Start-ups generate innovations for the economy. However, Vienna is not part of the European top start-up hubs any more. Therefore, the competitiveness of the Austrian economy is endangered in the medium term. This was Roland Berger's and Pioneers' motivation: for the large-scale "Start-up hub Vienna – How to precisely utilize chances for the future" study on the status of the Viennese start-up ecosystem and for the recommended actions which have to be implemented urgently.

Vienna, May 17, 2016

Currently the Vienna start-up scene is vibrating on a level too low to be noticed internationally. Yet the Austrian financial promotion environment is excellent in the early phase, even on an international level. And Runtastic and Shpock on the one hand, the Pioneers Festival and the AustrianStartups regulars' table on the other hand are outstanding role models for start-ups and networking on the scene.

All that, however, is not enough for the leap to the top. Deduced from more than 50 interviews with investors, CEOs of the most notable Austrian companies and start-ups and further stakeholders of the start-up ecosystem, Vienna should implement the following five initiatives:

• Further activate large companies: Large companies are able to offer their infrastructure and customer access. On the one hand, several large companies should team up to create a start-up fund amounting to 100 to 300 million Euro. On the other hand, they should engage in setting up a central start-up campus.
• Set up a central start-up campus: Start-up founders, investors and large companies should work together in a big co-working space under one roof. With a targeted establishment policy, above all international creative talent should be attracted. A jury should decide on the admission before systematically combining founders, entrepreneurs, universities and investors according to the respective innovation area.
• Create new political mindset: Founding has to be simplified. Important steps would be to reduce incidental labor costs for the first three staff members in the first three years, create a "Limited Company" in company law and facilitate shares as well as accelerate the issuance of "Rot-Weiss-Rot cards" (work permits for foreign staff members).
• Induce young scientists to found a business: Scientific success should be measured in patents. Sabbatical programs for scientific staff, the entrepreneurial promotion of doctoral candidates and a low equity share of the institutes in the respective start-up would be essential for that. On the long run, entrepreneurship mentality should be created in schools and universities – early on and for everybody.
• Mobilize unproductive capital: To promote private investments in start-ups resp. funds, an investment relief should be introduced. Moreover profits and losses from risk investments could be set off against each other and e.g. insurance premiums could be made accessible for innovative financing. Furthermore providing guarantees should be simplified.

To allow Vienna to accordingly advance, pulling in the same direction is in everybody's interest. An implementation team would shorten the time of setting up such a start-up hub.