Approximately €17.6 billion is set to be invested in research and development in Austria this year, new estimates from Statistics Austria have found.
This equates to around 3.34% of the country’s GDP, a relatively high level compared to its European neighbours despite recent cutbacks, Manuela Lenk, director general, statistics, at Statistics Austria commented.
Research intensity
“This year, Austria is estimated to invest around €17.6 billion in research and development,” she said. “This corresponds to 3.34% of GDP. The research intensity has thus fallen slightly from its peak of 3.39% in 2025, and is now back at the 2024 level, which was also 3.34%.
“With this figure, Austria ranks third in the EU in terms of research expenditure.”
Of the total R&D expenditure in 2026, domestic companies are expected to provide around €8.9 billion, or about 50% of total funding, taking advantage of tax incentives.
The government is expected to contribute nearly €5.8 billion, representing 33% of total financing. Most of this will take place at the federal level, with regional governments accounting for approximately €770 million. Funding from abroad is estimated at €2.9 billion, largely linked to multinational companies operating in Austria.
Government research funding is projected to remain broadly stable in 2026 compared with 2025, following an increase of around 9% between 2024 and 2025, Statistics Austria added. Corporate funding is expected to continue growing, but at a slower rate than GDP growth, which affects the overall research intensity ratio.
Long-term increase
Looking at the data over a longer period, Austria has increased its research spending significantly. In 2006, research intensity stood at 2.38%. By 2016 it had reached 3.13%, exceeding the European Union’s 3% benchmark for research investment.
At EU level, preliminary data for 2024 places Austria among the highest research-intensive economies. Sweden recorded the highest research intensity at 3.56%, followed by Belgium at 3.36% and Austria at 3.34%. Germany recorded 3.13%, while France and Italy were lower, at 2.18% and 1.38% respectively. The EU average stood at 2.24%.
International comparisons also show higher levels of research intensity in some non-EU economies, including South Korea, the United States, Japan and Switzerland. Elsewhere, China’s research intensity was reported at 2.58% in 2023. Read more here.
