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Austria is in the middle group of OECD countries in terms of most indicators of information and communication technology (ICT) infrastructure for business. E-readiness and Internet penetration are around average, broadband is widely available even if lagging in rural areas, business R&D growing, Internet banking and e-government applications advanced, although aggregate ICT and knowledge investments are below average. E-government is well-developed and is a good example of a policy lever which has important impacts on business and citizens as well as improving government efficiency. Similarly, electronic payments and electronic signatures are well developed although e-commerce performance is only average. ICT policy has aimed to sustain relatively good economic performance and modernise the economy by tackling market distortions and market failures. This has included broad liberalisation of network services, increased direct public funding and incentives to private spending on R&D, and initiatives for ICT skills and diffusion. However, co-ordination is a complex and challenging task in a federal government structure and does not necessarily lead to a centralised approach to ICT policy and its direction and form. Informal information exchange and programme evaluation practice may be insufficient to identify and meet emerging challenges, and recent transparent initiatives such as the White Paper on ICT-related strategy should be continued and strengthened.