More added value for Austria through TU Austria

A recent study by the ECONOMICA Institute for Economic Research attests to the immense value creation potential of Austria's three technical universities. TU Wien, TU Graz and Montanuniversität Leoben, which merged to form the TU Austria initiative in 2010, make an above-average contribution to value creation in the Austrian economy: Graduates of technical studies are in demand on the labour market, the start-up rate is disproportionately high and the input-output analysis clearly shows how significant the economic effects of the TU Austria university network are. TU Austria provides an indispensable economic benefit and differs significantly from other sectors such as tourism in terms of the key figures.

Austria as a land of knowledge

Technology and knowledge are more important for the Austrian economy than tourism. According to the ECONOMICA study, the production value, gross value added and gross investments in the technology and knowledge sector are up to seven times higher than in tourism. Although Austria is home to slightly more accommodation and catering businesses (14 per cent) than technology and knowledge-intensive companies (13 per cent), the technology and knowledge sector employs more people (19 per cent, tourism 10 per cent). "Science is a decisive success factor. The value of university education and innovative strength is decisive for the future of a country. This study is the first to impressively demonstrate this value in figures for all of Austria's technical universities," explain the three TU Austria rectors Sabine Seidler (TU Vienna), Wilfried Eichlseder (Montanuniversität Leoben) and Harald Kainz (TU Graz) in unison.

Start-up rate: Intensity of knowledge transfer

In 2011, TU Austria generated around 29 per cent of all start-ups/spin-offs at Austrian universities. They therefore account for a disproportionately high share. In recent years, the two TUs and the Montanuni have also made an important contribution to the stabilisation of patent activity, as they have seen an increase in their own activity during a general decline in patent activity triggered by the economic crisis. "In other words, the activities of the TU Austria universities lead to a smoothing of the inherent cyclicality on the part of the economy," the study emphasises. "This counter-cyclical build-up of growth potential and the status as an active input provider, especially in times of recession, are of great importance for the stabilisation of macroeconomic development in Austria."

Start-up rate: Intensity of knowledge transfer

In 2011, TU Austria generated around 29 per cent of all start-ups/spin-offs at Austrian universities. They therefore account for a disproportionately high share. In recent years, the two TUs and the Montanuni have also made an important contribution to the stabilisation of patent activity, as they have seen an increase in their own activity during a general decline in patent activity triggered by the economic crisis. "In other words, the activities of the TU Austria universities lead to a smoothing of the inherent cyclicality on the part of the economy," the study emphasises. "This counter-cyclical build-up of growth potential and the status as an active input provider, especially in times of recession, are of great importance for the stabilisation of macroeconomic development in Austria."

Economic effects of university operations

Finally, TU Austria can also point to direct economic effects in an input-output analysis. In the years 2005 to 2011, the three technical universities spent around 3.3 billion euros - this corresponds to a real value of a good 3.5 billion euros. Including the indirect value-added effects in upstream companies and the induced income effects, the total value-added effect of TU Austria in Austria in the same period totalled 4.1 billion euros. If the effects achieved abroad are also taken into account, the total effect increases to 4.6 billion euros. The value added multiplier (defined as the ratio of the total to the direct value added effect) thus corresponds to that of the automotive industry and surpasses, for example, the education and teaching services or petroleum products sectors. "The above-average multiplier of the TU Austria universities for the sector indicates a high proportion of research," the study emphasises.

The technical universities were able to achieve further positive effects on the labour market, for example. While the TU Austria universities employed 5,425 full-time equivalents per year from 2005 to 2011, the total employment effect (including indirect and induced jobs) totalled 7,030 full-time equivalents per year. Overall, the employment effects at the universities in the years 2005 to 2011 contributed to tax and social security revenue totalling just over 1 billion euros. If this figure is supplemented by the taxes and contributions of those employment relationships that arise indirectly or induced by university operations, the revenue increases to around 1.3 billion euros.

R&D as an investment in GDP

Not least because of these results, the study calls for a reclassification of research and development (R&D) in the calculation of Austria's gross domestic product (GDP): "Without a reclassification of R&D, the economic power of countries with high investments in intangible fixed assets would be systematically lower than the economic power of countries that invest more in tangible fixed assets."

A redefinition of R&D expenditure as investment would increase the volume of gross fixed capital formation in Austria (around 57.8 billion euros in 2006) by 8.9 per cent (provisional). As a result of the reclassification of R&D expenditure as investment, GDP would therefore increase. The impact on Austrian GDP corresponds to an increase of around 1.9 per cent based on 2006. The USA is implementing this reclassification for the first time this year.