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Policy learning, institutional reform and innovation performance in Austria 

Since joining the European Union in 1995, Austria has made major efforts to improve the performance of its national research and innovation system. This led to the introduction of a first generation of well-conceived policy initiatives in the 1990s. These efforts have recently been reinforced with an emphasis on institutional reform and simplification, quality in research and promotion of both public and private R&D expenditures.  

The scattered agencies for applied research funding were brought together under the roof of the Austrian Research Promotion Agency (FFG) in 2004. A tax credit system was introduced in 2002 and the successful competence centres programme was renewed in 2006. In order to exploit emerging opportunities in generic technologies and to deal with societal challenges in areas like mobility, sustainable development and energy supply, several targeted thematic funding programmes were established. The initiatives at Federal level have been complemented by measures by regional governments.  

Evaluations of these measures point to a positive influence on research and innovation behaviour of firms and research institutions. The establishment of an evaluation culture has contributed to improved second generation of policy measures. The direct financial contribution of the State to private R&D has been limited.

However, the importance assigned by the government to positioning Austria among the leading knowledge-based economies in Europe has become a strong signal to other actors. Both domestic and foreign firms have expanded their investments in R&D in Austria. Research and innovation have become more prominent in public debates, recognised as important for maintaining wealth creation and a sustainable lifestyle.  

This is a success story. But the reasons for this apparent success need to be assessed with caution. There are several challenges on future policy agendas: the availability of qualified S&T human resources; research and innovation that does help solving some of the most pressing societal challenges; and improving the effectiveness and efficiency of the research and innovation system, through eg better use of public procurement, a better balanced portfolio of policy instruments, and re-orienting the mission and strategy of the public research organisations.

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