New EcoAustria study shows: UAS provide up to 533 million euros in fiscal returns annually - they are an investment, not a cost centre

A recent study by EcoAustria on the economic effects of Austrian universities of applied sciences (UAS) clearly shows that investing in UAS pays off - for the business location, for the labour market and for public finances. The study puts the contribution of first degrees obtained since 2010 to economic output in 2025 at around 2.7 billion euros or 0.53 per cent of GDP. According to the study, this effect will increase to over 7.7 billion euros in the long term.

„Anyone who invests in our universities is investing directly in growth, employment and budget stability. Especially in light of the upcoming federal budgets, it must be clear: More funding for our universities is not additional expenditure, but an economically highly profitable investment in the future,“ emphasises FHK President Ulrike Prommer.

The fiscal impact of the UAS sector is particularly relevant in terms of budget policy. According to EcoAustria, the supply-side effects of human capital formation alone will have a positive effect on the public primary balance of around 287 million euros in 2025. In addition, the expenditure of UASs, their staff and foreign students will trigger a macroeconomic demand stimulus of up to EUR 769 million, of which up to EUR 503 million will be effective domestically. This results in domestic added value of up to EUR 542 million and up to 4,600 full-time jobs. The associated additional tax revenue amounts to up to 246 million euros per year.

According to the study, this results in total fiscal returns of up to 533 million euros per year from both impact channels. For the FHK, this is a clear signal to budget policy: public funding of UASs is not only necessary in terms of education and innovation policy, but is also fiscally rational.

„Austria is faced with the task of utilising public funds effectively and in a future-oriented manner. Our universities provide a particularly strong example of this: they train the specialists that business, industry, healthcare, digitalisation and public infrastructure urgently need - and they also generate measurable returns for the state,“ says FHK Secretary General Kurt Koleznik.

The results come at a time when UASs are under massive pressure due to increased personnel, energy and infrastructure costs. Without a reliable safeguarding of the value of student place funding, those universities that demonstrably make a high economic and fiscal contribution are at risk of being weakened.

„Those who cut back on our universities now are cutting back on one of the most effective investments in Austria's future. Those who finance them fairly, on the other hand, strengthen skilled labour, innovation, regional value creation, social advancement and ultimately the budget itself,“ concludes the FHK President.