Tech_Policies

Austria

National ICT Policies

Executive Summary

Though Austria is one of the wealthiest countries in the world, it has lagged behind in technology. It recognizes the power of technology in achieving a competitive edge though and, in September of 2000, the Austrian government instituted Vision 2005: To be the Best Through Innovation (5). The document outlines Austria’s long-term strategy to develop its research and technology sectors.

Vision 2005: To be the Best Through Innovation

Austria’s Vision 2005: To be the Best Through Innovation outlines its long-term strategy to improve its competitive position. Austria recognizes that in order to compete in a global economy, it must strengthen its research and technology sectors. The Vision will be implemented and monitored by the Council for Research and Technology Development (the Council). In 2000, Austria ranked 9th in Europe for its information and communication technology sector (ICT). The Council aims to improve that ranking to 5th place by 2005 and to rank among the top third states of the Organization for Economic Co-operation and Development in all significant areas (i.e. research output, innovation performance, education and use of telecommunications).

The success of the Vision requires continuous assessment of the country’s weaknesses to ensure proper improvements are implemented. For example, while Austria’s education system is generally satisfactory, the Council has identified that it is inefficient in terms of research and technology. Subject areas that will be revamped and/or promoted further are:

Life sciences (biotech, genetic engineering, medical technology)
Information and communication technologies (multimedia technologies, e-business, digital content, micro-electronics, telecomm)
Nano- and micro-technologies
Mobility and transport (intermodiality, transport logistics, vehicle and tunnel technologies)
Environment and energy (sustainable energy technologies, environmentally compatible construction and housing)

These areas will develop the scientific and technical knowledge base for the country. With the goal of doubling the number of graduates in the innovative disciplines, the Council is planning other changes to the Education system, including:

Increased flexibility and diversification of the tertiary education system
Differentiation and vocational streamlining of university structures
Establishment of more Centers of Excellence
Expansion of opportunities for further education and greater permeability of the education system
Introduction of an international performance evaluation for universities
Improved technical infrastructure in the educational sector
Shorter university study duration (average study duration = regular duration + 2 semesters)

The tuition system will also be modified to make a university education more accessible, especially at universities and colleges specializing in areas of research and technology.

Improving the quality of its human capital will help Austria to pilot and participate in joint international projects. This will increase the country’s international contacts in the research and technology sectors and facilitate more incorporation of Austrian universities in the European research structure. Universities and non-university research institutes within the country are also encouraged to partner on new projects. The Council has pledged to raise Austria’s R&D quota to at least 2.5 percent (ATS 86 billion) of GDP from its current level of 1.8 percent (ATS 50 billion) by 2005 to fund these initiatives.

By improving its competitive position in research and technology, Austria expects to attract more foreign investments (i.e. multi-national companies). The Council plans to double the number of companies present in the country and to attract more technology-based and globally oriented businesses. The area of financing will be remodeled in the following ways:

Optimizing of co-financing (matching funds) with federal states, international institutions and through public-private partnerships
Establishing and expanding funding for a non-budget financed institution (National Fund, Research Foundation, etc.)
Earmarking state revenue for research and development
Tailoring budget financed university research according to economic, social and societal usability
Significantly increasing the share of money to be obtained through competitive procedures, particularly in the university sector

It has also increased incentives and support programs for setting up new businesses, such as tax concessions and authority involvement.

In order to implement all of these initiatives, the Council will need to alter the perception of Austrian citizens. The Council has planned a campaign to promote the benefits of highly competitive research and technology sectors. Full implementation of the Vision is expected to improve Austria’s economy, creating more and higher quality employment opportunities. Opening the country to more investors and partnerships will also benefit the social and cultural development of the society.

IT Outlook 2002: Recent Developments in Austrian IT Policies

According to the Organization for Economic Co-operation and Development’s IT Outlook, funding for research and technology has increased in Austria. For instance, the country’s largest source of public funding, the Austrian Industrial Research Promotion Fund (FFF), has increased its funding by 37 percent since 1999 (16).

The Federal Ministry of Transport, Innovation, and Technology launched Competence Centre Programmes (K_plus). The goal is to encourage long-term collaboration in research and development between innovative enterprises and research organizations. Each of the K_plusCenters (five Centers in 2002) has a life-span of seven years and acts as a joint research institution. After four years of federal and provincial financing, the research projects are forced to seek private funding for the remaining three years. Approximately € 60 million has been allocated for these Centers.

The Federal Ministry of Economic and Labour launched Industrial Competence Centres (K_ind). There are currently 3 Centers, which function as cooperative science-research institutions. Sixty percent of funding for the programs is provided by the Ministry through 4-year non-repayable grants. The K_ind Centers must receive the remaining forty percent through private sources.

By 2006, approximately € 72.7 million will be spent on IT programs that teach basic IT skills up to expert proficiency (16). The programs, which were launched by the Federal Ministry of Education, Science, and Culture, are part of a larger program called e-FIT. There are eight “fields of activity” with programs and goals, as follows:

Program	Goal	Cost
Teaching with New Media	To train 120,000 teachers on Internet skills	EUR 1.2 million
IT Education Offensive	To better prepare students for IT-related jobs	EUR 7,267
IT Education Offensive	To equip all public Austrian schools with Internet access	EUR 363 million (since 1996)
Education Gateway	Internet portal to serve as a central access point to all relevant information for all levels of education and training in Austria
Science and Research	To position Austria as a leader in some areas of e-basic research as well as applied e-research in pre-competitive and competitive product development by fostering co-operative programs among universities
Continuing Education in IT (Circus Internet)	To encourage lifelong learning for adults by establishing adult education competence centers
Culture in Cyberspace	To preserve and provide access to Austria's cultural heritage
E-government in Education	To introduce public management into the Austrian educational system in order to make administrative procedures easier with new technologies
Infrastructure	To provide the technological base for all other fields of activity, mainly to gain high-speed access to international networks for ACONet and the Austrian School Network (ASN)
Source: Organization for Economic Co-operation and Development

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 Usage Index measures the ICT usage rate of the primary stakeholders. Overall Austria was slightly lower than Germany, and Switzerland, ranking 19th. Germany ranked tenth; Switzerland, seventh.

The Government Usage Sub-index refers to the rate of ICT technology use by the government. Government involvement and leadership are important factors in the success of the Vision. With regard to “government success in ICT promotion,” the countries scored very similarly with Austria receiving 3.9 (score 1-7). This score reflects the relative infancy of the country’s Vision and its unrealistic timeline. Although the policies are appropriate, five years is not a reasonable period of time for implementation.

	Austria	Switzerland	Germany
Government Success in ICT Promotion, 2003	3.9	4.15	3.99
Government programs promoting the use of information and communication technologies (ICT) are (1=not very successful, 7=highly successful)
Source: The Global Information Technology Report 2003-2004