Science and research are key elements in shaping the future

The federal government currently faces the important task of drawing up a budget that secures our prosperity in the long term. To do this, it must consolidate expenditure and at the same time ensure that the foundations for Austria’s future security and competitiveness are created.

But there is also an opportunity to rethink many things in a new and visionary way.
Thomas Henzinger

“There is no question that all areas will have to make a contribution in order to overcome Austria’s considerable financial challenge. There is an urgent need for structural evolution and smart, socially responsible savings. However, there is also an opportunity to rethink many things in a new and visionary way. Now is the time to set a fundamental course, to scrutinise existing approaches and to tackle new solutions with courage. The government programme points to the essential role of science, research and innovation,” says Council Chairman Thomas Henzinger.

Prioritising science and research

The multi-year federal financial framework adopted with the double budget is crucial for the goals for research and innovation set out in the government programme. However, Henzinger also sees the further development of the tertiary education sector envisaged in the government programme as an important step: “A future-oriented higher education system strengthens the resilience of our democracy and meets the requirements of a modern, environmentally conscious industrial location. FORWIT has already presented initial considerations and proposals in this regard.”

Henzinger interprets the fact that investments in science and research are to be prioritised as central elements of shaping the future as a clear sign that the federal government is acting with foresight despite the difficult financial situation. “We trust that the federal government will responsibly follow its intentions in consolidating the budget and create a future-oriented budget that secures Austria’s social resilience and economic growth in the long term. It is our task to support the federal government in this endeavour and we will be happy to do so with commitment,” concludes Henzinger.

Economic and research policy priorities for greater competitiveness

A joint working paper [in German] by FORWIT and the Austrian Productivity Board draws a picture of the central challenges for the competitiveness of the EU and Austria against the backdrop of global developments. On the basis of independently submitted recommendations from the two government advisory bodies, necessary and possible measures are outlined with which Austria could positively influence developments.

The analysis paints a clear picture: Europe, and export-dependent Austria in particular, is coming under increasing pressure in global competition. While the USA and China are forging ahead with targeted industrial policies and massive investments in future technologies and dominating the global innovation race, Europe is in danger of falling behind. Particularly alarming is the stagnating productivity growth in the EU, which is falling further and further behind its competitors.

Core problems of Austrian competitiveness

The analysis identifies several core problems for Austria: despite high economic output per capita, productivity has only been growing very slowly for years. In particular, the potential of the digital transformation as a key driver of productivity growth is not being utilised. The energy crisis and the associated pressure to transform are weighing on the economy. In addition, demographic change threatens to further slow down growth. The innovation gap poses an additional challenge – despite high research expenditure, scientific findings are not being sufficiently translated into marketable products.

Consistent recommendations from FORWIT and the Productivity Council

FORWIT and the Productivity Council have independently communicated ways to successfully meet these challenges in their previous recommendations. Specifically, they suggest expanding the digital infrastructure and promoting digital skills in companies and schools. In particular, the diffusion of AI technologies should be accelerated by increasing AI literacy and incentivising investment. In the energy sector, a short-term diversification of gas supply is recommended, coupled with the establishment of zero-emission transformation zones and ambitious CO2 pricing. To strengthen human capital, more flexible childcare services, easier access to the labour market for qualified foreign specialists and the expansion of ICT and IT study places are recommended. Finally, the start-up culture should be promoted by reducing bureaucracy, simplifying investments in start-ups and providing support for scaling up in Europe.

In order not to be left behind in global competition, Austria must act decisively now. Both politicians and companies themselves are in demand. Austria can only secure its long-term competitiveness through targeted investment in future technologies, accelerated digitalisation and the creation of an ecosystem that promotes innovation.

The complete analysis ‘Economic and research policy priorities to strengthen Austria’s competitiveness’ is available for download [in German].

AI Factory Austria: Important milestone for Austria

Initiative adopts recommendations of FORWIT and the AI Advisory Board and contributes to increasing European and Austrian competitiveness and innovative capacity.

The chairmen of FORWIT and the AI Advisory Board, Thomas Henzinger and Horst Bischof, welcome the establishment of an AI Factory in Austria announced today and congratulate the consortium of Advanced Computing Austria (ACA), the AIT Austrian Institute of Technology and their scientific and industrial partners.

Back in October, the two bodies presented joint recommendations on the development and utilisation of AI technologies in Austria. Among other things, FORWIT and the AI Advisory Board advocated the establishment of an independent national competence centre for artificial intelligence. ‘The AI Factory Austria and its AI Factory Hub are thanks to the effective collaboration of many stakeholders and are impressive proof of how well the nascent ecosystem in Austria is already working. The hub encompasses key elements of the centre of excellence we are calling for. In addition to service and training offers for different levels and target groups, the low-threshold access to modern AI infrastructure for research projects through to productive tasks should be emphasised in particular,’ says Horst Bischof, Chairman of the Advisory Board for AI. An efficient infrastructure and operational support from experts can accelerate the necessary transformation of industry and administration and thus strengthen Austria as a centre of innovation.

FORWIT and AI Advisory Board call for a comprehensive AI agenda

In view of the increasing speed and dynamism with which artificial intelligence technologies are developing and penetrating all areas of life and the economy, it is also to be hoped that the new federal government will prioritise the topic of artificial intelligence through the State Secretariat in the Federal Chancellery. This would fulfil another joint demand of the FORWIT and AI Advisory Board. ‘In the interests of national and European competitiveness, the federal government is called upon to act quickly in order to make the AI location attractive and fit for the future. With the kick-off of the FWF-funded Cluster of Excellence Bilateral AI last week and the AI Factory Austria this week, the first important milestones have been achieved. Further steps should follow immediately,’ appeals Thomas Henzinger, Chairman of FORWIT. In particular, an updated, comprehensive Austrian AI agenda is urgently needed, emphasise Bischof and Henzinger.

Statement concerning the government’s work programme

FORWIT welcomes the work programme presented yesterday by a new federal government consisting of the Austrian People’s Party (ÖVP), the Social Democratic Party of Austria (SPÖ) and NEOS. The core topics of FORWIT – research, science, innovation and technology development – are addressed in the chapter ‘Education, Innovation and the Future’ (p. 175ff.), which is dedicated to areas such as research governance and funding, knowledge and technology transfer, data, digitalisation and Austria as a location for AI.

In a first statement, Council Chairman Thomas Henzinger is pleased that FORWIT’s recommendations have been taken up in the programme and are now to be implemented.

‘The new federal government has set itself the ambitious goal of achieving a research quota of 4 per cent by 2030. This is a clear commitment to investing in the country’s future. Other FORWIT recommendations were also included in the government programme, such as the extension and increase of the Future Austria Fund, the commitment to an independent next EU research framework programme and the establishment of an umbrella fund to support domestic start-ups. The ‘cultural change in research funding’ aimed for by the government towards more autonomy and competition is to be expressly welcomed,’ says Henzinger.

As the government’s advisory body, FORWIT is ready to support the federal government in its science and innovation policy projects, particularly in the development of the planned Higher Education Strategy 2040.

First Assessment of the Competitiveness Compass

FORWIT’s Europe working group supports the ambitious research and innovation policy agendas set out in the EC’s Competitiveness Compass. In view of the unprecedented speed with which the new US administration is changing the international economic and geopolitical order and how Europe is increasingly being forced into an uncomfortable position between the two power blocs of the USA and China, everything possible must be done to strengthen Europe’s competitiveness and technological sovereignty.

This basic approval should not hide the document’s weaknesses. The large number of planned legal acts and initiatives, which according to the Competitiveness Compass are to be launched in a short space of time, give the impression that old top-down ways of thinking in the form of administrative regulations are to be replaced by new top-down ways of thinking in the form of administrative ‘strategies’. Such a unidirectional approach threatens to fail in the reality of European policy-making. In general, when implementing STI measures, care should be taken to provide scope for bottom-up activities of a scientific-technical and entrepreneurial nature. Only then will it be possible to react adequately to unforeseen developments and maintain the entrepreneurial spirit.

Unclear priorities and the threat of losing proven research instruments

Proven instruments, such as those offered by the Research Framework Programme (FP), should not be thrown overboard lightly. There is therefore an urgent need to clarify the position and role of the FP. The lack of explicit mention of the FP in the Competitiveness Compass gives rise to fears that the Competitiveness Fund will become a shell for financing a large number of programmes, the implementation and strategic development of which will then be spread across several Directorates-General. The working group urgently warns against sacrificing the FP to such seemingly greater efficiency. Instead, consideration should be given to how the FP could be better positioned explicitly within the Competitiveness Fund and provided with a guaranteed funding commitment.

Preserving the autonomy of the ERC and increasing efficiency

The working group also shares the concerns already expressed by various parties about the planned greater integration between the European Research Council (ERC) and the European Innovation Council (EIC). Co-operation between the two institutions is already in full swing. The widely recognised success story of the ERC is essentially based on the strategic autonomy guaranteed to the ERC by the European Commission in the form of the Scientific Council. It would be important to extend this autonomy to the operational level of the ERC and the implementation of the work programmes instead of restricting it through forced adaptation and standardisation.

Finally, the working group emphasises that there are a number of constructive proposals for a more efficient design of the so-called 2nd pillar of the FP, which deal with a stronger and deeper integration of European industrial research – such as the Heitor Report or, most recently, the report ‘Towards an Ambitious FP10’ by CEPS – which need to be taken up and consolidated. Although a ‘polar star’ provides the direction for orientation, it requires a secure and well-marked route in order to reach the destination.

Note

The ‘Europe’ working group is chaired by Helga Nowotny and includes Council members Dietrich Haubenberger, Georg Kopetz, Johanna Pirker, Monika Ritsch-Marte and Tom Henzinger. Their assessment has been edited for length and clarity.

STI decisive factors of power at the global turning point

Geopolitical bloc formation, Europe’s dwindling influence, the dramatic deterioration in European competitiveness, the future of European democracy, freedom and security and the key role of research, technology and innovation were at the centre of this year’s FORWIT New Year’s reception.

In front of representatives from over sixty STI and science organisations, the federal government, the National Council, business and administration, Thomas Henzinger and Sylvia Schwaag Serger addressed the challenges through which national, but especially European STI policy must navigate, and Austria’s science and innovation policy agenda 2025.

Global turning point challenges Europe

We are in the midst of a turning point. Europe is rapidly losing its economic, technological, geopolitical and security influence.
Sylvia Schwaag Serger

Sylvia Schwaag Serger, Deputy Chairwoman of FORWIT, made it clear in her assessment of global developments that this will not be an easy endeavour. ‘We are in the midst of a turning point. Europe is increasingly losing its economic, technological, geopolitical and security influence. At a time when our global significance is more important than ever – for economic development, for combating and mitigating climate change, for the defence of freedom, security and democratic values – we are falling behind in research, technology and innovation.’

The massive upheavals of recent years and the accelerating developments make it necessary to recognise science, technology and innovation as the connecting key elements for national and European security, sustainability and competitiveness. Effective answers must be found in a timely manner to increase the impact of science and innovation and to react quickly and purposefully to new developments.

Europe’s relevance and influence must be significantly strengthened

The aim must be to raise the global relevance and influence of the European Union to the level of the growing blocs.
Sylvia Schwaag Serger

In view of the renaissance of geopolitical bloc formation and the enormous resources that the USA and China are investing in research, technology and innovation, it no longer matters how well an individual European country performs. ‘Research, technology and innovation are power-decisive factors. The aim must be to raise the global relevance and influence of the European Union to the level of the growing blocs. If this does not succeed, the countries of Europe will have to watch as others decide according to which values and in whose interests this global power is used,’ emphasises Schwaag Serger, who is also the main author of the European Commission’s so-called “Heitor Report”.

The science and innovation policy agenda 2025

This will be challenging, not least against the backdrop of Austria’s budgetary situation.
Thomas Henzinger

The geopolitical conditions must therefore also be taken into account in Austrian science and STI policy, which is expected to be a busy and decisive year, says Thomas Henzinger, Chairman of FORWIT. ‘This year will see the mid-term evaluation of the STI Strategy 2030, and the STI Pact 2027-29 must be drawn up and adopted in connection with this. This will be challenging, not least against the backdrop of Austria’s budgetary situation.’

Another urgent item on the STI policy agenda is the need to secure the Future Austria Fund financially and institutionally. It was only in December that forward-looking changes were implemented for the FZÖ on the initiative of FORWIT. ‘Now we need to secure the fund, which expires this year, for the coming years and adjust its financial resources in line with its core tasks,’ Henzinger emphasises FORWIT’s demand.

At European level, the design of the next EU Framework Programme for Research and Innovation (FP10) remains a key issue – FORWIT has already made recommendations on this too. Furthermore, Henzinger continued, the initiative for the European Research Area Act is picking up speed and Commissioner Zaharieva already announced in December that she intends to lay the strategic foundations for an Innovation Act this year. ‘Austria must play an active, committed and formative role in all of these highly relevant topics that are critical for the future of Europe.’

Openness and networking are existential for Austria

It is crucial for Austria to remain an open, tolerant, well-connected and internationally attractive country.
Thomas Henzinger

Competitiveness is also at the centre of attention and, according to Henzinger, this is strongly influenced by how attractive a location is for science and innovation. ‘All countries are competing for the best minds and ideas. It is therefore crucial for Austria to remain an open, tolerant and well-connected country that offers modern education and training opportunities to everyone living here, attracts international talent and is an attractive partner for scientific and research cooperation.’ In order to best master the effects and requirements of the new era, a clear focus on openness, European values and European integration is not only a strategic but an existential necessity.

FORWIT initiative successfully improves the Austrian Future Fund

This sends a clear signal in favour of future-oriented research funding in Austria.
Thomas Henzinger

In May 2024, FORWIT published recommendations for the reorganisation of the Austrian Future Fund (Fonds Zukunft Österreich, FZÖ) and subsequently initiated a structured stakeholder process for further development. Together with the fund’s Board of Trustees, representatives from the BMBWF, BMK, BMAW, BMF and the beneficiary research funding organisations, significant changes have now been agreed and anchored interministerially. ‘This sends a clear signal in favour of future-oriented research funding in Austria and significantly increases the agility and impact of this important research policy instrument,’ says Council Chairman Thomas Henzinger, pleased with the successful conclusion of the process.

More openness, minimum funding limit, critical success factors for measurement

The potential for innovation is increased and risk-taking research projects in science and industry are stimulated.
Sonja Sheikh

‘In concrete terms, for example, we have succeeded in making the National Foundation for Research, Technology and Development’s call for proposals more open in terms of the STI Pact’s fields of action,’ explains Sonja Sheikh, Council member and Chair of the FZÖ working group. ‘This gives the funding agencies more room for manoeuvre, increases the potential for innovation and stimulates risk-taking research projects in science and industry.’

In addition, the new minimum funding limit of €5 million per application increases the leverage effect of the approved funding programmes, as there will be fewer but larger programmes in future.

In-depth impact measurement is a highly important element of successful, sustainable research funding.
Dietrich Haubenberger

Critical success factors are used for the necessary measurement and evaluation of the impact triggered. ‘This involves, for example, the question of which structural deficits are to be remedied with a submitted funding programme or how it contributes to improving the framework conditions of the STI system. A profound impact assessment is a very important element of successful, sustainable research funding,’ explains Council member Dietrich Haubenberger.

Federal government must quickly ensure the continuation of the FZÖ

We would like to thank all the stakeholders involved for their productive collaboration.
Thomas Henzinger

These improvements are the first steps towards the necessary further development of the FZÖ, for which FORWIT has been calling for some time. ‘We would like to thank all stakeholders involved for their productive collaboration. The result makes it clear that we are all working for a sustainable, strong innovation and research location in Austria,’ emphasises Council Chairman Thomas Henzinger. It is now up to the (next) federal government to secure the FZÖ for the future when it expires in 2025 and to provide it with the funds of €200 million per year that the Council believes it needs. ‘The Council will also play a committed and productive role in this process,’ concluded Henzinger.

About the Austrian Future Fund

The National Foundation for Research, Technology and Development, which is funded by the federal government, the Oesterreichische Nationalbank and the ERP Fund, awards grants to federal funding organisations (FWF, FFG, ÖAW, LBG, CDG and aws) to finance cutting-edge research in the fields of basic and applied research as well as technology and innovation development. The basis for the annual allocation is a recommendation by FORWIT, which provides the strategic background for the decisions. At present, the Austrian Future Fund is only secured until 2025.

Hannes Androsch obituary

It is with great respect that we bid farewell to Hannes Androsch, a visionary and tireless shaper of Austria. As Chairman of the Council for Research and Technology Development (RFTE) from 2010 to 2020, he was highly committed to strengthening research, technology, innovation and education – areas that he saw as central cornerstones for the future of our country.

Hannes Androsch was not only a strategic thinker, but also a man of clear words. His metaphors, such as the vivid comparison of a farmer who does not sow today and therefore cannot reap tomorrow, will be remembered as cautionary messages. His credo: Austria’s long-term competitiveness depends on consistent investment in research and education – and even more on how this investment is realised.

Today, it is taken for granted across all political camps that the future of a small, open economy like Austria depends on an active research and innovation policy. It is often forgotten that it took people like Androsch to establish what is taken for granted today. The 2011 referendum on education is just one example of the many initiatives he launched. His many years as Chairman of the RFTE were also characterised by sometimes uncomfortable, but mostly correct demands: for example, higher funding for universities, the expansion of universities of applied sciences, the implementation of the Research Funding Act, more efficient research funding and the facilitation of business start-ups.

Hannes Androsch’s vision of Austria as a leading, responsible and sustainable nation of innovation remains valid. With his death, our country has lost a convinced admonisher, a clever analyst and a passionate advocate of progress and education. On behalf of FORWIT, we would like to honour his services to Austria and express our condolences to his family and all those who were close to him.

Evaluation Talent Award 2024: Jakob Kofler honoured

With this prize, FORWIT and fteval honour outstanding young talent in the evaluation of research and technology policy.

The Austrian Council for Sciences, Technology, and Innovation (FORWIT) and the Austrian Platform for Research and Technology Policy Evaluation (fteval) are delighted to present this year’s Evaluation Talent Award to Jakob Kofler. The award recognises outstanding young talent in the field of evaluation, which contributes significantly to the further development of research policy and creates international attention for the talents in this field. The expert jury consists of experienced experts in research policy and its evaluation – including Council member Sonja Sheikh and Deputy Managing Director Alexandra Mazak-Huemer – as well as the award winners from previous years.

A creative mind for social transformation processes

Jakob Kofler, research associate at the Austrian Institute for SME Research, impresses with his wide-ranging expertise in research, technology and innovation policy.He is particularly interested in analysing social transformation processes and their political implications, which he examines using systems analysis approaches.
His interdisciplinary academic career, including a Master’s degree at University College London under Mariana Mazzucato, shapes his creative and flexible approach. Peter Kaufmann, Deputy Director of the Institute, emphasises: ‘Jakob uniquely combines all the skills needed for evaluation. He has a promising career ahead of him.’ Jakob plans to invest the prize money in AI-supported data analyses and participatory research methods in order to further develop evaluation practice.

Award ceremony at the REvaluation Conference 2024

The Evaluation Talent Award was launched in 2021 to mark the 25th anniversary of the fteval platform. This year’s award ceremony will take place at the REvaluation Conference – European Research and Innovation Policy Evaluation Conference – in December 2024. Jakob Kofler will present his work and have the opportunity to network with leading experts from academia and practice.

Ad Coalition negotiations: Research funding is an investment in Austria’s future

Council welcomes the start of coalition negotiations and provides the parties involved with urgent measures in research and innovation.

The next federal government faces major fiscal challenges. Austria is expected to implement considerable austerity measures over the next few years. FORWIT warns against cutting back on investments in research and innovation, as they will ensure value creation and prosperity in the future.

Investments in research and innovation are investments in Austria’s future

We must not jeopardise the enormous impact of research funding on national and European value creation now.
Thomas Henzinger

FORWIT is keen to ensure that political decision-makers distinguish between expenditure and investment when it comes to the expected budget cuts. ‘Funding for research and innovation is demonstrably an investment in the future of our global competitiveness and thus in our prosperity of tomorrow. We must not jeopardise the enormous impact of research funding on national and European value creation now,’ appeals Thomas Henzinger, Chairman of FORWIT. Most recently, IHS Director Holger Bonin also explicitly excluded research from the necessary cost-cutting measures.

In its recommendation for STI policy in the new legislative period presented in September, FORWIT outlined which measures could have a targeted effect. In the area of research funding, the Council considers the extension and further development of the Future Austria Fund (FZÖ), which expires in 2025, to be essential. ‘With the funds from the FZÖ, it is possible to address emerging developments and thus increase the agility of the national research system,’ explains Henzinger. FORWIT recommends an annual endowment of €200 million for the FZÖ.

Based on its recommendations, FORWIT also calls on the next Federal Government to play an active role in shaping a strong, effective EU Framework Programme for Research and Innovation (FP10). This is essential for Europe’s competitiveness in the world. FORWIT recommends a budget of €200 billion for FP10.

In terms of programme, the Council believes that the next Federal Government should set itself the goal of achieving a research quota of 4% by the end of the legislative period. This is not only a guarantee for Austria’s future viability, says Henzinger. ‘It is also an excellent investment, because every euro invested in research and innovation returns many times over in revenue.’

Negotiate next STI Pact swiftly, develop roadmap for STI strategy after 2030

My fellow council members and I are ready to tackle these pioneering tasks with the next federal government in a timely manner.
Thomas Henzinger

In order to strengthen the effectiveness of STI measures, research funding instruments should not be increased uniformly, but rather developed further in a targeted manner. Rapid action is therefore required to draw up the STI Pact 2027-29 and, before the end of this legislative period, to develop the key objectives and groundbreaking steps for the next STI strategy after 2030. ‘It is FORWIT’s legal mandate to advise the federal government on the design of the STI Pacts and to support it in the development of a new STI strategy. My Council colleagues and I are ready to tackle these pioneering tasks with the next federal government in a timely manner,’ concluded Henzinger.