Austria as a Business Location – From Fast Lane to Siding

The stagnation experienced in the past years triggered heated discussions in Austria on whether its quality as a business location might have deteriorated. A large part of the problems derives from exports which concentrate too much on less dynamic markets and stagnating product categories. The "smart specialisation" concept advocated by the EU will not suffice to overcome problems in Austria. To curb path dependency in production and exports, it will be necessary, in addition to further specialising the Austrian economy, to diversify into product-market combinations which offer a unique selling position on international markets thanks to locational advantages. To this end, it will be unavoidable to refocus, not just among entrepreneurs, but also in politics, ranging from education to research, business and industrial policies, and to make these policy areas closely cooperate with each other.