Interesting Facts

Austria’s life sciences sector is experiencing dynamic growth and reaching new record highs. According to the Life Science Report Austria 2024 the industry encompasses more than 1,170 companies, employing approximately 73,400 people and generating nearly €40 billion in total revenue. Of these, around 45,500 individuals are directly engaged in life sciences activities, which account for roughly €27 billion in revenue.

Between 2021 and 2023 alone, 146 new companies were established – many of them university spin-offs. During this period, existing companies increased their workforce by about 13% and boosted their revenues by 20%. Austria’s specialized biotechnology companies recently invested approximately €480 million in research and development. Over the past decade, domestic R&D spending has grown at a rate 1.5 times higher than the OECD average.
 

The Life Sciences Sector at a Glance

Austria’s life sciences sector encompasses medical technology, biotechnology, and the pharmaceutical industry.

• Medical Technology:
  Austria is home to 642 medical technology companies employing over 31,100 people. Since 2020, the sector has seen a 13% increase in revenue, reaching a total of €11 billion.
• Biotechnology and Pharmaceuticals:
  This segment is experiencing particularly dynamic growth. Together, 532 companies in biotechnology and pharmaceuticals employ approximately 42,300 people and generated nearly €29 billion in revenue—an increase of more than 25% over the past three years.
• Pharmaceutical Industry:
  Austria has 41 active pharmaceutical companies employing around 4,000 people – a 14% increase compared to 2020. These companies make a significant contribution to the national economy, with total revenues rising by 8% since 2020 to €2.1 billion in 2023.
   

Doing business in Austria

Austria combines economic strength, political stability and a highly innovative business environment, making it an attractive location for international life sciences companies.

• Central Location in Europe:
  Situated at the heart of Europe, Austria serves as a gateway to more than 750 million potential customers across Europe and neighbouring markets. Excellent transport connections, efficient logistics networks and close proximity to major European business centres make Austria an ideal base for international operations.
• Highly Skilled Talent Pool:
  Austria offers access to a highly qualified and international workforce. More than 400,000 students are enrolled at Austrian higher education institutions, providing companies with a continuous pipeline of talent. Around one-third of graduates complete studies in science, technology, engineering and mathematics (STEM) related disciplines, supplying the expertise needed for research-intensive industries.
• Attactive Research Location:
  Austria is one of Europe’s leading innovation hubs, with an R&D intensity of 3.35% of GDP, ranking 3rd in the EU. Companies benefit from a highly supportive innovation environment, including a 14% research tax credit and a wide range of public funding programs for research and development activities.
• Business-Friendly Economic Climate:
  As a highly industrialised nation with strong social and political stability, Austria provides reliable framework conditions for long-term investment. Companies benefit from excellent infrastructure, investor-friendly support schemes, attractive public funding opportunities and a highly committed workforce. These strengths create an environment that supports innovation, growth and international competitiveness.
• Unbeatable Quality for Life:
  Austria consistently ranks among the world's most attractive places to live and work. Clean cities and landscapes, excellent air quality, a high level of personal safety and a first-class healthcare system contribute to an exceptional quality of life. These advantages make Austria particularly attractive for international professionals and their families. Vienna regularly ranks among the world's most liveable cities and offers a unique combination of economic opportunity and personal well-being. 
   

A Strong Foundation for a Forward-Looking Industry

Excellent infrastructure is a key driver of Austria's life sciences sector. Across the country, science parks, incubators and technology transfer initiatives support the growth of innovative start-ups while attracting leading international companies.

More than two decades of continuous governmental support and strategic funding have laid the groundwork for the success of Austria’s life sciences ecosystem. In addition to bottom-up research funding and R&D support, targeted thematic programs provide clear competitive advantages for companies operating in Austria.

Austria is also one of Europe’s leading research locations. With an R&D intensity of 3.35% of GDP, the country ranks among the strongest performers in the European Union and significantly exceeds the EU target of 3%.

One such initiative is the FFG Life Science Program, designed to fund R&D projects across all levels of technology readiness. For over 20 years, Austria Wirtschaftsservice (aws) has strengthened the sector through its aws LISA – Life Science Austria program, creating optimal conditions for this future-focused industry.

Early-stage companies benefit from dedicated deep-tech funding programmes such as aws Preseed and aws Seedfinancing, while initiatives including aws Innovation Protection and the AplusB Scale-up Program support commercialization and academic spin-offs.

The close collaboration between academia, healthcare providers and industry partners further strengthens Austria's innovation capacity. This ecosystem facilitates knowledge transfer, accelerates commercialization and supports international growth. 

Growing companies can access a variety of financing instruments, including venture capital initiatives, start-up and SME funds, guarantees and loan programmes. Support spans the entire value chain, from IP protection and innovation consulting to networking and matchmaking services. 

The aws Spin-off Initiative, launched in 2025, provides tailored support for academic spin-offs and further reinforcing Austria’s position as a leading life sciences hub.

Austria offers highly attractive fiscal incentives for innovation and R&D. Companies can benefit from a 14% Research Premium on eligible research and development expenditure incurred during the financial year, regardless of whether they generate a taxable profit. In addition, Austria provides a competitive corporate income tax rate of 23%, with no local profit taxes, creating a predictable and business-friendly environment for innovative companies.
 

Artificial Intelligence: A Key Driver of Innovation

Artificial Intelligence (AI) is playing an increasingly pivotal role in the life sciences, accelerating research, enhancing diagnostics, and enabling personalized medicine. According to 2023 data, two-thirds of Austrian research institutions were already testing or piloting AI-enabled applications, while around 30% actively deployed AI solutions. The private sector was also advancing rapidly, with approximately half of all companies piloting key AI applications.

Vienna is also home to AITHYRA – Institute for Biomedical Artificial Intelligence, a pioneering European research institute established by the Austrian Academy of Sciences (ÖAW) in collaboration with the Boehringer Ingelheim Foundation. As one of Europe’s first institutes dedicated to biomedical AI, AITHYRA advances cutting-edge research at the intersection of life sciences, medicine and data science, strengthening Austria’s position as a hub for AI-driven biomedical innovation.
 

Research and Innovation

Austria’s life sciences sector is supported by a dense network of internationally recognised research institutions. A total of 56 institutions are fully dedicated to life sciences research or maintain substantial activities in the field. More than 24,300 life science related employees work across 18 universities, 14 universities of applied sciences and 24 non-university research institutes, providing the scientific foundation for innovation and growth. 

Beyond conducting world-class research, these institutions educate the next generation of specialists. In 2023, more than 68,300 students were enrolled in life sciences-related programmes at Austrian universities and universities of applied sciences. The total life sciences budget of Austrian research institutions most recently amounted to €1.91 billion.

Austria's combination of excellent research, strong industry collaboration, highly qualified talent and supportive framework conditions continues to position the country among Europe's leading locations for life sciences innovation and investment.
 

Find more facts and figures in the Life Science Report Austria 2024.