Austria is home to many creative and dedicated experts who are passionately working on topics such as autonomous driving and flight, cybersecurity solutions and quantum technology. At the heart of these and other technology areas is an AI scene that rivals that of much larger countries. There are many factors contributing to our success, but one of the most decisive is Austria’s educational system.
Front runner in AI education
Austria has emerged as a frontrunner in the AI education field. Thanks to its state-of-the-art education system, renowned universities and research institutes, and thriving technology industry, Austria offers the ideal environment to harness the full potential of AI. Close collaboration between academia and the business sector allows students to benefit from practical projects and interdisciplinary partnerships, strengthening Austria’s position as a leading center for AI education. With three highly selected research centers called ELLIS units, Austria boasts the highest per capita density of European Institutes of Learning and Intelligent Systems among EU member states: Linz University of Technology (LIT) Artificial Institute for Intelligence, Graz University of Technology (TU Graz) and ISTA – Austrian Institute for Science and Technology in Lower Austria, near Vienna.
One of the prominent members of this research environment is Professor Sepp Hochreiter, one of the world’s leading experts in the field of artificial intelligence. Hochreiter was one of the minds behind the development of long short-term memory (LSTM), laying the foundation for artificial intelligence as we know it today. He and his team conduct research in the field of deep learning at LIT, promoting the industrial use of AI. He was recently awarded the German Artificial Intelligence Award for his efforts.
Successful AI business
Finally, what sets Austria’s AI ecosystem apart is its business. A good example is the international success story of deep tech company Dynatrace. Founded in 2005 in Linz, the capital of Upper Austria, by three founders, this Austrian start-up pioneer has grown into a world leader with over 4,200 staff around the world. . Dynatrace uses hypermodal AI (combining predictive, causal, and generative AI) in an integrated platform to realize the vision of a world where software is fully functional.
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attract talent
Human resources experts often say that Austria attracts the best talent. The main reason for this is the proposition of “more with less” when it comes to living in Austria. Both Austria and its cities have a relatively low cost of living and consistently perform very well in international quality of life rankings. Many Austrian founders and HR directors say that in terms of talent acquisition, they can compete with international companies that offer twice as much salary. At the end of the day, after paying all their bills, individuals and families living in Linz, Vienna, or other Austrian cities have more money than their colleagues living in places like San Francisco, London, Paris, or Amsterdam. can be saved.
Attractive and accessible business and social networks also play an important role. For example, the city of Linz is large enough to feel lively, yet small enough to make networking easy. Existing networks are practical and not closed. In fact, one of the hallmarks of Lindt’s AI scene is its strong diversity, as evidenced by the fact that 40% of its founders are women. This is especially important in the field of AI, where bias and discrimination can easily sneak into systems, often without the knowledge or intent of their creators. Diverse teams can help you avoid this pitfall.
Funding and support
In a competitive global environment, Austria’s technology and AI boom would not have been possible without government support. In fact, to strengthen research activities, Austria pays research companies an uncapped research premium of 14% of their R&D costs. This applies not only to in-house investigations, but also to commissioned investigations and personnel expenses. This premium can be combined with attractive direct funding for research and development projects. Approximately 1 billion euros have been paid out in recent years.
Apart from Austria’s funding, its tax system makes conditions even more favorable. In May 2023, the government announced a range of measures to attract and support startups and scale-ups, including simplifying the start-up process. Corporate tax will be reduced from 25% by January 2023. to 24% — expected to further reduce to 23% in 2024.
For founders and companies looking to set up or expand in Austria, the Austrian Business Agency (ABA) provides free information, advice and support to ensure new entrants stay on track.
