Basque Country and European Regions

0 LOCATION OF THE BASQUE COUNTRY AND EUROPEAN REGIONS

1 QUALITY OF LIFE

Socio-demographic data Euskadi – Basque EU -27 Country Population (inhabitants) 2,172,175 499,753,500 Population density (inhab/km2) 300.2 117.8 Life expectancy (years) - Men 77.2 76.1 Life expectancy (years) - Women 84.3 82.2 Hospital beds (per 100,000 inhabitants) 375 590 Internet access (% homes) 60 65 Per capita GDP (EU 27= 100) 136 100 Population aged between 20 and 24 with 78.0 78.5 secondary studies (%)

2 POLITICAL STRUCTURE

BASQUE COUNTRY

 HAS ITS OWN TAX SYSTEM.

 HAS THE LEGAL CAPACITY TO REGULATE TAXATION AND THE AUTHORITY TO MANAGE AND COLLECT TAXES.

 PAYS THE SO-CALLED “QUOTA” TO THE SPANISH STATE FOR SERVICES PROVIDED BY THE LATTER IN THE BASQUE COUNTRY.

3 AREAS OF AUTHORITY

BASQUE COUNTRY SPAIN-EUROPEAN UNION . Own tax system . Education and Culture . Armed Forces . Health . Foreign Relations . Industry and Commerce . Monetary System . Transport and Public Works . Ports and airports . Police . Postal Services & Communications . Housing and the Environment . Foreign trade . Agriculture and Tourism . Customs service . Labour and Social Protection . State railway system . Hydraulic resources

4 GENERAL BUDGET DISTRIBUTION 2012

INCOME (%) EXPENDITURE (%)

HEALTH 32.6 57.9

CONTRIBUTIONS FROM EDUCATION 25.3 82.0 PROVINCIAL COUNCILS EMPLOYMENT AND SOCIAL AFFAIRS 8.9 HOUSING, PUBLIC WORKS AND 7.5 TRANSPORT HOME OFFICE 6.3 INDUSTRY, INNOVATION, 3.7 COMMERCE AND TOURISM 34.1 11.6 JUSTICE AND PUBLIC 2.7 PUBLIC DEBT ADMINISTRATION OTHER INSTITUTIONAL CULTURE 2.6 3.7 RESOURCES ENVIRONMENT, REGIONAL PLANNING, AGRICULTURE AND 2.4 OTHER RESOURCES 1.7 FISHERIES

OWN TAXES 1.0 OTHER DEPARTMENTS 8.0

Total 10,449 million €

5 EDUCATION AND TRAINING

BASQUE COUNTRY REGION % 1 Inner London 51.5 7TH EU REGION WITH THE MOST UNIVERSITY GRADUATES 2 Prov, Brabant Wallon (BE) 48.6 3 Oslo og Akershus 47.4 4 Prov, Vlaams-Brabant (BE) 44.2 HIGHER EDUCATION: STUDENTS ENROLLED 5 London 43.7 ACCORDING TO SUBJECT, 2009-2010 COURSE 6 Hovedstaden (DK) 43.6 Total Men Women 7 País Vasco 43.6 Total 62,773 28,293 34,480 8 Utrecht (NL) 42.9 Subjects Région de Bruxelles- 9 Capitale 42.4 Social Sciences and Law 27,554 9,763 17,791 Technical subjects 16,787 11,880 4,907 1 0 Stockholm 41.9 Humanities 5,150 1,907 3,243 Health Sciences 3,981 848 3,133 SPAIN 29.7 Experimental Sciences 3,023 1,160 1,863 EU-27 24.4 Others 3,292 1,511 1,781 Not specified 2,986 1,224 1,762

6 EDUCATION AND TRAINING

UNIVERSITY OF THE BASQUE COUNTRY EUSKAL HERRIKO UNIBERTSITATEA

UNIVERSITY OF DEUSTO DEUSTUKO UNIBERTSITATEA

UNIVERSITY OF MONDRAGÓN MONDRAGON UNIBERTSITATEA

7 INFRASTRUCTURES

Port Port Airport Terrestrial platforms Train Roads Airport

Combined Transport Station

Railway Roads

8 INFRASTRUCTURES / LOGISTICS

RAILWAYS

The “BASQUE Y” high-speed rail corridor will link the three Basque capitals and will Travelling time connect the Basque Country with the rest of Europe. Bilbao Madrid 2h 15’  Connections providing access to the main logistics areas located near the capitals. Bilbao París 5h 47’

SEA PORTS  Two large commercial ports, Bilbao and Pasajes, which together handle almost 44,000,000 tonnes of goods per annum.  Port of Bilbao, main multimodal centre of the Iberian peninsula.

AIRPORTS  Three airports with excellent infrastructures from the transport of passengers and goods.  Bilbao Airport (Loiu), international category, the largest passenger airport in the Cantabria area Vitoria Airport (Foronda), “Primary Special” category, it has the second-largest perishables terminal in Europe.

2011 Passengers 2011 Cargo (kg) Bilbao Airport 4.045.613 Vitoria Airport 34.669.141

9 CONFERENCE AND EXHIBITION CENTRES

BILBAO EXHIBITION CENTRE (BEC)

Modern, convenient and functional exhibition complex, 150,000 m2 of exhibition area distributed in 6 column-less pavilions.

Exhibition organizers with more than 30 years of experience in the organization of trade fairs and shows.

GENERAL DETAILS OF THE BEC Exhibition surface: 150,000 m2 Congress Centre: 18,000 m2 Offices: 6,500 m2 4,000 parking places

BIEMH, Machine-Tool Biennial: with a Important gross exhibition area of 65,000m2 y international more than 35,000 professional visitors. exhibitions FERROFORMA- BRICOFORMA

10 MAIN MACROECONOMIC DATA

EUSKADI – BASQUE COUNTRY 2000 2005 2008 2010

GDP at current prices (millions €) 41,647 57,289 67,924 65,419

Per capita GDP at current prices (base = 2005) (€) 20,030 27,153 31,514 29,988

Per capita GDP (PPC) (UE-27=100) 120 129 138 133

Inflation (consumer price variation, %) 3.5 3.3 4.1 1.7

Employment rate (16 to 64 year-olds, %) 57.5 65.4 67.6 65.1

Exports (millions €) 11,871 14,297 20,279 17,876

Import (millions €) 10,324 14,537 20,118 15,431

Export tendency (Exports/ GDP) (%) 28.5 25.0 29.9 27.3

Productivity per employed person (EU-27=100) 133.0 127.8 131.9 130.9

11 MAIN MACROECONOMIC DATA

RELATIVE WEIGHT OF THE BASQUE COUNTRY IN SPAIN (%), (2010) 1. POPULATION 4.6

2. GDP at current prices (millions €) 6.1

3. EXPORTS 9.6

4. IMPORTS 6.4

9,6 10 9 8 6,1 6,4 7 4,6 6 5 4 3 2 1 0 P o pulatio n PIB Expo rts Impo rts 12 MAIN MACROECONOMIC DATA

The Basque Country occupies 23rd Per capita GDP per country and year place of a total of 271 European (EU27=100) (PPC) regions, with a per capita GDP of 138 (UE-27 = 100)

2000 2010 Luxembourg Luxembourg Basque Country Netherlands Netherlands Denmark Ireland Austria Denmark Ireland Austria 1 Member State Sweden Sweden exceeds Basque Belgium Belgium per capita GDP United Kingdom Germany Germany Finland Finland 7 Member States United Kingdom Italy exceed Basque France

France per capita GDP Italy EU-27 Spain Spain EU-27 Cyprus Cyprus

Greece Greece

0 50 100 150 200 250 0 50 100 150 200 250 300

13 ECONOMIC/SECTOR STRUCTURE

GDP DISTRIBUTION (2010)

B.COUNTRY SPAIN EU-27

Gross Domestic Product at 65,419 1,051,342 12,248,001 market prices (millions €)

Added value out of basic 59,036 961,592 10,954,309 prices (millions €)

Agricultural sector (%) 0.8 2.6 1.7 Industry (%) 24.5 16.1 18.7 Construction (%) 7.8 11.9 6.0 Services (%) 66.9 69.3 73.5

14 CLUSTER POLICY > THE 11 PRIORITY CLUSTER ASSOCIATIONS

Logo Name Year Website ACEDE – Basque Country Household Appliances Cluster 1992 www,acede,es Association

AFM – Spanish Machine Tool Manufacturers Association 1992 www,afm,es

ACICAE – Basque Country Automotive Industries and 1993 www,acicae,es Components Cluster Association GAIA – Basque Country Electronics and Information 1994 www,gaia,es Industries Cluster Association

UNIPORT – Port of Bilbao Cluster Association 1994 www,uniportbilbao,es

ACLIMA – Basque Country Environmental Industries Cluster 1995 www,aclima,net Association

Energy Cluster Association 1996 www,clusterenergia,com

HEGAN – Basque Country and Aeronautics and Space 1997 www,hegan,com Cluster Association Basque Maritime Forum – Basque Maritime Industries 1997 www,foromaritimovasco,com Cluster Association

Paper Industries Cluster Association of the Basque Country 1998 www,clusterpapel,com

EIKEN – Basque Country Audiovisual Cluster Association 2004 www,eikencluster,com

15 CLUSTER POLICY> THE 11 PRIORITY CLUSTER ASSOCIATIONS

Members Jobs Turnover Exports

(No. of (No. of (In millions (% over 2010 Members) workers) of euros) sales)

ACEDE Household Appliances 8 4,250 1,639 74%

AFM Machine Tool 93 4,860 632 77%

ACICAE Automotion 150 16,758 7,095 80%

Electronics and GAIA Information Industries 265 11,400 2,995 28%

UNIPORT Port of Bilbao 145 5,100 1,400 -

ACLIMA Environment 81 3,200 1,677 9%

ENERGIA Energy 95 23,000 17,000 50%

HEGAN Aeronautics and Space 37 3,738 663 62%

FMV Maritim Industries 164 7,419 1,024 80%

PAPEL Paper 20 1,674 614 49%

EIKEN Audiovisual 39 1,585 87 2%

16 EXPORT RATES OF THE 11 CLUSTER ASSOCIATIONS

Exports expressed as a percentage over turnover, 2010

Aeronautics 62

Automotive 80

Household appliances 74

Electronics/telecommunications 28

Energy 50

Maritime Industries 80

Machine-tools 77

Environment 9

Paper 49

0 10 20 30 40 50 60 70 80 90 100

17 CLUSTER POLICY > 9 SECTORAL PRECLUSTERS

Logotype Name Website

Foundries Association of the Basque Country and Navarre www.feaf.es

www.forjas.org SIFE – Die-press Forging

Basque Country Habitat and Contract Cluster www.clusterhabic.com

Food Cluster of the Basque Country www.clusteralimentacion.com

www.basquebiocluster.com Basque Biocluster

Spanish Association of Hand tool Manufacturers www.herramex.es

Spanish Association of Steel Products and Installations Exporters www.siderex.es

Construction Cluster of the Basque Country www.eraikune.com

www.mlcluster.com Mobility and logistics

18 CLUSTER POLICY> 9 SECTORAL PRECLUSTERS

Members Jobs Turnover Exports (No. (No. (In millions (in % on members) persons) of euros) sales)

AFV Foundry 68 7,710 872 60%

SIFE Die-press Forges 16 1,815 260 59%

HABIC Habitat and contract 70 4,200 750 30%

CLUSTER Food Industry 31 6,147 647 11%

BIOSCIENCE Bioscience 25 1,036 194 17%

HERRAMEX Hand tools 28 2,000 243 45%

SIDEREX Steel Industry 64 12,000 7.620 26%

ERAIKUNE Construction 56 6,775 1.607 2%

MLC – ITS Mobility and Logistics 93 67,387 11.796 7.1%

19 RESEARCH AND DEVELOPMENT (R&D)

Gross domestic expenditure on R&D (% of GDP) 2,2

1,8

1,6

1,4

1,2 Basque C. 1 EU 27 Spain 0,8

0,6

0,4 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

R&D indicators in the Basque Country, 1996-2010 1996 2000 2005 2010 Gross domestic expenditure on R&D (% of GDP) 1.16 1.43 1.44 2.08 Full time personnel over employed personnel (‰) 8.55 10.69 12.95 18.02 Full time research personnel over employed personnel (‰) 5.15 6.46 8.10 11.78

20 INNOVATION INDEX

European Innovation Union Scoreboard – IUS 2010

According to the new Innovation Union Scoreboard – IUS 2010 – the Basque Country is at number 15 in the EU-27 ranking. The Basque Country is among the group of high innovation countries, although at the lower end. 21 TECHNOLOGICAL INFRASTRUCTURE

FOUR TECHNOLOGY PARKS. One of the most consolidated networks in Europe, headquarters of excellence companies, Universities and Research and Technology Transfer Centres.

 BIZKAIA TECHNOLOGY PARK  2 km from the airport, 15 from the report, 10 from Bilbao and 6 from the Central campus of the University of the Basque Country.  Number of companies, 217, with 7300 direct employees.

 ALAVA TECHNOLOGY PARK  5 km from Vitoria-Gasteiz and the university campus and 7 from Foronda airport, and with good access to several European routes.  Number of companies, 112, with 3110 direct employees.

 SAN SEBASTIÁN TECHNOLOGY PARK

5 minutes from San Sebastián city centre and 10 from the French border.  Number of companies, 74, with 3000 direct employees.

 MONDRAGÓN POLO GARAIA TECHNOLOGY PARK  Led by the private initiative of Corporación Mondragón,  Fostering research and development: energy, material technologies, organisation and administration of companies, electronics, microelectronics and nanotechnology, ICTs and surface finishing machines and processes.  Number of companies, 20, with 526 direct employees. Created recently Polo de Innovación

22 BASQUE SCIENCE, TECHNOLOGY AND INNOVATION NETWORK

 BERC: Basic Excellence Research Center Universities  CIC: Centre for Cooperative Research (4)  CCTT: Centros Tecnológicos BERC (6)  OPIs: Organismos Públicos de Investigación

Generation of • UPV – EHU Knowlege • Mondragón CIC (7) University • BC3 Technology Platforms - CCTT • Deusto • BCAM • bioGUNE University • BCBL • biomaGUNE Tecnalia IK 4 (8) Sector centres •Navarra • MPC • microGUNE (4) University TECNALIA • CEIT •Bizkaia Uds, Health R&D (E.S.I.I. Of S.S.) • marGUNE RESEARCH & • Assoc. Technological Biophysics • CIDETEC Development • nanoGUNE INNOVATION ARANZADI • INGEMA Foundation • GAIKER • tourGUNE • AZTERLAN • B+I+O+E Fundaz, • DIPC • TEKNIKER • energiGUNE • F.T. • BioDonostia • IDEKO OPIs (3) Aeronautics • Fund, CITA • IKERLAN • F.T, AZTI Alzheimer • CADEM • VICOMTech • Consorcio • LORTEK Application ESS Laboratories (5) • NEIKER • CALEB BRETT • ERAIKER • AZARO Fundazioa • INBIOMED Uds, Business R&D (47) • CETEST

Risk capital • SGECR Technology Parks (4) • Alava Technology Park • Bizkaia Technology Park (3) • Seed Capital de •San Sebastián Technology Park • GARAIA Innovation Pole Bizkaia • Seed Gipuzkoa 23 DEVELOPMENT OF FOREIGN TRADE

Millions of € 2000 2005 2008 2010 2011(p)

Exports 11,871 14,297 20,279 17,546 21,077 Imports 10,324 14,537 20,118 15,257 17,110 Balance 1,547 -240 161 2,289 3,967 Coverage 115% 98% 101% 115% 123%

20.000

Exports

Imports 15.000

10.000

5.000

0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 24 EXPORTS 2011: 10 main custumers countries

19,6 % over the total exports 20

15 14,4

6,2 5,6 5,6 5 4,2 4,2 2,9 2,6 2,2

USA Italy U.K. Brazil China France Belgium Portugal Germany Netherlands 25 EXPORTS 2011 per PRODUCT (%)

16,6 16 14,9

12 10,6

7,5 8 7,1 6,7 5,6 4,2 4

0 78 Road 67 Iron and 33 Petroleum 62 Rubber 69 Metal 74 Machines 79 Other 77 Machinery vehicles (parts steel by-products manufacturers products and general transport and electrical and industrial equipment apparatus accessories) equipment

Exports per product following Uniform classification for International Trade, Revision 4 (CUCI) 26 IMPORTS 2011: 10 Main suppliers countries

18 16,2 % over the total imports

12 11,4 10,2

9 8,3

6 5,3 5,2 4,4 3,8 3,4 2,7 3

0 Russia Germany France Iran China Italy U.K. USA Holland Belgium

27 IMPORTS 2011 per product (%)

36 31,7 32

12 10,6

8 5,7 3,9 3,8 3,6 3,3 4 3

0 33 Petrol and 67 Iron and steel 28 M etal ores and 74 M achinery and 68 Non-ferrous 77 M achinery and 69 M etal products 78 Road vehicles petroleum by- waste industrial metals electrical devices (parts and products equipment in accessories) general

Imports per product according to Uniform Classification for International Commerce, Revision 4 (CUCI) 28 INTERNATIONALISED BASQUE COMPANIES

s •Main locations of facilities abroad: France, Germany and USA

More than 150

From 100 to 150

From 50 to 100

Less than 50

29 RELEVANT INNOVATING PROJECTS

ESS – BILBAO: SPANISH HEADQUARTERS OF THE EUROPEAN SPALLATION NEUTRON SOURCE

Spanish headquarters of the Spallation Neutron Source (ESS), large European Scientific Infrastructure under construction in Sweden The Basque Government and MICINN signed a contract for its construction and operation in the Scientific Park of the Basque Country University (Leioa, Bizkaia) Total investment of 180 million euros (financed 50-50% between MICINN and the Basque Government)

CREATION OF NEW LEADING INDUSTRIAL SECTORS: BIOBASQUE Y NANOBASQUE

BIOBASQUE Aims to create an industrial biosciences sector. Consolidation of the Basque Bioregion that has more than 70 companies, some of them of international relevance, basic research (CICs Biogune and Biomagune) and applied research centres, 6 hospitals and 30,000 people working in the system. Selected finalist for the RegioStars 2011 award of the European Commission for the best innovating project.

NANOBASQUE Aims to incorporate micro and nanotechnologies in order to increase the technological intensity of the Basque business fabric. Major investments in the scientific-technological offer materialised in two CICs, Nanogune and Microgune and a complete network of scientific and technological infrastructures.

30 RELEVANT INNOVATING PROJECTS

WAVE POWER: BISCAY MARINE ENERGY PLATFORM (BIMEP)

Infrastructure to research and use the power generated by waves on the open sea. With connections to land-based electricity networks. Located in Armintza, Bizkaia. Will come into operation during the last quarter of 2011. Total investment of 20 million euros.

ELECTRICAL VEHICLE

Agreement between the Basque Energy Board (EVE) and Repsol to develop the basic network of EV charging points in the Basque Country. Formation of the company IBIL financed 50-50 by both entities for the development of the network. Agreement between EVE and Mercedes Benz for the manufacture of electrical vans in Vitoria-Gasteiz. First E- VITO vans delivered, and the first vehicles are currently being monitored in movement.

INTELLIGENT ELECTRICAL NETWORKS

Collaboration protocol between Iberdrola, EVE, BBK and the Bizkaia Provincial Council for the development and implementation of intelligent electrical distribution networks in the urban centres of Bilbao and Portugalete, Iberdrola and EVE represent an economic interest group (54% and 46% respectively) which will invest 60 million euros over the next three years in the new intelligent distribution networks in Bilbao and Portugalete. The next steps: Detailed investment plan (31-7-2011), first network systems, equipment and installation tenders (31- 12-2011),

31 RELEVANT INNOVATING PROJECTS

CREATION OF THE FIRST GAS HUB IN SPAIN

In 2011, a company formed by three partners: Basque Government, Enagás and BBK. It is the first initiative of its kind in Spain. It is engaged in the promotion of logistics, marketing and financial services to facilitate short-term natural gas transactions in the Iberian gas system. Although there are 35 natural gas dealers on the Iberian peninsula and 3000 transactions are carried out on a monthly basis between agents, there is currently no organised natural gas market.

ALAVA: A TOP LEVEL LOGISTICS NODE IN SOUTH-WESTERN EUROPE Around Vitoria there are 7 million square meters dedicated to logistics activities, with connections to the rest of the world by land, sea and air through the ports of Bilbao and Pasajes, Foronda airport and several high-speed connections by road.

VIAP: VITORIA INDUSTRIAL AIR PARK The expected investment amounts to 60.4 million euros in an area of 390,000 square metres. Following the agreement signed between the Basque Government, Vitoria City Hall and AENA, an industrial park with the characteristics of a technology park linked to the aeronautic sector will be built.

VIT: VITORIA INTERMODAL TERMINAL This Intermodal station will channel all the traffic between continental Europe and the Iberian peninsula through the western Pyrenees. A twin-gauge track infrastructure, Iberian and international, which will have dimensions of 2.200 metres in length by 220 in weights, with 48 ha of surface area. An expected total investment up to the year 2037 of 120 million euros. 62 million are planned for the first stage. 32 TOURIST DESTINATION

 Sculpture “Peine de los vientos” Donostia-San Sebastián  Plaza Virgen Blanca, Vitoria-Gasteiz  Hanging Bridge Bizkaia