1

Index

1. The Basque Country: Main Figures

2. Why Invest in the Basque Country:

2.1 Leading Competitiveness Pole in Southern Europe

- Main Facts

- Most Relevant Industrial Clusters

- Energy

- Automotive Cluster

- Aeronautics

- Electronics & ICT

- Machine tools

- Maritime Industries

- New Sectors: Biosciences

2.2 Research Development & Innovation

2.3 Highly skilled labour force.

2.4 World Wide Connections.

2.5 Investment Support

2.6 A Place to live

3. Foreign Direct Investment (FDI) in the Basque Country Strategy

Surface area: 7,235 km2

Population: 2.169.038 hab.

Population density: 300,2 inhab./km2

1- The Basque Country

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Per capita income (GDP)

Third ranked country in the EU (EU average 100%)

Science and technology graduates.

43% of young people have a university degree. (EU average: 24%)

1- The Basque Country

126%

Productivity per EmployeeSecond ranked country in the EU for productivity per employee (EU av.

100%)

Industrial GDP Manufacturing Heritage (EU average 19,3%)

22,8%

128%

47%

Big Little

1,000,000 Annual Visitors to the Guggenheim Museum in 2012World's top-ranked cultural infrastructure for self-financing

25 Michelin Stars in 2013 The greatest concentration of Michelin stars in the world. Basque Culinary Center

Quality in Tourism Second ranked destination for Quality in Tourism certifications, after Andalusia

1- The Basque Country

5

Basqu

e

5,000

Years

82 years: High quality health care. The country with the longest life expectancy in the EU.

Density of natural spacesA country with 53% of its surface area covered in trees. (EU average: 37.8%).

The country of the Basque languageA unique language with no known connection to any other language.

Big Little

2.1 Leading Competitive Hub in Southern Europe

2.2 Research Development & Innovation

2.3 Highly skilled labour force.

2.4 World Wide Connections.

2.5 Investment Support

2.6 A Place to enjoy life

2- Why invest in The Basque Country ?

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2- Why invest in The Basque Country ?

2.1 Leading Competitive Hub in Southern Europe

2.2 R+D + i

2.3 Highly skilled labour force.

2.4 World Wide Connections.

2.5 Investment Support

2.6 A Place to live

Highly Industrialised Area

� Solid manufacturing base (23%): Automotive industry, Aeronautics, Environment, Industrial design and Engineering.

� Pioneering Cluster Policy since 1991. 11 Priority Clusters

� Highest rates of productivity in Europe. 125% (EU: 100)

� Highly specialized subcontractors: More than 4,000 companies at hand with high standards in quality and rapid response.

Internationalized Economy

� 32% Exports on GDP.

� 1,660 Internationalized Basque Companies.

Most significant financial center in the European Atlantic axis

� Home to one of Europe’s leading bank BBVA.

� 2nd Stock Exchange in Spain.

Technology & Innovation

� 2.19 % Investment R+D /GDP

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2.1 Leading Competitive Hub. Main Facts

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1. Energy

2. Automotive Industry

3. Aeronautics

4. Electronic&ICT

5. Machine Tools

6. Maritime Industry

7. New sectors: Biosciences

2.1 Leading Competitive Hub. Most Relevant Industrial Clusters

� More than 350 companies

� Turnover: 44,000 M€

� Direct employment: 68,000

� 65% op. international

� R+D+I 400 M€ investment.

Strategic Sectors:

� Smart grids

� Bidelek: Smart grid Implementation

� Ingrid: High-voltage & high-power Lab.

� On & off shore wind energy

� Wave Energy

� BIMEP: Maritime Energy Platform

� Electric Vehicle

� IBIL: Charging points (Repsol+EVE)

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2.1 Leading Competitive Hub. Energy Cluster

� 300 component manufacturers

� 12,400 M€ (17% Basque GDP)

� Direct employment: 75,000

� Over 45% Spain´s car industry.

� 86% Exports

� > 220 plants abroad

AIC: Automotive

Intelligence Center

Open Innovation in in which companies improve their competitiveness through cooperation.

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2.1 Leading Competitive Hub. Automotive Cluster

� 65 aerospace organizations

� 5 T1 ( Aerostructure, Engine, Space)

� Turnover: 1,584 M€

� 12,059 people

� 72,8 % Exports over sales

� 16,8 % R+D Investment

� 131 Facilities (20 abroad)

� CTA R& D Centre

Strategic project

� Advanced Manufacturing Centre for the Aerospatiale Sector

• Early-industrialization of new

products.

• Coordination OEMs, comp. suppliers,

Machine tool manufacturers

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2.1 Leading Competitive Hub. Aeronautic Industry

� 267 Companies

� Turnover: 2,994 M€

� 11,410 people

� 850 M€ Exports (35%)

� 122 M€ R+D Investment

Main strategic sectors of application

� Transport

� Energy

� Manufacturing

� Health

� Smart Cities

� Videogames

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2.1 Leading Competitive Hub. Electronics & ICT

• 3rd Larger producer in EU

• 856 M€

• 5,557 jobs

• 80% of Spanish production

• 91.9% Exports

• High skilled suppliers along the value chain to manufacture any component in a range of less than 300 km

• INVEMA, Machine Tool Research Foundation

• IMH Machine Tool Institute on vocational training

• BIEMH: International Machine Tool Exhibition

Strategy: Advanced Manufacturing

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2.1 Leading Competitive Hub. Machine Tools

• Maritime Heritage

• 2.1 % GDP

• 322 companies

• Merchant & fishing ship owners

• Shipyards subcontractor

• Component &equipment manufacturers

• 7,560 jobs

• 1,148 M€ Direct Turnover

• 85 % Exports

Strategy:

• Advanced Manufacturing

• Energy Off shore

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2.1 Leading Competitive Hub. Maritime Industries

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The Basque Bioregion, a new hub for biosciences in the south of Europe

• Specific Biobasque policy since 2001

• 75 companies

• 20 research centers and universities.

• 6 leading hospitals.

• 20% growth in the sector.

• 26.500 people in life sciences.

R& D Infrastructure

• Structural Biology Platform

• Molecular Imaging Facility

• Genome, Proteomics, Metabolomics

• Basque Biobank,

2.1 Leading Competitive Hub. Biosciences

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2- Why invest in The Basque Country ?

2.1 Leading Competitiveness Pole in Southern Europe

2.2 Research & Development

2.3 Highly skilled labour force.

2.4 World Wide Connections.

2.5 Investment support

2.6 A Place to live

4 Universities.

� 60,000 students

� 5 Higher Technical Colleges & 22 University Colleges

� Top ranked country in the EU in Terms of science and technology graduates (43%).

UNIVERSITY OF THE BASQUE COUNTRY

UPV/EHU

DEUSTO

UNIVERSITY

UNIVERSITY OF

MONDRAGÓN

E.I.S.- NAVARRA

(DONOSTIA)

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2.2 Research, Development & Innovation. Universities

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Technology Development & Application

2 R& D Research & Development Platforms: 2,877 fulltime jobs

Generation of Knowledge

• 9 BERCs: Basque Excellence Centres

• 7 CICs: Cooperation Research Centres

• Biomedical research (Biogune)

• Biomaterials ( Biomagune)

• Nanosciences (Nanogune)

• Advanced Manufacturing(Margune)

• Micro-technologies (Microgune)

• Energy (Energigune)

• Tourism (Tourgune)

� 5 Sectorial Centres

� 5 Health R&D Units

� 6 Public Research Bodies

128 Entities in the Basque Science & Technology Network

2.2 Research, Development & Innovation. R+D Network

Alava Technology Park

1995Garaia Innovation Pole 2007

Promotion and participation of public and private administrations:

Basque Government-Spri, Regional Governments, Town Councils, Mondragon Group, Kutxabank.

Bizkaia Science and Technology Park

1985

Gipuzkoa Science and

Technology Park 1997

Total area: 605 Ha.

Turnover (mill. €) 3.530

R&D Turnover 12%

No of companies 428

No of employees 14.418

University graduates 46%

R&D personnel 30%

No of functions 1.719

No of participants 70.000

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2.2 Research, Development & Innovation. Technology Parks

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2.1 Leading Competitiveness Pole in Southern Europe

2.2 R+D + i

2.3 Highly skilled labour force.

2.4 World Wide Connections.

2.5 Incentives to investment

2.6 A Place to live

2- Why invest in The Basque Country ?

2.3- Highly Skilled Labour force

� The training and excellence of our people is the key strategic factor for the competitiveness of Basque Country� Creativity, higher education and research

� Excellence in education

� Extensive knowledge of languages

� Universities of international prestige

� Occupational training and skills awareness

� 60,000 Students at University

� 46,2 % University grad. (Age 25-64)

� 23,000 students on occupational training

• IT, Software &Electronics

• Automotive

• Machine tools,

• Environment

• Renewable energy

• Innovation management

� 5 foreign schools: Irish, English,

French, German and American

� 7 official language schools

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2.1 Leading Competitiveness Pole in Southern Europe

2.2 R+D + i

2.3 Highly skilled labour force.

2.4 World Wide Connections.

2.5 Incentives to investment

2.6 A Place to live

2- Why invest in The Basque Country ?

Bilbao Port: Largest Atlantic Sea Port South Europe

� Over 200 scheduled maritime services

� Connection to 500 ports throughout the world.

� 4,000 million tonnes per year

� On-shore facilities: 3.5 million sq. metres

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World Wide Connections

Harbours

Pasaia Port: � Pasaia is a flexible and integral harbour.

� Most important car-exporting/importing harbour of Spain.

� Scrap imports and Iron and Steel product exports

� Others: Coal, cereals, wood, paper pulp, etc.

Bilbao International Airport� Main Airport in Northern Spain

� Capacity 5 million passengers per year

� Investment: €65M

� Surface: 25,000 sq. m.

� Over 400 international and domestic flights per week.

Vitoria Cargo Airport� DHL consolidation centre for air freight for

Iberia and North Africa.

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World Wide Connections

Airport

San Sebastian Airport� Domestic Airport with 244,952 passengers

&. 6,237 flight operations in 2013

� Extensive network of motorways,

� Crossroads of the north-south (from Stockholm in Sweden to Lisbon in Portugal) and east-west axes (to Barcelona or Milan in Italy).

� Railway directly connected with the European high speed rail network

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World Wide Connections

Road & rail Infrastructure

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2- Why invest in The Basque Country ?

2.1 Leading Competitiveness Pole in Southern Europe

2.2 R+D + i

2.3 Highly skilled labour force.

2.4 World Wide Connections.

2.5 Investment support

2.6 A Place to live

At the Basque Country there is an investment-friendly Government very close to any company interested in establishing a new business.

In order to favour industrial development, the public institutions in the Basque Country are able to provide a varied range of aid packages, which include:

� Repayable advances

� Low interest loans

� Tax incentives

� Occupational training

� Subsidies and grants for R&D projects

� Companies can set up in Technology Parks

� 10 to 15 days for establishing the company

2.5 – Investment support

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The Basque Country has its own fiscal regime

2.5 - Incentives for investment: Taxes

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Main Standard Deductions*

� Investment in new fixed assets 10% investment

� R&D + Innovation activities 30-50% R&D expenditure

� Investment in clean technologies 30%

� Job creation €4,900 per person/year

* Specific deductions will be determined by the Local Tax Administration

General rate 28%SMEs 24%General Average: 15,3%

Average effective interest rate

Average nominal interest rate

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2.1 Leading Competitiveness Pole in Southern Europe

2.2 R+D + i

2.3 Highly skilled labour force.

2.4 World Wide Connections.

2.5 Incentives to investment

2.6 A Place to enjoy life

2- Why invest in The Basque Country ?

2.6- A place to enjoy life

� Bilbao

First nobel prize-winning

city. (Lee Kuan Yew World City Prize 2010)

� Donostia-San Sebastian European culture capital in

2016

� Vitoria-gasteiz

European green capital 2012

Three Outstanding capitals

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� Basque Cuisine: 25 stars Michelin

� Guggenheim Museum

� Art Galleries

� Fabulous beaches

� Ancient castles and tower houses

� Biosphere Reserve

� Golf complexes

� Theatres

� Opera

2.6- A place to enjoy life

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Foreign Direct Investment in the Basque Country

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3- Basque Foreign Direct Investment (FDI) Strategy

• More than 700 firms

• More than 9% of the GDP & 11% of turnover

• Employ more than 61,000 people (11% of working population in 2012).

• 432 M€ 2012

• 3rd in Spain

FDI weight on GDP* in the Basque Country (%, M€, 2008-2012)

(*) GDP on market prices and current euros .

Source : Europraxis from DataInvex e INE

0,58%

0,81%

0,47%

0,28%

0,58%

0,34%

0,47%

2,07%

0,49%

0,14%0,24%

0,80%

0,66%

-

10.000

20.000

30.000

40.000

50.000

60.000

70.000

0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

FDI / PIB PIB

Millones €

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3- Basque Foreign Direct Investment (FDI)

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3- Basque FDI Strategy

Priority sectors: Smart Specialization of the Basque Country

Advanced Manufacturing

Transport& mobility

Equipment

Energy

Smart Grids

Renewable offshore

Electrification

Batteries

High Technology Intensive

Micro Nano

Bio ICT / CPS*

(*) Cyber-Physical Systems

Independently to Basque priority

sectors that will be attended pro-

actively, any type of IED Project

will be welcomed

Basque Government

COORDINATION OF STRATEGIES, SUPPORT INFRASTRUCTURE, AND INCENTIVES

INFRASTRUCTURE AND BUSSINESS SITES

Airports & Harbors

Clusters

Company Associations

Sectorial Diversification

Strategies

• Spri• EVE• IHOBE• SGCR

• BIOBASQUE• NANOBASQUE• BASQUETOUR

IDENTIFICATION OF OPPORTUNITIES, COOPERATION & SUPPORT

Public Entities

Invest in the Basque Country

Science & Technology Agents

• Paper Cluster • Audiovisuals• Maritime

Industries• ICT (GAIA)• Aeronautics • Uniport• MLC-ITS• Environment-

ACLIMA

• Machine Tools• Energy Cluster• HABIC• Agro food• Construction• Electric &

Household aplliances

• Aeronautics

• TECNALIA• IK4• CIC’s• CENTROS SECTORIALES• UPV/EHU• UM/MU• UD

• Technology Parks• Incubators (CEIs)• Sprilur

• Bilbao & Pasaia Ports• Bilbao Air, Via• Etc.

• AGRAGEX• AMT• FLUIDEX• FUNDIGEX

• HERRAMEX• MAFEX• SIDEREX• AVIC

International Delegations

INTERNATIONAL SPRI OFFICES

CompaniesFinancial Entities

Location and support services

Local Administrations &

County Council

3- Basque FDI Strategy

Cooperation Network

3- Services ‘Invest in the Basque Country’ office

� Investor Information. Key sector expertise (clusters)

� One-stop shop for your investment project

� Tailor-made assistance and financing

� Best Business Location� Industrial sites

� Science & Technology Parks

� Incubators

� Helping you grow:� Best Partners: Business cooperation

� Science & Technology platforms

� Clusters

� Suppliers

� Consultancy

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ESKERRIK ASKO

THANK YOU

investbasque@spri.es