Knowledge Economy and Sociospacial Polarisation

As regards the development of the social space Vienna over the last 30 years, three developments concerning Vienna as a whole have to be mentioned:

• the “elevator-effect” which is a general appreciation of the level of education and the level of professional qualification coupled with an onward improvement of living conditions

• the tendency towards an excess of age of the Viennese society and

• increased immigration

Different districts are characterized by partly different developments as regards demographic, socioeconomic and ethnic variables. For example, a concentration of the upper class above the average age takes place in the “City” of Vienna. On the other hand, you find districts characterized by younger average-age primarily populated by young families of the middle class.

Special problem areas regarding the urban development of Vienna are districts of dual segregation which is
- the segregation of national and ethnical minorities and
- the segregation of socially disadvantaged, domestic population groups.
These areas are characterized by buildings and accommodations in poor condition and a concentration of foreign, socially disadvantaged residents and domestic low-educated and low-income residents. Problematical is a possible self-reinforcing of this development:

• the spatial concentration of foreign ethnic groups may lead to social conflicts with the domestic population group

• high costs for used-up and overstaffed quarters raise hostility of foreigners

• a social climate emerges that hinders private renovation investments

• this may lead to a “cementation of structures” through the proceeding reduction of social interaction between domestic and foreign groups in these districts

• this reinforced ethnocentrism fosters the danger of social and political conflicts which may lead to an isolation of problem areas (e.g. bunker architecture)

• all resulting in a long-term decline of quality of life for those residents and an unattractive location for private investments in renovation and new building.

In opposition to problems of sociospatial polarization, the Vienna biotechnology cluster is described below as a prime characteristic of knowledge economy.

Vienna biotechnology cluster

Biotechnology in Austria exhibits a strong specialization in “red” biotechnology, notably in cancer research, vaccines and blood products. Although Austria has a traditional strong science base, the country can be considered as latecomer in commercialization of biotechnology.

Comprising more than 60 companies, several biotechnology firms have entered into the industry fuelling the development of the Vienna biotech cluster in the past five years. The landscape is dominated by academic spin-offs. From these, a few are dynamic and successful such as Intercell and Ingenion. Generally speaking, the cluster can be seen as highly vulnerable as the majority of the firms are still in an early-stage of development and earning only marginal revenues.

The region of Vienna also hosts few multinational pharmaceutical companies such as Boehringer Ingelheim Austria (BIA), Novartis and Baxter employing together more than 4000 people.

The major challenge for emerging as well as for established biotech firms is to raise funds. Venture Capital firms are scarce in a bank-dominated landscape with a widespread adversity for risk-taking.


Sources:

Redak, Vanessa/Novy, Andreas/Becker, Joachim (2003): Modernizing or Polarizing Vienna? In: Frank Moulaert/Arantxa Rodriguez/Erik Swyngedouw (eds.):The Globalized City – Economic Restructuring and Social Polarisation in European Cities. Oxford: Oxford University Press. 167-180.

Steinbach, Josef, Mösgen Andrea, Kaiser Alexandra (2005): HIstorische Sozialraumanalyse für das Wiener Stadtgebiet II: 1971-1981-1991-2001. In: Reihe „Dokumentationen – Erarbeitung STEP Wien 2005“, Stadtentwicklung Wien (ed.). Wien.

Tödtling, Franz/Trippl, Michaela (forthcoming): Knowledge links in high-technology industries: markets, networks or milieu? The case of the Vienna biotechnology cluster. In: International Journal Entrepreneurship and Innovation Management.