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Over the past two decades, Austria has become one of the most R&D intensive economies among OECD countries and in the world, dedicating 3.1% of its GDP on R&D in 2016, the second highest figure in the European Union. To fully harness this R&D capacity, Austrian innovation policy needs to put a stronger emphasis on efficiency in transforming R&D inputs into impacts. To achieve higher impacts, Austria also needs to steer its research and innovation system towards leadership excellence in global markets. This requires enhanced international attractiveness for top-level researchers and talent, and a conducive environment for highly innovative enterprises. Austria could also benefit from strengthening R&D and innovation to support key transitions, such as digitalisation and Industry 4.0, and to tackle key societal challenges. The STI policy mix and governance arrangements should be adapted accordingly.

This report contains the 2018 Peer Review Report on the Exchange of Information on Request of Austria.

Fast population growth in the city of Vienna is largely related to international migration.  Long-standing migrant communities represent half of Vienna’s population. In 2016, 50% of the inhabitants had migrant backgrounds, and since 2015, the number of refugees and asylum seekers in the city has increased. Since 1971, the city has developed dedicated administrative structures and local policies for migrants. A dedicated municipal unit (MA17) oversees how departments achieve migration-sensitive standards in their respective policy fields and produces the yearly Vienna Integration and Diversity monitoring report. A good practice is 'Start Wien',  a comprehensive coaching and information programme addressing newcomers (including asylum seekers) for the first two years after arrival. After that, foreign residents benefit from non-targeted measures, for instance from a programme fighting labour market exclusion of low-skilled groups. Vienna has avoided high segregation due to its large and well spread social housing. However migrants can only access it after five years of residency in the city, before which they rely on private rental market. Vienna establishes close contacts with migrant associations and NGOs at the district level and engages public consultations when formulating integration concepts. This report sheds light on how the municipality and non-state partners work together with the other levels of government for sustainable migrant and refugee integration.

In 2014 the OECD carried out work to take stock of OECD countries' achievements in building resilience to major natural and man-made disasters. The report suggested that albeit significant achievements were made through effective risk prevention and mitigation management, past disasters have revealed persistent vulnerabilities and gaps in risk prevention management across OECD. Based on the findings of this OECD-wide report a cross-country comparative study was undertaken in Austria, France and Switzerland to test the recommendations put forward in specific country contexts. This report summarises the individual and comparative country case study findings. It highlights that the risk prevention policy mix has shifted in favor of organisational measures such as hazard informed land use planning or strengthening the enforcement of risk sensitive regulations. In the meantime, the great need for maintaining the large stock of structural protection measures has been overlooked and vulnerability might increase because of that. The report highlights the need for better policy evaluation to increase the effectiveness of risk prevention measures in the future. The report highlights practices where countries succeeded to make risk prevention a responsibility of the whole of government and the whole of society, by analysing supporting governance and financing arrangements.

Under Action 14, jurisdictions have committed to implement a minimum standard to strengthen the effectiveness and efficiency of the mutual agreement procedure (MAP). The MAP is included in Article 25 of the OECD Model Tax Convention and commits countries to endeavour to resolve disputes related to the interpretation and application of tax treaties. The Action 14 Minimum Standard has been translated into specific terms of reference and a methodology for the peer review and monitoring process. The minimum standard is complemented by a set of best practices. The peer review process is conducted in two stages.  Stage 1 assesses jurisdictions against the terms of reference of the minimum standard according to an agreed schedule of review. Stage 2 focuses on monitoring the follow-up of any recommendations resulting from jurisdictions' stage 1 peer review report. This report reflects the outcome of the stage 1 peer review of the implementation of the Action 14 Minimum Standard by Austria, which is accompanied by a document addressing the implementation of best practices which can be accessed on the OECD website.

This report looks at the state of health in Austria.