Digitisation, the energy crisis, inflation – the Province of Lower Austria faces a number of challenges in the coming years.
Provincial Councillor Jochen Danninger is in charge of several departments in Lower Austria. Since February 2020, the 47-year-old has been responsible for the economy, tourism and sports. After studying law at the University of Vienna, Danninger was, among other things, State Secretary at the Ministry of Finance and Head of Cabinet at the Federal Ministry for European and International Affairs.
How is Lower Austria doing after years of a pandemic and now an energy crisis?
Jochen Danninger: The energy crisis and the inflation pose enormous challenges for businesses in Lower Austria. The biggest issue of the coming months and years are the massive consequences of the war in Ukraine: exploding energy prices, galloping inflation and Austria’s problematic dependence on Russian gas. These are three problems for which there are no easy solutions, but which we must get under control. In the short term, we therefore need economic aid for our businesses; in the medium and long term, we must invest massively in the expansion of renewable energies. We also need to quickly raise the domestic potential of green gas, above all biomethane, but in future also hydrogen, in order to reduce energy imports and increase security of supply.
Has the business location of Lower Austria changed in these years?
Danninger: Our goal was and is for Lower Austria to emerge from the Covid crisis stronger, more innovative and more digital. A lot has happened in recent years, especially in the area of digitisation. Many of our companies are facing up to digitisation in an impressive way. Processes are being optimised, operations are being digitised, and employees are being offered an increasingly attractive working environment. In my Department of Economic Affairs, we support them with targeted measures such as the ‘Digi4Wirtschaft’ funding call, where we have so far distributed around 20 million euros in funding so that our companies could set themselves up ready for the digital age.
What stands out are the research and education projects that have been created in Lower Austria in recent years. Are these assets for the future?
Danninger: Lower Austria is an internationally attractive hotspot for science and research and has developed into an innovative region in the centre of Europe in recent years and decades. It’s a prosperous development that is possible because we do not hide science and research in laboratories behind closed doors, but because we make them accessible to people and let them experience science. And it is a development that forms an essential basis for the future development of our business location. Cornerstones include the four Technopole sites and the six technology and research centres throughout our province. The key to success is the close connection between economic and technology policy in order to support domestic companies in their innovation projects and thus strengthen them in competition. Our main concern is to offer our researchers an inspiring environment and the best possible conditions so that they can continue to strengthen and develop Lower Austria as a business location with their innovative power.
How important is the health sector in Lower Austria, especially when it comes to cutting-edge research?
Danninger: The importance of the domestic health industry has come into even sharper focus as a result of the Covid pandemic. Here we are providing support with the Ecoplus platform for health technology to give this important topic of the future an additional boost. One goal is to create an instrument that will, among other things, contribute to making Lower Austria more independent of producers of medical products outside Europe. In addition, Lower Austria’s role as a top technology location will be sustainably consolidated. The health technology platform is an important milestone for us in advancing this topic of the future in Lower Austria and improving the security of supply for our people.
Tourism plays a big role. Has it recovered after the pandemic?
Danninger: The virus severely slowed down the years of success in Lower Austria’s tourism figures. But now we are very close to the pre-crisis level – also because many guests from abroad like to come to Lower Austria again. The beautiful countryside of Lower Austria, the good food and the high-quality wines, the attractive offers for cycling and cultural holidays are appreciated and gladly accepted by tourists. For autumn 2022 we received very positive signals as far as business tourism is concerned. Seminars, conferences and business trips are again on the increase, and hopefully this will soon be reflected in our tourism figures.
How much will climate change affect tourism?
Danninger: In the 2022 summer season, every fourth guest already associates the characteristic ‘sustainable’ with Lower Austria. The unspoiled nature and the beautiful landscapes were the most important argument for 60 percent of the guests to spend their holidays here with us in Lower Austria. To ensure that sustainability does not remain just a buzzword, we are constantly working intensively on the implementation of practical measures. The public accessibility of excursion and holiday destinations is a major topic. In a new Living Paper ‘Sustainability in Tourism’, the guiding goals for sustainable tourism in the coming years are currently being worked out.
The industrial sector accounts for one third of the economic output. Is it already sustainable and climate-friendly? Are there any initiatives in this area?
Danninger: Yes, our industrial companies have invested a lot in recent years to make themselves more resource-efficient. They are part of the solution and not the problem. As the Province of Lower Austria, we are currently focusing on a climate-friendly economy and are relying on advisory services and subsidies: This year we are investing significantly more in advising businesses that want to become more energy-efficient. With the Eco Bonus, we support investment projects that have a sustainability aspect – such as, in particular, the revitalisation of closed businesses or the direct, sustainable creation of more than ten green jobs.
How is digitisation coming along?
Danninger: Digitisation is one of the most important topics of our time. Companies want to actively use digitisation for themselves, and the pandemic has further strengthened this trend. Therefore, the Province of Lower Austria is implementing a whole bundle of measures to accelerate the digital transformation of the domestic economy and to support businesses on their way. Examples are the very successful ‘Digi- 4Wirtschaft’ funding campaign and the lighthouse project of the digitisation strategy of the Province of Lower Austria, the House of Digitisation. It will open in Tulln at the beginning of 2023.
Time and again, entrepreneurs complain about the long duration of official procedures, especially in the energy sector. What is currently being done here?
Danninger: The duration of an official procedure depends on many factors. The quality of the submitted documents, the neighbourhood situation and the legal licensing requirements are only three examples of factors that influence the duration of the procedure. Lower Austria is constantly working to streamline and simplify the federal legal framework for approvals of installations. At the provincial legislative level, important steps have been taken in recent months, especially in the area of energy law, for example by exempting photovoltaic plants up to a size of one megawatt from approval.
You have presented a better service for founders. Can you already take stock? Will this initiative continue?
Danninger: Lower Austria is defying the tense economic situation worldwide when it comes to business establishments. Between the beginning of January and the end of June, 3,456 new companies were founded. Compared to the first half of 2019, i.e. even before Covid, this is an increase of six percent! Every fifth new company founded in Austria is located in Lower Austria. We want to comprehensively support these start-ups in their growth, among other things with Riz Up, the start-up agency of the Province of Lower Austria. In addition, at the beginning of the year we increased our start-up subsidy from 1,200 euros to 2,000 euros – we want to further strengthen Lower Austria as a start-up region with this measure.