Research funding by the federal state comprises a broad range of financial and intangible measures with direct and indirect effects. "Financial research funding" is based, on the one hand, on financing the establishment and operation of research institutions, that is, their personnel and infrastructure costs, and, on the other hand, on funding for research programs and projects by publicly endowed research funds and by commissioned research and incentives of federal ministries. On the other hand, ""Intangible" funding" mainly comprises the following: the provision of suitable legal framework conditions and strategic development on the national level; participation in shaping European research policy and its programs in accordance with Austrian strengths; designing complementary national activities, and the preparation of specific cooperation programs under bilateral agreements. "The funding range is supplemented" by funding research scholarships for young scientists that enable them to acquire know-how at renowned institutes abroad; by funding scientific conferences and symposia, and by funding publications in which research results are presented to experts. Public endowment of prizes for research achievements is a visible recognition of outstanding achievements and motivates scientists to compete and to improve the quality of their work. Indirect research funding is mainly effected by way of tax relief for R&D investments in enterprises, as well as by tax privileges for private donations to research institutions to carry out research and teaching tasks. In future, the Ministry (known as bm:bwk) will include more competitive elements when funding research institutions. The basis is provided by the medium-term strategies of funded research institutions and regular evaluations by international experts.