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Vienna as a Launchpad for the European Market

Beč turizam
Beč turizam / Image by: foto Christian_stemper

Since 2023, Croatia has been part of the eurozone and the Schengen area – travel, payments, and cross-border projects with Austria have never been easier. In Vienna, the capital of Austria, high quality of life, an internationally oriented economic ecosystem, and short distances to the so-called DACH region, namely Germany, Austria, and Switzerland, converge.

Barbara Novak, a member of the Vienna City Council for Finance, Economy, Labor, International Relations, and Digitalization, explains why this city is an excellent launchpad for companies from the region.

Why is Vienna currently particularly attractive for companies from Croatia and Central Eastern European countries?

– Several factors contribute to this. With the introduction of the euro as the official currency and entry into the Schengen area, economic processes between Croatia and Austria have been significantly simplified. There are also historically close ties as well as very active business and personal contacts between Austria and Croatia. With more than 32,000 people of Croatian descent, Vienna has a well-connected community that facilitates the entry of business teams from Croatia into the local market within existing entrepreneurial and social structures.

Vienna is also internationally recognized as a business hub – it is the headquarters of the United Nations and 53 other international organizations and home to around 550 headquarters of internationally active companies. Such a concentration of organizations and businesses opens access to global networks, experts, and institutions. Vienna is geographically close to Croatia, culturally compatible, and therefore ideal as a strategic bridge to the EU market, which is no less important as distances in Central Eastern Europe are relatively short.

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What distinguishes Vienna in competition with other European business centers?

– The most important aspect of Vienna is its people. Our city is characterized by diversity, talent, and a high level of education – labor productivity is 42 percent above the EU average. Furthermore, Vienna thinks long-term and acts visionarily. The city continuously invests in infrastructure, research, and cooperative linking of administration, businesses, and science. At the same time, a clear principle applies here: economic and technological progress must serve humanity.

Innovation and growth in Vienna are achieved in accordance with health, social responsibility, resilience, and high quality of life. For this reason, it is an attractive business center for companies that want to scale sustainably and think visionarily.

What future industries is Vienna particularly focusing on?

– There are three key areas for the coming years: life sciences, healthcare, and digitalization, from quantum technologies to artificial intelligence to cybersecurity, with a strong emphasis on creating and preserving jobs. The further development of the startup scene is also crucial. These key industries of the future create added value for the economic sector and simultaneously bring immediate benefits to the people in our city, for example, by improving public infrastructure or increasing digital security.

Can you specifically illustrate Vienna as a business center in the life sciences?

– Vienna has an exceptionally dense and interconnected ecosystem in life sciences. In 2023, 754 organizations generated an annual revenue of 22.7 billion euros. Currently, more than 49,000 people are employed in the Vienna industry in this field. The region is also home to twenty of the world’s leading pharmaceutical and medical companies. Croatia is particularly strong in the pharmaceutical sector, which provides a very good basis for deepening partnership cooperation.

The City of Vienna, through its Economic Agency, Wirtschaftsagentura Wien, is investing long-term in this sector, particularly in building infrastructure for companies that wish to utilize artificial intelligence in life sciences. The new Life Science Center Vienna for artificial intelligence and biomedicine, which will be completed by 2029, strengthens the research sector, product development, and thus the entire ecosystem in Vienna.

I am confident that pioneering research will be conducted here as the first key tenant will be the leading research institute for artificial intelligence in biomedicine at the Austrian Academy of Sciences, AITHYRA, which will enhance biomedicine using artificial intelligence from Vienna.

Vienna is becoming increasingly visible in the field of quantum technology and artificial intelligence. What is specifically happening in the city?

– That is correct. In the field of quantum technology, Vienna is the European center. In 2022, Anton Zeilinger (University of Vienna and Austrian Academy of Sciences) received the Nobel Prize in Physics for pioneering work in quantum information. In 2023, Ferenc Krausz followed, who laid important foundations for this award during his work at the Vienna University of Technology.

Thus, in a very short time, two Nobel Prizes in Physics have been awarded, both of which have Vienna as a common denominator. The Vienna spin-off company QUBO Technology, in collaboration with the University of Vienna, will launch the first quantum computing system into space in 2025. Vienna has also recognized trends early in governance. Since 2023, artificial intelligence in the public sector is being used according to its own strategy, responsibly and in the service of humanity.

About 55 percent of all Austrian AI companies are in Vienna, confirming the city’s international appeal. Concurrently, cybersecurity is becoming increasingly important as new computing capabilities raise demands for protection and encryption. Vienna is strong in this area as well – both in research and in practice.

The Economic Agency of the City of Vienna is a modern agency for the development of Vienna as a business location. What kind of support does it provide to foreign companies present there?

– The Economic Agency of the City of Vienna supports local as well as international companies wishing to relocate to Vienna by providing them with subsidies, business premises, offices, and free consulting – from establishment to the growth phase. With the help of the Expat Center, the Economic Agency provides comprehensive support to international experts and companies upon their arrival in Vienna, the only one of its kind in Europe. The offer has been very well received. And yes, the team speaks Croatian, Bosnian, and Serbian!

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