Investing and growing in Andalucía A GUIDE FOR MULTINATIONAL COMPANIES

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3 Investing and growing in Andalucía A GUIDE FOR MULTINATIONAL COMPANIES

4 Developped in association with Maps: BC MAPS, Bases Cartográficas y Mapas s.l.n.e. Production: IDEA agency Design and layout: Entre3 Comunicación Printing: Coria Gráfica Legal deposit: SE

5 Contents I ANDALUCÍA AT A GLANCE 1. General information 2. Demographic information 3. Economic information II REASONS TO INVEST IN ANDALUCÍA 1. A privileged location with advanced infrastructures 2. A large, dynamic market 3. Beyond stereotypes: a competitive and profitable region 4. A mine of talent and innovation 5. Institutional support for investors III ADDRESSES OF INTEREST 1. IDEA agency 2. Other addresses of interest

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7 I. Andalucía at a glance

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9 I. Andalucía at a glance General information Andalucía is a region of Spain, which is part of the European Union. Its currency is the Euro, which makes the region highly stable at macroeconomic level. Andalucía is comparable to certain European countries: It covers a geographical area greater than that of countries such as Austria or the Czech Republic. It has a population similar in size to that of Austria. Its economic weight is similar to that of Portugal and exceeds that of economies such as the Czech Republic and Morocco. 11

10 Profile of the region Capital: Political regime: Currency: Time zone: Official language: Seville. Constitutional monarchy, part of Spain and the EU. Euro. UTC+1. Spanish. The official language of Andalucía is Spanish, which means the region offers an excellent channel for communication: Second language in the world in terms of native language speakers. Over 440 million speakers. Official language of over 20 countries. Second most-studied language in the world, after English Surface area Source: Andalucía Statistics Office, CIA World Factbook 12 Andalucía at a glance

11 I. Andalucía at a glance Demographic information Its large population makes Andalucía a region with high potential. Andalucía has important urban areas, which allow talent and economic activity to be mobilised. The region s age structure, with a high proportion of young people, guarantees a dynamic future. Andalucía is an area that attracts international talent and has large colonies of European citizens. Key demographic information Total population: 8,202,220. Main cities: 12 cities with populations of over 100,000 (Seville, Málaga, Córdoba, Granada, Jerez de la Frontera, Almería, Huelva, Marbella, Cádiz, Jaén, Dos Hermanas and Algeciras). Seville and Málaga both have populations in excess of 500,000. Source: Andalucía Statistics Office and Spanish National Statistics Office Population size (at 1 January 2008) Source: Eurostat Andalucía at a glance 13

12 Population pyramid by age group Andalucía and the EU omás 80 a84 75 a79 70 a74 65 a69 60 a64 55 a59 50 a54 45 a49 40 a44 35 a39 30 a34 25 a29 20 a24 15 a19 10 a14 5a9 0a4 10% % Andalucía UE 15 Source: Andalucía Statistics Office and Eurostat Foreign residents by country of origin (2009) In Andalucía there are 668,093 foreign residents, 364,239 of whom are European Source: Andalucía Statistics Office and Eurostat 14 Andalucía at a glance

13 I. Andalucía at a glance Economic information Andalucía has experienced a long period of high stable economic growth. In absolute terms, the GDP of Andalucía is situated between that of Portugal and the Czech Republic. In terms of growth rates, the region has been constantly above that of Spain and the Euro Zone. The sector-based specialisation of Andalucía is that of a developed country, with a strong tertiary sector as the main player. Key economic information: GDP (2008, millions of Euros): 152,357.6 Average annual GDP growth ( ): 3.8% GDP per capital (Euros): 18,572.2 Average annual CPI variation ( ): 3.12% Exports (2008, millions of Euros): 16, Imports (2008, millions of Euros): 27, R&D expenditure (2007, millions of Euros): 1,478.5 Source: Andalucía Statistics Office and Spanish National Statistics Office GDP , , , , , ,7 Source: Eurostat Andalucía at a glance 15

14 Sector distribution of GDP Source: Spanish National Statistics Office Actual GDP growth ( ) 5,0 4,0 3,0 4,2 4,0 4,0 3,8 3,6 3,5 CAGR ,6 2,5 2,4 CAGR CAGR ,8% 3,5% 2% 2,0 1,0 1,5 1,2 0,0 Source: Spanish National Statistics Office and OECD 16 Andalucía at a glance

15 Andalucía has an extremely significant weight compared to the rest of Spain, and along with Catalonia and Madrid, is one of the three regions with the greatest weight compared to the entire Spanish economy. Andalucía also has significant importance with regard to other economic variables, such as employment, infrastructure investment and new technologies. In terms of per capita revenue, Andalucía remains on a steady path towards convergence with the average level for Spain. Contribution from the Spanish regions to GDP (2008, % of total Spanish GDP) Source: Spanish National Statistics Office Andalucía at a glance 17

16 Year-on-year variation in per capita GDP Andalucía and Spain ( ) 10,0 8,0 CAGR ,4% CAGR ,9% 6,0 4,0 2,0 0, Source: Spanish National Statistics Office 2005(P) 2006(P) 2007(A) 2008 (1ªE) Relative weight of Andalucía within Spain (latest available data, percentage of the total) Source: BBVA-Ivie Foundation, Andalucía Statistics Office 18 Andalucía at a glance

17 II. Reasons to invest and grow in Andalucía

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19 II. Reasons to invest and grow in Andalucía A privileged location with advanced infrastructures INTRODUCTION The geographically strategic area of Andalucía, the strengths associated with its infrastructures and the natural resources it offers represent an important competitive advantage. Geographical location and natural resources are undoubtedly deciding factors when it comes to the competitiveness of Andalucía. In addition to these inherent strengths, the region also has an extensive transport and communications network, making Andalucía an ideal location to house business projects which aim to develop their activities within the large internal market or extend further afield. The region s location makes it an ideal platform for access to the European, African, Latin American and Middle-Eastern markets. The investment made and the regulatory framework developed over recent years by the Andalusian public authorities, with the aim of improving transport and communications systems and making them more sustainable, show a firm commitment to consolidate the region as the most important logistics hub in southern Europe. Andalucía currently has the infrastructures required to make the most of its location and resources, which are available to all the companies located in the region. Finally, Andalucía s numerous natural resources and its favourable climate provide the perfect environment for sustainable economic activity with great potential for development, particularly attractive for the renewable energy sector. 21

20 A privileged location with advanced infrastructures ANDALUCÍA : A LOGISTIC HUB IN SOUTHERN EUROPE Andalucía has a privileged geographically strategic location, and is a passageway between the Atlantic and the Mediterranean, as well as between Europe and Africa. The region s location make it a mandatory point on the commercial routes that run between Asia and central Europe, between Africa and Europe and between the American continent and the Mediterranean. These advantages, derived from the geographical location of Andalucía and strengthened by a set of physical conditions and infrastructures, make Andalucía the most important logistics hub in southern Europe. 22 Reasons to invest and grow in Andalucía

21 Aspects which strengthen Andalucía s geographically strategic location as a logistics hub in southern Europe: The size and population of Andalucía, comparable to other European countries, make it not only a strategic point of passage, but also a market which is commercially attractive. The region has over 1,100 kilometres of coastline on the Atlantic and the Mediterranean, with a strong port system with 10 commercial ports, through which more than 100 million tonnes of goods pass each year, approximately one quarter of total port traffic in Spain. The region s six airports transport approximately 20 million passengers each year. Andalucía s road network has huge capacity, and connects the large Andalusian towns and cities with each other, as well as with the Spanish and European road networks. The region s rail network connects the port system and Andalucía s large cities with the rest of Spain and Europe, with high-speed trains running along many stretches of track. Over the past 20 years Andalucía has made significant investment, providing the region with new transport infrastructures, consolidating and improving its privileged location as a logistics hub. The size of the logistics infrastructures used for goods transportation in Andalucía show its position as a logistics hub in southern Europe: Logistics area in use: 10.6 million m 2 Logistics area under development or at the planning stage: 36.9 million m 2 Reasons to invest and grow in Andalucía 23

22 A privileged location with advanced infrastructures INFRASTRUCTURE PLAN FOR TRANSPORT SUSTAINABILITY IN ANDALUCÍA The Infrastructure Plan for Transport Sustainability in Andalucía (known by its Spanish acronym PISTA) lays out the objectives and strategies for the region s infrastructures and transport, and forms a key part of the area s economic and territorial development. Andalucía has an infrastructure system which guarantees complete accessibility and connections at both internal and external level, crucial to guarantee the competitiveness of any business located in the region. Infrastructure and communications initiatives aim to position Andalucía as one of the most competitive regions in Europe, consolidating its position as a key logistics hub in southern Europe. The key features of Andalucía s infrastructure system are: 1.- LOGISTICS AREA NETWORK The Regional Government of Andalucía is strengthening the infrastructures for freight transport hubs, as basic elements for linking the intermodal transport system with the first rate road, rail and sea networks. One of the key infrastructures is the Andalucía logistics area network, the purpose of which is to provide the region with a transport system that guarantees complete accessibility and connectivity for freight transportation at both internal and external level. 2.- CONNECTIONS TO SPAIN AND EUROPE One of the pillars of the PISTA is the fact that Andalucía is a well-connected region, offering an ideal geographically strategic position. The region s infrastructures and transport services mean that Andalucía is fully connected with the rest of Spain and Europe by a diversified range of transport options. The transport infrastructure measures allow the region to make the most of its strengths, particularly its high number of ports and its privileged location as a communication nexus between Europe and Africa. 24 Reasons to invest and grow in Andalucía

23 3.- DEVELOPMENT OF THE INTERMODAL NETWORK New investments in transport infrastructures have given rise to an increase in combined transport, favouring the use of the most efficient means of transportation: Work has been carried out on rail transport to improve the existing network, guaranteeing the interoperability of the freight network and its connection to ports and internal logistics hubs. Infrastructures and services have been strengthened in the sea transport area, to guarantee different kinds of combined transport. With regard to air transport, airports are being consolidated as air freight hubs, complementary to the logistics system, and high added value logistics services are also being developed for the transportation of products with a high price-weight ratio. Reasons to invest and grow in Andalucía 25

24 INFRASTRUCTURE PLAN FOR TRANSPORT SUSTAINABILITY IN ANDALUCÍA 1.- ANDALUCÍA LOGISTICS NETWORK The Andalucía logistics network is based on two elements: the port logistics hubs and the internal logistics hubs. All the hubs located in the port areas and inland Andalucía form part of an authentic logistics network which is fully inter-connected, with land and sea routes linked to external areas, thereby guaranteeing enormous growth potential for logistics activity. The planned initiatives for the Andalucía logistics network represent over 37 million m 2 of specialised facilities. 26 Reasons to invest and grow in Andalucía: A privileged location with advanced infrastructures

25 Map of logistics areas in Andalucía (by 2013) Source: Department of Public Works and Transport of the Regional Government of Andalucía Reasons to invest and grow in Andalucía: A privileged location with advanced infrastructures 27

26 Seville logistics hub Seville Port Authority Seville Port. Seville Port logistics activity area. Seville freight transport centre. Seville-San Pablo Airport. Majarabique and La Negrilla rail terminals. Logistics platforms within the Seville metropolitan area (four logistics parks). Huelva logistics hub Huelva Port Authority Huelva Port. Las Aletas logistics area. Huelva rail terminal: - Business logistics park. - Cartaya logistics area. Granada logistics hub Granada freight transport centre. Albolote rail terminal. Granada Airport. Motril logistics hub Motril Port Authority. Motril logistics activity area. Motril freight transport centre. Córdoba logistics hub Córdoba logistics park. Córdoba freight rail terminal. Córdoba Airport. Bahía de Cádiz logistics hub Bahía de Cádiz Port Authority: - Cádiz Port. - Santa María Port. Las Aletas logistics area. Puerto de Santa María rail terminal. Puerto de Jerez rail terminal. Jerez logistics area. Campo de Gibraltar logistics hub Bahía de Algeciras Port Authority: - Algeciras Port. - Tarifa Port. Campo de Gibraltar logistics activity area (Bahía de Algeciras logistics activity area). San Roque combined transport rail terminal. Andalucía Port logistics hub Logistics platforms: - Comarcal de Andújar logistics centre. - Bailén logistics centre. Almería logistics hub Almería Port Authority: - Almería Port. - Carboneras Port. Almería Airport. Garrrucha Port. Campo de Dalías logistics area: - El Ejido integrated freight centre. - Poniente transport city. Almería logistics activity area. Málaga logistics hub Málaga Port Authority Málaga Port. Málaga freight transport centre. Málaga-Ruiz Picasso Airport. Los Prados rail terminal. 28 Reasons to invest and grow in Andalucía: A privileged location with advanced infrastructures

27 INFRASTRUCTURE PLAN FOR TRANSPORT SUSTAINABILITY IN ANDALUCÍA 1.- ANDALUCÍA LOGISTICS NETWORK: LOGISTICS HUBS WITHIN THE PORT SYSTEM (SEA TRANSPORT) Andalucía s geographically strategic position for sea transport provides the entire system with a set of special features lacking in other areas. The Andalusian port system is the head of the region s logistics system, as its ports and the urban areas in which they are located are the main source and destination areas for freight traffic, and also offer an extensive intermodal transport system. On the Andalusian coast there are ten commercial ports, three on the Atlantic and seven on the Mediterranean, which move over 100 million tonnes of goods each year, a quarter of total port traffic in Spain. Logistics hubs within the Andalusian port system CANTABRIAN SEA ATLANTIC OCEAN Huelva Cádiz Seville Campo de Gibraltar Málaga Motril Almería MEDITERRANEAN SEA N Km Source: Department of Public Works and Transport of the Regional Government of Andalucía Reasons to invest and grow in Andalucía: A privileged location with advanced infrastructures 29

28 Public entities have made a firm commitment to consolidating the port system in Andalucía: The port logistics hubs currently have a joint surface area of 15 million m 2, including the ports themselves, airports, freight rail terminals and other centres used for transporting goods. These facilities are being significantly expanded, supported by public aid (the Infrastructure Plan for Transport Sustainability in Andalucía), with the aim of ensuring a network of port logistics hubs that covers over 30 million m 2 by Total traffic in the main Spanish ports (2008, thousands of tonnes) Source: Bahía de Algeciras Port Authority 30 Reasons to invest and grow in Andalucía: A privileged location with advanced infrastructures

29 Bahía de Algeciras Port is one of the main freight ports in Europe (the most important in Spain and the 7th in Europe), and connects Andalucía with over 100 ports throughout the world: Investment of Euros 98.5 million in Recent implementation of Isla Verde, an infrastructure that houses the leading terminal for semi-automatic containers in the Mediterranean. Future opening of the special logistics area in 2010 (over 38,000 m 2 ). Improvements to transport connections which will make Bahía de Algeciras the main alternative for access to domestic and international markets. Future opening of the La Línea Marina, with over 700 berths and sporting, shopping and recreation areas. Total traffic in the main European ports (2008, thousands of tonnes) Source: Bahía de Algeciras Port Authority Reasons to invest and grow in Andalucía: A privileged location with advanced infrastructures 31

30 INFRASTRUCTURE PLAN FOR TRANSPORT SUSTAINABILITY IN ANDALUCÍA 1.- ANDALUCÍA LOGISTICS NETWORK: INLAND LOGISTICS HUBS The logistics areas that form part of Andalucía s inland hubs, along with the region s port hubs, have been called on to perform a crucial role as dry ports for the distribution of loads to and from Spain and Europe. They are therefore concentrated in strategic zones in terms of road and rail transport infrastructure. Logistics hubs located in inland Andalucía CANTABRIAN SEA ATLANTIC OCEAN MEDITERRANEAN SEA Source: Department of Public Works and Transport of the Regional Government of Andalucía 32 Reasons to invest and grow in Andalucía: A privileged location with advanced infrastructures

31 The initiatives implemented to strengthen the role played by inland logistics hubs are focused on improving logistics and transport facilities. The region s inland logistics hubs comprise the metropolitan areas of Córdoba, Granada and Jaén, as well as strong local production systems that make the most of excellent access through road and rail networks. Investment is being made during the period to increase the surface area used for logistics activities within these inland hubs from 1.3 million m 2 to 6.2 million m 2. Reasons to invest and grow in Andalucía: A privileged location with advanced infrastructures 33

32 INFRASTRUCTURE PLAN FOR TRANSPORT SUSTAINABILITY IN ANDALUCÍA 2.- ANDALUCÍA AND ITS CONNECTIONS TO OTHER AREAS: CONNECTION OF THE LOGISTICS SYSTEM The second key factor is the connections between Andalucía and other areas through the integration of its rail and road networks with those in the rest of Spain and Europe. The following external connections are currently being strengthened: Central axis: Connection with the centre of Spain and the rest of Europe. Mediterranean axis: Connection between east Andalucía and one of the most economically dynamic areas (Murcia-Valencia-Barcelona). Atlantic axis: Connection between west Andalucía and Portugal. Source: Department of Public Works and Transport of the Regional Government of Andalucía 34 Reasons to invest and grow in Andalucía: A privileged location with advanced infrastructures

33 INFRASTRUCTURE PLAN FOR TRANSPORT SUSTAINABILITY IN ANDALUCÍA 3.- DEVELOPMENT OF THE INTERMODAL FEATURES OF THE SYSTEM. LAND TRANSPORT: ROAD AND RAIL NETWORK All of Andalucía s urban centres are currently inter-connected by high-capacity roads (motorways and dual carriageways). Thanks to significant investment over the past ten years, 90% of the Andalusian population lives within 25 minutes of a motorway, and the time it takes to travel between the ten main cities in the region has been cut by 20%. Over recent years the Andalusian rail model has been transformed through radical renovation of the network and the services it offers, with the aim of expanding the system and improving its quality. Source: Department of Public Works and Transport of the Regional Government of Andalucía Road transport accounts for 77% of all freight traffic in Andalucía. The MAS CERCA Plan to improve accessibility, road safety and conservation, which is scheduled for completion in 2010, is an initiative implemented by the Regional Government of Andalucía, involving investment of Euros 2,700 million and covering 2,300 kilometres of the region s roads Reasons to invest and grow in Andalucía: A privileged location with advanced infrastructures 35

34 The rail connection structure has two significant initiatives currently underway: Connections by high-speed railway between Andalucía s main cities and Madrid, the Mediterranean axis, Portugal and Morocco. Two large Andalusian cities (Seville and Málaga) are currently connected to Madrid and Barcelona by a high-speed rail line. - Seville Madrid: 2 hours 30 minutes - Málaga Madrid: 2 hours 40 minutes - Seville Barcelona: 5 hours 40 minutes - Málaga Barcelona: 5 hours 40 minutes Transversal rail connections in inland Andalucía. As a result of the investment made the time taken to travel by train between the region s main cities has been cut by approximately 20%. Cáceres Toledo Valencia Badajoz Mérida Ciudad Real Albacete Elche Alicante Córdoba Jaén Murcia Cartagena Huelva Granada Cádiz Málaga Almería Algeciras N Km Source: Department of Public Works and Transport of the Regional Government of Andalucía Thanks to its high-speed network Andalucía will be fully connected to the rest of mainland Spain by 2013, with the high-speed line being extended to Cádiz in 2012 and Granada in Reasons to invest and grow in Andalucía: A privileged location with advanced infrastructures

35 INFRASTRUCTURE PLAN FOR TRANSPORT SUSTAINABILITY IN ANDALUCÍA 3.- DEVELOPMENT OF THE INTERMODAL FEATURES OF THE SYSTEM: AIR TRANSPORT. Andalucía s airport network comprises six airports, five of which provide scheduled services (Málaga, Seville, Jerez de la Frontera, Almería and Granada-Jaén). Figures show that air traffic has continuously grown in Andalucía, with the number of people opting for this form of transport doubling in the last ten years to more than 20 million passengers. From the average annual growth in passenger traffic in Andalusian airports was 9.26%, higher than the Spanish average of 7.59%. Málaga Airport continues to lead the air transport system, particularly in terms of international tourist passengers, with 70 international flights, including direct routes to the US. In terms of air transport the PISTA plan aims to strengthen the role of airports as crucial for connection with areas outside of Andalucía, as well as to make improvements in terms of the system s intermodal features. Flight times from Andalucía (Málaga Airport) to key international destinations Source: IATA Reasons to invest and grow in Andalucía: A privileged location with advanced infrastructures 37

36 List of Spanish airports in terms of passenger traffic (2008) Málaga: 25th most important airport in Europe in terms of passenger traffic. The new runway and new terminal will make it the 14th-busiest in terms of passenger traffic. Source: AENA Passenger traffic in Andalusian airports from ,0 (1993=100) 300,0 250,0 200,0 150,0 100,0 50,0 0, Andalucía España Source: Ministry of Public Works. Commercial traffic in Spanish airports. Accumulated data for the year 38 Reasons to invest and grow in Andalucía: A privileged location with advanced infrastructures

37 A privileged location with advanced infrastructures ANDALUCÍA S ENERGY RESOURCES Andalucía has huge potential for making the most of renewable energy resources. These renewable resources available in the region make renewable energy a strategic industry for Andalucía. The Andalucía Energy Sustainability Plan proposes a re-focus of the Andalusian energy model, based on making the most of regional energy resources. Andalucía has non-renewable energy resources, such as coal and natural gas deposits, although the abundance of regional renewable resources form the region s main energy potential, with wind and solar energy being of particular note: Wind energy: Due to the large size of the region and its geographical location, wind in Andalucía is a renewable resource with great potential: Wind resources in Andalucía Source: Andalusian Energy Agency Reasons to invest and grow in Andalucía: A privileged location with advanced infrastructures 39

38 Solar energy: Andalucía has a privileged position when it comes to solar resources, with average solar radiation of 4.75 kwh/m2 per day. These levels, along with the sheer size of the region, make Andalucía the area of Spain with the greatest solar potential, both in terms of solar thermal energy and solar photovoltaic energy used for electricity production: Days of sun per year (according to most recent available data) - In 2008 the total solar energy produced in Andalucía would have covered the energy demand of the region s entire population more than 800 times. - The region leads the rest of the country in thermal solar facilities, with 502,775 square metres of installed facilities, able to supply hot water to over 200,000 homes. - Andalucía has over 664 MW of installed photovoltaic solar power, with the capacity to supply approximately 796,000 people. Source: Eurostat Map showing hours of sun in Andalucía Source: Andalusian Energy Agency 40 Reasons to invest and grow in Andalucía: A privileged location with advanced infrastructures

39 A privileged location with advanced infrastructures PERSONAL TESTIMONIES We set up and have remained in Andalucía because of its easy access to the Spanish market and its high number of potential consumers, as well as the existence of raw materials required for our manufacturing process. FROMANDAL. Gabriel Rico Miralles. Director. Natural resources are critical for our business. Climate conditions and the abundance of land are two of Andalucía s most important assets. ENZA ZADEN ESPAÑA. Serafín Cantón. Administration Director. 70% of our production is exported, and Andalucía provides us with access to markets all over the world. FMC FORET. Miguel Martínez. Director. Reasons to invest and grow in Andalucía: A privileged location with advanced infrastructures 41

40 II. Reasons to invest and grow in Andalucía A large, dynamic market INTRODUCTION Andalucía is a first-class market with great potential: Its consumer market is as large as those of some European countries. It has a similar number of businesses to Catalonia or Madrid. The Andalusian market has immense potential, particularly in its strategic sectors. Andalucía is highly attractive for current and future investment: As an end consumer market, it has a large number of potential consumers and has experienced consistent, solid growth in turnover over the last ten years. Andalucía s business market has a large number of companies organised into clusters, which has led to local specialisation and fostered synergies and economies of scale Andalucía is highly specialised in certain sectors that will be leading players in the 21st-century economy: aeronautical industry agro-food industry energy biotechnology ICT 42 Reasons to invest and grow in Andalucía

41 A large, dynamic market A RELEVANT POTENTIAL MARKET Andalucía is a highly relevant consumer market, both in terms of size and because of its direct access to the Spanish and EU markets. The region has a similar number of local consumers to Austria or Sweden, and more than many European countries such as Bulgaria, Switzerland or Finland. Markets in the rest of the world can also be easily accessed through Andalucía s excellent infrastructures. Local market Andalucía: 8,202,220 consumers Spanish market European Union market Spain: 46,157,822 consumers EU 491,582,852 consumers Source: Spanish National Statistics Office, Eurostat Reasons to invest and grow in Andalucía 43

42 In absolute terms, Andalucía is a relevant consumer market: - It has the largest number of homes in Spain. - It is as large as some significant economies. The purchasing power of the region s population has also grown rapidly. Number of homes per region (2007) Source: Spanish National Statistics Office 44 Reasons to invest and grow in Andalucía

43 In absolute terms, household spending in Andalucía totalled 93,565.2 million in 2008, meaning that Andalucía has a consumer market greater than the GDP of Morocco. Average annual growth in per capita gross income in the EU-15 ( ; CAGR) Source: Spanish National Statistics Office Since the introduction of the Euro, Andalucía has experienced higher average annual growth in per capita gross income than any of the EU-15 countries. Reasons to invest and grow in Andalucía 45

44 A large, dynamic market BUSINESS COMMUNITY Andalucía s solid business community means that the region is also an important business market. Over half of all businesses in Spain are concentrated in Catalonia, Madrid and Andalucía. The number of companies in Andalucía grew at an average rate of 4.3% between 1999 and 2008, and the global economic crisis has brought a decline of only 2.4%. Many significant multinational companies operate in Andalucía. Number of companies by region (2009) Source: Spanish National Statistics Office 46 Reasons to invest and grow in Andalucía

45 In absolute terms, businesses in Andalucía invested 47,636.4 million in Over 2,000 multinational businesses operate in Andalucía. Some of the most significant are: A NOVO ABBOTT ATLANTIC COPPER BUREAU VERITAS, SA CAP GEMINI DOW CHEMICAL EIFFAGE HANJIN HUAWEI JEFFERSON SMURFIT GROUP PLC LEGRAND LUIS SIMOES MICROSOFT PANRICO PEUGEOT PIONEER OVERSEAS RAYTHEON SYSTEMS SAINT GOBAIN SCHOTT SOLAR SIEMENS SUN MICROSYSTEMS THYSSENKRUPP AG VALEO ABB AIR LIQUIDE BULL C.H. BOEHRINGER SOHN DANONE EADS FUJITSU TEN HEINEKEN IBM KRAFT FOODS LIMAGRAIN MICHELIN ORACLE PERNOD RICARD EUROPE PFIZER PROCTER & GAMBLE RENAULT SCHINDLER SECURITAS SITEL THOMSON TOYOTA VEOLIA Reasons to invest and grow in Andalucía 47

46 One of the main attractions of the Andalucía business community is its organisation into clusters. The region s appeal and vitality are mainly due to competitive factors. Local specialisation has occurred naturally, as a result of companies seeking to gain competitive advantages in each area. The public authorities have supported the synergies fostered in each cluster by assigning each one a technology centre. Andalusian industry is organised into sector and geographical clusters. The region has over 25 industrial clusters in total, the most significant of which are as follows: Aeronautical industry (Cádiz and Seville). Naval industry (Cádiz, Huelva and Seville). Renewable energies (Cádiz). ICT (Málaga and Seville). Biotechnology (Granada, Seville and Málaga). Viticulture (Jerez - Cádiz). Olive oil (Córdoba, Granada, Jaén and Seville). Marble (Macael - Almería and Loja - Granada). Leather goods (Ubrique - Cádiz). Petrochemical, energy and metal industry (Campo de Gibraltar). Chemicals industry (Huelva). Audiovisual (Málaga and Seville). The different industrial clusters in the region are supported by the Andalusian regional authorities, aiding the competitiveness of the businesses located in each cluster. One of the areas in which official support is provided is in innovation, through the creation of technology centres for each cluster. 48 Reasons to invest and grow in Andalucía

47 A large, dynamic market AERONAUTICAL SECTOR Andalucía has consolidated its position as the second most important Spanish region in the aeronautical industry, and is one of the leading areas in Europe in this field. The Andalusian aeronautical industry has a long-standing tradition and its expansion in recent years has surpassed the rest of Spain, exceeding national average growth in both turnover and employment. Between 2001 and 2008, the sector in Andalucía increased its turnover by 186% and employment by 99%. European aeronautical industry ranking (2008) Source: Ministry of Industry, Tourism and Trade. Sector information sheets 2008 The aeronautical sector in Andalucía: Has 145 companies. Employs 7,555 people. Generated turnover of 1,417 million in Is driven by leading companies such as EADS-CASA and AIRBUS. Supplies customers including AIRBUS, BOEING, EMBRAER and BOMBARDIER. Reasons to invest and grow in Andalucía 49

48 The Andalusian aerospace centre is comparable with other significant European bases such as Toulouse, Hamburg and Madrid. Alestis Aeroespace is a new aerospace company which was incorporated, with the support of the IDEA agency, to provide Andalucía with a Tier One entity. This consortium, founded in early 2009, employs over 1,000 staff and has a firm order book that guarantees the creation of a further 1,000 jobs. The company was awarded two important contracts in 2009 to manufacture parts for the A350 XWB: the belly fairing (turnover of 1,000 million and 1,000 new jobs) and the tail cone (section 19.1) (turnover of 700 million and 225 new direct jobs, as well as over 670 to be created in coming years). The company has also signed a number of contracts with Embraer to develop packages of compound materials for its Phenom 100 and Phenom 300 aircraft (turnover of 320 million over the next ten years). Aeronautical industry turnover ( ) CAGR ,05% Source: Andalusian Aeronautical Journal nº Reasons to invest and grow in Andalucía

49 The industry has created a significant number of jobs in recent years, with employment growing at an average annual rate of 8.97%. Employment in the Andalusian aeronautical industry ( ) CAGR ,97% Source: Andalusian Aeronautical Journal nº AEROPOLIS is a centre of excellence dedicated to the aeronautical and aerospace industries. It is a meeting point for sector companies, and aims to become a central point of focus in the industry. Created as a strategic project to bring together the auxiliary industry in a single space, the centre boasts the latest technology and has the capacity to render advanced services. With most of the park already occupied, Aeropolis is currently preparing expansion plans. Furthermore, the TecnoBahía technology park, located in the Bay of Cádiz, is a consolidated meeting point between the metallurgical and aeronautical sectors. The aeronautical cluster is located mainly between Seville and Cádiz. Modern infrastructures are in place to support the sector: as well as the TecnoBahía technology park and the Andalucía Aerospace Technology Park (Aeropolis), this area is home the Centre for Advanced Aerospace Technologies (CATEC), a flight simulation and crew training centre, the University Institute of Aeronautical Engineers and the Hélice Foundation. FUTURE PROSPECTS 14,000 direct and indirect jobs are expected to be created within four years. Reasons to invest and grow in Andalucía 51

50 A large, dynamic market RENEWABLE ENERGY SECTOR Andalucía s climate and geographical location make it an ideal spot to develop renewable energies. The region leads the Spanish biomass sector, and has one of the highest levels of installed photovoltaic capacity in the country. Andalucía has the largest area of installed solar panels of any Spanish region, and is a pioneer in Europe in wind power. The number of companies that install clean energies in the area has quadrupled in recent years. Solar energy: energy sold and installed capacity by region (2009; GWh; Mw) Source : National Energy Commission. Statistical information. 52 Reasons to invest and grow in Andalucía

51 There are more than 1,000 companies engaged in the installation of renewable energies in Andalucía. Biomass: energy sold and installed capacity by region (2009; GWh; Mw) Source: National Energy Commission. Statistical information. FUTURE PROSPECTS Andalucía is becoming extremely attractive to component manufacturers. The Andalusian Energy Sustainability Plan is expected to create 105,000 new jobs. Reasons to invest and grow in Andalucía 53

52 The region presents opportunities for the manufacture of components for renewable energy installations and the establishment of R&D centres to improve the efficiency of the different technologies. Cogeneration: energy sold and installed capacity by region (2009; GWh; Mw) Source: National Energy Commission. Statistical information. 54 Reasons to invest and grow in Andalucía

53 20% of total installed capacity in the region is generated using renewable energies. Wind power: installed capacity by region (at 1 January 2009) Source: Wind power observatory, Spanish Wind Energy Association (AEE) Installed wind power capacity at 2009 year end totals 2,900 Mw. Reasons to invest and grow in Andalucía 55

54 A large, dynamic market AGRO-FOOD SECTOR The Andalusian agro-food industry is formed by: The primary sector, which represents 5% of the region s GVA. The agro-food industry, Andalucía s largest industrial sub-sector. The agro-food industry in Andalucía comprises two important sectors: the primary sector and the agro-industrial sector PRIMARY SECTOR Agricultural production totalled 9,657.9 million in The Andalusian primary sector generated gross added value totalling 6,923.9 million in The sector employed a workforce of 235,000 in The sector represents 34.6% of total exports from Andalucía. AGRO-FOOD INDUSTRY The agro-food industry is the most important industrial sector in Andalucía and represents 21.4% of industrial GVA in the region. The sector generates turnover of over 13,000 million. The agro-food industry generated GVA of 2,757.4 million in 2006 (most recent available data). The industry has 5,809 companies, with a further 20,000 in the auxiliary industry. In 2007 the industry employed a total of 78, Reasons to invest and grow in Andalucía

55 Agro-food industry revenues (2007; million) Source: Andalucía Economic Analysts Annual report on the agriculture sector in Andalucía. Reasons to invest and grow in Andalucía 57

56 A large, dynamic market BIOTECHNOLOGY SECTOR Over half of Spain s biotechnology companies are concentrated in Catalonia, Madrid and Andalucía. Along with Catalonia, Andalucía leads Spain in terms of new companies incorporated in the biotechnology sector, and this rising trend is set to continue. Geographical distribution of biotechnology companies (2008; % of Spanish total) Source: 2008 Asebio report Andalucía BioRegión is a network that unites and connects companies, research and technology centres, universities and foundations, with the aim of boosting products with high added value. Andalucía BioRegión is based at the Health Sciences Technology Park (Granada). The sector has 103 firms, with annual turnover of 586 million and 2,800 employees (2007). 120 research groups in the sector currently specialise in food biotechnology (green biotechnology), 270 in health sciences and technology (red biotechnology) and 170 in life sciences. 58 Reasons to invest and grow in Andalucía

57 Geographical distribution of companies using biotechnology (2008; % of total Spain) Source: 2008 Asebio report Reasons to invest and grow in Andalucía 59

58 A large, dynamic market ICT SECTOR After Madrid and Catalonia, Andalucía has the third largest production community in the Spanish ICT sector. Spain has one of the highest ratios of companies with broadband internet access in Europe, which contributes substantially to the development of this sector. 9,300 companies operate in the ICT sector in Andalucía: 1,374 are technology companies. Approximately 70% are services firms. 62.3% of companies carry out R&D&i activities. In 2007, 2,351 million was invested in research and 9,086 million in innovation. The main segments in the sector are: Communications technology services: 29%. Components area: 16%. Systems: 24%. Technology companies in the sector generated turnover of 4,609 million in 2007, up 14.7% on the prior year and almost three times the growth recorded at national level (5%). The sector employed a total of 33,895 people in ICT companies are mainly organised in a cluster in the Seville-Málaga area. 35.5% of sector companies are located in Seville and 29.3% in Málaga. The Andalucía Technology Park (PTA), located in Málaga, is one of the main centres of concentration of ICT companies in Andalucía. 60 Reasons to invest and grow in Andalucía

59 Companies with broadband internet access by country (2008; % of total companies) Source: Spanish National Statistics Office The sector s main customer is the government, which represents 36.8% of turnover. After Asturias, Andalucía leads Spain in e-government. INFORMATION SOCIETY PLAN FOR ANDALUCÍA ( ) Through measures prepared by the Regional Ministry of Science, Innovation and Enterprise in collaboration with other Andalusian regional government departments, this plan aims to guarantee accessible and available infrastructures for both citizens and companies throughout Andalucía, consolidating and strengthening the ICT sector. Reasons to invest and grow in Andalucía 61

60 A large, dynamic market PERSONAL TESTIMONIES Although we distribute and sell our products throughout Spain, Andalucía is our main market. That s why we decided to establish a base here over five years ago. CHROMAGEN. Gabriel Steinhardt. General manager. The Group is located in Granada because the area is home to the most important biopharmaceutical clusters in Spain, with significant collaboration between the University of Granada and the industry in research and development programmes. ROVI. Gregorio Roncero de Andrés. Director of active substances and new projects. One of the factors that weighed most on our decision to choose Andalucía was the existence of an important business community in the sector in which we operate. The region s numerous companies and R&D institutions mean that Andalucía has a significant competitive advantage in our sector, and the real possibility of obtaining synergies is a clear strength. SCHOTT Solar. Luis Alberto Solá. General manager. 62 Reasons to invest and grow in Andalucía

61 II. Reasons to invest and grow in Andalucía Beyond stereotypes: a competitive and profitable region INTRODUCTION Andalucía is a competitive and profitable region, as demonstrated by its export capacity and the constant inflow of new investment to the region. A number of factors support Andalucía s competitiveness: Productivity levels above the average for the European Union. Attractive salary costs. Significantly lower operating costs than in other European countries Andalucía is a competitive and profitable region. The numerous production centres established in the area by multinational companies clearly show that Andalucía is a successful global competitor. Many of these companies have their head offices in Andalucía, demonstrating that their presence in the region and commitment to continue investing and growing are due to one key factor: their results. Andalucía is competitive and profitable, as shown by its export capacity and attraction of foreign direct investment, which continues year after year. The region s competitiveness and potential are among the main reasons why companies from over the world choose Andalucía over other possible destinations for their growth plans. As well its location, infrastructures and market potential, Andalucía has three large sources of competitiveness: Per-employee productivity that is higher than the EU average and considerably greater than that of alternative regions such as eastern European countries. Attractive salary costs, especially considering the highly skilled Andalusian workforce. Significantly lower operating costs than other countries in the surrounding area. All of this helps companies in Andalucía to become more competitive, encouraging them to maintain or even increase their presence in the region. Reasons to invest and grow in Andalucía 63

62 Beyond stereotypes: a competitive and profitable region EXPORT CAPACITY Exports from Andalucía have grown rapidly, at an annual rate of 7.7%. Exports ( ; million) , , , , , , , , , ,6 CAGR ,7% Source: Ministry of Industry, Tourism and Trade The Strategic Plan to Internationalise Andalusian Companies aims to improve the international positioning of Andalucía and its companies. The plan establishes 25 countries and seven areas that are of strategic interest to Andalucía. 64 Reasons to invest and grow in Andalucía

63 Exports by product type (2008) Source: Ministry of Industry, Tourism and Trade Main customer countries (2008) Source: Ministry of Industry, Tourism and Trade Reasons to invest and grow in Andalucía 65

64 Beyond stereotypes: a competitive and profitable region CAPACITY TO ATTRACT FOREIGN INVESTMENT One of the main indicators of the Andalusian economy s competitiveness is its capacity to continue attracting foreign direct investment. Ranking of countries in terms of FDI (2008) Source: UNCTAD, World Investment Report Reasons to invest and grow in Andalucía

65 Source of FDI in Andalucía (2008) Source: Ministry of Industry, Tourism and Trade In 2008, Andalucía received foreign direct investment totalling million. The main countries that invested in Andalucía en 2008 were: the Netherlands, Switzerland, Luxembourg, the United Kingdom and Germany. Reasons to invest and grow in Andalucía 67

66 Beyond stereotypes: a competitive and profitable region PRODUCTIVITY AND LABOUR COSTS The productivity of the Andalusian workforce is close to the average for the EU-27. Labour costs in Spain are among the lowest in the EU-15, and lower still in Andalucía for all activity sectors. The combination of productivity levels close to the EU average and some of the lowest costs in the region generates a strong competitive advantage for companies in Andalucía. Productivity per employee (EU-27 = 100) (2008; in terms of GDP-PPP) Source: Eurostat 68 Reasons to invest and grow in Andalucía

67 Comparison of labour costs per employee in European countries (2007; /month) Source: Eurostat and Spanish National Statistics Office Comparison of total labour cost by employee and activity sector (2008; /month) Source: Spanish National Statistics Office, 2009 Reasons to invest and grow in Andalucía 69

68 Beyond stereotypes: a competitive and profitable region OPERATING COSTS Supply costs are a further factor that contributes to Andalucía s competitiveness. Electricity costs in Spain are around the average for the EU-15. The cost of natural gas for industry is among the lowest in the European Union. Cost of electricity for industry in European countries (2nd quarter of 2008; /100kWh) Source: Eurostat 70 Reasons to invest and grow in Andalucía

69 Cost of natural gas for industry (2nd half of 2008; /GJ) Source: Eurostat Reasons to invest and grow in Andalucía 71

70 Telephone costs in Spain are among the most competitive in the OECD countries. After the USA, Spain is by far the cheapest country for local calls. Cost of a ten-minute local call in selected countries (2007; ) Source: Eurostat 72 Reasons to invest and grow in Andalucía

71 The cost of a national (long-distance) telephone call in Spain is around the average for the EU-15. Spain is one of the cheapest countries for international calls to the United States. Comparison of a ten-minute international telephone call to the USA (2007; ) Source: Eurostat Reasons to invest and grow in Andalucía 73

72 Quality land is available in Andalucía at more accessible prices than in other cities around the world. The cost of occupying commercial premises in Málaga is lower than in cities such as Prague, Brussels or Barcelona. Comparison of the cost of occupying commercial premises in selected cities (November 2008; / m 2 /year) Source: CB Richard Ellis, Global Market Rents, November Reasons to invest and grow in Andalucía

73 The cost of occupying industrial space in Seville is also lower than in Madrid, Athens or London. Comparison of the cost of occupying industrial space (>5000 m 2 ) in selected cities (Q2 2008; million /m 2 /year) Note: Occupancy costs in Seville and Málaga are for Q whereas the rest of data are for Q2. Source: King Sturge, Global Industrial and Office Rents Survey, Q and Cushman & Wakefield Global Real Estate Solutions Q Reasons to invest and grow in Andalucía 75

74 Beyond stereotypes: a competitive and profitable region PERSONAL TESTIMONIES ABB continues to support our plant in Andalucía for a very good reason: we are profitable. ABB. Antonio José Marín. General manager (Córdoba factory). Production centres in Andalucía are very profitable, as salary costs in the region are very attractive, compared to the rest of Spain and other European countries. PANRICO. Javier Sánchez. Factory director. Another crucial motive for choosing Andalucía is its competitive operating costs. Here we have access to the infrastructures and qualified personnel we need, with costs that enable us to strengthen our profitability. SCHOTT Solar. Luis Alberto Solá. General manager. We have made a firm decision to remain in Andalucía, not only because the company has operated here for over 100 years, but also, crucially, because the plants are profitable. HEINEKEN ESPAÑA, S.A. José Manuel Asensio. Factory director. 76 Reasons to invest and grow in Andalucía

75 II. Reasons to invest and grow in Andalucía A mine of talent and innovation INTRODUCTION Andalucía is a mine of talent, with a younger population than the European average and a large number of undergraduates. Its highly qualified human resources are one of the region s main strengths, and will continue to be so in the future. The working population of Andalucía stands at approximately four million people, similar in number to that of countries such as Switzerland or Austria. Over 200,000 young people are currently enrolled at universities in the region, making the availability of qualified labour one of the region s main attractions. This asset is complemented by Andalucía s clear commitment to innovation and knowledge. The Andalusian R&D&i network comprises approximately 18,000 researchers, in addition to a wide range of infrastructures available to companies in the region to guarantee their long- term competitiveness. Reasons to invest and grow in Andalucía 77

76 A mine of talent and innovation TALENT Andalucía has the highest number of active workers of all the regions in Spain. In absolute terms the number of people in active employment in Andalucía is comparable with that of some of the main European countries. 64.1% of the Andalusian population of working age has received middle or higher-level training. Training, talent and capacity are the three cornerstones of the Andalusian labour market, making it the region with the third largest number of honours graduates in employment. Number of people in employment (Q2 2009; thousands of people) Source: Spanish National Statistics Office 78 Reasons to invest and grow in Andalucía

77 Number of people in employment by country (2008; thousands of people) * Data on Andalucía is for Source: Spanish National Statistics Office and Eurostat Number of people in employment with university education (Q2 2009; thousands of people) Source: Spanish National Statistics Office Reasons to invest and grow in Andalucía 79

78 The number of university graduates in Andalucía sets this labour market ahead of the rest of Spain. The competitiveness of graduates in a wide range of subjects in different sectors make Andalucía competitive in all areas of economic and social development. Andalucía has 10 universities, two of which rank among the top 10 public universities in Spain in terms of volume of research. University graduates ( academic year) Source: Spanish National Statistics Office 80 Reasons to invest and grow in Andalucía

79 Number of graduates by branch of activity ( academic year) Source: Spanish National Statistics Office Top 10 public Spanish Universities in terms of volume of research (2007: 48 universities assessed) Source: The quality of Spanish universities: Universidad Complutense de Madrid Reasons to invest and grow in Andalucía 81

80 The wise range of MBAs available, the large number of business schools which operate in the region and the numerous connections between these centres and different international university networks, make Andalucía a region with a high potential for expansion and generation of wealth in the short, medium and long term. At international level, Spain ranks sixth in terms of the quality of its business schools (of a total of 134 countries analysed). Quality of business schools (2009) Source: The Global Competitiveness Report World Economic Forum. 82 Reasons to invest and grow in Andalucía

81 Business schools in Andalucía (2009) Source: Innovation and Development Agency of Andalucía (IDEA) Reasons to invest and grow in Andalucía 83

82 Substantial efforts are being made in Andalucía to improve the competitiveness of the region s business structure through the use and quality of ICT in companies. A high percentage of company employees in Andalucía carry out ICT functions. Companies with personnel carrying out specific ICT functions (January 2008; %) Source: Spanish National Statistics Office 84 Reasons to invest and grow in Andalucía

83 Training in ICT (2007; % of employees who received training) Source: Spanish National Statistics Office Reasons to invest and grow in Andalucía 85

84 A mine of talent and innovation INNOVATION Three communities, Madrid, Catalonia and Andalucía, represent almost 60% of the total R&D&i expenditure in Spain. Interconnections exist between companies, public entities and society which are aimed at creating and transferring knowledge, skills and tools that will contribute to the social and economic development of Andalucía. Internal R&D expenses by region (2007; millions of Euros) Source: Spanish National Statistics Office 86 Reasons to invest and grow in Andalucía

85 Distribution of R&D&i expenses by sector (2007; % of total) 23% 40% 37% Source: Spanish National Statistics Office There are 18,000 researchers in Andalucía, and 4,531 doctors are engaged in R&D at Andalusian universities. Number of R&D employees by region Source: Spanish National Statistics Office Reasons to invest and grow in Andalucía 87

86 The Regional Government of Andalucía seeks to stimulate the social and economic development of the region and further its convergence with the most competitive and advanced regions in Europe through two strategic plans (PIMA and PAIDI). To this end, it continues to increase annual R&D&i budgets, particularly those allocated to groups and projects of excellence, which have doubled in number in recent years. Number of patents applied for at national level (2008) Source: Spanish National Statistics Office In 2008 Andalucía was the region which applied for the third largest number of patents at national level, after Madrid and Catalonia. The region also submitted a further 16 applications for European patents, and as many as 120 applications for international patents. 88 Reasons to invest and grow in Andalucía

87 The average annual growth in the volume of patent applications in Andalucía during the period was 8.9%, considerably higher than the Spanish average (5.2%). Number of applications for industrial designs at national level (2008) Source: Spanish National Statistics Office Reasons to invest and grow in Andalucía 89

88 A mine of talent and innovation ANDALUSIAN R&D&i NETWORK The Regional Government of Andalucía has approved a number of wide-reaching initiatives in the area of science and technology, with a view to establishing the general framework for R&D&i activities and promoting a favourable environment for the creation, development and shared use of knowledge. The agents forming the Andalusian R&D&i network participate in its activities with the ultimate goal of improving the competitiveness of Andalucía and generating wealth, wellbeing and progress in the region. The new Andalusian Plan for Research, Development and Innovation (PAIDI) maps out and coordinates strategic R&D&i initiatives aimed at facilitating the region s adaptation to the new social and economic climate through the use of scientific and technological knowledge. This is a new framework for programming, developing and evaluating R&D&i policies, as it includes all the agents involved in the process of generating and sharing knowledge. The basic objectives of the plan are: To develop an enterprising culture. To make education, research, culture and creative talent the main drivers of the social and economic progress of Andalucía. To ensure that Andalucía functions as part of the information society, implementing the latest technological advances. To create a structure to connect and open Andalucía to the world, using the most appropriate means of communication. To adapt public administration to render a wider variety of improved services to the citizens of Andalucía. 90 Reasons to invest and grow in Andalucía

89 Universities Public research bodies Research centres and institutes Research groups 1 Academics Management entities Transfer networks 3 2 Innovation and Development Agency of Andalucía (IDEA) Andalusian Technology Network (RETA) Technological Corporation of Andalucía (CTA) Agency for Quality Assurance in Higher Education and Research of Andalucía (AGAE) Andalusian Network for Technological and Scientific Public Outreach (RECTA) INVERCARIA Business innovation parks Business parks Technological centres Technology transfer entities Centres for the creation and consolidation of technological companies Accredited agents of technological knowledge Reasons to invest and grow in Andalucía 91

90 Andalucía provides a comprehensive support system to the region s business community. The technology parks located in the area host over 1,000 companies, providing employment to 32,000 people and generating a turnover of over 4,290 million. Of particular note are the Technology Park of Andalucía, The Cartuja 93 Technology Park, the Health Sciences Technology Park and the Andalusian Aerospace Technology Park, AERÓPOLIS, which are all operating at full capacity. Technology centres in Andalucía Source: Innovation and Development Agency of Andalucía 92 Reasons to invest and grow in Andalucía

91 11 science and technology parks. 35 technology centres and innovation and technology foundations. 3 European business and innovation centres. 18 agricultural and fishing research and training centres (IFAPA). Technological Corporation of Andalucía (CTA). Science and technology parks in Andalucía Source: Innovation and Development Agency of Andalucía Reasons to invest and grow in Andalucía 93

92 The 11 science and technology parks of Andalucía include the following: Cartuja 93 Science and Technology Park, in Seville. The Technology Park of Andalucía (PTA), in Málaga. The Health Sciences Technology Park (PTS), in Granada. The Andalusian Aerospace Technology Park (AERÓPOLIS). The system also includes an extensive network of technology centres associated with clusters supporting the innovation activities of companies located in Andalucía. CARTUJA 93 Cartuja 93 is one of the largest science and technology parks in Europe It has been operational for 15 years. The park houses over 340 companies and technology, research, university and training centres, and approximately 40 centres engaged exclusively in R&D and 70 research groups from different public centres. Cartuja 93 directly employs over 13,000 workers. It generates turnover of 2,238 million (2007), a figure achieved from an average annual growth rate of over 15%. The companies located in the park include ABC, AGFA, FUJITSU SIEMENS COMPUTERS, HEWLETT PACKARD, ONO, ORANGE, RICOH, RTVA, TVE and SUN MICROSYSTEMS. TECHNOLOGY PARK OF ANDALUCÍA (PTA) The Technology Park of Andalucía is a high quality space created for the installation of innovative and environmentallyfriendly companies, engaged in manufacturing, advanced services and R&D&i. It has been operational for 16 years. More than 500 companies are located in this park, providing employment to over 13,600 people. The total turnover of the companies installed in the PTA amounted to 1,588 million in 2008, up 5.5% compared with the prior year. The companies located in the park include AIR LIQUIDE, AT4WIRELESS, HUAWEI, IBM, INDRA, ORACLE, SIEMENS, TELEFÓNICA and VODAFONE. The companies installed in the PTA work in close cooperation with the University of Málaga. 94 Reasons to invest and grow in Andalucía

93 HEALTH SCIENCES TECHNOLOGY PARK (PTS) The Health Sciences Technology Park (PTS) is a space for the creation, implementation and expansion of institutions and companies, especially in the pharmaceutical, bio-health, welfare and food sectors, making it the first technology park in Spain and one of the few in the world to specialise in health. The Health Sciences Technology Park provides direct employment to 500 workers. The companies located in the park include ROVI, TELEFÓNICA I+D and SERVILENS FIT&COVER, in addition to 45 small and medium-sized technology-based companies. This technology park has close ties with the University of Granada, which has a long-standing tradition in health, biomedicine and life sciences. ANDALUSIAN EROSPACE TECHNOLOGY PARK The Andalusian Aerospace Technology Park (AERÓPOLIS) is a centre of excellence engaged exclusively in the aeronautical and aerospace industry: Almost 40 companies and entities are installed at the park (with this figure expected to increase to over 60 in the short term). The Aerospace Technology Park: - Employs over 1,200 people. - Generates turnover of over 100 million. The main companies with facilities at the park include: AERNNOVA DE ANDALUCÍA, AEROSPACE ENGINEERING GROUP, AEROTECNIC DEL SUR, AIRGRUP LTSA, AIRGRUP SL, ALESTIS, CADIP, CANAGROSA, CAYCO, COPITI, ELIMCO, FADA-CATEC, FUNDACIÓN HÉLICE, GALVATEC, INASEL, INESPASA, LANGA INDUSTRIAL, LTK, LTK 400 OPERADORES DE LOGÍSTICA INTEGRAL, MAGTEL, MDU, MECÁNICA DE PRECISIÓN, MECANIZACIONES DEL SUR, MECATECNIC MARQUÉS, MIC, NAVAIR, PRESCAL, SERVIMEC, SK 3000, SOFITEC, SOFITEC COMPOSITES, TADA, TEAMS. TECHNOLOGICAL CENTRES ASSOCIATED WITH CLUSTERS GARUM CT Vino CITOLIVA CICAP-CT Cárnico TECNOVA-ADESVA CTAP CTAQUA ADALTEC INNOVARCILLA MOVEX Citval CITTA CT FrÍo Cit Joya CATEC CETEMET CTAER SURGENIA CITIC CTA BIOTECNOLÓGICO Reasons to invest and grow in Andalucía 95

94 Management entities lend their support to the coordination and administration of knowledge and technologies, and include legal entities which support the management and distribution of knowledge throughout Andalucía, academic institutions and scientific companies. MANAGEMENT ENTITIES Innovation and Development Agency of Andalucía (IDEA) The Agency has become a key force in driving innovation and economic development in Andalucía. Its goals are as follows: - To raise the level of competitiveness and productivity of Andalusian companies. - To increase the number of global high-yield medium and high technology companies working in innovation. - To establish Andalucía as a nurturing ground for innovative ideas and projects, attracting both foreign and national investment. - To strengthen Andalusian industry by boosting the number and size of companies in this sector. RETA (Andalusian Technology Network) The Andalusian Technology Network (RETA) is a not-for-profit association supported by the Regional Ministry of Innovation, Science and Enterprise to promote corporate networking and share strategies, knowledge and resources between Andalusian companies thereby boosting the competitiveness of the region. RETA s mission is to transmit the capacity of Andalucía s technology spaces and centres for innovation and the knowledge generated at its universities to the region s entire business structure, with the ultimate objective of producing highly competitive services and products. RETA encompasses all the entities forming the Andalusian R&D&i network, and through the work of its employees it helps traditional companies to become more innovative and innovative companies to branch out into R&D activities, as well as promoting the growth of companies already engaged in their own R&D initiatives. Technological Corporation of Andalucía (CTA) This agent, which focuses on the promotion of public-private collaboration, is shaping up to be one of the main drivers of R&D&i projects in Andalucía and a leader in innovation and technology transfer at national level. It acts as a support for the R&D&i network and the traditional manufacturing network, and its primary objective is to meet their requirements in strategic areas of technology. 96 Reasons to invest and grow in Andalucía

95 Agency for Quality Assurance in Higher Education and Research of Andalucía (AGAE) Since its creation in 2005, this agency has become a key tool for improving and guaranteeing the quality of the Andalusian University and Research System. The Research, Development and Innovation Area of AGAE assesses the different programmes involved in Andalusian projects of excellence and research groups. These evaluations serve as the basis for the subsequent financing of projects and groups. Andalusian Network for Technological and Scientific Public Outreach (RECTA) This is a not-for-profit association supported by the Regional Ministry of Innovation, Science and Enterprise of the Regional Government of Andalucía which aims to stimulate interest in science among the general public. INVERCARIA This is a venture capital company of the Regional Ministry of Innovation, Science and Enterprise of Andalucía which extends financing for R&D&I projects. Reasons to invest and grow in Andalucía 97

96 A mine of talent and innovation PERSONAL TESTIMONIES One of the aspects we value most about Andalucía is its qualified workforce: the region has a wealth of university graduates. CAP GEMINI. Gloria Navas. Head of Public Sector Projects. One of Andalucía s key strengths is its wealth of qualified labour. Without question, this was one of the factors that made us choose this region over other possible alternatives. SCHOTT Solar. Luis Alberto Solá. General manager. Our business is largely focused on innovation, and we frequently look to Andalusian universities and public and private research centres for support in carrying out our activities. ENZA ZADEN ESPAÑA. Serafín Cantón. Director of Administration. 98 Reasons to invest and grow in Andalucía

97 II. Reasons to invest and grow in Andalucía Institutional support for investors INTRODUCTION The Regional Government of Andalucía is firmly committed to supporting companies in the region. The most immediate institutional support lent to companies consists of: A wide range of services rendered to companies. A comprehensive programme of financial incentives. Under EU regional policy, Andalucía is classified as a convergence region, and is therefore in a position to extend a significant volume of funds to companies located in Andalucía to boost their competitiveness and facilitate their growth. The support lent by the Regional Government of Andalucía to companies located in the region represents a direct and immediate commitment to business people and their investment projects, to stimulate competitiveness and the creation of wealth and employment. This support includes general incentives aimed at promoting competitiveness, as well as more specific measures relating to day-to-day business operations. As detailed in previous sections, the Regional Government of Andalucía supports companies by: Providing them with a comprehensive and competitive range of infrastructures of the highest quality. Reinforcing the local business network and investing in emerging sectors. Supporting talent and innovation. The Regional Government of Andalucía also supports particular investment projects, providing companies with more specific tools and assistance consisting of services rendered to companies and financial incentives. Reasons to invest and grow in Andalucía 99

98 1.- SERVICES RENDERED TO COMPANIES Through the IDEA agency, the Regional Government of Andalucía places a range of services at the disposal of Andalusian companies aimed at promoting a spirit of enterprise, innovation and cooperation within the science and technology company network and stimulating the competitiveness of Andalucía s manufacturing companies. 2.- INCENTIVES The Regional Government of Andalucía offers an extensive programme of incentives to develop the economic and business structure of the region. The following incentives are available: Programme of incentives for innovation and business development: Projects to create new companies. Projects to modernise existing companies. Competitive cooperation projects. Research, Development and Innovation. InnoEmpresa Programme. Programme for the development of industrial bays. Other regional financial incentives. Technological fund. Andalucía JEREMIE fund. 100 Reasons to invest and grow in Andalucía

99 Institutional support for investors SERVICES TO COMPANIES The mission of the Innovation and Development Agency of Andalucía (IDEA) is to contribute to the economic and social development of the region, offering the highest quality services possible to companies located in Andalucía, to business leaders and to the Regional Government of Andalucía itself, promoting a spirit of enterprise, innovation and cooperation within the science, technology and business network and stimulating the competitiveness of the region s manufacturers. IDEA provides a variety of information and advisory services to Andalusian companies to improve the innovative and entrepreneurial capacity of the region s business structure. TECHNOLOGICAL MONITORING Up-to-date relevant information enabling business people to keep a close watch over the performance of different sectors and design competitive strategies accordingly. INDUSTRIAL PROPERTY Service providing information, advice and innovation and industrial property management: patents, brands and industrial design. EUROPEAN CENTRE OFFERING SERVICES TO ANDALUSIAN COMPANIES (CESEAND; member of the Enterprise Europe Network) This centre helps Andalusian companies to become more competitive in the European market, offering information on strategic aspects of the European Union, opportunities for cooperation, advisory services regarding technological requirements and technology transfer services. INTERNATIONALISATION Information and advisory service to support Andalusian business people interested in internationalising their products or services, helping them to establish contact with foreign partners or investigate possible opportunities in foreign markets. INFRASTRUCTURES ON INDUSTRIAL LAND This service has a system for selecting suitable land for each project, finding developers and securing financing. It also offers a constant and extensive supply of land and industrial facilities. INTERMEDIATION BETWEEN TECHNOLOGICAL AGENTS AND ADVISORY IN R&D&I FINANCING Comprehensive service to assist research and development and innovation projects during the start-up phase and when seeking financing. Reasons to invest and grow in Andalucía 101

100 BUSINESS INCUBATOR Business incubation and development service through the European Business Innovation Centre Network. 24-HOUR COMPANIES PROGRAMME A programme aimed at making the start-up of business initiatives as quick and straight-forward as possible. ANDALUCÍA PRODUCTION AREAS SYSTEM (SESPA) On-line information service to assist companies in finding a suitable location for their facilities. SERAVAN Service aimed at informing Andalusian companies of the range of consultancy and engineering services on offer in the region. GUIDE TO GRANTS The Practical Guide to Business Grants and Incentives in Andalucía has a database which includes the different grants available, whether or not they are managed by the Innovation and Development Agency of Andalucía.. SIMULTANEOUS TELEPHONE TRANSLATION (ASITEL) Telephone translation system for companies in Andalucía to promote the presence of Andalusian companies outside the region and facilitate communication by removing language barriers. BUSINESS SELF-DIAGNOSIS This is a self-evaluation instrument enabling companies to identify their own situation in relation to other organisations engaged in the same activity and in relation to the sector in which they operate. CENTRAL BALANCE SHEET DATA OFFICE OF ANDALUCÍA 102 Reasons to invest and grow in Andalucía

101 Institutional support for investors INNOVATION AND BUSINESS DEVELOPMENT INCENTIVES PROGRAMME The Regional Government of Andalucía supports projects which create, consolidate and modernise companies, in addition to promoting business cooperation and R&D&i. Particular support is given to strategic sectors, such as aeronautical, agro-industrial, biotechnological, energy and environmental, information and communications technology, mechanical/metallurgical and cultural industries and emerging sectors. Incentives are greater for projects located within science and technology parks and business innovation parks. continued... Reasons to invest and grow in Andalucía 103

102 ... continuation Source: Innovation and Development Agency of Andalucía 104 Razones para invertir y crecer en Andalucía

103 Institutional support for investors PROMOTION OF INDUSTRIAL BAYS, REGIONAL FINANCIAL INCENTIVES AND TECHNOLOGICAL FUND Andalucía helps companies gain access to quality industrial land and infrastructures and excellent services at a reasonable and affordable cost. Regional financial incentives promote processing industries and production support services in addition to tourist establishments and complementary leisure facilities. The Technological Fund is a component of the EU European Regional Development Fund earmarked for the promotion of R&D&i in Spain, and in Andalucía in particular. Reasons to invest and grow in Andalucía 105

104 Institutional support for investors PERSONAL TESTIMONIES The Regional Government of Andalucía has lent substantial support to our project from both an institutional and a financial perspective. ROVI. Gregorio Roncero de Andrés. Director of the active substances and new projects department. The support of the regional government has been crucial to us in establishing ourselves in Andalucía, through specific initiatives which we have valued enormously. CAP GEMINI. Gloria Navas. Head of Public Sector Projects. The Innovation and Development Agency of Andalucía offers solid support, providing guidance and advice which greatly facilitate the administrative process. PANRICO. Javier Sánchez. Factory director. 106 Razones para invertir y crecer en Andalucía

105 III. Addresses of Interest