Research & development in Austria 2026: Financing and trends

Since 2005, the R&D ratio has steadily grown. It increased from 2.39% in 2005 to 3.34% in 2026. While this still falls short of the politically set target of 4% that the federal government aims to achieve by 2030, it demonstrates that overall R&D investments have remained encouragingly stable, even—such as currently—in economically and fiscally challenging times.

The historical development of the R&D ratio since 2005 reveals long-term trends in the shares of financing sources. Business-financed R&D rises from 1.1% of GDP to around 1.4%. This development is not linear: increases are visible during economically stable phases, while declines occur in crisis years (e.g., 2009, 2020). Public financing (federal and state governments) increases from 0.78% to about 1.0% of GDP, developing somewhat more moderately but continuously.

R&D expenditures financed from abroad remain relatively stable at around 0.5% of GDP. They show no pronounced fluctuations and continuously contribute to the overall ratio. Notably, there is a significant increase in the research premium: its share of total R&D expenditures has risen from 2% (2005) to around 7% (2026), with its volume increasing roughly tenfold, while other financing sources have only doubled or nearly tripled in comparison.

Overall, the representation shows a long-term growth trend with stable contributions from multiple financing sources. Differences are primarily evident in the dynamics: while public and foreign funds remain relatively constant, business and corporate expenditures react more strongly to economic conditions.

Business-financed R&D increases from 1.1% to around 1.4% of GDP. The development is not linear: Gains are evident in economically stable phases, while declines occur in crisis years (e.g., 2009, 2020). Public funding (federal and state governments) rises from 0.78% to about 1.0% of GDP and thus develops moderately but continuously.

Foreign-financed R&D expenditures remain comparatively stable at around 0.5% of GDP. They show no pronounced fluctuations and contribute continuously to the overall ratio.

Remarkable is the increase in the research premium: Its share of total R&D expenditures has risen from 2% (2005) to around 7% (2026), with a volume that has increased approximately tenfold, while other funding sources have only doubled or tripled in comparison.

Overall, the presentation shows a long-term growth trend with stable contributions from several funding sources. Differences are evident primarily in the dynamics: While public and foreign funds proceed relatively constantly, business expenditures react more strongly to economic framework conditions.