FIW Policy Letter No. 40: Input-output Interdependencies of Demand for Tangible Goods and Expenditure on Research and Development

Domestic and international demand for tangible goods produced in Austria accounts for 21.8 percent of total gross value added and thus makes a significant contribution to overall economic output, even though the increasing importance of international production networks is constantly reducing the intensity of value added in production. A relatively stable share of this value added is accounted for by the Austrian production of tangible goods itself, while the direct and indirect share of services in the production of these goods is not increasing, contrary to expectations. The research and development intensity of the economic sectors, on the other hand, increased significantly, even though it varies considerably between the sectors. The less R&D-intensive sectors also indirectly consume R&D services from other, more research-intensive sectors via intermediate inputs and are thus important "clients" of entrepreneurial research activities.