Creative Industries Austria

Global Development Austria at Red Yellow Blue (RYB)

Austria’s creative industries play a vital role in the country’s cultural and economic landscape, blending a rich artistic heritage with contemporary innovation. The sector spans areas such as architecture, music, design, film, and digital media, contributing significantly to Austria’s GDP and international reputation.

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Economic Significance

Creative industries in Austria account for approximately 4.9% of the country’s GDP, employing over 150,000 people. The sector has shown consistent growth, driven by strong government support, international collaborations, and Austria’s strategic location in Central Europe.

Creative Industries Austria, Museumsquartier Vienna

Key Sectors

  • Music and Performing Arts
    Austria is globally renowned for its contributions to classical music, being the birthplace of composers like Mozart, Haydn, and Schubert. Vienna, often referred to as the “City of Music,” continues to host world-class orchestras, opera houses, and festivals. Contemporary music and performing arts also thrive, with platforms like the Salzburg Festival and Ars Electronica fostering innovation.
  • Design and Architecture
    Austrian design is celebrated for its functionality and elegance, with firms like Coop Himmelb(l)au leading in modern architecture. Vienna Design Week showcases the country’s creative talent, blending traditional craftsmanship with cutting-edge design.
  • Film and Media
    Austria’s film industry has gained international acclaim, with directors like Michael Haneke and Jessica Hausner winning prestigious awards. The Diagonale Festival in Graz is a key event for showcasing Austrian cinema. Digital media and gaming are emerging sectors, supported by innovation hubs in Vienna and beyond.
  • Visual Arts and Crafts
    Austria’s visual arts scene is a mix of historical masterpieces and contemporary innovation. Museums like the Albertina and Kunsthistorisches Museum attract millions of visitors annually, while modern galleries promote avant-garde artists.
  • Fashion and Textiles
    Austrian fashion blends tradition with modernity, exemplified by brands like Lena Hoschek and Wolford. The country’s textile industry is also known for its sustainability initiatives.
  • Digital and Creative Technology
    Austria is investing in digital creativity, including gaming, virtual reality, and creative tech startups. The Ars Electronica Center in Linz is a global hub for exploring the intersection of art, technology, and society.

Trends and Challenges

  • Sustainability: Austrian creatives are leaders in eco-friendly design, architecture, and fashion, reflecting global trends toward sustainability.
  • Digital Transformation: The integration of digital tools in traditional arts and media is expanding creative possibilities.
  • Globalization: While Austria’s rich cultural heritage provides a strong foundation, the sector faces challenges in maintaining competitiveness in a globalized market.

Government and Institutional Support

Austria’s government actively supports the creative industries through funding, grants, and promotional programs. Initiatives like Creative Industries Austria (part of the Austrian Economic Chambers) and regional hubs provide resources, networking opportunities, and international exposure for creatives.

Future Outlook

The creative industries in Austria are well-positioned for growth, leveraging the country’s artistic legacy and embracing technological advancements. With continued support for innovation and sustainability, Austria’s creative sector will remain a key driver of cultural and economic development.

By blending tradition with modernity, Austria’s creative industries exemplify the country’s commitment to cultural excellence and global engagement.

Creative Industries Strategy for Austria

The creative industries – a key economic factor and driving force for Austria as a place of innovation
Creative industries account for more than 10% of all Austrian enterprises (around 42,000) and for 3.8% of the gross value added – almost as important as tourism with 4%! They are one of the Austrian growth drivers, having generated a total revenues growth between 2008 and 2016 of 21% (overall economy: 8%) and an employment growth of 16% (overall economy: 7%). With 91% of the creative companies being innovation active, 75% contributing to product or service innovations and 44% dealing with new business models, the creative industries are a key innovation driver for the Austrian economy.

Austria has been among the first movers to recognise the importance of creative industries with regard to innovation policy and has incorporated the creatives industries into the national strategy for research, technology and innovation back in 2011. In 2016, the Creative Industries Strategy for Austria has been drafted in a co-creative process of several months with over 100 entrepreneurs and experts, led by the Economic Affairs Ministry in co-operation with Kreativwirtschaft Austria, Austria Wirtschaftsservice GmbH and the Austrian Economic Chamber. This strategy sets out the pathway for the next years till 2025.
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Economy

one of the strongest EU and euro economies; diversified trade portfolios and relations; enormous trade economy; Russian energy dependence, but investing in alternative energy; aging labor force but large refugee population; large government debt

Austria is a well-developed market economy with skilled labor force and high standard of living. It is closely tied to other EU economies, especially Germany’s, but also the US’, its third-largest trade partner. Its economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector.

Austrian economic growth strengthen in 2017, with a 2.9% increase in GDP. Austrian exports, accounting for around 60% of the GDP, were up 8.2% in 2017. Austria’s unemployment rate fell by 0.3% to 5.5%, which is low by European standards, but still at its second highest rate since the end of World War II, driven by an increased number of refugees and EU migrants entering the labor market.

Austria’s fiscal position compares favorably with other euro-zone countries. The budget deficit stood at a low 0.7% of GDP in 2017 and public debt declined again to 78.4% of GDP in 2017, after reaching a post-war high 84.6% in 2015. The Austrian government has announced it plans to balance the fiscal budget in 2019. Several external risks, such as Austrian banks’ exposure to Central and Eastern Europe, the refugee crisis, and continued unrest in Russia/Ukraine, eased in 2017, but are still a factor for the Austrian economy. Exposure to the Russian banking sector and a deep energy relationship with Russia present additional risks.

Austria elected a new pro-business government in October 2017 that campaigned on promises to reduce bureaucracy, improve public sector efficiency, reduce labor market protections, and provide positive investment incentives.