Decentralized Industrial Policies in Practice: The Case of Austria and Styria

Abstract

Unlike other European countries, most industrial policy in Austria still takes place at the Federal level. With recent open access to European funding programmes on the one hand and increasing regional engagement in industrial policy questions on the other, we see ongoing changes in this structure. As a result, industrial policy strategies for Austria are more and more designed in close complementarity with both international and regional strategies. The recent shift toward technology policy observeable in nearly all industrialized countries has also taken place in Austria and has favoured major urban areas. Nevertheless, a consensus-oriented tradition in stabilization and social policy have had remarkable negative effects on laggard regions up to now. The plan of this paper is documenting the actual situation as well as recent chances in Austrian industrial and technology policy. Furthermore, philosophy, principal targets and instruments of new industrial policy at the Lander level (Styria) are examined to offer a closer view on advantages and possible disadvantages of regional industrial policy.