Policy Note 67: Biotechnology in Austria and Europe
Europe has a strong scientific foundation in the life sciences, but is increasingly losing ground in the global competition in biotechnology.
Category: Policy Notes
Policy Note 64: Measures to strengthen European competitiveness with a focus on start-ups and scale-ups
Europe’s competitiveness is under pressure. The productivity gap with the US has steadily widened in recent decades, particularly in the technology sector, where the productivity of US companies has risen massively, while it has largely stagnated in Europe.
Policy Note 63: Export potential in times of geopolitical uncertainty
Austria’s foreign trade is a key driver of economic growth. However, this engine is increasingly stuttering. The reasons for this – in addition to domestic factors – are growing geopolitical uncertainties and crises, the weakening German export economy and China’s technological catch-up process.
Policy Note 62: Austria’s competitiveness and the requirements of an industrial strategy
The current EcoAustria Competitiveness Index (ECI) shows no real trend reversal in the first half of 2025 either: Austria continues to lose competitiveness in a European comparison.
Policy Note 61: Public-private fund of funds model and complementary VC policy in Austria
On behalf of the Federal Ministry for Economic Affairs, Energy and Tourism (BMWET), EcoAustria has investigated how Austria’s underdeveloped venture capital market can be strengthened.
Policy Note 60: Austria with declining competitiveness
The competitiveness of the Austrian economy is becoming increasingly negative. As the current EcoAustria Competitiveness Index (ECI) for the fourth quarter of 2024 shows, the phase of stagnation that could be observed until around 2022 has solidified into a phase with a downward trend in 2023 and 2024.
Policy Note 59: Reconstruction in Ukraine – challenges and potential for Austrian companies
Since the start of the Russian war of aggression in February 2022, Ukraine’s economic output has plummeted. According to international estimates, real GDP had fallen to around 77% of its pre-war level by the end of 2024. In addition, large parts of the infrastructure, industrial facilities and residential buildings were destroyed. The current reconstruction requirement … Continued
Policy Note 58: Effects of possible consolidation measures on the economy and long-term value creation
In a recent study commissioned by the NEOS Lab, EcoAustria examined the expansion of childcare in Styria in terms of costs and benefits for the province and its regional economic performance. Two different scenarios were analyzed in this context.
Policy Note 57: Climate neutrality in 2040 – decarbonization requires a rethink of the tax structure
Due to the dwindling share of fossil fuels in energy consumption, up to 7.7 percent of tax revenue could be lost in future.
Policy Note 56: Meeting the challenges of labor and skills needs
In recent years and decades, the working-age population in Austria and thus the supply of labor has grown continuously and significantly. In recent years, however, it has become clear that the demand for labor and skilled workers is one of the main challenges facing Austria’s companies and the country as a business location.
Policy Note 55: Electricity prices for industrial and commercial customers in a European comparison
Stronger joint action by European member states needed to increase efficiency in the generation and distribution of energy.
Policy Note 54: Childcare and reconciliation in international comparison
The availability of high-quality, locally accessible, flexible childcare is an important framework condition for reconciling work and family life.
EcoAustria Policy Note 53: Thinking industry, technology and climate policy together!
In February 2023, the EU Commission presented the Green Deal Industrial Plan for the Net-Zero Age. This initiative aims to support the transition to a more sustainable and climate-friendly production of industrially manufactured goods in Europe. However, a sustainable economy requires more than just a change in production.
EcoAustria Policy Note 52: Reform options for the Austrian fiscal equalization system
The current period of fiscal equalization expires at the end of this year and its future structure is currently being discussed between the federal government, provinces and municipalities. In this context, EcoAustria has dealt with fundamental considerations for strengthening fiscal decentralization in Austria and submitted proposals for a more efficient and resilient design of the fiscal equalization system.
Policy Note 51: Challenges in financing the energy transition and the role of venture capital
In order to counteract the effects of climate change and global warming, a wide variety of measures are being taken to reduce CO2 emissions worldwide. However, stricter climate measures are increasing the risk of carbon leakage…
Policy Note 50: Efficiency potential in childcare in Austria
In a recent policy note, we looked at efficiency potential in the Austrian childcare system. In particular, we examined the potential for increasing and improving services within the existing funding framework, such as the number of children cared for or extending opening hours.
Policy Note 49: Analysis of the EU Commission’s proposal to introduce a carbon border adjustment mechanism “CBAM”
In order to counteract the effects of climate change and global warming, a wide variety of measures are being taken to reduce CO2 emissions worldwide. However, stricter climate measures are increasing the risk of carbon leakage…
Policy Note 48: Analysis of CO2 taxes in an international comparison
Two days ago, the Austrian federal government announced the implementation of an eco-social tax reform with a concrete mix of measures. The aim is to tax CO2 emissions more heavily in order to meet international obligations to reduce greenhouse gas emissions.
Policy Note 47: The new location competition is coming to a head: workers are becoming more mobile
By Philipp
In a recent study, the economic research institute EcoAustria looked at the effects of growing labor mobility on tax revenues …
Policy Note 46: The impact of digitalization onCO2 emissions
By Philipp
Climate protection and measures to curb climate change are key topics of public debate both nationally and internationally. The digitalization megatrend offers potential for efficiency improvements …
Policy Note 45: Recruitment incentives – What the state can now do for the labor market
By Philipp
This policy note describes the diverse international experiences with targeted hiring subsidies by the public sector and discusses and provides information on how subsidies for new hires can be derived in Austria …
Policy Note 44: The economic and personal value of childcare
By Philipp
The corona crisis has taught us impressively that institutional childcare and the school system play an important role in our society. In this policy note, we show how important it is from an educational policy perspective that kindergartens are financially affordable and available with longer opening hours …
Policy Note 43: Free trade and prosperity go hand in hand
By Philipp
During the COVID-19 pandemic, there were increased calls to re-regionalize production in the future. Although this is understandable given the sometimes difficult supply situation for medical equipment during a global pandemic, it is not economically expedient …
Policy Note 42: Digital infrastructure and resilience in times of crisis
By Philipp
The lockdown in many countries in spring 2020 put modern digital infrastructure to the test. An EcoAustria Policy Note published today examines the central role of broadband infrastructure in normal times and in the current crisis …
Policy Note 41: Teleworking can increase productivity
By Philipp
The restrictive measures taken by many governments to combat the COVID-19 pandemic have led to an increase in teleworking. In a policy note published today, EcoAustria compares the benefits of teleworking with the costs …
Policy Note 40: Upper Austria with top marks for compulsory school efficiency, Tyrol at the top for childcare
By Philipp
The results of the EcoAustria federal state benchmarking in the areas of compulsory general education schools and childcare published at the start of the school year show that Upper Austria has the best ratio of use of resources to impact in the compulsory education system …
Policy Note 39: Climate Task Force faces a tricky task
By Philipp
Climate change cannot be denied. Austria has therefore rightly committed itself to reducing CO2 emissions at international level. The task now is to find suitable climate policy instruments for pricing CO2 emissions in areas that are not included in European emissions certificate trading…
Policy Note 38: Considering the negative consequences of net neutrality
By Philipp
The term “net neutrality” has an extremely positive connotation in the public debate. Despite the extremely positive image in the public debate, the negative consequences of regulation have so far been insufficiently taken into account…
Policy Note 37: No time for a lack of budget discipline
By Philipp
Numerous resolutions are currently being passed in the National Council, many of which have an impact on the budget. Partly due to the positive economic development…
Policy Note 36: Strengthening the business location for greater prosperity
By Philipp
Following the economic crisis, Austria has developed rather weakly in an international comparison and has built up a growth gap to comparable economies in the eurozone…
Policy Note 35: EcoAustria Europe Benchmarking: Achieving better performance with less expenditure
By Philipp
The EcoAustria Europe Benchmarking compares the expenditure as input with corresponding performance indicators as output variables in the areas of administration, education and health.
Policy Note 34: Regulating digital platforms in the interests of consumers
By Philipp
More and more products and services are being offered on digital platforms such as Airbnb, Booking.com, Ebay or Uber. “Digital business models often bring new providers onto the market and competition …
Policy Note 33: Investments in education pay off
By Philipp
Education makes an important contribution to economic and social development. “An improved educational structure of a society leads to an increase in labor force participation and lower unemployment …
Policy Note 32: Tax reform brings 50,000 more jobs
By Philipp
The federal government recently passed a comprehensive tax reform for the years 2020 to 2023. “The tax reform will have a positive impact on growth, prosperity and employment in Austria. By reducing the current …
Policy Note 31: Abolish cold progression completely
By Philipp
Cold progression leads to an increase in the tax rate and an additional burden on private households. “Cold progression considerably restricts the consumption options of private households …
Policy Note 30: Aligning housing policy effectively
By Philipp
Rents are rising, especially in major cities such as Vienna, Berlin, London and Paris. The fact that rents are rising is primarily the result of increasing demand and a lack of corresponding growth in supply: increasing urbanization …
Policy Note 29: Achieving more employment and prosperity through tax reform
By Philipp
Austria has a high tax burden by international standards. “The high tax burden restricts companies’ investments and employees’ ability to consume,” says Tobias Thomas …
Policy Note 28: Public spending: Less can be more!
By Philipp
There is considerable potential for efficiency in public spending in Austria. “In some federal states, public services can be offered much more cheaply than in others,” says Tobias Thomas
Policy Note 27: Digital framework conditions become a litmus test
By Philipp
The digital transformation is one of the biggest challenges, especially for Austria. “Efficient framework conditions for digital change are becoming the litmus test of modern business locations …
Policy Note 26: Demographic development challenges financial policy
By Philipp
Despite the good economic situation and the current bubbling tax revenues, Austria’s financial policy is facing major challenges. “Due to the demographic development, expenditure in the areas of …
Policy Note 25: Putting care financing on a stable footing
By Philipp
Austrian care financing is facing as yet unresolved challenges, particularly due to demographic change. “Care expenditure will increase massively by 2060 …
Policy Note 24: Participating in robot progress through education and participation
By Philipp
The consequences of digitalization and the increasing use of robots are among the topics of the Forum Alpbach’s Economic Talks from 28 to 30 August 2018. In the public debate …
Policy Note 23: Reforming the pension system for the future
By Philipp
The Austrian pension system continues to face major challenges due to demographic change. “Despite the reforms that have already been agreed, the pension system is currently not sustainable,” says Tobias Thomas.
Policy Note 22: Counteract relocations and insolvencies with competitiveness!
Major plant closures, relocations and insolvencies often attract a great deal of attention in the public and economic policy debate. Current …
Policy Note 21: Using the spending brake to reduce the tax rate
Austria has a very high tax ratio. According to the latest revision by Statistics Austria, it is still well above the EU28 or eurozone average at 42.9%.
Policy Note 20: Champions League in terms of expenditure, midfield in terms of performance
At 43.4%, the tax ratio in Austria is well above the average for the EU28 or the eurozone. This puts a strain on the consumption possibilities of private …
Policy Note 19: More growth and employment by reducing the tax ratio
The high tax rate in Austria of 43.4% restricts private household consumption and deprives companies of …
Policy Note 17: Minimum wage – a brake on employment without any effect on consumption
On June 30, 2017, the social partners agreed on a nationwide minimum wage of EUR 1,500 per month in Austria, thereby complying with the …
Policy Note 16: Value-added tax – a shot that backfires
Austria has a high tax ratio by international standards. In 2016, this amounted to 43.4% of GDP. “The high tax burden is a heavy burden for …
Policy Note 15: Need for reform despite economic recovery
Economic forecasts currently attest to an economic upswing in Austria. However, this development should not obscure the fact that …
Policy Note 14: End the additional burden on households due to cold progression
Inflation causes wages to rise in nominal terms and has an impact on public and private demand, income distribution and the composition of …
Policy Note 13: Asylum migration does not change the unemployment rate among residents
Austria and Europe are currently experiencing a strong influx of asylum seekers. In relation …
Policy Note 12: The contribution of future migration to public finances
Rising life expectancy and low fertility are triggering a process of demographic ageing in many Western European countries. While in Austria, for example, the …
Policy Note 11: Health insurance companies in competition
Demographic change and advances in medical technology are leading to latent pressure for an increase in public spending on healthcare …
Policy Note 10: Operational restructuring
The Policy Note No. 10 published here updates the analysis presented in 2014 on the topic of major corporate restructuring in Europe. As a basis …
Policy Note 9: Austria’s economy at a crossroads: good position – unfavorable outlook
The financial and economic crisis has led to considerable differences in the economic performance of the eurozone member states and the European Union …
Policy Note 7: Economic impact of Austria’s EU membership
Since joining the European Union, the Austrian economy has developed very well in comparison with other European countries.
Policy Note 6: Income mobility
This Policy Note No. 6 analyzes the mobility of income and the risk of poverty …
Policy Note 5: Debt check
This Policy Note No. 5 presents and explains the results of the “Debt Check” presented at the beginning of July …
Policy Note 4: Income development in Austria
Various publicly available sources of information are used to draw a consistent picture. The …
Policy Note 3: Are wealth taxes pro-growth?
A shift in the tax structure towards a reduction in the burden on earned income or the profits of corporations …
Policy Note 2: The problem child of inflation
According to Eurostat’s latest forecast, the inflation rate in the eurozone rose to 2.7% in February despite the current recession …
Policy Note 1: What are the benefits of the debt brake?
Since joining the single European currency, Austria has been subject to a rule-based fiscal policy (Stability and Growth Pact). Nevertheless, debt levels and new borrowing have reached historic highs.