Economy Of Vienna
Among the European Union’s richest regions, Vienna boasts a gross regional production of EUR 47,200 per capita. 2013 saw it contribute 25.7 percent of Austria’s GDP. For the European Union, it stands 159 percent of the average. The city had notable economic expansion between 2012 and 2015, rising in the rankings to land the ninth place among the most economically powerful cities.
Comprising 85.5% of the total value added, Vienna’s service sector is the main economic sector. While agriculture only makes a little contribution to the local added value, the sectors of industry and commerce constitute 14.5 percent of the gross value added. Still, cultivating and producing wine inside city boundaries has great sociocultural value. With 14.7% of added value, trade (accounting for), scientific and technical services, real estate and housing operations, and commodity manufacturing constitute Vienna’s main economic sectors. Vienna’s importance as a worldwide hub for both domestic and international companies is highlighted by the fact that in 2012 it accounted for more than 60% of Austria’s outbound and inbound foreign direct investments.
Vienna has become much more important as a main access point to Eastern Europe as the Iron Curtain fell in 1989. About three hundred international companies have set their regional headquarters in Vienna and the neighboring countries. Among the firms listed are Siemens, Baxalta, Henkel, and Hewlett Packard. Because of Vienna’s historical importance as the center of the Habsburg Empire, enterprises based there have developed close ties and specialized understanding in doing business with Eastern Europe. With 159 foreign companies establishing activities in Vienna, the city saw an increase in the number of multinational companies in 2014.
Vienna has had about 8,300 fresh companies formed since 2004. Most of these businesses deal with industrial services, wholesale trade, information and communications technologies, and new media. Vienna is trying very hard to establish itself as a major startup hub. The largest start-up event in Central Europe, the annual Pioneers Festival has been held in the city starting in 2012. Attracting more than 2,500 people from all over, the celebration takes place at Hofburg Palace. Tech Cocktail, an online startup forum, has named Vienna sixth among the top ten start-up hubs worldwide.
Research and development
Vienna strives to create an environment fit for research and development and appreciates science and research itself. Vienna hosted 1,329 research facilities in 2014; 40,400 individuals worked in the R&D sector; and the city absorbed 35% of Austria’s R&D spending. Having a research quota of 3.4%, Vienna beats the Austrian average of 2.77% and already meets the EU target of 3.0% by 2020.Key R&D sector in Vienna, with 378 biotech, pharma, and medtech companies employing over 21,000 people including Johnson & Johnson, Siemens, Roche, Philips, and Boehringer Ingelheim, is life sciences. Among the 25 public and private research institutes are the Austrian Institute of Technology, the University of Natural Resources and Life Sciences (BOKU), and the Campus Vienna Biocener (de).
Information technologies
Equivalent in scope to that in Helsinki and Munich, the Viennese information and communication technology sector is among Europe’s main IT hotspots. In 2012 the Vienna Region boasts 8,962 IT companies employing 64, 223 people. The main objects are instruments and appliances for navigation, testing, and measuring as well as electrical components. More than one-third of companies provide—IT services. Among the largest IT companies in Vienna are Kapsch, BekoEngineering & Informatics, Frequentis, Cisco Systems Austria, Hewlett-Packard, Microsoft Austria, IBM Austria, and Samsung Electronics Austria.
Working with the Vienna Business Agency, US technology company Cisco provides its Entrepreneurs in Residence program for Europe in Vienna.Based on elements including connection speed, WIFI availability, innovative spirit, and open government data, the British company UBM ranked Vienna among the Top 10 Internet Cities in the World. Of Viennese homes, 74.3% had broadband connectivity and 79% had a computer in 2011. The City’s broadband plan says that by 2020 total internet coverage will be attained.
Tourism and conferences
With 6.2 million tourists to Vienna in 2014, 13, 525,266 overnight stays accounted for. The most often visited tourist countries are Germany, the United States, Italy, and Russia.Between 2005 and 2013, Vienna ranked highest among all the countries hosting international conferences and meetings. The second most often used congress venue worldwide, Vienna hosted 202 international conferences in 2014 according to the International Congress and Convention Association.Located close to the United Nations Headquarters in Vienna, the Austria venue Vienna (ACV), its main conference venue, has a total capacity of about 20,000 people.Other sites include the Hofburg Palace (which can accommodate 4,900 people) and the Messe Wien Exhibition & Congress Center, which can house up to 3,300 people.
Economy Of Vienna - FAQ
What are the major industries driving Vienna's economy?
Vienna's economic scene is vibrant in many different sectors, most notably including technology, travel, banking, and creative businesses. The city boasts a growing IT center, which promotes research and creativity. While Vienna's reputation as a financial hub emphasizes the importance of its banking sector, its historical appeal fuels a strong travel business. Included in the creative sector include media, design, and art, so adding cultural richness. Vienna's dedication to sustainability also helps it to be positioned in green technologies and renewable energy. Together, these vibrant industries highlight Vienna's varied and strong economic character, therefore strengthening its economy.
How does Vienna rank in terms of economic competitiveness?
Vienna regularly ranks highly on measures of economic competitiveness. Celebrated for its stability and creativity, Vienna typically comes first in rankings of economic might. Its strategic location, together with strong infrastructure and a vibrant economic scene, solidifies its competitiveness. This city's forward-looking policies, great educational institutions, and skillful encouragement of entrepreneurship help to explain its excellent ranking, therefore confirming Vienna's status as a major player in the world economy.
What is the unemployment rate in Vienna?
Based on current statistics, Vienna boasts a rather low unemployment rate among many cities throughout the world. Vienna consistently has a strong economy, driven by a variety of businesses that create an atmosphere fit for employment possibilities. Its proactive educational endeavors along with creative workforce development programs help to keep this low unemployment rate. These initiatives support Vienna's standing as a city that values economic stability and aims to provide a wide range of job possibilities to its citizens as well as those looking for possibilities within its dynamic terrain.
How diverse is Vienna's economy?
Vienna's economy exudes amazing variety in several spheres, therefore confirming its multifarious potency as an economic force. Its economic scene covers a wide spectrum of technology, travel, banking, healthcare, and culture. This diversification guarantees stability but also promotes development and invention. Vienna's capacity to excel in several industries shows a strong economy capable of using its advantages in several spheres, which attracts companies looking for a multifarious setting to grow as well as investors.
What are the main contributors to Vienna's GDP?
Vienna's GDP comes from a variety of industries, and several well-known players help to define its economic scene. One of the main forces is tourism, which draws worldwide guests to its cultural wealth. With their creative ideas and strong financial infrastructure, the finance and technology sectors shine. Furthermore greatly increasing Vienna's GDP is the healthcare sector, together with a thriving cultural scene and growing service sector. This mix of sectors, combining modernism with legacy, confirms Vienna's economic might throughout Europe.
Are there any prominent multinational companies based in Vienna?
Vienna's economic fabric gains complexity from the multiple international businesses it accommodates in many different fields. Well-known companies include UniCredit Bank Austria, a major banking institution, and Siemens, a worldwide technological leader, have major activities in the city. Furthermore keeping headquarters or significant presences in Vienna are OMV, an international oil and gas firm, and Erste Group, a big banking institution. Among others, these businesses show Vienna's attractiveness as a center for multinational businesses, therefore supporting the city's economic life and global reputation.
How does Vienna's economy compare to other European cities?
Vienna's strong and sturdy economy distinguishes it among European cities. Vienna boasts a stable economic scene, marked by a high level of living, low unemployment rates, and a strong focus on innovation and technology, unlike its colleagues. Its economic strength stems from its several sectors: finance, technology, and culture as well as from others. Strategic position and strong business climate of the city make it a competitive force, usually surpassing other European cities in terms of economic stability and growth possibilities.
What is the average income level in Vienna?
The average monthly salary in Vienna is 4,550 EUR. The figure shows the gross pay, therefore displaying the compensation before any tax deductions. These are monthly pay and compensation numbers. Vienna's pay scale differs greatly depending on the job; the lowest average wage is 1,150 EUR while the highest average salary is 20,200 EUR.
What are the primary exports from Vienna?
The International Trade Administration lists Germany, Italy, and the United States as Austria's principal export destinations. Among Austria's main exports are equipment, electrical goods, cars, medications, plastics, iron, steel, and timber. Nearly half of the capital goods and almost half of the consumer goods produced in Austria come from Vienna, the capital and biggest city. Special products Vienna provides are silk, velvet, linen, porcelain, jewelry, scientific and musical instruments, watches, cutlery, leather goods, furniture, paper, and carpets.
How does Vienna's economy compare to other European cities?
Many rankings and statistics show Vienna's economy to be quite competitive and innovative.
Among 115 European cities in the European Smart City Ranking 2021 Vienna ranks highest. This list assesses cities in many spheres, including smart government, smart economics, smart mobility, smart environment, smart people, and smart living.
At number two among 77 European cities on the European Innovation Scoreboard 2020, Vienna is rather outstanding. By means of several criteria, including human resources, research systems, innovative environment, finance and support, links and entrepreneurship, intellectual assets, innovators, and economic impacts, this scoreboard assesses the innovative performance of cities.
With respect to the European Digital City Index 2019, Vienna came in third among 50 European cities. This index evaluates cities' digital attractiveness and readiness for startups and digital entrepreneurs. It considers several elements like policy, infrastructure, market, culture, capital, skills, and market.
Vienna comes fourth out of 31 European cities in the European Cities and Regions of the Future 2020/2021 survey. Various elements—including economic potential, human capital and lifestyle, cost effectiveness, connectivity, and business friendliness—formulate this rating. The study seeks to pinpoint the cities most likely to provide inward investment, economic growth, and corporate expansion possibilities.
In the Quality of Living City Ranking 2020 Vienna comes in fifth out of fifty European cities. This ranking evaluates city quality of life by means of several criteria including political and social environment, economic environment, socio-cultural environment, health and sanitation, education, public services and transportation, recreation, consumer goods, and housing.
These rankings place Vienna among the most smart, innovative, digitalized, investment-wise, and quality of life European city. Strategic position, historical importance, rich cultural legacy, and a broad spectrum of vibrant industry all help Vienna's economy to be strengthened.
