Read the Conversation
EF: What are your key priorities for 2024?
JR: Our priorities revolve around two types of investments. Firstly, we are actively seeking investments, and secondly, we are attracting investors interested in Catalonia. We currently have a substantial portfolio of about 600 potential projects that could be brought to Catalonia. In the past, we used to have a portfolio of 300 possible projects. We have doubled the number of possible projects coming to Catalonia. We are spoiled for choice, and we are cherry-picking the best projects.
When seeking investment from abroad, we target specific kinds of companies that we want to bring into our ecosystem. We focus on assets that set us apart and make us unique among other regions. In Catalonia, we have a diverse value chain across different sectors. When you invest here, you can easily access suppliers and customers throughout the entire value chain, making it straightforward to integrate into the economy. This is especially true in the health sector, where the presence of hospitals adds to the attractiveness of our region for investment. This happens in any sector. We have providers, customers, research centers, a good environment, and infrastructure. All of this makes it easier to insert investors into the value chain.
Catalonia stands out because we create and attract talent, particularly in R&D sectors like the health sector. Companies seeking to invest in these areas prioritize access to talented individuals. While our universities produce significant new talent, we face challenges in attracting international individuals. For instance, 24% of employees in our startup ecosystems are from abroad, creating a uniquely multicultural environment. This setting allows foreign individuals to feel comfortable and connected, fostering a sense of community socially and professionally.
We have a good ecosystem and a multitude of projects. We then identify the strategic areas where we aim to attract new companies. One key focus is mobility, particularly in sectors related to electric vehicles, batteries, hydrogen, and the decarbonization of transportation. We are also focused on anything related to the health sector, with a main focus on medical devices, genomics, and personalized solutions.
We also consider the video game sector, which is significant here in Catalonia. Additionally, we are interested in sectors related to alternative proteins. Catalonia boasts a strong food sector, but we recognize the future demand for food worldwide will outpace production capabilities. We need to look into other alternatives. Alternative protein is an important asset of the future. We would also like to attract excellence and research centers for companies. We have 140 excellence centers of multinational companies in Catalonia. There are 9300 multinational companies in Catalonia. One hundred forty of those companies have excellence centers.
This is very important because decisions made in Barcelona or Catalonia can influence strategies for the entire company. Investments related to the health sector, such as establishing a center of excellence, digitalization projects, or research initiatives, hold particular importance for us. That is why projects like our collaboration with AstraZeneca are so significant. Another focus is not just on attracting new players to the region but also on increasing investment from existing ecosystem participants. About 50% of our portfolio comprises greenfield projects, representing companies new to our ecosystem, while the other 50% involves additional investments from companies already operating in Catalonia. This growth indicates their satisfaction and contributes to increased job opportunities. Therefore, our strategy involves ongoing support for companies already in Catalonia and attracting key new players who have not previously been here.
EF: What makes Catalonia so attractive for life sciences companies?
There are several commonalities with other sectors. For example, within pharmaceuticals, biotechnology, or medical devices, you will find players from around the world throughout the value chain. Another key aspect of Catalonia is our robust healthcare system with significant hospitals, which presents ample opportunities. Currently, Catalonia ranks among the top 5 in Europe for clinical trials. It is ranked 8th globally. This opens doors for developing new solutions, medications, and devices. I recently visited a company that is developing a surgical robot, highlighting the innovative potential here. The Da Vinci surgical robot is now widely used in hospitals worldwide.
This local company has the potential to become a leader in hospital robotics. We have such local innovators collaborating with global industry leaders, offering big companies the chance to find valuable partners for projects. This setup, along with our strong university network of 12 public institutions in Catalonia, ensures a rich talent pool for driving innovation in the sector. A lot of researchers come from these universities and a majority of them are focused on studying health-related subjects.
There are also significant infrastructures that could prove highly useful. For example, the Barcelona Supercomputing Center could be pivotal in analyzing large health-related datasets. We also boast the Institute of Photonics and Synchrotron, which offer substantial value depending on a company's needs. The vast infrastructure, research, and technological centers are another significant asset.
Additionally, startups are crucial to fostering open innovation. Catalonia has a wealth of startups directly and indirectly linked to the health sector; in fact, Healthtech is the main sector in our startup ecosystem (17% of the 2,102 startups), followed by Business services and software (15%) and ICT&Mobile (6%) providing ample support and collaboration opportunities. There are 488 companies in the AI sector in Catalonia, triple that 4 years ago. Specifically in Health, the Catalan Government has promoted the program "Salut.IA" for the promotion and development of AI in the health system from an ethical standpoint, respecting privacy and ensuring compliance with fundamental rights and non-discrimination. Whether it is AI, cybersecurity, or related fields, these startups can play a vital role in enhancing your projects. These are interesting assets within our ecosystem.
We also have skilled and knowledgeable investors. Not every investor is suited for the health sector due to the complex nature of the solution. We have local and international investors who are interested in the projects here. I think it is a good blend of different factors that makes us unique. When you examine the macroeconomic figures, Catalonia is relatively small. We have about 7.5% of the Spanish territory, yet we contribute 20% of Spain's GDP and 26% of Spanish exports. Specifically within the health sector, these figures are even more significant. In some of the subsectors within the health sector, Catalonia represents more than 50% of the Spanish economy. It is interesting to note that some companies may have their official headquarters in Madrid, but their factories and research centers are based here in Catalonia.
EF: How do you work to promote the region and build trust with investors?
JR: We leverage the presence of strong industry players to showcase the ecosystem's capabilities and successes. Players who are not already here find themselves questioning why they are not in Catalonia, yet other big players such as AstraZeneca are here. Having well-known brands like AstraZeneca investing significantly can catalyze attracting other companies to the region.
Recently, AstraZeneca and Alexion announced plans to double their investment in Catalonia, reaching a total of 1.3 billion euros and creating 2,000 jobs. This substantial commitment underscores the region's appeal and potential for growth in the healthcare sector. Other companies in the industry may be taking note of this development and considering their investments or expansions in Catalonia.
Having major players like AstraZeneca investing significantly helps elevate the region's profile and puts us on the radar for other companies considering expansions or investments in healthcare. Our strategy is not solely public; it is also private. Collaborating with private actors such as Barcelona Health Hub, Biocat, and Tech Barcelona brings credibility and real-world insights when promoting our ecosystem to potential investors. When we present our region alongside these trusted partners, it adds credibility and trust, which is essential for attracting new companies and investments.
This is something we actively engage in with partners like Robert Fabregat from Biocat and Miquel Martí, CEO of Tech Barcelona. We collaborate closely with various players across the ecosystem. For example, we are collaborating with the Health Revolution Congress, organized by Barcelona Health Hub, here in Barcelona, leveraging the entire network. When we attract companies, we emphasize that we are not acting alone; we are part of a well-connected ecosystem. This interconnected network includes hospitals, government officials from the Health Ministry, and other stakeholders. It is a powerful collaboration between the public and private sectors. The public sector showcases our city and its strengths, while companies like AstraZeneca serve as ambassadors, showcasing their investments and contributions to our region.
EF: How do you ensure that the investments attracted to your region create lasting value rather than just providing a short-term boost of capital?
JR: This is a good question because we do not want just any kind of investment. I recall the 1980s and 1990s when Catalonia and Spain were emerging economically. During that time, we welcomed various investments aimed at achieving cost efficiencies, akin to how some companies now look to Eastern Europe for cheap production. However, this type of investment is not aligned with our current goals. We seek investments that are environmentally friendly, digitally oriented, and have a positive social impact.
Given our region's size and limited resources compared to larger nations like the US, we must maximize our available resources. For instance, we are currently experiencing a severe drought due to months of minimal rainfall. Ongoing water scarcity necessitates circular economy initiatives focused on water treatment and conservation. We prioritize sustainable projects that not only generate profit but also preserve our resources responsibly. Secondly, we must also prioritize environmental stewardship and strive to provide future generations with the same opportunities we have enjoyed. This requires a strong focus on innovation, specifically supporting projects that bring innovative perspectives and personalized solutions, particularly in genomics and customer-focused approaches that prioritize individual patients over mass production.
We have two major clusters in Catalonia regarding healthcare. One is centered around cosmetics, a significant sector closely related to pharmaceuticals but distinct in its focus on beauty. The other cluster is focused on the silver economy, catering to the needs of the aging population, as well as mental health initiatives. These clusters are hubs of innovation aimed at adding value to traditional industry projects.
These things are important for us. It is about sustainability, digitalization, and innovation—approaches that we prioritize when discussing sustainable projects within the health sector. This focus extends across pharmaceuticals, biotech, and medical devices, where we aim to remain competitive through digitalization and environmentally conscious practices.
EF: What are your top 3 favorite things about the region?
JR: One standout aspect of working in this region is the strong sense of being part of a team within the ecosystem. Professionals feel valued and recognized as integral team members, not just individuals within a company's internal structure.
Another important aspect is the sense of social community. People from diverse backgrounds find it easy to connect with others from their home countries. Whether it is Mexicans, Italians, or individuals from various other places, you will likely encounter a community that feels familiar and supportive.
Lastly, there is a great balance between work and life opportunities here in Catalonia. People can enjoy a fulfilling professional life while also having ample chances to savor life outside of work. These three aspects truly stand out, although it's challenging to limit them to just three highlights.
In Catalonia, you will find a wide range of activities and experiences that cater to different interests and lifestyles. Whether it is attending a football match to see Barça in action or enjoying a concert, these opportunities can help create a positive impression and connection with potential investors. It is all part of understanding what resonates with individuals and leveraging those aspects to build relationships and make compelling cases for investment.
EF: Do you have any final messages for our readers?
JR: The pharmaceutical industry is seeing strong growth in Catalonia, and we're making significant strides forward. Barcelona and Catalonia have emerged as a vibrant hub for innovation in life sciences, and global pharmaceutical and life sciences giants have established production facilities and research hubs here, capitalizing on the region's abundant local talent pool. From Catalonia Trade & Investment, we offer ongoing support to all the corporations that are interested in learning more about Barcelona-Catalonia as an attractive investment destination in this sector. We can connect them to the research and innovation network that is driving this growth.
