BUSINESS COMPETITIVENESS PLAN 2010-2013 A smart SPECIALIZATION STRATEGY

1. BUSINESS COMPETITIVENESS PLAN2010-2013A smart SPECIALIZATION STRATEGY

2. WHY? Due to the nature and configuration of the 2010-2013 BUSINESS COMPETITIVENESS PLAN it is the Smart Specialization Strategy for the Basque Country

3. 1,- Due to its principles… It is a STRATEGY that seeks SPECIALIZATION in certain technological sectors/domains, based on EXCELLENCE and on PRIORIZATION with an OVERALL approach, 2,- Due to the process used to define it… It is a STRATEGY designed as a result of a PARTICIPATIVE PROCESS involving all the regional agents, which has identified the COMPETITIVE POSITIONof the Basque specialization model and the need to DEVELOP A smart SPECIALIZATION based on this, 3,- Due to its specific content… It is a STRATEGY that has defined specific objectives and initiatives based on three axes: (1) AN OPEN ECONOMY, (2) AN INNOVATIVE, entrepreneurial AND TECHNOLOGICALLY ADVANCED ECONOMY, AND (3) A SUSTAINABLE ECONOMY

4. SPECIALIZATION A STRATEGY that… …PRIORITIZES innovation and technology, within the framework of globalization and with a sustainable approach INSTITUTIONS EVALUATION …seeks EFFICIENCY AND EFECTIVENESS through a multilevel and multi-agent approach …ensures TRANSPARENCY and IMPROVEMENT through clear, realistic, measurable objectives subject to a continuous review process

5. GRADUAL INCREASE IN COMPETITIVENESS (+productivity) leading to a significant increase in wealth The intensive use of knowledge in production activities has led to the appearance of severalTECHNOLOGICAL DOMAINS AND SECTORS THAT are the basis of the smart SPECIALIZATION IN THE BASQUE COUNTRY Source: Eustat 2010 & INE 2010

6. INDUSTRIAL SPECIALISATION 6

7. POLICIES 81-91 POLICIES 90-00 POLICIES 2000-2010 1990s The first Competitiveness Plan focused on a number of priority clusters. The first Technology Plan focused on key technology domains. These plans have been updated for over 20 years but remain the pillars of the industrial policy. Basque industrial policy has contributed to the smart diversification. INDUSTRIAL RESTRUCTURING POLICY 1980-1990. INDUSTRIAL AND TECHNOLOGICAL POLICY 1981-1989. INDUSTRIAL AND TECHNOLOGICAL POLICY 1989-1991 INDUSTRIAL POLICY FRAMEWORK FOR 1991-1995 INDUSTRIAL POLICY FRAMEWORK FOR 1996-1999 • Plan for Science, Technology and Innovation 2001-2004. • Plan for Science, Technology and Innovation Plan 2010. • Plan Euskadi Information Society. • Entrepreneurial Society Euskadi 2004-2007. • Euskadi Forum 2015. • Competitiveness and Innovation Plan 2006-2009 Social 2010-2013 BUSINESS COMPETITIVENESS PLAN 7

8. In short, a bet on... • Machine tools • Automotive • Aeronautics • ICT and electronics • Appliances Sectors that have showed their ability to reinvent themselves through excellence and innovation Converging sectors that are creating new activities for the future • Eco-industries • Electric Vehicle • Eco-construction • Renewables • Health and Wellness • Tourism and Entertainment Emerging sectors that will dominate the new economy …CUTTING THROUGH TECHNOLOGICAL DOMAIN FRONTIERS 8

9. PCTI 2015

10. By seeking support in collaborative dynamics … • A cluster policy based on support for priority clusters since the 90s • A tool that has been used as the seed and conceptual basis for an industrial policy until the current Competitiveness Plan • 11 consolidated cluster associations + 9 pre-clusters • More than 70% of the Basque industrial economy, with a clear, prioritized specialization policy focused on: Innovation Sustainability Internationalisation 10

11. The Competitiveness Plan integrates specialization priorities in all its strategic areas, which in addition are specified in a number of lines of actions and initiatives… Indicators Strategic AREA LINE of action INITIATIVE Objectives The case of energy in the Plan… 11

12. Energy Strategy of the Basque Country 2020 (3E2020) within the Business Competitiveness Plan • Promote integrated Strategic Industrial Research projects in key areas (wind, smart grids, solar thermoelectric, wave energy, energy storage and electrification of transport sector), • Fostering of the participation of Basque companies in State and European research programs through strategic projects for the development of new products and services in energy matters, STRATEGIC INDUSTRIAL RESEARCH BUSINESS DEVELOPMENT • Support for demonstration initiatives (smart grids, electrification of transport, energy service companies, wind, storage) • Fostering the internationalisation of Basque companies in priority strategic sectors (wind, thermosolar), • Support for the creation of new technology-based companies in areas in which the Basque industrial system it is not yet sufficiently developed at a business level, • Attraction of inward investment from multinational technology-based companies in those areas in which the position of the Basque Country would be strengthened, BUSINESS DEVELOPMENT 12

13. More specific: the ELECTRIC VEHICLE initiative(I) The Basque Government, through the Industry Department, has developed an overall strategy to promote the introduction of the electric vehicle in the Basque Country, Priority objectives: • Improve energy efficiency in transport • ImproveNew business opportunities for the business community • Position the Basque Country as a reference model, both in technologies linked to the electric vehicle and in networks of charging stations, 13

14. Example: the ELECTRIC VEHICLE initiative(III) OBJECTIVE 300 COMPANIES 10 B€ 60,000 jobs SUPPLIERS Core Users DISTRIBUTION TRANSPORT AND LOGISTICS COMMERCE R&D Agents THE CREATION OF CRITICAL MASS AND FOSTERING OF THE AUTOMOTIVE SECTOR ADAPTATION OF THE REGULATORY FRAMEWORK DEVELOPMENT OF THE CHARGING STATION INFRASTRUCTURE Government 14

15. Example: the “BIMEP”initiativeBiscay Marine Energy Platform (I) The Basque Government has built an infrastructure for testing, demonstrating and using wave energy systems for the manufacturers of an emerging sector throughout Europe, Priority objectives: • Develop the wave energy industry • Reduce energy dependence • Reduce CO2 emissions • Position the Basque Country as a reference model in wave energy 15

16. Example: the “BIMEP”initiativeBiscay Marine Energy Platform (II) R&D Agents Electrical components Generation and distribution Market Government 16

17. AXES of the Basque Competitiveness Plan AXIS 1: OPEN BASQUE ECONOMY AXIS 2: INNOVATIVE, ENTREPRENEURIAL AND TECHNOLOGICALLY ADVANCED BASQUE ECONOMY AXIS 3: SUSTAINABLE BASQUE ECONOMY

18. The Competitiveness Plan integrates specialization priorities in all its strategic areas, specified in a number of lines of actions and initiatives… Indicators Strategic AXES LINES of action INITIATIVES Objectives 18

19. An evaluation and monitoring system to… • Ensure transparency and evaluate the results • Link objectives, actions and responsibilities • Ensure continuous improvement Configure a Living Strategy

20. OBJECTIVES INDICATORS EVALUATION Measurable, clear, realistic aims linked directly to specific initiatives and responsible persons Specific Measurable Achievable Result-driven Timed • PLAN COMMITTEE • PROJECT COMMITTEE • COMPETITIVENESS FORUM 20

21. The resources mobilized represent a total of 11,835 million euros during the term of the Plan, equivalent to 4.14% of expected GDP

22. Thank you very much for your attention Inmaculada Freije (ifreije@ej-gv.es) Lehiakortasun Plana 2010-2013 /Competitiveness Business Plan 2010-2013 Available at:http://www,industria,ejgv,euskadi,net