AUSTRIA — a Place of Scientific Excellence in the middle of Europe
Current Issues in Austrian Research and Technology Policy. The Austrian government has started its technology drive with two special programs: Action Program I for research and technology development, under which an additional EUR 508 million will be made available to supplement the ordinary research budgets of the ministries and the Austrian Industrial Research Promotion Fund for 2001–2003, and Action Program II which will provide an additional EUR 600 million for the years 2004–2006. These funds have been and will be distributed on the basis of recommendations made by the Austrian Council for Research and Technology Development www.rat-fte.at. As a result, it was possible to finance the Austrian genome research programme, GEN-AU, numerous programs designed to promote human resources or priority programs in the fields of nano-technologies, and information and communications technology using funds from the first Action Program.
With regard to the second Action Program, the Council has recommended spreading funds between the following promising new sciences and strategic fields: the new areas of life sciences, information and communications technology, nano- and micro-technology, mobility and transport, the environment and energy, the humanities, social and cultural sciences — and the strategic fields: promotion of human resources, strengthening research capacities in industry and in science, greater internationalisation, and promotion of the dialogue between science and society www.innovatives-oesterreich.at. Program examples include the science-industry joint venture programs (competence centres K-plus www.kplus.at, K-ind and K-net, Christian Doppler Laboratories www.cdg.at ), priority programs with a thematic orientation, programs to position Austria in the European research area, grants and personnel development programs.
Following a recommendation of the Council for Research and Technology Development the Austrian government is in the process of enacting legislation to establish a national foundation to promote research, technology and development. The aim is to make provision for the long-term nature of research projects. The foundation will be funded from the resources of the Austrian National Bank and the ERP Fund; the available volume of funds will amount to some EUR 125 million p.a. Decisions concerning the award of grants by the foundation will be made by a foundation council on the basis of recommendations of the Council for Research and Technology Development. Together with the research budgets of the ministries, the Austrian Industrial Research Promotion Fund (FFF www.fff.co.at) and the government Action Programme it will form the third pillar of research financing in Austria.
The third major innovation in Austrian research and technology policy is a structural reform. Industrial R&T promotion institutions and promotion programs will be integrated in a single company. The advantages are a better use of synergy potentials, existing competences will be optimised; a single contact point for R&T promotion with a significant size will be created, the coordination and calibration of promotion programs will be improved and existing overlaps eliminated.
The fourth part of the Austrian research and technology drive is the reform of indirect research promotion. The research tax allowance will be raised again (from 15% to 25%) and is now one of the most attractive incentives for businesses anywhere in Europe. Parallel to this, the research premium for companies will be raised from 5% to 8%.
Three ministries are the main responsible institutions for Austria's research and innovation — Ministry of Education, Science and Culture — BMBWK, Ministry for Transport, Innovation and Technology, BMVIT and the Ministry of Economy and Labour — BMWA.
BMBWK www.bmbwk.gv.at-
is responsible for all universities (public and private). The new University Act (UG 2002) has been a major step in the further development for excellence of the higher education system. It includes a number of significant elements based on the new principle of full legal capacity of Austrian Universities. Furthermore three new medical universities were set up, based on their tradition as medical faculties within the universities of Vienna, Graz and Innsbruck. The new Medical University of Graz eg focuses on telemedicine, reproductive medicine and public health.
The Academy of Sciences (OeAW), the Wittgenstein and START prizes and a series of basic research programs e.g. the Gen-AU program and essential financing of the Boltzmann Institutes are also topics of this ministry.
Gen-AU Program.
The Austrian Genome Research Program reached almost exactly Euro 100 million within nine years — www.gen-au.at. Two further calls for applications for projects will be made in 2004 and 2007. The decision regarding the acceptance of projects is in the hands of a scientific advisory board consisting of high ranking international experts.
GEN-AU wants to achieve more than new patents and formulas. Genome research touches on a variety of critical ethical and social issues. Within the accompanying program ELSA, social scientists deal with ethical, legal and social aspects of genome research in general and GEN-AU project topics specifically.
Education is another main goal of GEN-AU and summer schools, mobility, post docs and conferences for young scientists are also funded.
Ludwig Boltzmann A new policy starting in 2004 will follow the tradition of the Ludwig Boltzmann Society in being active in the fields of human medicine, humanities, and cultural studies. www.ludwigboltzmann.at
BMVIT www.bmvit.gv.at
is a key player funding three areas of activity: research funds for bottom-up proposals, thematic programs for strategic fields of research and horizontal programmes addressing structural change. More than 250 million Euro is spent annually. While the two funds for the promotion of scientific and industrial research (FWF and FFF) operate well–established bottom–up programs, the ministry's flagship program is the "K plus" competence centre program with 18 centres.
In the field of non-university applied research, the ministry's funds e.g. the Austrian Research Centres — Seibersdorf www.arcs.ac.at. Also the industry in European programs is promoted, most prominently the programs of the European Space Agency.
Austrian Science Foundation — FWF www.fwf.ac.at
is a major Austrian organisation that exclusively funds basic research. The hallmarks and strengths of the FWF funding system are: autonomy, scientific quality as the only criteria for funding, so far exclusively bottom-up applications, equal chances for all scientific fields from biology and medicine, over natural sciences and engineering, to humanities and social sciences, transparent decisions made on the basis of peerreviews exclusively solicited from scientists abroad, thus eliminating national bias.
For example, cutting edge research results are produced in Physics: According to the Institute of Physics, London, two out of the ten scientific "Highlights in physics in 2003", originated from Austria, and excellence is also achieved in other fields, e.g. Papyrus Research and others. Also the Wittgenstein and START prizes for young scientists and special research programs (SFB) are funded by FWF. A new collaborative SFB on "Cell proliferation and cell death in tumours" was established at the Innsbruck Medical University — www.sfb021.at.
Quantum optics and quantum information in Austria. Spectacular results have been achieved during the last years: Zeilinger in Vienna, Zoller, Blatt and Grimm in Innsbruck are the leaders of the main groups in Austria. The OeAW supported by the Austrian Council for Research and Technology Development and the BM:BWK have newly founded an Academy Institute for Quantum Optics and Quantum Information in Innsbruck.
Photonics Institute of Vienna University of Technology. Ferenc Krausz and coworkers have made important contributions to ultrafast laser science. In cooperation with other groups they were the first to generate and measure electromagnetic pulses shorter than 1 femtoseconds www.mpQ.mpg.de. BMWA www.bmwa.gv.at — Science-Industry linkages represent a major bottleneck for the Austrian innovation system. One of the major initiatives undertaken by this ministry is the so called "Kind/Knet" — for the establishment of Competence Centres and Networks www.kompetenzzentren.biz
The Vienna Science and Technology Fund (WWTF www.wwtf.at)
is a new funding agency for science and research in Vienna with an annual budget of approximately 
7 million. Its aims are to strengthen Vienna as a research location and to enhance its position as a city of science and innovation.
Vienna Biocenter www.viennabiocenter.com.
At the Department of Microbiology and Genetics of the Vienna Biocenter, a strong focus on RNA research has developed within the group of Renée Schroeder. With the observation, that several antibiotics target RNA molecules and are able to inhibit RNA catalysis, the idea that RNA is a potential target for therapy was established.
IMP— IMBA www.imp.univie.ac.at, www.imba.oeaw.ac.at.
A flagship of Austrian bioscience became the Research Institute of Molecular Pathology — IMP in Vienna. Together with the newly founded Institute of Molecular Biotechnology (IMBA), headed by Josef Penninger, the IMP forms the 'IMP-IMBA Genome Research Center', a research initiative by Boehringer Ingelheim and the Austrian Academy of Sciences.
BIT — Bureau for International Research and Technology Cooperation -
provides Austrian researchers from academia and industry with information and assistance for participating in European and international programs, initiatives and actions. BIT's clients base in Austria amounts to more than 28.000 researchers and about 14.000 organizations. www.bit.ac.at
Günther Bonn
Austrian Council for Research and Technology Development, Vienna
Industry and R & D "made in Austria" — better than the ruling cliché
Austrian industry is not just positioned by internationally known blue chips and brand names, although the highly industrialized nation ranks number five in GNP per capita in Europe. The prevailing stereotype of the country is still one of a tourist nation with Viennese waltz, Arlberg-skiing, Mozart chocolate medals (Mozartkugeln), and Salzburg festivals.
Only the subtle observer arriving at the Vienna Airport and riding with the brand-new airport-express into the City may notice that the train stops at a station named after an R & D centre, the Campus Vienna Biocenter where more than 1000 people work in academic and industrial research facilities. This campus has become the paradigm of how to move Austrian industry to the international R&D championsleague. It homes three major University departments with a strong research profile in cell and molecular biology, Boehringer Ingelheim's Institute of Molecular Pathology, IMP , one of Europe's best industry–driven basic research units, two Austrian Academy Institutes with research focuses on plant genetics and biotechnology and eight biotech companies including the university spin–off Intercell, often seen as the icebreaker of the country's biotech scene. A train ride from the airport to the city center is no longer only a trip into the cultural past, but also into the industrial future.
Venture money follows scientific and industrial success. So it is quite an accomplishment that especially the Viennese biotech scene was able to attract more risk capital than any other city in Europe in the last 24 months. Last November Intercell closed the largest private equity round of the last two years in Europe with 43.5 Mio Euros, in a "dark period" when Europe has not seen more than 160 Mio. Euros of Biotech VC investment in total. A couple of weeks ago another Austrian biotech firm, Igeneon , reported the closing of its third international VC round with respectable sum of more than 26 Mio. Euros. This Company is a spin off of the Novartis' Viennese R & D center that has succeeded the former Sandoz research centre, an example that pharmaceutical industry had recognized the fertile ground of Austria for high tech investments decades ago. A couple of Novartis' blockbusters have taken their origin at the Viennese site. Also Boehringer has a long history in entertaining a strong R & D unit in Vienna where already in the early eighties cloning and production of therapeutically important proteins were pioneered. The deep routes of Austrian biotech are best exemplified by former Immuno; a spin off from the Viennese University at a time when the term biotech had not even been coined. Starting with blood products, the company has profitably launched novel vaccines, went to the stock market in Zurich and was then acquired by Baxter . The pharma company has now selected Austria as the hub for its R & D in vaccines and biologics and already started to invest into another R & D centre in Vienna at the campus of the agricultural University. Successful biotech industries and even more R & D centres are also growing outside of Vienna. Examples are Sanochemia in Burgenland and the emerging biotech clusters in Krems and Tulln, Lower Austria . Also the other University Cities of the country are not resting; e. g. a number of biotech start ups engaged in various R & D areas have spun off from academic institutions in Graz and Innsbruck .
Austria knows when to help. Today, various public and governmental support programs, e. g. AWS , FFF , LISA , and also University initiatives help to seed novel industry clusters.
Biotech is clearly not the only Austrian example where R &D is integrated into small and medium–sized (S & M) high-tech companies. Physics, chemistry, material and engineering sciences have been historically the key engines that have nurtured Austria's S & M companies with R & D enabling them to compete with specialized high tech products worldwide. The automotive R & D cluster centred around the automobile and car supply industry of Styria and Upper Austria is a brilliant model of how academic engineering sciences and company R & D can be organized into a centre of excellence in engineering of international recognition, to name only one example. — The technology and manufacturing know–how behind BMW is more Austrian than most Germans would think. Others are VA tech or Boehler Uddeholm . But also soft and hardware IT industries form R & D centers. A remarkable example of an R & D driven company that has placed the country on the map of cutting edge chip industries is Infineon technologies Austria . Another global success story is AT & S .
The overall encouraging trend has, however, not yet been driven to an optimum. Therefore based on the National Research and Innovation Plan developed by the Austrian Council for Research Technology and Development, will not only promote basic research but also industrial research and technology institutions and programs within Austria. Focused contact points will be important for this coordination and the existing overlaps should be eliminated. Nevertheless the local venture capital (VC) scene has to be more developed. Too many tenured positions paralyse not only the development of Austrian academic institutions, but also lower the incentive of academic scientists to become entrepreneurs. Devastating tax rules punish founders owning more than 1% of their start–ups who have to pay income tax (50%!) rather than capital tax (25%) when cashing in their equities, once their companies are launched. Collaboration between academia and industry is still ruled by the paradigm that University institutes become rather the extended lab bench of established industries than the source of VC–financed start–ups.
Therefore more than 300 Mio. Euro will be invested by the government in 2004 for free (FWF) and orientated basic research in Austria. Several R & D programs which form the connection between basic research and industry, and applied research and development have been positively evaluated by the Austrian Council for Research and Technology Development www.rat-fte.at and are the fundamental basis for successful applied research in economy and industry.
Nevertheless the potency of Austria's industrial R & D is frequently underestimated, it feeds a competitive high tech industry and is in a dramatic process to become restructured in relevant clusters and centres of excellence that clearly show that the tourists' clichés about Austria have to be revised.
Prof. von Gabain, CEO — Intercell
Vienna, the capital of Austrian life science by Gertraud Unterrainer
Austria's life science industry is centred on three distinctive clusters in Graz, Tyrol and the region of Vienna which encompasses the capital city and surrounding biotech hot spots in Lower Austria and Burgenland.
Excellent research facilities with proven track-record..
With 5 independent universities conducting life science research, Vienna plays host to most of the Austrian academic research output and Vienna-based institutions are world renown in the fields of Oncology, Immunology and Dermatology.
This may be one reason why scientists relocate to the Universities and research organisations of Vienna to pursue successful careers after gaining international reputations abroad. Josef Penninger for example, a leading bioscientist from the University of Toronto, moved back to Vienna in 2003. Of course, a high standard of living might also influence any decision to relocate and in a recent study by Mercer Human Resource Consulting, Vienna ranked world-wide with Vancouver in joint third place for quality of life.
Historically, Vienna has always had a strong track record in application-oriented sciences such as bio-processing. Much of the research carried out in these areas has led to commercially successful enterprises and Vienna offers innovative ways of exploiting that knowledge. The competence center ACBT (Austrian Center of Biopharmaceutical Technology, www.acbt.at), for example, is an initiative between the Institute of Applied Microbiology, the University of Natural Resources and Applied Life Sciences, the University of Innsbruck, Polymun (a biotech company) and two large pharmaceutical companies, Sandoz and Boehringer Ingelheim Austria. This consortium develops novel methods and technology platforms to improve the production efficiency of pharmaceutically important proteins.
..and emerging areas
Additional areas of life science-related research are now also emerging. Bioinformatics is still a relatively unexplored field in the regions' research institutions. However, the huge potential of the technology and ever increasing demand for new approaches to structure information in addition to more traditional "wet" laboratory settings have convinced the Viennese government organisations that additional capacity needs to be transferred to the region. The Vienna Science and Technology Fund (WWTF) is a non profit foundation and has decided to fund the first "Vienna Science Chair" for a group leader position in the field of bioinformatics. Research institutions in Vienna can apply for a full-time position for a scientifically outstanding researcher from abroad, hopefully leading to a "race" to capture the best researchers in the field. WWTF support is a maximum of 1.5 million EUR with additional funding derived from the research institution and covers a five year period (www.wwtf.at).
Attractive business environment
Commercialisation of scientific output is of primary importance and the Vienna region is well prepared. Although most of the "hype" surrounding biotech was over when the first start-ups were founded in the late nineties, many have performed outstandingly, as the following examples may illustrate: Igeneon focuses on the development of immune-based cancer therapies and is now developing a lead-product which is in phase III clinical trials. Intercell is one of the "oldest" biotech companies in the region founded in 1998 and was ranked among the top 10 biotech companies in Europe by Tornado Inside in 2003 and in the same year, raised 50 million USD venture capital in a highly competitive financing environment.
Several federal and regional programs focus on the facilitation of spin-off company development from Universities including the AplusB programs or special initiatives such as LISA (Life Science Austria), a federal program sponsored by the Ministry of Economic Affairs and Labour. The City of Vienna through the Centre of Innovation and Technology (www.wwff.gv.at) has also founded the LISA Vienna Region (www.vienna.lifescienceaustria.at) as an initiative to help companies in the region develop faster and more successfully. LISA Vienna Region serves researchers and companies by providing networking, coaching and financing activities in a "one-stop-shop" format. This initiative again illustrates the strong political commitment towards bioscience that has enabled the region to develop an increasingly attractive profile in the life sciences.
Larger, established companies will also find an attractive setting in the Vienna Region. The federal government recently lowered corporate income tax and companies gain attractive tax shields for R&D expenses.
Curious to learn more? Vienna offers excellent opportunities for both researchers and business. Contact the Vienna Region office for further information.
Life Science Austria Vienna Region
mailto: Email: office@vienna.lifescienceaustria.at
http://www.vienna.lifescienceaustria.at
The rise of the Tyrolean Bioentrepreneurship By Laco Kacani
Biotech industry has a long tradition in Tyrol. Scientists at Biochemie Kundl developed the first orally available penicillin in 1952 and the first recombinant protein (interferon) was produced in this facility already in 1981. Especially in the biopharmaceutical production area, the province has developed considerable industrial capacities at the Sandoz Generics in Kundl (the subsidiary of Novartis Pharma, former Biochemie Kundl) and at Gebro Fieberbrunn. Sandoz Generics recently launched a new manufacturing plant with an investment of more than 50 million. This large-scale eukaryotic cell culture facility opens the way to the technology and production of recombinant proteins such as therapeutic antibodies. At present, almost 3,000 people are employed in the Tyrolean biopharmaceutical industry that produce 1.1 billions turnover per year.
According to a study conducted by the Boston Consulting Group and Partners, the research achievements in the field of bioscience provide the Tyrol with favorable conditions for the development of an internationally significant life science region. To implement this vision, local government founded Tyrolean Future Foundation with the aim to stimulate the setting up of competence centers, regional clusters and the settlement of innovative enterprises from the high-tech industry. Two competence centers in the areas of medical technology — Center of Competence Medicine Tirol (KMT) — and in medical informatics — Health Information Technologies Tirol (HITT) have been recently established. These centers, together with the university founding center CAST (Center for Academic Spin-offs Tyrol), project.service.buero (psb — project service office of the University of Innsbruck) and Prisma (The Centre for Regional and Location Development) jointly shape 'Life Sciences Tyrol' — a network of institutions working towards strengthening the position of Tyrol as a significant biomedical location. HITT is the first center of competence in the German-speaking world focusing on medical informatics and provides the platform for innovative Tyrolean enterprises researching and developing IT-based solutions for health care. Main products are multimedia-based electronic patient files, the imaging and optimization of medical processes and resources, communication and networking for hospitals and clinics, as well as telemedical solutions. Lead by the mission statement 'networking health', HITT has established a network of 10 companies and 20 research projects.
The second competence center — KMT — is coordinating 13 research projects conducted by 11 start-up businesses and research institutions, working in the fields of medical technology, bioanalytics and cell therapy. In October 2003, KMT started its most recent initiative, the Life Science Cluster Tyrol. Meanwhile, the cluster involves more than 50 small, medium and big enterprises covering various areas of life sciences. "We coordinate the Life Science Cluster Tyrol and provide the central contact to various businesses that participate in the cluster" explains Gordon Koell, the CEO of KMT. "The added value of the cluster results from a wide range of offered services, starting with regular branch-related information, through the organization of dedicated events till the management of cooperative projects" Koell emphasizes.
The ability to fill the pipeline of new small or medium enterprises and academic spin-offs with high-tech products largely depends on the capacity of local universities and research institutions to generate basic knowledge. Since its founding in 1669 the University of Innsbruck is western Austria's largest institution of higher education and research and serves as the home university for Tyrol, Vorarlberg, South Tyrol and Liechtenstein. Four scientists of the University of Innsbruck have received the Nobel Prize: three in Chemistry and one in Physics. The University of Innsbruck is organized in six faculties and 87 departments with almost 1,600 staff and 25,000 students. It provides students and lectors with a friendly environment to learn, teach and conduct research. The main emphasis of the life science research at University of Innsbruck is placed on the quantum optics, biomolecular research and nanotechnology. The newly founded Innsbruck Medical University with 33 departments and clinics, 900 employees and 3,700 students has been recently outsourced from the University of Innsbruck as a result of the new University Organization and Studies Act. Basic and clinical research at the Innsbruck Medical University focuses on cancer and functional proteomics. UMIT - the University for Health Sciences, Medical Informatics and Technology is the first private university in the German-speaking world in the field of medical informatics. Postgraduate Management Center Innsbruck offers degree programs in a wide variety of subjects including medical science. Finally, the Tyrolean Cancer Research Institute and the Institute for Biomedical Aging Research of the Austrian Academy of Sciences with the focus on cancer research and gerontology, respectively, extend the range of regional research institutions.
Although Tyrol has an outstanding international reputation in many fields of life sciences, the commercialization of scientific results has not been promoted strongly enough. The main reason for the weak entrepreneurial spirit lies in the poor cooperation between university, research institutions and the business world. New legal framework and institutional infrastructure should guarantee a high degree of integration between academia and the business world. The Universities in Innsbruck already receive invention disclosures from scientists and evaluate these disclosures regarding their commercial implementation. When possible, the university founding center helps in the process of spin-off formation by providing professional support in the process of turning a business idea into a viable business. The Center for Academic Spin—offs Tyrol — CAST provides professional coaching for spin-offs from the Universities in Innsbruck, the Tyrolean Cancer Research Institute, and the Institute for Biomedical Aging Research of the Austrian Academy of Sciences. At present, CAST is working on 22 projects transforming research results into business ventures. "Depending on the project requirements, we offer support in the field of intellectual property rights, provide business know-how and infrastructure including office and laboratory space, networking and financial support, and in certain cases the interim management" explains Christian Mathes, the CEO of CAST. "After launching a successful business venture, we also take care of the subsequent financing", Mathes continues. CAST provides a wide range of support activities — apart from consultancy and networking services — which cover start-up funds and venture capital for entrepreneurs", Mathes points up.
With the implementation of the new University Organization and Studies Act, academic staff lost its protective status as public servants. This reform in terms of employment should enable an increase in the national and international mobility of university researchers and between the worlds of academia and business. The University of Innsbruck established the project.service.buero (psb) as a link between university and the external public bodies, business partners and other stakeholders. "In every phase of their career - by the choice of suitable funding, the application process, the contract negotiations, the implementation of the project including its completion and the subsequent marketing of project outcomes — researchers can access the knowledge and administrative resources of our service center", emphasizes Kurt Habitzel, the head of the psb of the University of Innsbruck. The services cover a consultancy for a wide range of regional, national, European and international funding programs as well as project management.
About 12.000 Austrian researchers in the field of life sciences are working and living abroad. Particularly the USA and Germany are attracting scientists from Austria by offering better employment and career opportunities, either in academic world or in the business sector. Tyrol is now starting to counteract this process of brain drain. A spin-off team from the Technical University Munich decided to found its business in Innsbruck. "Our decision was influenced by positive environment, branch mix and economic conditions. We benefit from the cooperation with the Universities of Innsbruck, with Life Sciences Tyrol and the support of Austria Wirtschaftsservice (AWS)" comments Holger Bock, managing director of Ugichem GmbH that is being financed by the Austrian seed capital program. Such an alliance between scientific, regional and entrepreneurial institutions together with a favorable attitude towards the establishment and enforcement of robust biomedical brand constitutes an essential precondition for growth of the academy-to-business transfer in Tyrol.
In case of questions or concerns do not hesitate to contact us:
- CAST - Center for Academic Spin-offs Tyrol
- Mitterweg 22
- Phone: +43-512-282283-0 :
- Fax: +43-512-282283-70 :
- E-mail: Email: office@cast-tyrol.com
- For further information visit our websites:
- http://www.cast-tyrol.com :
- http://www.kmt.at :
- http://www.hitt.at :
- http://www2.uibk.ac.at/service/c126/
