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Promotion of technology

The development of the Salzburg Technology Centre since 1988 marked the start of a strategic technology policy. Companies from the fields of automation, software, telecommunications, environmental technology, leisure technology and multimedia business that are willing to become established in Salzburg are offered space in a complete network of technology centres. The Salzburg Technology Centre is the largest in Central Europe. In its working agreement the Salzburg regional government acknowledges the status of Land Salzburg as a location for technology and is committed to further developing its independent technological profile. In 1999 a well endowed “Foundation for the Future” was established with the aim of intensifying technological and innovative processes. Assets amount to 77 million Euro. This project is unique in Austria. As next step forward construction has started for the University of Applied Arts at Puch-Urstein.


Salzburg the high-tech land
Over the past decades Land Salzburg has attained a leading economic position both in Austria and in comparison with the rest of Europe. The net per capita output is well above the Austrian and European average and has exceeded the 15 billion Euro mark. Since the Second World War, economic growth in Salzburg has generally been above average. The strength and dynamism of the region can ultimately be seen in the fact that Salzburg pays far more taxes to the central government than the amount of money that flows back to the land. Salzburg’s special geographic situation in the midst of the powerful economic region Munich - Stuttgart - Milan has always been advantageous but at the same time presents a challenge. Since Austria became a member of the European Union, links with Munich and its surroundings - a region particularly active in the field of communications - innovation and co-operation have been intensified.

No resting on laurels
Salzburg’s excellent economic figures and the advantageous geographical site must be fully exploited by an aggressive policy as regards technology. Salzburg’s politicians, representatives of industry and employees all agree that every possible step must be undertaken to create the appropriate conditions for high-tech enterprises and to offer international companies incentives for developing high-tech products in Salzburg. In Salzburg it is obvious that more action is needed than for politicians merely to hold speeches. Great efforts are made to attract companies to the area, there are technology and innovation consultancies, relevant university courses and specialised shorter-term courses, subsidies for investments; there is the Salzburg Techno-Z, the largest concentration of high technology enterprises in Austria, where resources are amalgamated, and direct grants are awarded to particularly innovative enterprises.

Expertise for the future
In future, as competition on a European and international level between nations and lands becomes increasingly fierce, the central economic and political challenge will be to maintain the high quality of Salzburg as an economic location and to further expand it. In the coming years it is therefore important for Land Salzburg to continue the offensive already initiated in the field of high technology. Structural change in favour of high technology must progress so as to ensure that a range of highly qualified jobs are available and to guarantee attractive service and supply industries, as well as a high level of income. Salzburg is therefore especially committed to a policy of expanding technical research and training centres, transfer of expertise and strategic cooperation. Possibilities for training and further training in technological fields in Land Salzburg are therefore constantly under review to ensure that they are internationally competitive, and where necessary adjustments are made and supplementary courses offered.

Top quality technology
By establishing the Salzburg Technology Centre - the largest in Central Europe - Land Salzburg has succeeded in making a first important step in a dynamic development. High tech companies on the seven Techno-Z premises number 200 with some 1,200 employees. In addition research institutions, University of Applied Arts, University of Salzburg, various other educational facilities and student dorms. Techno-Z Salzburg offers 25,000 square meters space for offices, storage, businesses, parking and housing. These are jobs for highly qualified specialists. Particular emphasis for these new establishments is given to companies from the computer and software branch as well as multi-media enterprises. An investigation and study of potential found that the timber industry and digital media are two areas especially suitable for development in so-called "clusters" or for introducing them into national clusters. A further aim is to develop Land Salzburg as one of the leading telecommunication regions in Europe. This is supported by setting up a foundation for the future with sufficient funds in order to finance scientific, research, development and technology projects as well as creating a special "Department for the Future" and a regional policy offensive entitled "Salzburg for the Future". At present there are seven regional innovation centres concentrated in the Techno-Z Association. Salzburg-Itzling, Pfarrwerfen, Bischofshofen, Saalfelden, Mariapfarr, Uttendorf and Zell am See.

Salzburg as an attractive economic location
The economic mix of service industries, manufacturing and production industries guarantees a qualitatively high valued and balanced growth of work and employment. By avoiding unnecessary bureaucracy, specific support for companies wishing to settle and expand in the region and by improved marketing of the location, Salzburg has established itself as one of the most attractive regions for investment in Europe. The Salzburg LandInvest Limited company gladly offers help to any company willing to settle in the region and offers service enterprises interested in technology an attractive location. Another centre of information for interested enterprises is the Salzburg Agency Ltd., which sees itself as a "one-stop-shop" for everyone who is interested in making investments in Salzburg. The Salzburg Agency finds and assists investors, promotes targeted location marketing and conveys suitable subsidy arrangements and venture capital. However, so as to be able to take action as specific as possible in the areas of location policy, company settlement policy and regional policy, it is necessary and desirable to concentrate the organisational and spatial activities of LandInvest, the Salzburg Agency, the economics department of Land Salzburg and the department of land planning policy of the city of Salzburg in a combined "Business Centre".

Centre of gravity with cross-border attractions
Salzburg is the centre of gravity for technological development. The Techno-Z Association with its flagship in the land's capital has an integrative effect extending well beyond the borders of the land and which also encompasses the area around Berchtesgaden and the Innviertel. This integration makes sense: every new enterprise in the region of Salzburg, Freilassing or in the Innviertel needs the central services provided by the city of Salzburg, for instance, business consultancy services or the supply industries. The aims of the Techno-Z Association (the proprietors are the Raiffeisenverband, the Sparkasse, the Landeshypothekenbank and the Volksbank) are to create further areas of employment through outsourcing and tele-working in the southern parts of the land, to attract and locate new intelligent companies which make use of Salzburg’s cultural image, to promote existing creative enterprises and create additional jobs in the centres of technology.

Salzburg provides high-tech specialists
For these important plans and the progress already achieved it is clear that Salzburg has to provide sufficient highly qualified specialists for the companies, and here too decisive steps have already been taken. Salzburg has an Institute of Computer Sciences at the University of Salzburg which moved into a new building in the Technology Centre Techno-Z in 1995, thus guaranteeing close contact between training and industry. In 1995 a special university course was introduced for telecommunication technology and telecommunication systems and successful students graduate with the degree Dipl.-Ing. FH. All the graduates of the 1995 course found a qualified job. Since 1996 there has also been a special university course for multi-media art to train specialists for these branches which have a promising future. The third course, information business and management (1998), provides training for the economic experts, who, besides the creative forces, are indispensable to companies. In 2001 two new courses, “Development and Management of Tourist Services” and “Digital TV and Interactive Services”, were introduced. The training system of the Techno-Z Polytechnic University offers training facilities for 1,500 students. There are courses in telecommunication technology and telecommunication systems; multimedia designers are trained on the course in Multimedia Art at the University of Applied Arts, and the course in information business and management prepares managers for their tasks as directors of enterprises.

Subsidies for modernisation
Apart from providing the right conditions for high-tech enterprises (human resources, infrastructure), Salzburg also offers direct support for technological enterprises. The Salzburg Structural Improvement Fund focuses its support on specific areas and measures can thereby be taken to promote Salzburg companies in this area. In addition there are also direct subsidies. Research and development projects undertaken by Salzburg enterprises together with university institutes or other academic institutions are given support when the aim of the cooperation is to introduce or expand a production or service in Land Salzburg. An important project is the "Salzburg Education Network" which guarantees that every school-leaver has knowledge of the Internet. In addition to these direct financial incentives, by creating the Technology Innovation Consultancy service, a means of implementation has been established which is intended to help in the efforts to be competitive. Here enterprises can be given advice about what technological challenges they will have to face. Furthermore there is a free first consultation service in the sphere of technology partnerships between small and intermediate companies, and through the Salzburg Agency support in technology marketing throughout Europe. As regards access to the European market support is also offered by the Euro-Info Centre of the Salzburg Chamber of Commerce.


Seed financing as initial help for high-tech enterprises
By means of the Salzburg company capital service (EKS), a joint institution of Land Salzburg, the Bürges Subsidy Bank and the Innovation Agency, a further important measure has been implemented to promote the supply of a company’s own capital or risk capital for business in Salzburg. Through this co-operation, Land Salzburg is particularly keen to offer high-tech enterprises direct access to the expertise of the Innovation Agency and the Bürges Subsidy Bank. Besides business fields such as foundation savings, the exchange for Business Angels, the guarantee for company capital as well as the seed financing programme, the company capital service provides the most important element for the foundation of high-tech enterprises: initial capital and management support.

Management support offered by the land
In the most sensitive phase of an enterprise - setting up the company - a partner who can share the entrepreneurial risk is of decisive importance. Seed financing sees itself as this partner for technology oriented enterprises, where high production, service and procedural expertise require the relevant support. The seed financing programme is specially tailored for financing the costs of opening up markets as well as for management support. Criteria such as the growth potential of the enterprise, technology, quality of the enterprise management as well as market potential are of decisive importance when making investment decisions. The starting capital is provided in the form of risk capital, the usual securities are not required. Repayment occurs solely in the form of shares in future enterprise profits. The upper limit for financial help is 727,000 Euro. Through the close co-operation with the Salzburg Enterprise Participation Company (SUBG), the Chamber of Commerce as well as the Salzburg Credit Service, the Company Capital Service (EKS) is a further stimulus to intensify Salzburg’s role as a high-tech province.