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The Madrid Case OECD Territorial Review

The Madrid Case OECD Territorial Review. Bonifacio Vega Director General of International Strategy Madrid City Council. Madrid in 2007. Madrid is a Metro-Region of 6 million The 3rd largest metropolitan area in Europe In the period 1995 – 2005 the average annual growth had been 3,7%

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The Madrid Case OECD Territorial Review

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  1. The Madrid CaseOECD Territorial Review Bonifacio Vega Director General of International Strategy Madrid City Council

  2. Madrid in 2007 • Madrid is a Metro-Region of 6 million • The 3rd largest metropolitan area in Europe • In the period 1995 – 2005 the average annual growth had been 3,7% • Population growth of 16% in 5 years • 760.000 new jobs • 17% of Spain’s GDP • Titanic improvement of public transport systems

  3. Madrid in 2007 ADMINISTRATION MADRIDURBAN INTELLIGENCECLUSTER ACADEMIA BUSINESS

  4. Madrid in 2007

  5. Madrid in 2007 Reality Closing the gap Perception

  6. OECD Diagnosis in 2007 • Madrid has captured the advantages of globalization • It has become a world class business hub • Madrid’s success has been sustained by a set of ambitious policy measures • Madrid has exceptional human, social, infrastructure and institutional resources

  7. OECD Diagnosis in 2007 Challenges • Low economic productivity • Inmature R&D system • Inadequate spatial development Madrid’s overall economic system has structural deficiencies that contribute to low labour productivity and innovation capacity

  8. OECD Diagnosis in 2007 Low economic productivity • 18% less productivity than the average 78 OECD metropolitan regions • Between 2000-2005 high technology manufacturing fell 13% • Fast economic growth based on lower valued activities

  9. OECD Diagnosis in 2007 Inmature R&D system • Overall R&D expenditure is less than 2% of the regional GDP • Percentage of private investment in R&D is below OECD average • Limited scientist mobility generating an endogamic structure

  10. OECD Diagnosis in 2007 Inadequate spatial development • Madrid metro-region has a mononuclear and radial shape • Escalation in housing prices attracts investors but keeps out large parts of the population, especially the younger (40% of annual household income) • Madrid has the highest rate of vacant dwellings: 24%

  11. OEDC Recomendations Long term shifts in: • Economic structure • Labour market • Spatial development Madrid Madrid’s situation does not require another institutional reform but the upkeep of the existing governance mechanism along with some innovative solutions

  12. Facing the Challenges Low economic productivity • Development of a network of 7 new urban business incubators • Creation of Madrid-Global and design of a New Internationalisation Strategy • Regional Innovation Plan – Public support is shifted towards high end sectors

  13. La Casa de Bambú • Creación del prestigioso estudio de arquitectura FOA, Foreign Office Architects,(Alejandro Zaera y Farshid Moussavi) • RIBA European Award 2008

  14. Facing the Challenges Inmature R&D system • Creation of the Madrid Institutes of Advances Studies (IMDEA) • Madrid Science Park • New Financial System for Universities • Cross institutional R&D consortiums

  15. Facing the Challenges Inadequate spatial development • Comprehensive Urban Renovation Programme • Calle 30 and Madrid Rio Projects • Housing stock renovation and retrofitting programmes • Innovation in Public Housing EMVS

  16. Madrid today • Skilled workforce • Graduates and post-graduates levels: • 7th in the European Ranking • 1st in the Spanish Ranking • Innovation • R & D investment: 2,4% • 7 public and 8 private universities • 8 institutes advanced studies • 3 science parks • 7 business incubators

  17. Madrid today • Public Transportation & Connectivity • Barajas Airport: 70 millions passengers/year • High Speed Train Network • Radial Road Network • Metro of Madrid • Improvement of infrastructures (M-30) • Economic structure diversity • Specialized services center • Financial and advanced business services • Urban Utilities and Infrastructure Cluster • HQ of top Renewable Energies Corp.

  18. Madrid today • International Financial crisis • The banking system is resisting well (so far) • Drop in Direct Foreign Investment • Spain’s Economic Model Crunch • Increased public deficit • Skyrocket unemployment (near 18%) • Destruction of industrial fabric • Internal demand is at its lowest • City Finances • Dramatic decrease in revenues • Increased debt

  19. Global Power City Index The Mori Memorial Foundation Tokio, Japan

  20. Madrid 1910

  21. Madrid 2010

  22. gracias tack så mycket www.munimadrid.es

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