Federal Ministry Republic of Austria Ed ucation, Science and Research Austrian Research and Technology Report 2019 This report was commissioned by the Federal Ministry of Education, Science and Research (BMBWF), the Federal Ministry for Transport, Innovation, and Technology (BMVIT), and the Federal Ministry for Digital and Economic Affairs (BMDW). It was written by a working group consisting of WPZ Research, the Centre for Social Innovation (ZSI) and the Austrian Institute for SME Research (KMU Forschung Austria) with the support of VDI/VDE Institute for Innovation and Technology (iit), Technopolis and the Industry Science Institute (IWI). Team of authors: Brigitte Ecker (Coordination, WPZ Research), Philipp Brunner (IWI), Stephanie Christmann- Budian (iit), Iris Fischl (Austrian Institute for SME Research), Helmut Gassler (ZSI), Gerald Gogola (WPZ Research), Ernst Hartmann (iit), Eva Heckl (Austrian Institute for SME Research), Peter Kaufmann (Austrian Institute for SME Research), Stefan Krabel (iit), Katja Mayer (ZSI), Anastasia Mozhova (iit), Hans Pechar (WPZ Research), Alfred Radauer (Technopolis), Christian Reiner (WPZ Research), Sascha Ruhland (Austrian Institute for SME Research), Sascha Sardadvar (WPZ Research), Herwig W. Schneider (IWI), Klaus Schuch (ZSI), Dorothea Sturn (ZSI), Brigitte Tiefenthaler (Technopolis), Katharina Warta (Technopolis) und Elke Welp-Park (WPZ Research). Imprint Media owners: Federal Ministry of Education, Science and Research, 1010 Vienna Federal Ministry for Transport, Innovation and Technology, 1030 Vienna Federal Ministry for Digital and Economic Affairs, 1010 Vienna All rights reserved No parts of this publication may be reproduced except when the source is referenced. Designed and produced by: barrierefrei PDF OG, Vienna, Translated by: Young Translations LLC, Vienna Cover: © stock.adobe.com Printed by: Druckerei Print Alliance HAV Produktions GmbH, 2540 Bad Vöslau, Druckhausstraße 1 Vienna, 2019 Austrian Research and Technology Report 2019 Preface A look back at the FTI Strategy 2020, which was ad- Technology (iit) also show an above-average (com- opted by the federal government in 2011, shows an pared to the EU-28) positioning of Austria with re- impressive catching-up process in the areas of re- gard to technological maturity, political and econom- search, technology and innovation. The outstanding ic framework conditions and the qualification of indi- result of the review, which was prepared as part of viduals. this year's Austrian Research and Technology Report with the involvement of relevant experts, is the high In addition to the well-known weaknesses in venture number of successfully implemented measures, even capital, there is a need to catch up in knowledge-in- though an overriding objective, namely to advance tensive service exports, employment in fast-growing into the group of ‘Innovation Leader’ countries, has companies and tertiary education in the field of digi- not yet been achieved. The individual sub-strategies, tisation. In addition to the review of the RTI Strategy which have been adopted since 2011 on new, current 2020, another focus chapter is therefore devoted to topics such as open innovation, life sciences, creative the state of digital change in Austria in all RTI, social, industries, digitisation and many others, supple- educational and administrative policy areas and pro- mented the RTI Strategy 2020 from an overall sys- vides a comprehensive overview of the numerous ini- temic perspective. Overall, the coordinated approach tiatives and measures. With the creation of a lead of policymakers, research-relevant ministries and ac- ministry, a task force and the establishment of the tors in the RTI system can be regarded as a success Digitalisation Agency, efforts to improve the frame- within the framework of the RTI Strategy. work conditions for the development of digital tech- nologies have been considerably expanded. Progress has been made in all RTI-relevant areas of science, industry and the public sector. Austria’s po- In August 2018 the federal government agreed on an sition in international rankings has largely improved “Action plan for the future of research, technology or stabilised since 2011. Austria is one of the leading and innovation”, and the preparations for its imple- nations with regard to its research and development mentation show how we will progress towards be- expenditures and ranks second in Europe behind coming an “Innovation Leader”. A new RTI strategy, Sweden and ahead of such innovative countries as and the interlinking of all elements of the innovation the USA and China worldwide; Austria ranks second system – from the education system and academic in Europe behind Finland when it comes to coopera- research institutes to SMEs and large enterprises – tion between universities and industry. Austria is will ensure the maximum possible output, and social leading in Europe when it comes to science – indus- and economic impact for the long term. try cooperation as a whole, as well as in measurable achievements of its science system such as pub- With an estimated €12.8 billion and a nominal in- lic-private co-publications, citations or in the devel- crease of €554 million compared to 2018, Austria will opment of international patent applications. Austria reach a new record level of R&D expenditure in 2019. is thus well equipped to meet the increasing techni- At 4.5%, the increase in R&D expenditure was thus cal challenges in a globally networked science and higher than the 3.8% increase in gross domestic economy. The analyses of Austria's competitiveness product. Austria’s R&D intensity of 3.19% will be and innovative capacity based on the Global Com- slightly above that of the previous year, which was petitiveness Report and the Innovation Capability revised to 3.17%. The financing share of companies is Indicator of the German Institute for Innovation and expected to be 49% at €6.3 billion, followed by the 3 public sector at €4.5 billion and a share of around vice (aws) is a fixed component of the Research and 35%, the foreign sector at €2 billion and a share of Technology Report and is presented annually. around 16% and the private, non-profit sector at €0.08 billion and a share of around 0.6%. Additional sections address European RTI policy, in- cluding the activities conducted in the context of Overall the Austrian funding system is well devel- Austria’s Presidency of the Council of the European oped and has a variety of instruments and priorities Union in the second half of 2018, selected evalua- to cover the broad range of funded researchers. The tions and an analysis of federal research funding and latest analysis of the strategic funding trends of the contracts in 2018, as recorded in the federal govern- three major research funding agencies, the Austrian ment’s research database. As usual, a comprehensive Science Fund (FWF), the Austrian Research Promo- annex with tables completes the picture of Austria’s tion Agency (FFG), and the Austria Wirtschaftsser- RTI activities. Univ.Prof. Dr. Heinz Faßmann Dr. Valerie Hackl Dr. Margarete Schramböck Federal Minister of Education, Federal Minister for Transport, Federal Minister for Digital Science and Research Innovation and Technology and Economic Affairs 4 Austrian Research and Technology Report 2019 Table of Contents Executive Summary 8 1. Current Trends 17 1.1 Funding and R&D performance in Austria 18 1.2 Austria’s position in international comparisons 23 1.2.1 Development of Austria's position in terms of the key performance RTI indicators 24 1.2.2 Development of Austria's position in terms of digitalisation 32 1.2.3 Austria’s capacity for innovation and competitiveness 36 1.2.4 Summary 43 1.3 Austria and EU research, technology and innovation policy 44 1.3.1 Activities in the context of the Presidency of the Council of the European Union 45 1.3.2 Austria's performance in Horizon 2020 48 1.3.3 The implementation of Horizon 2020 in Austria 51 1.3.4 New Framework Programme as proposed by the European Commission 54 1.3.5 Summary 57 1.4 Strategic measures, initiatives and further developments 58 2. Major Federal Funding Agencies in Austria 70 2.1 Austrian Science Fund (FWF) 71 2.2 Austrian Research Promotion Agency (FFG) 76 2.3 Austria Wirtschaftsservice (aws) 82 3. RTI strategy review 2020 87 3.1 The RTI strategy in the context of national and international developments 89 3.2 Innovations in the education system 91 3.2.1 Structural reforms of the education system and improved educational transitions 91 3.2.2 Improving the quality of university teaching 95 3.2.3 Improved integration offers 99 3.2.4 Increasing mobility 102 3.2.5 Improving conditions for researchers at higher education institutions 105 3.2.6 Promoting gender equality in research 111 3.3 Strengthening the basis of the knowledge society 116 3.3.1 Strengthening basic research 116 3.3.2 Financing universities under the new funding model 120 3.3.3 Expansion of third-party funding 123 3.3.4 Structural reform for non-university research 128 3.3.5 Expansion and further development of research infrastructures 131 5 3.4 Increasing the utilisation of knowledge and added value 135 3.4.1 Enabling and increasing corporate research 136 3.4.2 Demand-side stimulation of innovations by the public sector 142 3.4.3 Reinforcing and expanding science-industry cooperation 145 3.4.4 Strengthening entrepreneurship at universities 149 3.4.5 Supporting enterprise creation and strengthening venture capital financing 151 3.4.6 Improvement of competitive framework conditions 157 3.5 Improvements in governance and strategic measures 160 3.5.1 Improving governance structures 160 3.5.2 Strategic objectives and thematic priorities 164 3.5.3 Optimisations of the funding system 167 3.5.4 Improving Austria’s international positioning 171 3.5.5 Expanding the connection between research and society 175 3.6 Findings of the OECD Review of Austria’s Innovation Policy 184 3.7 Summary and outlook 188 4.