What do experts, business leaders and stakeholders say?

 

The business location is strong the challenges are clear. Analyses reveal an economically strong location with clear potential for development in terms of innovation, skilled labour and international competitiveness.

WiP Speedboot

Challenges for the ecosystem

Linz, as a business hub, has strong industrial and technological foundations, but at the same time faces far-reaching and necessary changes: geopolitical crises, international competitive dynamics, rapid technological developments, the implementation of climate targets and demographic change are factors that are bringing about lasting changes to the framework conditions for economic development.

The results of the comprehensive analysis of the ecosystem in the Linz-Wels economic region highlight three key challenges and, consequently, opportunities for future-focused development:

Firstly, pressure on industrial locations is mounting due to international competition between locations and the costs of transformation. At the same time, these developments offer an opportunity to position the economic region strategically, particularly in areas where industrial expertise converges with digitalisation and sustainable technologies. International industrial value chains are undergoing increasing change. lt is therefore becoming increasingly important for the Linz economic region to further develop its existing industrial strengths, build up new technological capabilities and drive forward economic diversification.

Secondly, there are currently few (semi-)radical innovations and technology-driven spin-offs emerging at the Linz location. The innovation system is currently geared towards incremental innovation, i. e. the continuous and gradual optimisation of established products and services, as weil as the further development of existing technologies. In order to remain competitive on the international stage and secure the jobs of the future, we need an innovation ecosystem that focuses more strongly on new technologies, new products and new markets. Analysis reveals potential for development within the innovation and start-up ecosystem, particularly when compared with other ecosystems, such as the one centred on the Technical University of Munich (TUM). Technology-focused spin-offs, international expansion and closer collaboration between startups, research and industry, in particular, offer great potential in Linz.

Thirdly, skills shortages, globalisation and increasing demands for digitalisation and sustainability are intensifying competition for talent and investment. This requires high-quality training places, career prospects and networks for start-up founders, as weil as a culture of collaboration. Clear political priorities, international networking and a strategic focus that transcends institutional and supra-regional levels are becoming increasingly important for the region's competitiveness. To achieve this, the Linz economic region needs to actively promote itself externally in order to gain international visibility and thereby attract more investment and skilled workers. To retain skilled workers, we need to improve the quality of life in the city and adopt a forward-looking attitude, greater openness to the world, and a can-do culture that fosters innovation and confidence in the future.

Unique selling points for Linz as business location

  • Excellent childcare provision
  • Highly active start-up ecosystem
  • DIGITAL MILE
  • lndustrial infrastructure
  • Positive location development
  • Good accessibility

The business location from the companies' perspective

In autumn 2025, SMEs in Linz were surveyed to find out how they rated Linz as a business location and their business prospects. A positive factor for Linz as a business location is the high overall satisfaction rate of 70 %. The outlook is dampened by the poor economic performance of recent years: 37 % of companies expect a (somewhat) positive trend over the next five years, whilst around 27 % anticipate a negative trend.

lndustry, the positive development of the location and good transport links are cited as the key USPs of Linz. These are followed, some way behind, by softer factors such as the rich cultural life, the diverse cityscape and being close to the surrounding countryside, as weil as infrastructure benefits and the high quality of life in Linz. Other factors mentioned include the innovative, creative and modern spirit, with its many start-ups, and the proximity to good educational and training institutions in and around Linz.

The results also reveal varying perceptions depending on company size and sector. Larger businesses rate the location more positively overall, whilst smaller companies and those in the retail and construction sectors are more critical in their assessment than, for example, companies in the IT and technology sectors. When asked about the most important location factors, the following points are mentioned:

  • Good technical infrastructure
  • General cleanliness
  • Safety
  • efficient administration
  • Availability of skilled workers

Satisfaction with the technical infrastructure in Linz is very high, with 70 % of respondents stating they are either somewhat or very satisfied. The highest levels of dissatisfaction - at around 40 % in each case - were recorded in the areas of availability of skilled labour, price levels for commercial premises and efficient administration (e.g. planning permission). SMEs in Linz cite rising labour costs and the recruitment of skilled workers as their biggest challenges for the next five years.

When asked specifically about improvements for the Linz business location, the companies put forward numerous suggestions. Providing affordable housing by non-profit housing organisations is cited as the most important measure for attracting skilled workers. Providing affordable housing options for trainees, such as accommodation for staff, or halls of residence for students and apprentices, as weil as an expansion of support services for skilled workers from abroad.

One key point raised in the feedback concerns transport plans and modes of transport. There are very differing needs here: the desire for Park & Ride facilities at the city's entry points, the expansion of public transport, improvements to cycling infrastructure and making the city centre more attractive to customers is countered by criticism that this makes it more difficult to drive into the city by car, and car drivers wanting more car parks in the immediate vicinity of shops.

When dealing with the public administration, businesses would like to see a greater focus on citizens' needs and greater transparency, although the digitalisation measures already implemented are viewed positively.

The results of the analysis and the feedback from the survey highlight the key challenges facing the Linz business location. They are relevant to economic policy because these perceptions influence various parameters that drive economic development, such as:

  • Investment decisions
  • Commitment to the business location recruitment of skilled workers
  • Start-up activity
  • Working together within the ecosystem

Disclaimer: English content translated with AI assistance.

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