Vienna, 27 February 2024 – Austria’s appeal as a business location continues to grow. Last year, international companies invested €1.372 billion in the country through 325 business location and expansion projects, marking a significant increase from 2022. René Tritscher, Managing Director of the Austrian Business Agency (ABA), commented, „The figures highlight the attractiveness and strong demand for the Austrian business location abroad, despite challenging geopolitical and economic conditions.” The majority of these companies are operating in future-oriented sectors such as ICT and greentech/cleantech, with Central and Eastern European firms accounting for 20% of total business location and expansion projects in Austria. ABA provided support in locating abroad for these investments.During the year 2023, ABA provided consulting services to 230 companies from Central and Eastern European countries who were interested in establishing or expanding their business operations in Austria. Ultimately, 69 companies from the CEE region decided to invest in Austria, with one-fifth of the business locations or expansion projects originating from Central and Eastern European countries. The highest number of investments came from Hungary (14), followed by Ukraine (13), Slovakia (9), and Czechia (9).
Supporting Sustainable Business Growth in Czechia
Energy and environmental technology is a rapidly growing sector for foreign direct investments in Czechia, with 23 business location and expansion projects. This sector is now the fourth most important, following ICT (68 projects), business-oriented services (52), and the wholesale sector (41).
One example of a project in the field of energy and environmental technology is the establishment of PackWall AT, a part of the Czech Upcycling Group. According to Jan Skopeček, Managing Director of both companies, the Upcycling Group provides advanced production solutions that create new green jobs, reduce pressure on local landfills, and develop strong domestic markets for recyclables and municipal waste. The new plant, located in the southern Austrian province of Carinthia, will produce premium construction and furniture boards from recycled waste packaging materials. Active support from the Austrian federal state of Carinthia and Austria Wirtschaftsservice (aws) in the form of advice and subsidies has been instrumental in setting up the plant.
CEE startups making strides in Austria
ABA has seen a significant increase in international startups (39) choosing to invest in Austria, including Bratislava-based Panza Robotics. The innovative high-tech company focuses on advanced robot research and development, with a second prototype of four-legged robots already in development for various industries such as construction, utilities, oil & gas, waste management, and public safety. Managing Director Radoslav Balajka notes that expanding into Austria allows them to establish valuable partnerships with companies like Infineon, Silicon Alps Cluster, and Joanneum Research, as well as access to potential subsidies and specialized electronics-based systems experts. These factors create ideal conditions for further robot development in Austria.
TerraWaste is a company that has emerged from the dynamic startup scene in Latvia and the Netherlands. Our main focus is to address the plastic waste crisis, and one of our key initiatives is the pilot plant in Stockerau, near Vienna. We have received invaluable support and guidance from the Vienna Business Agency, ecoplus, and ABA, which has been crucial in accelerating our progress. Working with the GreenTec Campus in Stockerau, we are working towards establishing a pilot plant at the Stockerau landfill, specifically designed to tackle the issue of plastic waste in the area. This project not only contributes to the creation of jobs but also promotes the development of sustainable, environmentally conscious solutions in the region,” explains Kristaps Cirulis, Co-Founder of TerraWaste.
Introducing the Flexible Company: A Boost for Startup Business in Austria
In 2024, Birgit Reiter-Braunwieser, Director Central and Eastern Europe at ABA, expressed optimism about the investment landscape in Austria. The introduction of the flexible company (FlexCo) as a new legal form of business has further strengthened Austria’s appeal as a business location for founders and startups. This innovative legal structure, which became available on 1 January 2024, is designed to meet the specific needs of early-stage companies and offers simplified corporate regulations and attractive employee participation opportunities, making it an enticing option for young firms looking to attract and retain top talent.
Procyberconsult GmbH, a cybersecurity company based in Hungary, sees Austria as a stable and efficient market for their business. Owner Tamás Tar highlights the smooth process of establishing the company and the availability of highly qualified employees as major advantages. He also notes that Austria provides a good opportunity for further expansion into the German and Swiss markets.
Compliance with DORA and NIS2 regulations
Procyberconsult GmbH, a cybersecurity company from Hungary, specializes in supporting businesses with the best-of-breed cybersecurity solutions for DORA and NIS2 compliance. Owner Tamás Tar emphasizes the importance of Austria’s stable business environment for their operations and the availability of highly qualified engineers. He also sees Austria as a strategic location for potential expansion into the German and Swiss markets in the future.
Austria has a high level of purchasing power and its capital city, Vienna, is one of the most prosperous regions in Europe, with an economic output of approximately 150% of the EU average. Due to the manageable size of the Austrian market, it is possible to test products and services here without making overly high investments, making Austria a test market for the entire DACH region of about 100 million consumers. Additionally, there are a large number of people in the country with a command of CEE languages due to historic ties to and immigration from Southeast and Eastern Europe, which further emphasizes Austria’s advantageous position in Europe.
MLP Group, a Polish company, specializes in constructing eco-friendly logistics parks and is set to build its first urban logistics and business project in the Austrian market soon. According to Radosław T. Krochta, the CEO & President of MLP Group, Austria’s thriving market is a key factor in the company’s growth strategy and adds to their portfolio of modern commercial and logistics space in Germany, which is crucial for their global expansion.
About the Austrian Business Agency (ABA)
The Austrian Business Agency (ABA) is a subsidiary of the Federal Ministry of Labour and Economy (BMAW) and is dedicated to attracting international companies, top talents, and film producers to Austria. Through its three business areas – INVEST in AUSTRIA, WORK in AUSTRIA, and FILM in AUSTRIA – ABA provides consultation and support to international companies, skilled workers, and film producers on all issues related to business, research, work location, and Austria as a film location. Their goal is to make the process as easy as possible. Visit their website for more information: www.aba.gv.at
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