Pulsating biotech location

The who’s who of the biotech industry relies on Austria. Takeda Vienna is home to one of the world’s largest plasma processing plants and its global R&D centre for plasma innovations. The Japanese firm is once again making a three-digit million euro investment for biopharmaceutical research and development in Vienna. This comprises the largest R&D investment in Austria ever by Takeda, which has operated in the country for nearly 70 years. Approximately 250 researchers will work at the facility, focusing on biotechnologically produced pharmaceuticals and gene therapies. All this is accompanied by the digitisation of R&D work supported by innovative technologies such as robotics, augmented reality, artificial intelligence and process simulations by means of digital twins.

In April, the German pharmaceutical company Boehringer Ingelheim attracted widespread attention due to its large-scale investment in Austria, once again, this time involving a climate-neutral “green factory.” The new production plant will be built in Lower Austria, with the ground-breaking ceremony for the €1.2bn project scheduled for 2023. In the fall of 2021, Boehringer Ingelheim already opened a new production building in Vienna at a cost of €700m within the context of the largest single investment in the company’s history. According to Philipp von Lattorff, General Manager of Boehringer Ingelheim in Austria, the underlying reasons are obvious. “Austria has emerged as a centre for research and biotechnology, the necessary support is provided by government policies and attractive conditions exist,” he says.

In July 2022, Boehringer Ingelheim took another step towards expanding and strengthening its Viennese facility. A new research building will create additional space for cancer research in Vienna, providing a state-of-the-art, energy-efficient and sustainable working environment for more than 150 researchers. The company is once again making investments of about €60m.

The Swiss pharmaceutical giant Novartis began producing medicines in a Tyrolean brewery in 1946. Today the most important production facility in the global Novartis production network is located there. In the spring of 2022, the company once again opened a new production plant for biopharmaceuticals in Austria. Novartis has invested about €900m at its Kundl/Schaftenau site in Tyrol since the year 2010.

A convincing ecosystem

More than 980 companies operate in the fields of biotechnology, pharmaceuticals and medical technology in Austria, including Ottobock, Octapharma, Merck MSD and Pfizer. They employ a workforce of 63,000 people. 55 research facilities are completely or primarily devoted to the field of life sciences. Every second biotech company is located in the hotspot of Vienna, where a leading research centre, namely the Campus Vienna BioCenter, was established. "Public private" partnership (PPP) models like COMET and the Christian Doppler laboratories as well as clusters such as LISAvienna, Life Sciences Tyrol, Human.technology Styria, Technopol Krems and the Medical Technology Cluster of Business Upper Austria complement research institutes as interfaces to highly innovative companies. Vienna General Hospital is among the largest in Europe and works closely together with the Medical University of Vienna. The 30 university clinics, two clinical institutes, thirteen medical theory centres and numerous, highly specialised laboratories make it one of Europe’s most important, cutting-edge research institutions for biomedicine.

Production and platform technologies

A large number of companies in Austria, such as BASF, ZETA, Bilfinger and VTU, provide basic technologies for the entire value chain in production processes. These technologies range from good manufacturing practice (GMP) know-how for the development of pharmaceutical plants alongside firms manufacturing plasma, special enzymes and other biological substrates to stem cell products used for repairing bones, cartilage and muscle tissue. The close collaboration between universities, research centres and industry, as well as well-educated, experienced scientists, experts and technicians on the ground, ensure the highest-quality products and services.

Research tax credit as a unique selling proposition

Austria is ranked among the top nations internationally, featuring a research ratio of 3.26% in the current year, and is considered a “strong innovator.” Prominent large-scale projects confirm the outstanding framework conditions conducive to innovative companies in Austria. The 14% research tax credit combined with direct research funding is frequently the decisive factor for both multinationals and startups in their selection of a business location, and absolutely comprises a unique selling proposition for Austria.
Life sciences companies can also take advantage of specific funding initiatives. The Austrian Life Sciences programme offers customised funding packages for the entire development cycle and for clinical studies. The Life Sciences Call 2022 provides up to €1 m to support clinical supports and up to €4m for flagship projects.

Highly qualified specialists, also outside of the university

The high educational level and the possibility to recruit skilled employees represent important reasons for the massive expansion of operating facilities in the Alpine Republic. A total of 77,000 students are enrolled in life sciences study programmes. Austria also stands out thanks to practice-oriented teaching and its higher technical schools (HTL). The issue of recruiting is also highlighted by Philipp von Lattorff of Boehringer Ingelheim: “I am still surprised how our recruiting team manages to find so many employees within such a short time. We have hired close to 900 people since the beginning of the coronavirus pandemic.”

Central geographical location

Austria is the ideal starting point for globally operating companies aiming to expand in Europe or conduct European-wide clinical studies due to the country’s location in the heart of Europe. All European capitals are easily accessible from the Vienna hub in just a few hours flight time.

ABA: the first point of contact

The Austrian Business Agency supports companies with customised services at no cost on all issues relating to the business location, setting up operations and searching for skilled employees.

ABA links companies to research institutes, funding institutions and other key players, assisting in finding laboratory space and providing information on all issues ensuring a successful start in Austria.

Contact us:

Austrian Business Agency (ABA)
Ms. Marlis M. Müllner
T. +43 676 898 590 239
m.muellner@aba.gv.at
www.investinaustria.at