competition and extreme innovation.

The most prominent cluster is in the region of Styria (Technology and Innovation Center Graz), which has been ambitious in its efforts to establish itself as a high-tech area. Its automotive cluster is world-renown, but it is also one of Europe’s leaders in the fields of medical and human technology (17). The capital, Graz, is home to Roche Diagnostics’ center for medical-analysis devices and also was the location of one of the country’s first business incubators. The following are additional clusters located in the region and their focus.

Location	Industry
Niklasdorf	laser technology
Kapfenberg	materials technology, laser technology, and industrial equipment engineering
Grambach	marketing, design, product development, automation technology and logistics
Source: United Nations Industrial Development Organization (2002)

Upper Austria has focused on increasing its technology cluster network and also has an ambitious marketing program (recognized as the most ambitious in Europe) led by the Technology Marketing Group. One of its most notable business clusters is Fazat's Research and Training Centre for Labour and Technology (see footnote), which was established in 1992 near the city of Steyr (close to Linz). The regional government of Upper Austria, and the Ministries for Transport, Innovation and Technology and Economic Affairs and Labour spent approximately ATS 150 million to establish. Funds were also secured through European Regional Development Fund. By 2002, ten companies were located in Fazat. It focuses on e-business, international logistics management, production and management, process management health, and international sales engineering.

Fazat expanded its operations with the development of the Technology & Innovation Center outside of Steyr, which opened in 2001. Its focus is on technology within the automotive, health, and environment industries.

The Global Information Technology Report 2003-2004

Rankings on various variables can help to put an issue into perspective. The Global Information Technology Report 2003-2004 (1) uses the Networked Readiness Index as a basis of comparison, scoring countries on a scale of one to seven. This is “a nation’s or community’s degree of preparation to participate in and benefit from information and communication technology (ICT) developments.” It is a comparison of 102 countries in three component areas: Environment, Readiness, and Usage. The Index identifies three stakeholders in ICT: individuals, businesses, and governments. The Environment Component evaluates the country’s environment in facilitating the development and use of ICT. Overall, Austria was 21^st out of the 121 countries surveyed. Germany ranked 17^th; Switzerland, fourth.

One of the Environment Component’s sub-indexes is the Market Environment, which evaluates the presence of the appropriate human resources and ancillary businesses to support a knowledge-based society. An aspect of the Market Environment is the “state of IT cluster development” for which it received a score of 4 (score 1-7). This seems low after the previous discussion. To understand the scoring, it is imperative to remember that Austria’s cluster activity is localized to only 2-3 of its regions. Overall ICT has also lacked the intensity found in many IT-centered countries (i.e. United States), which drives the formation of clusters and parks.

	Austria	Switzerland	Germany
State of IT Cluster Development, 2003	4.00	4.03	4.11
How common are clusters in the country? (1=limited and shallow, 7=common and deep)
Source: The Global Information Technology Report 2003-2004

Note: In my research, Fazat has been identified as a cluster, not a technology park. A lack of information has made it difficult to clearly categorize so I will use the category provided in my research.