INNOVATION aus TRADITION

JOANNEUM RESEARCH Forschungsgesellschaft mbH, Steyrergasse 17, A-8010 Graz, Austria, e-mail: [email protected], web: http:// www.joanneum.at

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Foreign Direct Investments in Austria and Styria

Figures, Facts and Strategies

Graz, 23.04.10

JOANNEUM RESEARCHCenter for Economic and Innovation Research

Dr. Christian Hartmann


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OverviewForeign Direct Investments in Austria – a

success story?

The regional cutting across the cake – how well did Styria so far?

The attraction of FDI to Styria – from adhocracy and luck to strategy


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Overview

Foreign Direct Investments in Austria – a success story?


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Austrian FDI outflows in % of Gross Capital Formation

World Austria

Source: UNCTAD, WIR, BMWFJ


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Austrian stocks of outward investments in % of GNP

World Austria


World Austria


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Austrian FDI outflows by countries/regions (in shares of total)

0%

10%

20%

30%

40%

50%60%

70%

80%

90%

100%

1997 1999 2001 2003 2005 2007

Rest o. World

IT

CEEC

DE

CZ

CH+LI

Source: OENB, JOANNEUM RESEARCH


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Austrian FDI outflows – a closer look on Central and Eastern Europe, (shares of total) 1997-2007

0%

20%

40%

60%

80%

100%

1997 1999 2001 2003 2005 2007

Rest of CEEC

SK

SI

CZ

HU



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Stocks of Austrian outward investments by economic sectors


2 4

32

22

6674

0

10

20

30

40

50

60

70

80

Mining andQuarrying

Manufacturing Services

1997

2007


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Austrian FDI inflows in % of Gross Fixed Capital Formation

World Austria



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World

Austrian stocks of inward investments in % of GNP

Austria



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Austria FDI inflows by countries of origin, 1997-2007 (shares of total)

0%

20%

40%

60%

80%

100%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

W-Eur

US

RestW

MOEL

IT

GB

FR

DE

CH+LI



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Stocks of Austrian inward investments by economic sectors


1 2

37

9

62

89

0

10

2030

4050

6070

8090

Mining andQuarrying

Manufacturing Services

1997

2007


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Summary Austria managed sucessfully in the last two decades to catch

up with world average both in terms of stocks and flows of outward investments

Stock of investments were in 2007 with 37.9 % of GNP clearly above the world average, but…

…still well below the reference value of EU-27 (44.2 % of GNP)

Austria has established itself as a major investor in CEEC countries

Austria is holding the number 1 position as investor (28 % market share in 2008) in South Eastern Europe

In the NMS-10 Austria is holding the third place (11 % market share in 2008)

Austria was also able to catch up to world average in attracting inward investments

Increasing importance of the service sector

Business Services (39 %) and Financial Services (23 %) account for more than two thirds of stocks in 2007


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Overview

The regional cutting across the cake – how well did Styria so far?


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Stocks of FDI in the Austrian Provinces 2007

Stocks of outward FDI

Stocks of inward FDI

Source: OENB, BMWFJ


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FDI inflows to Austrian Provinces, 1997-2007 (in M of EUR)

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Upper Austria

Carinthia

Styria



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Styria: FDI inflows by country of origin (shares of total)

-20%

0%

20%

40%

60%

80%

100%

1997 1999 2001 2003 2005 2007

W-Eur

US

RestW

NL

MOEL

IT

GB

FR

DE

CH+LI



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FDI inflows and outflows in Styria – 1997-2007 (in M of EUR)

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

active

passive



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Summary The lion‘s share of FDI flows and stocks goes to

…. Vienna The city is holding in 2007 more than two thirds of the

stocks of inward investments to Austria The city has established itself as a major international

location of regional headquarters

Styria did since 1997 not particularily well in attracting FDI inflows compared to other Austrian Provinces

In 2007 Upper Austria attracted inflows of EUR 12,403 M compared to Styria with EUR 3,589 M

The picture remains unchanged if stocks of FDI are discussed

Germany as a former major investor has been dramatically loosing ground in Styria


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Overview

The attraction of FDI to Styria – from Adhocracy and luck to strategy


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The past In the 1990s Foreign Direct Investments in Styria were mainly driven by

chance Anecdote: „a helicopter flight leading to an industry location decission…“

Nevertheless FDI were functioning effectively as nuclei for cluster development

E.g. the Eurostar investment was a starting point for the Automotive Cluster in Styria

Structural Funds period 2000-2006 integrated the issue of FDI into a more strategic planning approach

Measure 1.1: Attracting new companies to the area

Since the year 2000 studies helped to develop an elaborated and clearcut strategy

‚Headquarters in Styria‘ Study in 2004

Reasessment of Styrian Business Locations in the framework of the TECNOMAN project from 2004 to 2005


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Business Locations in Styria

Source: Schrenk 2007


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The present Location Management Concept since 2009;

objectives are: Attraction of Headquarters to the region Attraction of ‚Centers of Competence‘

Strategic Approach Benchmarking of other regions Attraction of firms that complement regional clusters and

value chains

Ressources Five years project with an overall volume of EUR 4,1M Dedicated department at the Styrian Regional Economic

Promotion Agency Database of available regional business locations


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Schematic Overview of relevant interfaces for regional location management

Source: SFG 2009


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Thank you for your attention

Dr. Christian HartmannJOANNEUM RESEARCH Forschungsgesellschaft mbHCenter for Economic and Innovation ResearchA-8010 Graz, Elisabethstraße 20Tel.: +43/316/876 DW 1487 (Fax: DW 9-1487)http://www.joanneum.at/rtg

INNOVATION aus TRADITION

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