The Basque Case Study Harvard febrero 2012.pdf


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The Basque Case Study Harvard febrero 2012.pdf

  1. 1. The Basque Case Study The Basque Case StudyDepartment of Industry, Innovation, Trade and Tourism Department of Industry, Innovation, Trade and Tourism BASQUE GOVERNMENT BASQUE GOVERNMENT MOC- Harvard University (February 2012)
  2. 2. AGENDA 1. Some starting out points 2. Strategy. Resist >Compete>Lead 3. Competitiveness Plan 2010-2013 4. Other related plans MOC- Harvard University (February 2012) 1
  3. 3. Some key aspects of the starting point • Unacknowledged crisis and other increasingly clearer changes: globalization and the need to compete in activities with added value. • Politics and relations: terrorism and work on relations that were previously neglected. • Industrial specialization. High reliance on cyclical industries: investment goods and durable consumer goods. In addition, Energy, Trade and Tourism are among the competencies of the Department. MOC- Harvard University (February 2012) 2
  4. 4. AGENDA 1. Some starting out points 2. Strategy. Resist >Compete>Lead 3. Competitiveness Plan 2010-2013 4. Other related plans MOC- Harvard University (February 2012) 3
  5. 5. RESISTE strategy & Funding The first need in this context of Crisis was to MAINTAIN activity and employment, our RESIST strategy. And financing had become the key for many companies. But with the commitment of agents and trying to get maximum leverage of private and public resources. • Resiste and Miniresiste Programme (for SMEs), to restructure liabilities. • Boost venture capital: over 2.5 years almost double has been processed than over the previous 7.5 years. Work was also carried out in other Provincial Councils and Savings Banks: Ekarpen. • Launch of Guarantees. Under the frame of the EU emergency regulations • Participating loans. • Guarantees for Working Capital An effort was also made to rationalize resources (public companies) and encourage others to do the same, such as Technology Corporations. MOC- Harvard University (February 2012) 4
  6. 6. RESISTE strategy & funding. MOC- Harvard University (February 2012) 5
  7. 7. RESISTE strategy & funding. %Unemployment rate from 1976 to 20113025201510 5 0 Tasa de paro EPA desde 1976 a 2012. País Vasco MOC- Harvard University (February 2012) 6
  8. 8. AGENDA 1. Some starting out points 2. Strategy. Resist >Compete>Lead 3. Competitiveness Plan 2010-2013 4. Other related plans MOC- Harvard University (February 2012) 7
  9. 9. Business Competitiveness Plan (2010-2013)AXES of the Basque Competitiveness Plan AXIS 1:  OPEN ECONOMY AXIS 2: INNOVATIVE, ENTREPRENEURIAL AND  TECHNOLOGICALLY ADVANCED  ECONOMY AXIS 3:  SUSTAINABLE ECONOMY MOC- Harvard University (February 2012) 8
  10. 10. AXIS 1: OPEN ECONOMY Two lines of action: 1. Internationalization of companies. 2. Attraction of Tourism, talent and investments . 1. Internationalization of companies. Important effort in: Promotion, companies, associations, missions to markets Setups Scholarships, etc. And the results have been there, both in the growth of exports and breaking records for the number of tourist arrivals MOC- Harvard University (February 2012) 9
  11. 11. AXIS 1: OPEN ECONOMY GROWTH OF INTERNATIONAL EXPORTS (%) 40 30 20 10 0 2008 2009 2010 2011 (I‐III) ‐10 ‐20 ‐30 ‐40 USA EU‐27 Spain Basque Country MOC- Harvard University (February 2012) 10
  12. 12. AXIS 1: OPEN ECONOMYForeign Trade MOC- Harvard University (February 2012) 11
  13. 13. AXIS 1: OPEN ECONOMY Incoming travellers MOC- Harvard University (February 2012) 12
  14. 14. AXIS 2: INNOVATIVE, ENTREPRENEURIAL & TECHNOLOGICALLY ADV. EC. • Entrepreneurship and Intra-entrepreneurship. The Basque Entrepreneurship Service has been created. Venture Capital • Process to discover entrepreneurs in the framework of Smart Specialization Strategies (S3) proposed by the European Commission: Cluster Associations and Innovanet Network • R&D, Innovation and Advanced Technology: Sharp increase in investment in R&D (overtaking the European average over this period) but with emphasis on the profitability of Innovation. At the same time RVCTI is preserved . ETORGAI, flagship programme. Others: Gaitek, Saiotek, Etortek, Technology Fund MOC- Harvard University (February 2012) 13
  15. 15. AXIS 2: INNOVATIVE, ENTREPRENEURIAL & TECHNOLOGICALLY ADV. EC. Gross Domestic Expenditure on R&D (GERD) MOC- Harvard University (February 2012) 14
  16. 16. AXIS 3: SUSTAINABLE ECONOMY Two perspectives: Necessity and Opportunity. •Significant actions: Electric Vehicle, Bimep, Non-conventional Gas, •Others: energy efficiency and renewable energy, sustainable trade, sustainable tourism. AN EXAMPLE: ELECTRIC VEHICLE INITIATIVE OBJECTIVE  300 COMPANIES SUPPLIERS 10 B€ 60,000 jobs Core Users DISTRIBUTION TRANSPORT AND  COMMERCE LOGISTICS R&D Agents THE CREATION OF CRITICAL MASS AND  ADAPTATION OF THE  DEVELOPMENT OF THE  FOSTERING OF THE AUTOMOTIVE SECTOR REGULATORY FRAMEWORK CHARGING STATION  INFRASTRUCTURE Government MOC- Harvard University (February 2012) 15
  17. 17. LEAD STRATEGY • Target: To boost and support company initiatives which aim to win a relevant market position in an international context and which have an significant impact in the Basque Country. • After the recognition of a Leader Initiative support is given through, among others, Technological, Financial and Internationalization horizontal tools. • This is an intervention carried out with a comprehensive outlook with regard to strategic projects for the region. • Examples of recognized initiatives: Smart Grids, Electric Vehicle, Bimep. MOC- Harvard University (February 2012) 16
  18. 18. SMART GRIDS T&D Operators T&D Operators Government Government The Basque Country has a strong network of companies in electric power transport and distribution, led byT&D ManufacturersT&D Manufacturers Iberdrola (5th electric utility in Europe). The companies offer a broad R&D Agents R&D Agents range of products. T&D Services T&D Services MOC- Harvard University (February 2012) 17
  19. 19. CLUSTER POLICY 1. Consolidated network of priority cluster associations: Focused on improving the competitiveness of their companies through joint projects. Centered on tackling strategic challenges in internationalization, innovation, etc. The form a space of enterprising entrepreneurship with spill-over potential to other activities Furthermore, they are active agents in the drawing up and testing of policies and tools adapted to the requirements of the network. 2. Precluster Program: To extend cluster policy to other sectors and clusters. 3. Initiative Intercluster to boost cooperation projects between companies from different sectors (clusters and preclusters) MOC- Harvard University (February 2012) 18
  20. 20. PRECLUSTERS 2011 PRECLUSTERS 2011AFV - Foundry Association of the Basque CountrySIFE - Drop Forging Industries AssociationHABIC - Basque Habitat, Office and Contract ClusterBasque Country Food ClusterBBC - Basque Bioscience ClusterHERRAMEX - Cluster of Tools and AccessoriesSIDEREX - Spanish Association of Steelworks ExportersERAIKUNE - Construction Cluster Association of the Basque CountryMLC ITS– Mobility & Logistics Cluster MOC- Harvard University (February 2012) 19
  21. 21. CLUSTER POLICY, MAIN CHARACTERISTICS OF OUR PRE-CLUSTERS Basque AFV SIFE AGV HABIC Food BBC HERRAMEX SIDEREX ERAIKUNE Cluster Members (Number of 68 16 34 70 31 25 28 64 56 members) Employment (Number of 7,710 1,815 1,418 4,200 6,147 1,036 2,000 12,000 6,775 people) Turnover (in M€) 872 260 196 750 647 194 243 7,620 1,607 Exports (% over 60% 59% 10% 30% 11% 17% 45% 26% 2% sales) MOC- Harvard University (February 2012) 20
  22. 22. AGENDA 1. Some starting out points 2. Strategy. Resist >Compete>Lead 3. Competitiveness Plan 2010-2013 4. Other related plans MOC- Harvard University (February 2012) 21
  23. 23. OTHER RELATED PLANS Energy Strategy, 3E2020: In addition to the traditional energy measures, an axis of industrial and technological development is included within which the following stand out: Strategic industrial research in 8 priority technological areas. Business development: new initiatives, companies based on technological advances, attracting foreign investment,… This enables the creation of a rigorous demand which catalyses the entry into an early phase which aims to situate Basque companies in an advanced position with regard to the new business opportunities which are arising. MOC- Harvard University (February 2012) 22
  24. 24. To conclude Evolution of GDP per capita in the Basque Country and Spain 40.000 140,0 35.000 120,0 30.000 100,0 25.000 80,0 20.000 60,0 15.000 40,0 10.000 5.000 20,0 0 0,0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 España CAPV Spain / EU 15 (eje dcho) Basque Country /EU15 (eje dcho) MOC- Harvard University (February 2012) 23
  25. 25. To conclude Strategy: Resist Compete Lead Lead Strategy, trough public-private collaboration made from a holistic perspective on strategic projects for the region to stimulate demand, that push Related diversification, Demand Sophistication and a Smart specialization in Cooperation Key: Activate the Economy while Making The Future Internationalization Market-oriented technological innovation Entrepreneurship Financing MOC- Harvard University (February 2012) 24
  26. 26. Thank you very much for your attention Department of Industry, Innovation, Trade and Tourism Donostia - San Sebastián nº1, 01010 VITORIA-GASTEIZ BASQUE GOVERNMENT MOC- Harvard University (February 2012) 25