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 spin-offs from universities. 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

Why is Austria a great place for a life science business? The EIU's Global Liveability Ranking 2024 ranks Vienna as the city with the highest standard of living in the world. Austria’s extensive infrastructure and its enviable location at the geographic heart of Europe are also significant reasons. Add in additional factors such as the excellence of the Austrian workforce, the renowned quality of its education system and the top-tier status of its research institutions, and it is easy to see why many companies find Austria a compelling location for doing business.
 

A Strong Foundation for a Forward-Looking Industry

Great infrastructure is a key driver of the life science industry in Austria. Across Austria, a succession of science parks, incubators and tech transfer initiatives has ensured the growth of the indigenous industry as well as attracting a plethora of established multinational companies. 

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

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.

In particular, early-stage start-ups benefit from deep-tech funding programs such as aws Preseed and aws Seedfinancing, which offer essential financial support. These are complemented by initiatives like the aws BoB – Best of Biotech business idea competition and the AplusB Scale-up Program for academic spin-offs.

Austria’s success is also driven by close collaboration between science and clinical practice, a vibrant start-up ecosystem, and strong partnerships with leading companies. This synergy fosters both knowledge transfer and internationalization.

Growing companies have access to a variety of additional financing options, including the Venture Capital Initiative, start-up and SME funds, as well as guarantees and loan instruments. Support spans the entire value chain, with services ranging from IP protection and innovation consulting to networking opportunities and matchmaking services.

Starting in 2025, the new aws Spin-off Initiative will offer tailored support to academic spin-offs, further reinforcing Austria’s position as a leading hub for life sciences. Combined with a dynamic innovation ecosystem, these measures ensure that Austria remains at the forefront of global life science development.

There is also a supportive and attractive tax regime, an R&D cash premium of 14% and a maximum corporate income tax of 23% from January 1, 2024. No additional taxes apply.
 

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. In Austria, research institutions are leading the way in integrating AI into their core processes: two-thirds are already in the testing or pilot phase, while 30% are actively deploying AI in their operations. The private sector is also advancing rapidly, with around half of all companies piloting key AI applications.

A major milestone in Austria’s AI-driven life sciences journey was reached in September 2024 with the founding of AITHYRA – Institute for Biomedical Artificial Intelligence by the Austrian Academy of Sciences (ÖAW), in collaboration with the Boehringer Ingelheim Foundation. As the first institute of its kind in Europe, AITHYRA focuses on developing cutting-edge, AI-supported research approaches to drive innovation in biomedicine.
 

Research and Innovation

The strong economic development of Austria’s life sciences is supported by a tight network of internationally renowned research expertise. A total of 56 institutions are completely dedicated to life science research or have significant activities in this field. Altogether, more than 24,300 life sciences related employees are working at 18 universities, 14 universities of applied sciences and 24 non-university research institutes, building the innovative foundation of the Austrian life science sector as a whole. Besides high-quality research, the academic institutions also provide the sector with well-qualified people, representing a strong pillar in Austria’s educational system. In 2023, the total number of life science students at universities and universities of applied science amounted to more than 68,300. The total life sciences budget of Austrian research institutions most recently amounted to €1.91 billion.

Find more facts and figures in the Life Science Report Austria 2024 – coming soon!