Interaction between businesses, universities and public research institutes (PRIs) is well established in Austria and supported through a variety of policy measures, including funding for collaborative R&D projects, temporary labs, and joint research infrastructures, as well as funding for research and technology organisations (RTOs). While the existing networks and programmes effectively contribute to industry-science links, they often focus on established innovation paths. A key challenge will be to develop new institutional arrangements that provide powerful incentives for path-breaking innovation that links application-oriented basic research with industrial innovation across disciplinary boundaries.