Dynamics in the EnvironmentalIndustry: The Case of Austria

ANGELA KÖPPL

FORSCENE Workshop

Vienna, October 23, 2006

H:/user/umwelt/umwelttechnik/folien_präsentationen/präsentation_englsich_Mai_06.ppt

Supply and demand drivers forEnvironmental technologies

Market potentialR&D

Demand factors

Supply side Demand side

Diffusion

Command and controlIncentivesAwarenessAvailability

Demand Drivers

Environmental technologies

End-of-pipetechnologies

AirEnergyWaterWaste

.....

Cleantechnologies

AirEnergyWaterWaste

.....

Materialefficiency

Energy efficiency

Substitution of environmental

harmful substances

Recycling

M&C technologies & environmental monitoring

AirEnergyWaterWaste

.....

…..

Source: WIFO

The Austrian Environmental Industry

Source: WIFO surveys 1995, 2000, 2005.

Companies

1993 1997 2003

248 315 331

Source: WIFO surveys 1995, 2000, 2005, - estimate.

The Austrian Environmental Industry

1,53

2,47

3,78

1,45

2,45

17.200

15.000

11.000

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

1993 1997 2003

Turn

ove

r, e

xpo

rts,

bn

€ (

no

min

al)

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

20.000

Emp

loym

en

t fig

ure

s

Turnover Exports Employment

Relative importance of the environmental technology industry, 1993 - 2003

Source: WIFO surveys 1995, 2000, 2005, WIFO calculations, Statistics Austria: economic statistics, Austrian foreign trade database. - ¹) estimate.

2,1

2,9

3,7

1,4

1,7

1,0

3,3

2,8

2,0

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

1993 1997 2003

Perc

en

tag

e s

ha

res

Env ironmental turnover¹) as a proportion oftotal manufacturing turnover

Env ironmental turnover¹) as a proportion ofGDP (nom.)

Env ironmental employment¹) as a proportionof total manufacturing employment

Economic indicators – annual growth rates in 1997 – 2003

Source: WIFO surveys 2000, 2005, WIFO calculations, Statistics Austria: economic statistics, Austrian foreign trade database. ¹) estimate.

7,3

2,3

9,1

6,9

3,5

-0,3

-2

0

2

4

6

8

10

Turnover Employment Exports

Ave

rag

e a

nnua

l cha

nge

in 1

997

– 20

03, i

n p

erc

ent

Env ironmental technologies industry¹)

Manufacturing

Environmental activities as share of theenvironmental industry, 1997 and 2003

Source: WIFO surveys 2000, 2005.Companies are assigned by their main product.

48,6 45,738,7

54,2 51,1 46,9

48,450,3

34,3 34,3 44,1

11,0 11,5 14,5 8,9

44,4

6,9 5,9

0

10

20

30

40

50

60

70

80

90

100

Turn-over

Employ-ment

Compa-nies

Turn-over

Employ-ment

Compa-nies

Perc

en

tag

e s

ha

res

M&Ctechnologies &EnvironmentalMonitoring

End-of-pipeTechnologies

CleanTechnologies

1997 2003

Environmental sectors as share of the environmental industry, 1997 and 2003

27,921,0 20,9

13,2 11,0 15,5

12,8 15,2

13,6 14,916,4

32,5 47,744,0

44,6

26,4 29,215,2

12,414,6

11,3

13,8 12,5 16,2 13,0 15,5 12,2

11,1

20,824,5

0

10

20

30

40

50

60

70

80

90

100

Turn-over

Employ-ment

Compa-nies

Turn-over

Employ-ment

Compa-nies

Perc

en

tag

e s

ha

res

Others/M&C

Air

Energy

Water

Waste

1997 2003

Source: WIFO surveys 2000, 2005.Companies are assigned by their main product.

0

5

10

15

20

25

30

35

40

45

50

Cogenerationplants, systems

engineering(plant

optimisation)

Biomass plants Hydropower,other energytechnologies

Solartechnologies

Photovoltaics Heat pumps Biogas plants

Pe

rce

nta

ge

sh

are

s

TurnoverEmployees

Clean energy technology product segment 2003, estimate

Companies are assigned by their main product. Other energy technologies: wind power, bio diesel, geothermal systems - estimate. Source: WIFO survey 2005.

Turnover: ~ 1,8 billion €Employees: ~ 7.500 Persons

Austrian export markets 2003

Source: UN database, Harmonised System 1996, definition of environmental technology goods as per OECDCOM/TD/ENV(2000)86/FINAL, WIFO calculations dollar-based.

Total exports Exports of environmentaltechnolgy

Central/South-east Europe

17,9%

Russia1,7%

Other countries

8,8%

EU1552,4%

Other WesternEuropeancountries

4,9%

China2,7%

US/Canada6,1%

Southeast Asia5,4%

Central/South-east Europe

14,5%

Southeast Asia4,6%

US/Canada6,0%

China1,2%

Other WesternEuropeancountries

4,7%

EU1557,2%

Other countries

10,4%Russia1,4%

Total trade

Trade with environmental

goods

Germany 14,5 19,3US 15,0 18,0Japan 10,0 14,1

Austria 1,6 1,7Denmark 1,1 1,7Sweden¹) 2,0 1,8

Average share in percent

Market share (� 2001 – 2004)

Source: UN database, Harmonised System 1996, definition of environmental technology goods as per OECDCOM/TD/ENV(2000)86/FINAL, WIFO calculations dollar-based ¹) Ø 2001 – 2003.

Relative competitive position of Austria in its trade with environmental goods (RWS-Value)

Source: UN database, Harmonised System 1996, definition of environmental technology goods as per OECDCOM/TD/ENV(2000)86/FINAL, WIFO calculations dollar-based ¹) Ø 2001 – 2003.

-40 -30 -20 -10 0 10 20 30 40 50 60

Japan

US

Switzerland

Sweden¹)

Netherlands

Italy

United Kingdom

France

Denmark

Germany

Austria

Ø 2001 - 2004Ø 1997 - 2000

RWS-Value

Conclusions

• Integrated technologies – especially clean energy technologies – gain importance

• Austria’s early specialisation in environmental technologies corresponds to a good competitive position

• High quality technologies are needed to secure competitive position

• Enhancement of innovation activity through technology policy

Conclusions

•Change in environmental policy themes

•Growing internationalisation

•Growing competition

• New markets

• High quality

• Public support of exports

Markets for environmentaltechnologies, 1997 and 2003

Source: WIFO surveys 2000, 2005.

1997 2003

EU15 38,7%

Other WesternEuropeancountries

1,6%

Central/South-east Europe

9,2%

US/Canada3,9%

Southeast Asia2,4%

China2,6% Other

countries2,7%

Austria38,8%

Austria35,2%

Russia0,6%

China1,5%

Southeast Asia1,6%US/Canada

4,7%

Central/South-east Europe

9,5%

Other countries

5,2%

Other WesternEuropeancountries

1,7%EU15 40,0%