The economic situation in Austria has been difficult for around two years, and the latest forecasts point to a further economic downturn. Despite this difficult environment, Vienna as a business location is showing itself to be pleasingly resilient and is once again signaling stability and security across the country’s borders. And despite the bleak outlook, there is also a lot of reason for optimism: there was recently a new record number of business start-ups in the federal capital and demand for funding from the Vienna Business Agency increased by 38 percent in the first half of 2024.
Now there is also good news about the international settlement balance – i.e. about the number of foreign companies that choose Vienna as their new economic home. The outlook for the current year shows a clearly positive trend.
“The preliminary figures from January to October show 15 percent more international companies located in Vienna than in the previous year. “It almost acts like a wave breaker in the current recession,” emphasizes Economics and Finance Councilor Peter Hanke. “We see that foreign countries perceive Vienna as a stable business and innovation location, especially in difficult global political times. This not only benefits the companies that find a new home in Vienna, but also the business location. Because the significant investment decisions associated with the settlements ensure more added value.”
A current example that caused a stir far beyond the country’s borders was the establishment of the new research institute AITHYRA, which will work at the interface between AI and biomedicine. With the help of 150 million euros provided by the renowned Boehringer Ingelheim Foundation from Germany, as well as the support of the federal government and the city of Vienna, this institute, which is unique in Europe, will be established in the federal capital for the next 12 years. The Vienna Business Agency will initially provide the research institute with space in the immediate vicinity of the Vienna BioCenter and, on behalf of the City of Vienna, will undertake the construction of a new building in which the institute will ultimately be housed.
Strong interest in Vienna from the USA and Asia
According to the Vienna Business Agency, which is responsible for international settlements, demand from the USA is particularly surprisingly high this year. Countries from Central and Eastern Europe continue to show great interest in Vienna, and the federal capital is also attracting increasing attention in Asia.
The positive mood of the Asian markets regarding Vienna can also be attributed to the successful delegation trips over the last 12 months led by City Councilor for Economic Affairs Peter Hanke. After a strategic alliance with Thailand’s National Innovation Agency last year, a partnership with the Chinese economic metropolis Shenzhen was signed in April this year and the startup hub Hong Kong was visited. In the long term, these alliances should lead to international exchange in the areas of smart cities, startups, sustainability and innovation.
The international experts from the Vienna Business Agency, who also have a foot firmly in the door of the economy in Japan, the country of EXPO 2025, are always present on these trips. The most recent foreign business establishment this year, the company Spiral Inc., comes from Japan. It has been in Vienna since the beginning of October and is part of the Deep Tech sector and was intensively supported by the Vienna Business Agency during the settlement. “Our international experts make a significant contribution to communicating the economic advantages of Vienna to companies wanting to relocate,” says Gerhard Hirczi, Managing Director of the Vienna Business Agency. “The most important thing is personal contact with these companies, who are happy to take the hand we offer them on such occasions. They know that they can rely on us for comprehensive support on their “settlement” adventure.”
Vienna as a world-class startup hub
Vienna’s booming startup ecosystem is internationally valued, especially in times of crisis. This is also shown by the evaluation of this year’s foreign settlements – a large proportion of the settlements so far are startups with innovative ideas. Many of them contribute their projects and ideas to the top topics of the economic and innovation strategy VIENNA 2030 and contribute solutions to challenges such as climate change, digitalization and urbanization.
Vienna scores internationally with startups with a welcoming environment, targeted funding and the annual international startup festival ViennaUP. A startup from Hong Kong and Japan will also be taking part in ViennaUP 2025, and they were able to take advantage of the chance to win a ticket to Vienna during this year’s delegation trips – future settlement in Vienna after the festival cannot be ruled out.“We are currently hoping that 2024 will be at least as good as the previous year in terms of international company settlements. “Vienna achieved the third best result in the history of settlements,” said City Councilor for Economic Affairs Peter Hanke. “I am happy about every single new foreign company that has settled, because the activities of these companies are an important part of the business card of Vienna as an international business and innovation location.”