Austria - Country Commercial Guide
Digital Economy
Last published date:

Overview 

Austria is expected to positively contribute to the EU’s Digital Decade targets. The country excels in key areas such as digital skills, the integration of digital technologies, and digital public services. However, more work is needed in developing digital infrastructure.

Austria is focused on further improving its performance and is showing greater ambition. The vision “Digital Austria in 2040-2050,” which embodies the principles of a digitally responsible society, serves as the foundation for Austria’s digitalization strategy. This vision, along with its guiding principles, provides the framework for the Digitalization Strategy (Digital Action Plan Austria), which includes chapters addressing priority areas identified by relevant departments, all aligned with the EU’s Digital Decade policy program. This plan encompasses several key components:

Expansion of Digital Infrastructure:

  • Broadband Connectivity: Investing in high-speed broadband network expansion to ensure nationwide coverage, including in rural and underserved areas.
  • 5G Rollout: Promoting the deployment of 5G networks to facilitate advanced digital services and applications.

Innovation and Technology Development:

  • Support for Startups: Providing funding, resources, and mentorship to technology startups and innovators.
  • Research and Development: Investing in R&D for emerging technologies such as AI, blockchain, and quantum computing through public-private partnerships.

Development of Digital Skills and Workforce:

  • Education Programs: Enhancing digital skills through reforms and training initiatives in schools and universities.
  • Reskilling Initiatives: Offering programs to help current workers acquire new digital skills relevant to the evolving job market.

E-Government and Digital Services:

  • Online Public Services: Developing and expanding digital platforms for public services to improve efficiency and accessibility.
  • Digital Identity: Implementing secure digital identity solutions to streamline interactions with government services.

Support for Business Digital Transformation:

  • SME Digitization: Providing support and incentives for small and medium-sized enterprises to adopt digital technologies and enhance their operations.
  • Industry 4.0: Promoting the integration of digital technologies in traditional industries to boost productivity and innovation.

Data Protection and Cybersecurity:

  • GDPR Compliance: Ensuring strict adherence to data protection regulations..
  • Cybersecurity Measures: Strengthening cybersecurity infrastructure to guard against digital threats and cyber-attacks.

Sustainability and Digitalization:

  • Green Technology: Encouraging the development and use of digital solutions that contribute to environmental sustainability.
  • Smart Cities: Implementing smart city technologies to improve urban living and reduce environmental impact.

International Collaboration:

  • EU and Global Partnerships: Participating in international cooperation on digital issues, including EU digital initiatives and global technology networks.
  • Most laws are set at the EU level. The Digital Economy Chapter of our Country Commercial Guide for the European Union provides a more comprehensive overview.  
  • Austria’s digital economy plan aims to build a dynamic digital ecosystem that drives economic growth, fosters innovation, and enhances competitiveness, while ensuring that digital advancements benefit all sectors of society. The Federal Ministry of Finance oversees digitalization matters, including the implementation of the Digital Action Plan.


Market Challenges  

Austria has ambitious plans to enhance its digital infrastructure and services, but several challenges impact the success of these initiatives:  

  • Infrastructure Gaps: While Austria’s digital infrastructure is relatively advanced, some rural areas still lack high-speed internet and modern facilities. Bridging these gaps will require substantial investment.
     
  • Cybersecurity Issues: As digital systems become more integrated into daily life and business, ensuring robust cybersecurity is crucial. Austria must address potential vulnerabilities and implement strong security measures to protect sensitive information and maintain public trust.
      
  • Regulatory Challenges: Complying with complex EU regulations, such as GDPR, and varying local requirements can create bureaucratic hurdles. Aligning national strategies with EU directives while meeting local needs ca be challenging.
      
  • Skills Shortage: Effective digital transformation depends on a workforce with the necessary skills. Addressing gaps in digital literacy and technical expertise through targeted education and training is essential.
      
  • Public Sector Modernization: Incorporating digital technologies into public services can be slow and face resistance within institutions. Comprehensive digitalization strategies are needed to overcome these delays.
      
  • Digital Divide: Ensuring that all population segments, including marginalized and older groups, have access to and can benefit from digital advancements is a significant challenge. Addressing this divide is crucial for inclusive growth.  

Addressing these challenges requires a coordinated effort involving government, industry and educational institutions, which is essential for successfully implementing Austria’s digital plans and ensuring benefits for all citizens.  


Digital Trade Opportunities 

Austria’s digital plans present several promising business opportunities across various sectors:

  • Telecommunications and Internet Service Providers (ISPs): With the initiatives to improve high-speed internet access, there is an opportunity for ISPs to expand their infrastructure and offer service in underserved areas, including rural and remote regions.  
     
  • Cybersecurity Solutions: As digital systems become more integral to businesses and government operations, the demand for advanced cybersecurity solutions will grow. Companies specializing in cybersecurity services, software, and consulting can find ample opportunities.
     
  • Fintech and Digital Payment Solutions: With a focus on digital transformation, there’s room for innovation in financial technology, including digital payment systems, blockchain solutions, and mobile banking platforms.
      
  • Health Tech: The integration of digital solutions in the healthcare sector, such as telemedicine, electronic health records, and health data analytics, provide opportunities for companies to developing technology to improve patient care and streamline healthcare services.
      
  • Education Technology (EdTech): As digital tools become more prevalent in education, there are opportunities for EdTech companies to offer online learning platforms, digital classrooms, and educational software that enhance learning experiences.
      
  • Software Development and IT Services: There is a growing demand for custom software development, cloud services, data analytics, and IT consulting to support digital transformation initiatives across various industries.
      
  • Data Analytics and AI: Companies providing data analytics services and AI solutions can capitalize on the increasing need for data-driven decision-making and automation in both public and private sectors.
      
  • Digital Infrastructure and Hardware: The expansion of digital infrastructure creates opportunities for companies involved in providing the necessary hardware, such as servers, networking equipment, and other technology components.  

Opportunities for doing business with the EU institutions are handled through public procurement. Projects above certain financial thresholds (depending on the product or service involved) are posted on the Tenders Electronic Daily (TED) platform. Designed to make public procurement accessible to a larger pool of qualified bidders, the database can be searched by vendors according to a unified set of codes. The list of codes can be found here: https://www.publictendering.com/cpv-codes/list-of-the-cpv-codes/. For detailed information governing the public procurement market in the EU please see the EU single market public procurement website and the U.S. Commercial Service European Union Country Commercial Guide.


Helpful Resources:

  • U.S. Department of Commerce, International Trade Administration, Industry & Analysis Office of Digital and Emerging Technology Service (DETS)  
  • National Trade Estimates Report – Digital Trade Barriers  
  • United States International Cyberspace & Digital Policy Strategy - United States Department of State  
  • Digital Austria
  • Austrian Federal Ministry of Finance – Digital Skills & Jobs Platform