Joining forces to shape our future

Austria’s Industrial Strategy 2035

Following a period of recession, Austria’s economy has started to recover. The Federal Government’s mandate and goal is to keep the economy on this trajectory. The industrial sector is of key importance to our economy. It has a long tradition, and our competitive and highly innovative businesses guarantee jobs and ensure the country’s prosperity. At the same time, the industrial sector is confronted with declining competitiveness, current geopolitical upheavals and a highly dynamic technological transformation.

For this reason, the Austrian Federal Government has adopted an Industrial Strategy to set a clear course and strategic thrust. In so doing, we are committing ourselves to Austria as a strong location for industrial production and in unequivocal terms to its industrial enterprises.

Let us stop de-industrialisation and start a new era of industrialisation in Austria

Bundesminister Wolfgang Hattmannsdorfer — Federal Minister of Economy, Energy and Tourism Wolfgang Hattmannsdorfer photo: Max Mayrhofer

This Industrial Strategy aims to achieve long-term growth as well as to secure and regain economic and technological excellence. It defines, for the first time, a set of key technologies, identifies paths for developing strategic technologies from the research phase to market maturity, and includes improved incentives to attract industrial enterprises and stimulate innovation beyond the duration of the current legislative period.

We want to enhance the strengths of Austria’s industry and exploit opportunities, while creating an optimal framework for research, development, innovation, production and exports. The Industrial Strategy is the result of a broad-based process that I had the privilege of leading and managing together with my government colleagues Peter Hanke and Sepp Schellhorn. A total of 117 measures in seven fields of action have been developed to advance innovation, create resilience and improve Austria’s competitiveness.

Dr. Wolfgang Hattmannsdorfer
Federal Minister

Our Vision: Bring Austria into the TOP 10

By 2035, we will be among the ten most competitive economies in the world.

The six goals of Austria’s Industrial Strategy

Bolster international competitiveness
Advance economic sovereignty in Europe and with Europe
Increase performance and innovation capacity
Build economic resilience
Strengthen sustainable and circular production
Develop skilled labour supply

Each goal is assigned one or more specific performance indicators as a metric for actively monitoring trends. The key indicator for measuring performance is the industrial production index, which gauges the production output of our industrial sector. The aim is to increase industrial production output, thus moving Austria into the group of the top 10 OECD countries. Additionally, our goal is to increase industry’s share in value added from 16.9 percent (2024) to 20 percent measured against total economic output.

Key Technologies at the heart of the Industrial Strategy

For the first time ever, we have defined nine key technologies and strengths. A funding budget of around €2.6bn will be made available under the Pact for Research, Technology and Innovation (RTI Pact) until 2029 for targeted investments in these technologies.

Artificial intelligence and data innovation
Chips, electronic components and systems
Advanced production technologies and robotics
Quantum technology and photonics
Advanced materials
Life sciences and biotechnology
Energy and environmental technologies
Mobility technologies
Space and aviation technologies

Focus on Innovation, Resilience and Competitiveness

The Industrial Strategy comprises a set of 117 highly effective measures in seven fields of action, representing an ambitious industrial policy programme for the coming years. Selected measures are presented below:

Promoting innovation

Campaign for key technologies and RTI measures – €2.6bn
Realignment of the programmes of the Austrian Research Promotion Agency (FFG) and Austria Wirtschaftsservice (aws) as part of the RTI Pact 2027-2029 based on the defined key technologies
Realignment of the Christian Doppler Research Association by focusing on the transfer of knowledge and skilled labour in key technologies from academia to industry
Advancement of the Austrian Business Agency by, for instance, realigning the programme Invest in Austria, expanding location marketing to include growth markets, and actively recruiting skilled labour
Stronger focus on utilising the potential of COMET Centres and realignment of Comet modules towards key technologies
Development of business ecosystems at universities by mainstreaming technology transfer and spin-off policies as well as entrepreneurship education
New FFG flagship programme to develop research ecosystems around leading businesses
Regulatory sandboxes: legal framework for experimental spaces as innovative testing grounds for key technologies

Creating resilience

Patriotic procurement and funding policy – guided by the Made in Europe & Partner Countries principle

Clear commitment to ensuring that public procurement creates value added in Austria and Europe based on an ‘action plan for strategic public procurement’ of the Federal Government
Create a legal framework for Made in Europe & Partner Countries and strengthen the best bidder principle with respect to quality in procurement law
Introduce the criterion of a European minimum share in value added (local content) in the EU’s Public Procurement Directive
Direct the funding system primarily towards European and Austrian products (best practice: Made in Europe Bonus for investment subsidies under Austria’s Renewables Expansion Act EAG)

Defence sector

Reform export controls by completely revising and harmonising the Foreign Trade Act with the aim of optimising and accelerating review and approval processes.
Develop a new security innovation ecosystem to strengthen innovation capacities in the security industry

Digital sovereignty

Establish digital sovereignty as a criterion in funding and procurement – to gradually reduce dependence on software and hardware solutions from third countries
Upgrade existing funding schemes for digitalisation to enhance digital sovereignty under the Made in Europe Bonus
Build an Austrian data centre infrastructure
Certify data centres in accordance with the EU Cloud Certification Scheme to create transparency for domestic businesses
Mandate holding companies of the Federal Government to use European cloud solutions

Investment Control Act

Create a comprehensive legal basis to prohibit, where expedient, foreign takeovers or investments in Austrian businesses
Amend the Investment Control Act with a view to particularly sensitive sectors and critical infrastructure as well as European information exchange

Secure strategic raw materials

Use Austrian and European primary resources
Build digital resource platforms for trading in secondary raw materials
Conduct research to develop innovative sustainable materials to substitute critical and potentially problematic raw materials
Develop alternative supply sources and strategic partnerships for critical raw materials

Bolstering competitiveness

Ensure competitive energy prices

Introduce an electricity price for industrial companies as of 2027 and renew the industrial electricity bonus scheme (SAG) until 2029
Lift the ban on carbon capture and storage (CCS) and utilise carbon as a raw material (CCU)
Modernise and upgrade the Austrian Grid Infrastructure Plan (ÖNIP) to curb the rise in grid costs and expand storage capacities
Implement a power plant strategy and analyse the potential of hydropower and pumped storage units
Develop a hydrogen start-up network

Reform the Red White Red (RWR) Card and launch an upskilling campaign for skilled labour

Introduce fully digitalised application procedures and processing
Launch an RWR Card pilot project for adult apprentices and simplified procedures for the self-employed and start-up founders
Facilitate access for third-country students graduating from an Austrian university as well as for researchers
Reform the RWR Card to permit placement by temporary work agencies
Extend the term of job seeker visas until the initial procedure is completed

Adapt guarantee schemes as an instrument with low impact on government budgets

Fully utilise the EU’s state aid framework, for instance by including CISAF
Permit use of guarantees in future for exports of non-lethal war materials
Adapt export guarantees for special use for the reconstruction of Ukraine

Austria’s new Industrial Strategy has already begun

Quick Wins 2026

The first measures to be introduced:

First part of the Key Technologies Acceleration Act
Amendment to patent law
Amendment to the Environmental Impact Assessment Act
Renewables Expansion Acceleration Act
Amendment to the Security of Supply Act
Amendment to the Foreign Trade Act
Action plan for strategic public procurement
Lifting legal ban on carbon capture and storage (CCS)
Electricity price for industrial companies
Policy package to reduce red tape
Procurement and awarding contracts (Made in Europe & Partner Countries)
Renewable Gas Act
Upgrade of research premium
Fund of funds (to be launched on 1 January 2027)
Amendment to the Federal Highways Act

The Ministry of Economy has already begun implementing the following measures:

Foreign Trade Act
Security of Supply Act
Key Technologies Acceleration Act
Renewables Expansion Acceleration Act
aws has been commissioned to implement the key technologies package
Market prospection launched for an Important Project of Common European Interest regarding advanced semiconductor technologies

Measurable Goals and concrete Plan

The 2035 Industrial Strategy will be monitored along the lines of the six strategic goals defined and based on the selected performance indicators, which will be subject to an ongoing review process.

The Austrian Productivity Board will add a competitiveness radar to its annual productivity report, measure progress and make recommendations where required.
A new Industry Task Force (BMWET, BMIMI, BMEIA, social partners, Federation of Austrian Industries, experts) will evaluate the annual results.
This will form the groundwork for the annual report to be presented by the Federal Government on implementation of the Industrial Strategy.
Every three years, the Industrial Strategy will be evaluated externally by a team of academics.

A participatory process creates a firm and broad foundation for the Industrial Strategy

Austria’s Industrial Strategy was developed within a broad, participatory stakeholder process led by the Industry 4.0 platform. It relied on the active involvement of Austria’s social partners, the Federation of Austrian Industries (IV), various agencies (Austria Business Agency ABA, Austrian Institute of Technology AIT, Austria Wirtschaftsservice aws, Christian Doppler Research Association CDG, Austrian Research Promotion Agency FFG, and investment promotion agencies of the federal states), representatives of academia and numerous experts.

The involvement of numerous players in the development of this strategy created a sounding board that made it possible to weigh and discuss the wide variety of perspectives and interests involved (business, labour, academia). Scientific studies and analyses were also included. The outcomes of this strategy were discussed with widely recognised economic experts.