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EF: Could you provide an overview of the present investment landscape in the Basque country? Additionally, what are the key priorities currently on your agenda?
JF: The Basque Country is one of the most industrialized regions in Europe, with an outstanding 40% of our GDP coming from Industry and Advanced Services. This industrialization has been going on for centuries, starting with heavy-duty industries, followed by automotive or energy sectors, and nowadays focused on smart manufacturing and automation, with a new industry more sustainable, internationalized, and innovative. Our strong bet for the BioHealth sector came around the year 2000, when the Basque Government decided to create a new strategy, realizing the importance of the health sector on a global scale. Thus, we initiated what we called the BioBasque Strategy, which was launched with a global approach and with actions structured in three axes: knowledge generation, business development, and cluster dynamization aimed at the ultimate goal of diversification and the creation of a new business sector. This led to the establishment of new Basque companies and the arrival of foreign companies, who saw the untapped potential in our region.
The gradual development of the strategy has meant the beginning of a profound change both in the scientific-technological panorama and in the business sphere, being simultaneously responsible for the early international recognition of the Basque Country as a bioregion.
In this sense, our high level of innovation is recognized by the European Union for being then than the European average and ranking the Basque Country as a Strong Innovator. Following this innovation trend, the European Commission required every region in Europe to create an RIS3 strategy, determining three specializations for each region. Consequently, three priorities have been defined in the Basque Country that affect different sectors in which the Basque Country has strong specialization and skills, with the focus on a key area in the Basque Country, all combined with a commitment to diversify the business fabric towards a high technology level and high growth potential sector. These are Advanced Manufacturing, Energy, and Bio-Health.
As part of this strategy, the Basque BioHealth Cluster was created, bringing together over 120 health-related companies in the Basque Country. This strategic focus not only aligns with our industrial strengths but also contributes to the overall well-being of our population and the growth of our economy. So, from an investment perspective, we are actively trying to attract companies in the BioHealth sector, recognizing the mutual benefits for the region and the companies involved. It is not just about industry; it is about the health and prosperity of our people.
EF: How are you making a more competitive environment for innovation, and what makes the Basque region particularly appealing to companies establishing R&D facilities and innovation centers?
JF: The Initiative comes from the Basque Government's direction, emphasizing innovation and collaboration. The goal is to encourage companies to embark on R&D projects within the region. A key development is the Basque Research and Technology Alliance (BRTA), established five years ago. The 17 R&D centers belonging to BRTA, which have 4,300 employees, earned a total of 337 million euros in 2022, of which 143 million came from the private sector and 193 million from public sources, including 65 million euros from European programs. The alliance's centers have more than 270 international clients, worked with 2,252 companies last year, and earned more than 11 million euros from patents and licenses.
In conjunction with BRTA, SPRI, the Basque Government´s Economic Development Agency, offers competitive programs, including grants and subsidies, to facilitate R&D projects for companies. This initiative aims to reduce financial burdens on companies by leveraging existing R&D centers and their personnel. The overarching strategy seeks to convince companies that investing in R&D is essential for future productivity and innovation.
EF: How do you create trust with potential investors looking to invest in the Basque region?
JF: In the initial stages, an investor is confronted with a blank slate, where everyone presents their proposals, requiring trust in the presented information. Our approach to investors goes beyond that. We invite them to visit us, offering a prepared agenda that includes introductions to existing companies, tours to our R&D centers to showcase potential collaborations and insights into cooperative opportunities.
What sets us apart, and something consistently highlighted by others, is our perception of the Basque government as a closely involved administration. We emphasize ongoing collaboration with investors and companies, not just at the outset but especially when they are established here. Our aim is to listen to companies and tailor programs, aids, and subsidies collaboratively, creating tools that ensure their ongoing competitiveness. This, according to global feedback, is a unique aspect of our approach. Despite being a relatively small territory with a concentrated industry, our government's enduring priority is industry development. We are focused on attracting premier companies to generate prosperity for the population, contribute to the country's wealth, and, notably, create employment opportunities for our people.
EF: How does the collaboration on a national and EU level contribute to attracting and nurturing top talent in the Basque region? Can you provide insights into the strategies employed to foster collaboration and draw in the best talent for the region?
JF: Talent acquisition is of the greatest importance for any investor. Ensuring access to the best talent is crucial, especially given the current shortage in Europe. Companies seek assurance that they will have the necessary talent pool for sustained growth. Fortunately, the Basque Country stands out in this regard, with a remarkable concentration of five universities across the three provinces. Namely, the University of the Basque Country (UPV/EHU), being the largest public university with multiple campuses, along with four private universities, contributes to this unique educational ecosystem. Notably, the Basque Country boasts the highest concentration of engineering graduates per capita in Europe, a testament to our strong focus on industry. The demand for engineers is substantial, driven by the region's industrial orientation and the desire of many to follow in the footsteps of their engineering predecessors.
Despite the appearance of occasional shortages, our universities make significant efforts. In the field of health studies alone, about 8000 students enroll annually. Two universities, both public and private, play a vital role in nurturing and channeling this talent toward companies. A striking example is the city of San Sebastian, recognized for attracting health companies, particularly in gene therapy. Presently, we are engaged in two projects with investors specifically eyeing San Sebastian as their target. This reflects the city's reputation as a go-to destination, substantiating its appeal for investments and projects in various sectors, including, as mentioned, gene therapy.
EF: Having worked in various regions globally, what advice would you offer to a company thinking about investing in the life sciences sector in the Basque region?
JF: Based on my experience across various projects and sectors, my key advice to investors is not to prioritize money or grants when deciding where to invest. Instead, focus on finding a region with the right talent pool, a productive environment, and reliable suppliers. A robust network of suppliers is crucial for business success. Look for a location where the administration works closely with companies; in the Basque Country, we have a unique tax system, and tax authorities collaborate with companies to ensure fair contributions to the system.
Additionally, choose a place that prioritizes innovation, providing access to the latest technology essential for future technological development. Many companies in the Basque Country collaborate with our health department. We have both public and private health systems, with the Basque health system being recognized as one of the bests in Europe by the European Union. The network of research institutes and major hospitals across the three provinces facilitates seamless collaboration between companies and health institutions. This direct and swift access to hospitals is a powerful advantage for companies located here, enabling them to engage in research projects, trials, and tests for various medicines and devices.
EF: What are the three aspects of the Basque country that you appreciate the most?
JF: Three things that stand out about the Basque Country.
First, the breathtaking landscape—come here to witness the fantastic blend of mountains and the sea, offering a diverse and beautiful environment. Second, I would say food, with the world's highest concentration of Michelin-starred restaurants, we take food seriously. From dining out to home-cooked meals, our focus on high quality food is renowned not just in Spain but also globally. This extends to, for example, the well-known Rioja wine produced in the southern part of the Basque Country. Lastly, the people are known for their hardworking and reliable nature. While it might be a bit of a stereotype, our commitment to honesty, integrity, and hard work is evident in everything we do. This sincerity is reflected in our approach to supporting companies, something that is genuinely appreciated by businesses investing in the Basque Country.
EF: Is there a concluding message you would like to convey to our readers about the Basque country?
JF: I would like to invite everyone to explore the Basque Country—a charming place with a rich heritage, distinctive culture, and unique language. Our traditions, culture and even sports, make this region captivating. Our language, unparalleled in the world, has mysterious origins unrelated to any other language. Personally, having lived in many countries, I eventually returned home after the pandemic, and working in this role is truly fulfilling. It allows me to showcase the wonders of the Basque Country globally, collaborate on an international scale, and engage with foreign individuals and companies. Outstandingly, it provides an opportunity to attract investments and generate employment, contributing to the continuous improvement of the region.
