
Computer and telecommunications hardware
There is no Austrian enterprise that is internationally relevant in the computer and telecommunications hardware market. Most exports are conducted by foreign firms with direct investment in Austria. For example, Siemens has spent ATS 3.5 bn in 1995 to expand its operations in Austria. 50 It also established its Central and Eastern European headquarters in Austria and uses it as a gateway to the emerging countries. The government's strategy to create jobs has been to attract foreign direct investment (FDI) in Austria. All major hardware providers (Siemens, Philips, IBM, HP, DEC) have a strong presence in Austria.
Export figures 1994 (visible account)
| Exports 1994 | in ATS million | in % of total visible exports | change vs. 1993 |
| Office and EDP equipment | 5,705 | 1.1 | - 5.8 |
| Total visible exports | 512,515 | 100.0 | + 9.7 |
| Imports 1994 | in ATS million | in % of total visible imports | change vs. 1993 |
| Office and EDP equipment | 22,500 | 3.6 | + 14.0 |
| Total visible imports | 628,878 | 100.0 | + 14.9 |
Software and services
Austrian software companies are mainly small- and medium-size enterprises (SME). They usually depend on customers who demand tailor-made application which they develop and service. Hence, most Austrian businesses are domestically oriented and cannot compete on an international basis. Entrepreneurs who come up with good ideas usually cooperate with major manufacturer in order to use their global distribution channels. For example, Faba, an Austrian software company which employs 40 engineers, cooperates with Digital Equipment and Microsoft. It sold 100,000 copies of "LinkWorks" in more than 30 countries. The company was awarded the "Best of Comdex Award" in 1993 at the Las Vegas computer fair and one year later the "Golden Award" at the CEBIT in Hannover, Germany, for its powerful networking software. 51 Only a few companies have managed to provide a product that could competed internationally. The Austrian providers are more competitive in the service and consulting business where an SME can compete in smaller regions.
The World Wide Web will give the SMEs an opportunity to market their products globally in an efficient manner. This will allow the companies to better compete internationally. Small, recently founded companies are more active in the Internet. They use the Web for external communication, coordination with customers and suppliers, market watch, and e-mail. Typically, those companies have less than 10 employees and only recently started to use the Internet for their business. 52
Next chapter: Government Policies