ICT Location Centrope: Structure, Characteristics, Potentials

Part 2:Guenther KrumpakITBeurope

ICT Centrope, Vienna, March 16, 2010

ICT potential in Centrope:

The purpose of the CITT project has been to Assess the ICT landscape - industry & research - of the

Centrope region

To investigate ICT related technology transfer - the collaboration (potential) between business and academia and

To propose methods and tools to increase it as one possible method to make Europe more competitive in ICT, as well as

To devise cross border cluster strategies with a strong focus on technology transfer

Reminder: Centrope

Capitals = ICT Hubs

Regional ICT Centers: Austria

Regional ICT Centers: Czech Rep.

Regional ICT Centers: Slovak Rep.

Žilina

Regional ICT Centers: Hungary

Centrope: Position, competition and/or partners

Centrope‘s ICT Markets

ICT markets (Domestic) 2008, comparison:

• North America: 28% of the world’s ICT market

• Europe 32% ~ € 620 bnLargest market:

Germany 21.3%* ~ € 132 bn• Centrope

Austria ~ € 14.0 bnCzech Republic ~ € 10.3 bnSlovak Republic ~ € 8.6 bnHungary ~ € 6.4 bnTotal ~ 6.3%* ~ € 39.3 bn

* = Percentage of the European market

Facts&Figures

Annual data on expenditure for ICT a percentage of GDP (Eurostat)2006 2007 2008

European Union (25 countries) 3.0 2.9 2.9European Union (15 countries) 2.9 2.8 2.8Belgium 3.0 2.8 2.7Bulgaria 7.0 6.6 5.7Czech Republic 4.0 3.8 3.3Denmark 2.4 2.4 2.4Germany 2.9 2.8 2.6Estonia 5.8 5.2 5.1Ireland 2.5 2.5 2.6Greece 3.5 3.5 3.3Spain 3.4 3.3 3.2France 2.8 2.8 2.8Italy 2.8 2.7 2.6Latvia 4.9 4.0 3.7Lithuania 3.2 2.9 2.6Luxembourg (Grand-Duché) 1.4 1.3 1.3Hungary 4.7 4.3 4.2Netherlands 2.7 2.5 2.4Austria 2.5 2.4 2.2Poland 4.3 3.9 3.5Portugal 4.2 4.1 4.2Romania 4.2 3.7 3.5Slovenia 3.2 3.1 3.0Slovakia 4.6 4.2 3.8Finland 2.5 2.4 2.3Sweden 2.2 2.1 2.2United Kingdom 2.9 2.9 3.2Norway 1.8 1.7 1.6Switzerland 2.6 2.6 2.5United States 2.8 3.1 3.3Japan 3.5 3.8 3.5

Facts&Figures

Main centers of ICT R&D in Centrope:

• Bratislava, Brno, Budapest, Debrecen (MTA ATOMKI!), Graz, Košice, Linz, Miskolc, Ostrava, Prague, Vienna, Žilina etc.

• 10,000 ICT companies > 1 employee

• 350,000 ICT workforce• 60 ICT relevant universities and

research organisations• 36,000 ICT

scientists/researchers

Background

Signs of change: T-Mobile-Building, further to the back Vienna‘s high tech district Donau City

Photo: http://commons.wikimedia.org/wiki/File:T-mobil_center_wien.jpg

Technology Transfer

TT exists on a low to medium level:

A: Increased considerably due to more political awareness:New legal status of universities since ~2000, creation of „competence centers“, now COMET programme www.ffg.at/content.php?cid=340; Funding programs, e.g.FIT IT etc.

CR: Strong interest from ICT multinationals (IBM, MS, CA etc.),

SK: Lower costs until recently, electronics, automotive

H: Long tradition in informatics, electronics.

Public funding in all 3 new EU states still low

R&D in Centrope

R&D Expenditure in Austria 2009 ~ €7.7 bn. (Statistics Austria)

R&D-Share ~ 2,73% GDP

• ~ 40% Public • ~ 45% Private• ~ 15% Foreign (FDI)

Changes since 2000: • Public + 67% (7.6 % p.a.) • Private + 89% • R&D expenditure total + 70% (7.84% p.a.)

R&D expenditure for digital technologies • 2004 ~ € 1.07 bn. • 2007 ~ € 1.4 bn. Quellen: Statistik Austria, Statistical Yearbook 2007, pp. 150-176

www.statistik.at/wcmsprod/groups/zd/documents/webobj/023859.pdf#pagemode=bookmarks u. Stat. JB 05/07, S. 162, BMVIT, ITBeurope

R&D in Centrope

R&D expenditure CR 2006: R&D (GERD) 1.54% GDP (2006) < OECD (2.26%) (1996: 0.97%).

• 40% Public • 57% Private • 3% Foreign

• ~30% of R&D by SMEs

• Ratio of R&D personnel to total employment more than doubled from 1996 to 2006 and is now close to EU27 average.

• HR for science and technology (HRST) 33% of total employment

• Venture capital financing is extremely low and has fallen as a share of GDP in recent years.

R&D in Centrope

R&D expenditure Hungary 2006: (GERD) 1% GDP < OECD (2.26%).

• 43% Private (OECD 64%)

• Target for GERD of 1.4% of GDP in 2010 • target for business 45%

• EU provides significant funding for R&D.

• R&D personnel per 1,000 total employment just over half EU27 average in 2006, recent increasesSee also http://users.fmg.uva.nl/lleydesdorff/hungary_th6/hungary_th6.pdf

R&D in Centrope

R&D expenditure SK 2007: 0.46% GDP < OECD (2.26%). (=Result of restructuring and closure of government and industrial R&D institutes during the transition to a market economy)

• Private sector R&D: 39.5% public sector R&D: 56.9%

• Rapid rise in university enrolments (+100% 1995 - 2003)• Recent reforms: Government shifting public support towards

programme-based funding Goal: 60% public R&D by 2015.

• Share of science & engineering graduates > OECD (Tradition of mathematics and science education)

• Most research oriented towards basic research in areas such as physical sciences. Little applied research or engineering

Local strengths

• Austria: High tech diversificationPublic R&D funding CEE hub (Vienna)

• Czech Republic:Technology Transfer (Brno)High foreign R&D investmentsHigh quality of studies

• Hungary:Strong hardware/electronics sectorEsther Dyson, New York-based venture capital fund specializing in East European technology companies: ”There is no shortage of ideas. The potential for new tech startups is huge.” High ICT export rates

• Slovak RepublicElectronics 20% of total exportsHighest growth ratesFast growing engineering enrollments

Austria and the CEE ICT Markets

Situation until end 2008:

Austria: Market largely saturated and competitive on high level: On European indicator scale between no. 1 (e-Gov) and ~ no. 15 (broadband*)

CR, SR, HU and rest of CEE are main export and internatinalisation targets (57% of ICT exports/investments) for

• Austrian companies: € 4,60 bn. (+31%), export share 41,5%

• multinational enterprises: € 7,20 Mrd. (+12,5%), Export share 75,3%

* excl. Mobile BB

A Few Examples

Successful TT examples from Centrope

www.arhungary.hu www.camea.cz www.invea.cz

www.meditel.hu www.sygic.com www.ess.co.at www.isl-group.at

And finally something very Viennese…

The Vienna Symphonic Library is an innovative, research-driven music software and sample library developer based in Vienna, Austria, with several market leading USPs www.vsl.co.at

What do I do?

Publications on ICT research in Austria(Ger., Engl.)

Publications on ICT business in Austria(Ger., Engl.)

Was macht ITBeurope?

New brochure on ICT in Vienna

Digital Technologies in Austria 2008Detailed overview on Austria‘s ICT industry & researchExport HighlightsRankingsStatisticsStructral data Adresses etc.(German)

Thank you for your attention!

ITBeurope: Studies, Consulting and Projects in the Field of Digital Business Focussing Central and Eastern Europe:

• Export and Internationalisation• Partner Search and Matchmaking• Networking • Technology Transfer• EU-Projects• Market Analyses & Publikations• Trainings for Presentations & Public

Speaking in English

Guenther KrumpakITBeuropeVienna, PraguePhone: +420 732 720 623gk@itbeurope.org www.itbeurope.org