Economic effects of universities of applied sciences in Austria

This study examines the economic effects of universities of applied sciences in Austria. Both supply and demand are analyzed, as well as the role of applied research at universities of applied sciences with regard to the innovation potential of the Austrian economy. By analyzing supply-side and demand-side effects on GDP, the resulting returns for the public budget are to be determined. These returns are also to be compared with the federal government's financial contributions.

The Austrian university of applied sciences system has developed very successfully over the last thirty years since it was founded. Since the 2002/2003 academic year, the number of graduates has increased six-fold to 16,700 by the 2022/2023 academic year. Aggregated over this thirty-year period, the number of graduates from universities of applied sciences amounts to around 240,000. In the same academic year, 28 percent of degrees were awarded at universities of applied sciences. This means that they play a significant role in the Austrian higher education system. In addition, the economic impact of universities of applied sciences should not be neglected; graduates of universities of applied sciences contribute to Austria's innovation and productivity through their high qualifications and increased human capital. In this respect, universities of applied sciences enjoy the reputation of being practice-oriented and application-oriented. The links with business and industry are obvious and so is the effect on Austrian companies.