The core funding programmes (Basisprogram) of the Austrian Research Promotion Agency (FFG) open the door to industrial R&D with budgets in the high-hundreds of millions. Around 1,000 companies benefit each year, and every euro of public support prompts an additional €2.60 in corporate R&D spending—resulting in total business investment that is 3.6 times the grant amount, according to a study by KMU Forschung commissioned by the Austrian Federal Economic Chamber (WKÖ) and two sector divisions.

FFG’s core programmes offer technology- and topic-neutral support for research and development, primarily via non-repayable grants. They are available at all stages of research, with a main focus on concrete R&D projects in experimental development and industrial research. Funds are awarded on application, with SME grant rates generally higher than those for large corporations, the study notes.

€330 Million Annual Budget for Core Programmes

FFG allocates approximately €330 million per year to its core programmes—nearly half of its total R&D funding in 2023. Of that, €211 million went to industry, with the remainder supporting research institutions, collective-research associations, and individual researchers.

Each year, about 1,000 companies benefit, 30 percent for the first time. The lion’s share of supported firms, projects, and grants is found in the trade & crafts, industry, and information-consulting sectors.

Companies Report Stronger Competitiveness

“Over 80 percent of funded companies report enhanced international competitiveness through their projects,” WKÖ writes. For smaller firms, these grants are often the crucial entry point into structured research and innovation processes: 85 percent of projects would not have proceeded without support. Moreover, every euro of funding generates an average of €8.60 in additional revenue, and three-quarters of mature, grant-backed innovation projects show measurable employment effects.

Despite these successes, WKÖ sees room for improvement. In recent years, FFG has had to draw on future budgets to meet demand for eligible projects. The Chamber calls for a budget increase for core programmes beyond mere inflation adjustments. It advocates maintaining a strong focus on SMEs and startups while preserving attractiveness for large enterprises and advanced-technology initiatives—and it calls for greater internationalisation and EU-wide cooperation.