Austria could benefit from taking a more strategic approach to developing the RTO sector and other transfer-oriented institutions. Austria’s policy mix for business R&D and innovation has altered substantially in recent years, with the emphasis increasingly placed on more generic support for R&D through a tax incentive (the Research Premium). About three quarters of additional public R&D funding to enterprises between 2006 and 2015 (excluding the co-operative sector) can be attributed to this instrument. Due to design features of the Research Premium, and the increase in the tax exemption rate to 14% in 2018, this shift is likely to continue.