Austria to Allocate €17.6 Billion for R&D by 2026, Third in EU

Austria is poised to allocate approximately €17.6 billion towards research and development (R&D) by 2026, based on projections issued by Statistik Austria. This investment will represent 3.34% of the nation's nominal gross domestic product (GDP), ensuring that Austria retains a strong ranking, even with a slight decline from 3.39% in 2025.

According to Manuela Lenk, Director of Statistics at Statistik Austria, this level of funding positions Austria among Europe's leaders in R&D. This investment is expected to secure Austria's rank as third in research intensity within the European Union.

A significant portion of the R&D budget will be provided by local businesses, anticipated to contribute around €8.9 billion—approximately half of the total investment. This includes advantages from tax-related research support initiatives, such as the research premium.

Furthermore, the public sector is set to provide nearly €5.8 billion, representing 33% of the overall funding. Of this, about €4.8 billion is expected from the federal government, with Austria's federal states contributing roughly €770 million.

Moreover, around €2.9 billion, or 16% of total R&D investment, is projected to come from international sources, primarily from multinational companies operating across various locations.

In the context of EU research funding, Austria remains competitive. Preliminary data for 2024 show Sweden leading with a research intensity of 3.56%, followed closely by Belgium at 3.36% and then Austria at 3.34%.

Other major EU economies show weaker performance; for instance, Germany's research intensity is 3.13%, while France and Italy lag behind at 2.18% and 1.38%, respectively, falling below the EU-27 average of 2.24%.

Austria's substantial investment underscores its commitment to innovation, research, and economic growth within Europe.