Innovation | Wirtschaft Innovation Linz

A strong industrial base characterises the economic structure of the Linz business location. Added to this is an above-average concentration of large enterprises, which act as magnets for employment, value creation and international competitiveness. These companies form the backbone of the business location. The ecosystem analysis for the Linz area reveals both stable conditions and clear potential for development. A strong industrial sector and universities and universities of applied sciences with excellent performance records provide a solid foundation for the further development of existing technologies and industrial innovation.

However, by international standards, the Linz region is still producing too few high-growth companies and technology-oriented spin-offs from the areas of science and research. Much of the innovation work focuses heavily on the further development of existing technologies. Semi-radical and radical innovations, on the other hand, often develop outside established structures or are driven by individuals or, more often than not, by start-ups.

Linz is home to a growing start-up scene. A recent example of the potential that exists is the acquisition of the Al start-up Emmi.AI by the French Al company Mistral. The transaction strengthens Linz's position, as it brings not only investment but also visibility as a key player at European level. Emmi.Al's success is based on DeepTech research into Al at JKU.

This positive news is an indication of the region's potential for development. Universities and universities of applied sciences are the starting point for a start-up ecosystem because excellent research is often the foundation for a business and, consequently, for the jobs of tomorrow. Innovation arises when universities and universities of applied sciences, businesses, capital and talent work together closely. An effective start-up ecosystem brings together industrial companies, technologyoriented SMEs, start-ups, universities and universities of applied sciences, investors, funding bodies and public authorities, as weil as civil society. Each of these groups fulfils a specific role. Success depends mainly on how weil the stakeholders are connected with one another.

A prime example of a thriving start-up ecosystem is the Technical University of Munich (TUM). Through its internationally recognised entrepreneurship programme, it offers students, staff, researchers and alumni who wish to set up a business based on an idea or technology a comprehensive range of support services (ranging from advice to funding and fast-track procedures for the use of the university's intellectual property).

As a result, a dynamic ecosystem has emerged beyond the university that supports TUM start-ups. The greater Linz area has all the right conditions for a thriving start-up ecosystem. Excellent universities and universities of applied sciences (e. g. JKU, IT:U, University of Applied Sciences Upper Austria, etc.) with innovative degree programmes are attracting a growing number of talented students. Collaborations between universities, universities of applied sciences and businesses already exist and can be expanded, especially in terms of (semi-)radical innovation. Cooperation is becoming a key competitive factor, particularly in the forward-looking sectors of industrial intelligence and clean technologies. Innovation is increasingly emerging at the intersection of industrial expertise, digitalisation, Al, sustainable technologies and interdisciplinary perspectives from the creative industries and social innovation. An effective start-up ecosystem is therefore also able to explore and tap into new fields of the future.

There is a need to catch up in terms of access to finance, particularly during the scaling phase of start-ups. The aim is, above all, to provide technology- focused spin-offs with access to funding and to further strengthen the growth of start-ups. The objective must be to create the right conditions to enable experimental, risk-laden and high-growth innovation. Experts estimate that around one billion euros will be needed over a period of ten years to establish a significant research-driven start-up ecosystem.

Building a sustainable start-up ecosystem therefore requires a joint effort by the Austrian, province, and local governments, universities and universities of applied sciences, businesses, investors and civil society.

Working together to strengthen the start-up ecosystem

The aim is to create a unicorn from the Linz start-up ecosystem, to launch 30 start-ups a year from the universities and universities of applied sciences, and to raise one billion euros in capital for a start-up and scale-up fund over a ten-year period.

Actively support the implementation of the Austrian government's start-up and scale-up fund and facilitate access for Linz-based start-ups to new financing instruments (a federal instrument; experts recommend recycling existing ÖBAG assets for the jobs of tomorrow to capitalise the fund)
Support improved framework conditions for spin-offs from universities and universities of applied sciences, e.g. workable models for start-up leave, returning to work and shareholding. This gives researchers and key people the freedom to set up start-ups without jeopardising their academic careers. This makes entrepreneurship a realistic option for top talent.
Simplifying intellectual property (IP) management at universities and universities of applied sciences. We support initiatives that facilitate standard contracts, clear timeframes and fast-track licensing (e.g. firstuse- then-pay) because these reduce negotiation costs and increase the likelihood of success for spin-offs