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Yes, Russia does better than ever industrializing in 1.2. They top out after like 20 or 30 years of rapid growth though. Russia raced up to #2 in all 3 of my 1.2 games and then lost it to america/germany/france in the 1880s. Their industrial score kind of sat there not moving after their insane sprint. Austria doesn't seem to be so bad, but recovers more slowly from wars than I recall in 1.1.
 
I haven't played Austria personally, but they have been doing well in my game as Italy. They were a tough war and haven't been destroyed by Prussia. I thought they were going to end up being much weaker.
 
I just started a game as Austria yesterday. I noticed how small my pool was and have been on my best behavior in the early years. It is now 1864. Austria has a great budget so for the last ten years I have really increased military spending. I now have a large standing army (42 out of 23 possible) and a pool of 48. I was attacked by Russia and barely managed to force a white peace. I had to use the mountain line but they could not break it. I will probably have to fight the new "North German Federation" soon. Their standing army is the same but I am sure they have a strong reserve and better techs. I am just glad the patch is out. As long as one does not mind starting the game as a peace lover and building up the army it should be fine. I would love more to start but the economy will more than make up for it in the long run.