BOOSTING AUSTRIA'S INNOVATION PERFORMANCE.

The article discusses the innovation performance, innovation policies and general framework conditions for innovation and growth in Austria. It is noted that the country has increased its research and development spending as a share of gross domestic product (GDP), largely showing more business research and developments and aims at increasing GDP by three percent by 2010. It is observed that the innovation activity in the country has improved in various fields including the number of small and medium enterprises. It was also observed that the country's general economic framework conditions show weaknesses which may limit the creation and diffusion of innovation and productivity growth.