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International Outsourcing of Research and the Dynamics of Research Work in Austria

  • Klaus Friesenbichler


Austrian businesses have been increasing their overall external and foreign re-search and development efforts in recent years. However, in-house R&D expenses continue to make up the bulk of innovation expenditures. Growing internationali-sation appears not to have had a substitution effect on Austrian innovative ca-pacities, since R&D staff numbers have been growing as well. The scope of pur-chased foreign research varies between industries in accordance with industry characteristics, such as the degree of internationalisation and so-called sectoral innovation systems. Such variations in the development of R&D personnel, on the other hand, reflect changes in the Austrian industry structure. In spite of evidence to the contrary, the possible loss of competitive advantages in R&D would consti-tute a long-term drawback in the competition for locations, which is enormously arduous and tricky to overcome. Austria has to improve its innovative capabilities in order to avoid this hazard, i.a. by investing in education or a stronger involve-ment in international innovation systems, which should further facilitate technology transfers.

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Article provided by WIFO in its journal WIFO-Monatsberichte.

Volume (Year): 79 (2006)
Issue (Month): 1 (January)
Pages: 41-51

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Handle: RePEc:wfo:monber:y:2006:i:1:p:41-51
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