Klaxon – From Austria to the entire world

Interview with Enrico Boaretto, co-founder of Klaxon Mobility 

What led you and your partner Andrea Stella to set up Klaxon Mobility in Austria? 

Our focus was not on relocating the business, because I already lived in Carinthia when we established Klaxon in 2015. In other words, we did not decide to set up a company here for tax reasons. Naturally the 25% corporate tax rate is an advantage. However, from a business perspective and in terms of stress, the undisputed competitive edge is the lean and uncomplicated bureaucracy. To be an entrepreneur here is much easier, the Austrian system is citizen-friendly, bureaucratically fast, structured and transparent. Moreover, one has more planning certainty here. For me these are benefits which by far outweigh the tax advantages. We received financing and profited from a complete, cost-free 18-month incubation phase in the Villach Technology Park, a high-tech cluster in which Carinthia decided to locate large companies as well as startups. We were given funding, financial help from the Austrian Federal Economic Chamber to participate in trade fairs, and various national and regional subsidies for R&D projects. But above all, we also benefitted from support and services. Funding is important, but the assistance and the cooperation of people is just as important. It turned out to be quite easy for us to establish Klaxon here. We are growing well and sell our innovations throughout the entire world. 

Do you think Italy is less competitive than Austria when it comes to founding a startup? 

I already launched my business activities in Friuli-Venezia Giulia in 2001, but then decided to move to Carinthia with my family. In Italy I spent about 60% of my time dealing with the bureaucracy and waiting for answers. Even if the extensive organisation of the Austrian system suggests otherwise, in reality there are just a few but clearly defined rules in Austria which apply to business matters and also to normal life. If you have a tax credit, the amount will simply be credited to your account a month later. If your project is well received, you are offered an incubation period lasting one and a half years in cost-free offices for which you neither have to pay for electricity nor for cleaning. In contrast, an entrepreneur in Italy is frequently viewed with mistrust, and there is almost always the underlying suspicion of his engaging in tax evasion or other irregularities. Above all, a businessperson in Italy ends up doing everything but his actual work and spends most of the time focusing on the legal and tax aspects of his business operations.  

How was Klaxon Mobility provided with consulting and support by the Austrian Business Agency (ABA) when the company was founded in Austria?  

A small group of Italian businesspeople or else an entrepreneur in general daring to embark on a new adventure in a foreign country requires quite a lot. First, he must have the feeling that the host country considers his planned investments to be strategically important and will thus be given every conceivable form of support. There is also the challenge of overcoming difficulties arising from cultural differences, especially the language, and to counteract any possible scepticism in the beginning with confidence and an openness for dialogue. For us ABA turned out to be all this and a lot more. Thanks to the agency’s support, we understood the Austrian system of funding and incentives much better as well as how to recruit staff, and initiated partnerships with companies as well as public and private institutions. 

Klaxon invests a considerable amount of money for R&D in Austria. Do you make use of the research tax credit supporting companies conducting research and development, or did you take advantage of this in the past? 

Yes, we have been able to take advantage of the research premium every year. This means we get a premium of 14% of expenses related to research and development. This represents extremely important help for Klaxon.  

How do the costs in Austria compare to Italy? 

In my opinion, living costs and staff costs are higher in Austria. However, from the perspective of a family, I think that we end up having more money in our pockets in Austria and thus higher purchasing power at the end of the year than in Italy thanks to the efficient social security and health care system.  

However, the issue of finding staff is a sore point. In Carinthia in particular, it is difficult to find qualified and reliable employees, and salaries are generally too high.  

What do you personally appreciate the most about Austria and above all in Carinthia? 

Besides my work, I love my family and the abundance of green and the peace and quiet. My daughter is young and has the possibility here to learn three languages and meet people from all over the world. This corner of Austria is very internationally oriented and here one can have a very good life here. Like the typical cliché of Italians living abroad, I miss the food and the climate, but  considering all the advantages and disadvantages, life here is more positive than negative. There isn’t much at al that I miss here in Austria, especially in this region.