GOING

INTERNATIONAL

ENTERING FOREIGN

MARKETSMatthias Grabner

Sector Manager Technology

ADVANTAGE AUSTRIA

matthias.grabner@advantageaustria.org

PART 1 : IMPORTANCE OF EXPORTS FOR AUSTRIA

• More than half of

Austria‘s wealth is

generated through

exports

Importance of International Trade for Austria

• EUR 131.2 bn exports of goods in 2016 (-0.2%)

• EUR 135.6 bn imports of goods in 2016 (+1.5%)

• EUR 54,3 bn exports of services 2016 (+3,7%)

• EUR 44,1 bn imports of services 2016 (+3,9%)Total Services

Source: Statistik Austria, WIFO, **) WIFO-Prognose

109,4

121,8 123,5 125,8 128,1 131,5 131,1

139,4

113,7

131,0 132,0 130,7 129,8133,5 135,7

143,2

38,2 40,7 40,2 39,0 38,8 38,7 37,5 38,4

52,155,4 55,4 53,2 53,0 53,1 52,2 53,0

2010 2011 2012 2013 2014 2015 2016 2017**)

Exporte lt. Statistik Austria in Mrd. EURO

Importe lt. Statistik Austria in Mrd. EURO

Exportquote Waren lt. Statistik Austria in %

Exportquote Waren fob+Dienstleistungen in %

Importance of International Trade for Austria

Austria’s ICT sector

• 18,444 companies

• 108,628 employees (4% overall)

• 21.2 Billion EUR revenue (5% of all companies)

• Average 8.3% of revenue spent on R&D

• Fastest growing sector overall

• Added value rate of 1 : 2.35 on economy overall

Austrian ICT – main fields of business

9

6,8% 6,0%

17,0%

29,4%

2,8%1,2%

1,8%

8,2%

12,7%

1,3% 0,2%

2,0% 2,8% 7,8%

Hardware retail

hardware installation andmaintainance

Development, customization,installation and maintainance ofstandard softwareDevelopment and maintainance ofindividual software

software retail

Providing

Outsourcing

Support

Consulting

Hosting

Source: KMU Forschung Austria

Austrian ICT – Customer structure

10

Source: KMU Forschung Austria

78%

16%

6%

Austria EU Other

9,7%

9,0%

18,9%

8,7%7,8%3,2%

42,7%

Private Public

Manufacturing Finance

Telecom & Media Energy

Other

Importance of International Trade for Austria

• 56,000 exporters

• 52.2% GDP‘s export ratio, 6 in every 10 Euros

• HRK 100.676 export per capita

• EUR 189-93 bn (stock) Austrian FDI abroad, employing 801,000

• EUR 148.17 bn (stock) inward FDI, employing 251,000

PART 2 : ADVANTAGE AUSTRIA

• Internationalization Agency

• Encouraging and developing export strategies

• Innovation Agency

• Aim: Boosting the innovative capacity of Austrian

companies

ADVANTAGE AUSTRIA –

Our business segments

• Encourages international activities by identifying

business opportunities abroad.

• Supports cross-border commercial activities.

• Globally positions Austria as an attractive business

location and a reliable business partner.

ADVANTAGE AUSTRIA –

Internationalisation Agency for

the Austrian Economy

• Entrusted with governmental responsibilities:

statutory obligation to promote foreign trade

• Financed through membership contributions (not tax revenue)

• Creation of a customer-oriented service organisation

• Business development

• Knowledge transfer at home and abroad

The Austrian Federal Economic Chamber

ADVANTAGE AUSTRIA

Austria‘s official trade promotion organization

Austrian Federal Government

• Business framework

• Trade policy

• Export credit guarantees and financing

Austrian Federal Economic Chamber

• Austrian Federal Economic Chamber and its international arm:

ADVANTAGE AUSTRIA

• AUSSENWIRTSCHAFT PLUS – ADVANTAGE AUSTRIA

platform together with regional chambers of commerce

• International network of service centres and marketing offices

Who offers export support?

Private agencies

• Prisma Kreditversicherungs AG, Coface Austria, etc.

• Consultants

• Principal bankers, forwarding agents, etc.

Who offers export support?

ADVANTAGE AUSTRIA

Facts and figures

• More than 110 offices in 70 countries

• 27,000 Austrian clients

• 70 years of experience

• 800 employees

• 80 nationalities

• 1,200 ADVANTAGE AUSTRIA events

• 1,000 ADVANTAGE AUSTRIA publications

• Global business support

ADVANTAGE AUSTRIA

Our Services

Knowledge

International

market expertise –

better than

Google …

Platforms

Showcase the

competence of

Austrian

companies

abroad (fairs,

events, web)

Partners

Trusted partners

for

internationalization

(Sector Experts,

Distribution Partners,

Service Providers)

KNOWLEDGE

• www.wko.at/aussenwirtschaft

app, social media, notification services

• weekly e-publication, 5 printed magazines/year

• over 1,000 publications (country reports and updates, sector

profiles, reports on legal matters, magazines)

• Events (meetings with Trade Commissioners, Exporters‘ Day)

• One-to-One consultancy by our 800 employees

PLATFORMS

• www.advantageaustria.org

• FRESH VIEW (glossy brochures about sectors)

• Events in Austria: market place, B2B-Meetings

• Presentations abroad: Austrian Pavilions at world fairs,

Catalogue Displays, Austria Showcases/Presentations)

• International Group Missions for Austrian companies abroad

(trade missions, fact-finding missions)

• Establish networks of Austrian subsidiaries abroad (AUSTRIA

CONNECT)

Smart technologies

from Austria for the

cities of the future

• 200 country sites

• 28 languages (special focus on Eastern European languages)

• 1,000,000 visitors per year

• Market place with profiles of 15,000 Austrian businesses

• Business opportunities with detailed company information

• Listings of all events abroad including company profiles

• Overview of 30 industry sectors

www.advantageaustria.org

Austria’s International Business Platform

PARTNERS

• Support for new exporters (Export Centers in all 9 States)

• Consultancy for „Pros“ (internationalization, export financing,

technology consultancy, networks) at Vienna Headquarters

• Trade Commissions (market entry, in-market support,

investment advice, international procurement, crisis

intervention)

Type of Event

• Austrian Pavillions 68

• Group Stands (joint fair booth) 54

• Trade Missions 75

• Fact-finding Missions 70

• Forums 258

• Austria Showcases 68

• Catalogue Exhibitions 85

• Matchmaking Events 54

• Others 553

Total 1.285

ADVANTAGE AUSTRIA

Events (2017)

ADVANTAGE AUSTRIA –

Information for foreign markets

• www.advantageaustria.org:

1 million visits per year

• International newsletters:

30 Trade Commissions on five continents

• Various print publications:

FRESH VIEW, etc.

Market Entry Support

• Market potential and pricing structures

• General legal information

• Import procedure, distribution structure

• Competition assessment, market share

• Provision of business and credit information

• Identifying potential distributors

• First point of contact, organizing market visits

• Follow-up action

In-Market Support

• Organizing business trips

• Scheduling appointments, accompanied-meetings service

• Credit checks on foreign companies

• Support with preparation and submission of bids or tenders

• Intercultural consulting

• Evaluating the target market, market reports

• Distributor relationship management

Investment Advice

• Legal and tax framework

• Recruitment of staff

• Business location assistance

• Finding sector specialists

International Procurement

• Sourcing advice

• Export requirements

• Supplier contacts

• Finding quality control consultants

• Payment terms

Trends in Internationalization

PART 3 : GO INTERNATIONAL

– Motivate and train SMEs to become exporters – Cluster 1

– Accompany established exporters into new markets – Cluster 2

– Focus on the export of knowledge-intensive services – Cluster 3

– Support Austrian foreign direct investors in high-growth markets –

Cluster 4

– Communicating Austria – Cluster 5

Strategic Goal of go international V (April 2015 – March 2019):

Safeguard Austria‘s 5th place among EU-28 exporters (per capita)

Results to be achieved until 31 March 2019:

Number of new exporters: 8,000

Number of Austrian exporters, who are assisted in tapping into new

markets: 6,000

Number of Austrian services companies, which are accompanied onto

new markets: 2,000

Number of Austrian foreign direct investors, who are accompanied onto

foreign markets: 1,700

Number of international visits on global web portal

advantageaustria.org: 3.5 mio

Number of Exporters

12.500

18.000

22.500

29.000

34.000

40.000

44.000

50.000

56.000

62.500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Start of the "go-international" program

Any questions?

Matthias Grabner

Sector Manager Technology & Health, ADVANTAGE AUSTRIA

Matthias.grabner@advantageaustria.org