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1

LOCATION OF THE BASQUE COUNTRY AND EUROPEAN REGIONS

2

Socio-demographic data Euskadi – Basque Country

EU -27

Population (inhabitants) 2,172,175 499,753,500

Population density (inhab/km2) 300.2 117.8

Life expectancy (years) - Men 77.2 76.1

Life expectancy (years) - Women 84.3 82.2

Hospital beds (per 100,000 inhabitants) 375 590

Internet access (% homes) 60 65

Per capita GDP (EU 27= 100) 136 100

Population aged between 20 and 24 with secondary studies (%)

78.0 78.5

QUALITY OF LIFE

3

POLITICAL STRUCTURE

BASQUE COUNTRY

HAS ITS OWN TAX SYSTEM.

HAS THE LEGAL CAPACITY TO REGULATE TAXATION AND THE

AUTHORITY TO MANAGE AND COLLECT TAXES.

PAYS THE SO-CALLED “QUOTA” TO THE SPANISH STATE FOR

SERVICES PROVIDED BY THE LATTER IN THE BASQUE COUNTRY.

4

AREAS OF AUTHORITY

SPAIN-EUROPEAN UNION

Armed Forces

Foreign Relations

Monetary System

Ports and airports

Postal Services & Communications

Foreign trade

Customs service

State railway system

BASQUE COUNTRY

Own tax system

Education and Culture

Health

Industry and Commerce

Transport and Public Works

Police

Housing and the Environment

Agriculture and Tourism

Labour and Social Protection

Hydraulic resources

5

INCOME (%)

CONTRIBUTIONS FROM PROVINCIAL COUNCILS

82.0

PUBLIC DEBT 11.6

OTHER INSTITUTIONAL RESOURCES

3.7

OTHER RESOURCES 1.7

OWN TAXES 1.0

EXPENDITURE (%)

HEALTH 32.6

57.9

EDUCATION 25.3

EMPLOYMENT AND SOCIAL AFFAIRS 8.9

34.1

HOUSING, PUBLIC WORKS AND TRANSPORT

7.5

HOME OFFICE 6.3

INDUSTRY, INNOVATION, COMMERCE AND TOURISM

3.7

JUSTICE AND PUBLIC ADMINISTRATION

2.7

CULTURE 2.6

ENVIRONMENT, REGIONAL PLANNING, AGRICULTURE AND FISHERIES

2.4

OTHER DEPARTMENTS 8.0

Total 10,449 million €

GENERAL BUDGET DISTRIBUTION 2012

6

EDUCATION AND TRAINING

HIGHER EDUCATION: STUDENTS ENROLLED

ACCORDING TO SUBJECT, 2009-2010 COURSE

Total

Total Men Women

62,773 28,293 34,480

Subjects

Social Sciences and Law

Technical subjects

Humanities

Health Sciences

Experimental Sciences

Others

Not specified

27,554

16,787

5,150

3,981

3,023

3,292

2,986

9,763

11,880

1,907

848

1,160

1,511

1,224

17,791

4,907

3,243

3,133

1,863

1,781

1,762

BASQUE COUNTRY

7TH EU REGION WITH THE MOST UNIVERSITY

GRADUATES

REGION %

1 Inner London 51.5

2 Prov, Brabant Wallon (BE) 48.6

3 Oslo og Akershus 47.4

4 Prov, Vlaams-Brabant (BE) 44.2

5 London 43.7

6 Hovedstaden (DK) 43.6

7 País Vasco 43.6

8 Utrecht (NL) 42.9

9 Région de Bruxelles-Capitale 42.4

10 Stockholm 41.9

SPAIN 29.7

EU-27 24.4

7

EDUCATION AND TRAINING

UNIVERSITY OF THE BASQUE COUNTRY

EUSKAL HERRIKO UNIBERTSITATEA

UNIVERSITY OF DEUSTO

DEUSTUKO UNIBERTSITATEA

UNIVERSITY OF MONDRAGÓN

MONDRAGON UNIBERTSITATEA

8

INFRASTRUCTURES

Port

Airport

Train

Roads

Port

Terrestrial platforms

Airport

Combined Transport Station

Railway

Roads

9

INFRASTRUCTURES / LOGISTICS

RAILWAYS

The “BASQUE Y” high-speed rail corridor will link the three Basque capitals and will connect the Basque Country with the rest of Europe.

Connections providing access to the main logistics areas located near the capitals.

Travelling time

Bilbao

Bilbao

Madrid

París

2h 15’

5h 47’

SEA PORTS

Two large commercial ports, Bilbao and Pasajes, which together handle almost 44,000,000 tonnes of goods per annum.

Port of Bilbao, main multimodal centre of the Iberian peninsula.

AIRPORTS

Three airports with excellent infrastructures from the transport of passengers and goods.

Bilbao Airport (Loiu), international category, the largest passenger airport in the Cantabria area

Vitoria Airport (Foronda), “Primary Special” category, it has the second-largest perishables terminal in Europe.

2011 Passengers

Bilbao Airport 4.045.613

2011 Cargo (kg)

Vitoria Airport 34.669.141

10

CONFERENCE AND EXHIBITION CENTRES

BILBAO EXHIBITION CENTRE (BEC)

Modern, convenient and functional exhibition complex, 150,000 m2 of exhibition area distributed in 6 column-less pavilions.

Exhibition organizers with more than 30 years of experience in the organization of trade fairs and shows.

GENERAL DETAILS OF THE BEC Exhibition surface: 150,000 m2 Congress Centre: 18,000 m2

Offices: 6,500 m2 4,000 parking places

BIEMH, Machine-Tool Biennial: with a net exhibition surface area of 50,000m2 y 40.000 professional visitors.

FERROFORMA- Practical World

Important international exhibitions

11

MAIN MACROECONOMIC DATA

EUSKADI – BASQUE COUNTRY 2000 2005 2008 2010

GDP at current prices (millions €) 41,647 57,289 67,924 65,419

Per capita GDP at current prices (base = 2005) (€) 20,030 27,153 31,514 29,988

Per capita GDP (PPC) (UE-27=100) 120 129 138 133

Inflation (consumer price variation, %) 3.5 3.3 4.1 1.7

Employment rate (16 to 64 year-olds, %) 57.5 65.4 67.6 65.1

Exports (millions €) 11,871 14,297 20,279 17,876

Import (millions €) 10,324 14,537 20,118 15,431

Export tendency (Exports/ GDP) (%) 28.5 25.0 29.9 27.3

Productivity per employed person (EU-27=100) 133.0 127.8 131.9 130.9

12

MAIN MACROECONOMIC DATA

RELATIVE WEIGHT OF THE BASQUE COUNTRY IN SPAIN (%), (2010)

1. POPULATION 4.6

2. GDP at current prices (millions €) 6.1

3. EXPORTS 9.6

4. IMPORTS 6.4

4,6

6,1

9,6

6,4

0

1

2

3

4

5

6

7

8

9

10

P o pulat io n P IB Expo rts Impo rts

13

MAIN MACROECONOMIC DATA

Per capita GDP per country and year

(EU27=100) (PPC)

7 Member States exceed Basque per capita GDP

1 Member State exceeds Basque per capita GDP

2000 2010

0 50 100 150 200 250

Greece

Cyprus

Spain

EU-27

France

Italy

Finland

Germany

United Kingdom

Belgium

Sweden

Ireland

Austria

Denmark

Netherlands

Luxembourg

0 50 100 150 200 250 300

Greece

Cyprus

EU-27

Spain

Italy

France

United Kingdom

Finland

Germany

Belgium

Sweden

Austria

Denmark

Ireland

Netherlands

Basque Country

Luxembourg

The Basque Country occupies 23rd place of a total of 271 European regions, with a per capita GDP of 138 (UE-27 = 100)

14

ECONOMIC/SECTOR STRUCTURE

GDP DISTRIBUTION (2010)

B.COUNTRY SPAIN EU-27

Gross Domestic Product at market prices (millions €)

65,419 1,051,342 12,248,001

Added value out of basic prices (millions €)

59,036 961,592 10,954,309

Agricultural sector (%) 0.8 2.6 1.7

Industry (%) 24.5 16.1 18.7

Construction (%) 7.8 11.9 6.0

Services (%) 66.9 69.3 73.5

15

Logo Name Year Website

ACEDE – Basque Country Household Appliances Cluster

Association 1992 www,acede,es

AFM – Spanish Machine Tool Manufacturers Association 1992 www,afm,es

ACICAE – Basque Country Automotive Industries and

Components Cluster Association 1993 www,acicae,es

GAIA – Basque Country Electronics and Information

Industries Cluster Association 1994 www,gaia,es

UNIPORT – Port of Bilbao Cluster Association 1994 www,uniportbilbao,es

ACLIMA – Basque Country Environmental Industries Cluster

Association 1995 www,aclima,net

Energy Cluster Association 1996 www,clusterenergia,com

HEGAN – Basque Country and Aeronautics and Space

Cluster Association 1997 www,hegan,com

Basque Maritime Forum – Basque Maritime Industries

Cluster Association 1997 www,foromaritimovasco,com

Paper Industries Cluster Association of the Basque Country 1998 www,clusterpapel,com

EIKEN – Basque Country Audiovisual Cluster Association 2004 www,eikencluster,com

CLUSTER POLICY > THE 11 PRIORITY CLUSTER ASSOCIATIONS

16

CLUSTER POLICY> THE 11 PRIORITY CLUSTER ASSOCIATIONS

2010

Members Jobs Turnover Exports

(No. of Members)

(No. of workers)

(In millions of euros)

(% over sales)

ACEDE Household Appliances 8 4,250 1,639 74%

AFM Machine Tool 93 4,860 632 77%

ACICAE Automotion 150 16,758 7,095 80%

GAIA

Electronics and Information Industries 265 11,400

2,995 28%

UNIPORT Port of Bilbao 145 5,100 1,400 -

ACLIMA Environment 81 3,200 1,677 9%

ENERGIA Energy 95 23,000 17,000 50%

HEGAN Aeronautics and Space 37 3,738 663 62%

FMV Maritim Industries 164 7,419 1,024 80%

PAPEL Paper 20 1,674 614 49%

EIKEN Audiovisual 39 1,585 87 2%

17

Exports expressed as a percentage over turnover, 2010

49

9

77

80

50

28

74

80

62

0 10 20 30 40 50 60 70 80 90 100

Paper

Environment

Machine-tools

Maritime Industries

Energy

Electronics/telecommunications

Household appliances

Automotive

Aeronautics

EXPORT RATES OF THE 11 CLUSTER ASSOCIATIONS

18

Logotype Name Website

Foundries Association of the Basque Country and Navarre www.feaf.es

SIFE – Die-press Forging www.forjas.org

Basque Country Habitat and Contract Cluster

www.clusterhabic.com

Food Cluster of the Basque Country

www.clusteralimentacion.com

Basque Biocluster www.basquebiocluster.com

Spanish Association of Hand tool Manufacturers

www.herramex.es

Spanish Association of Steel Products and Installations Exporters www.siderex.es

Construction Cluster of the Basque Country

www.eraikune.com

Mobility and logistics www.mlcluster.com

CLUSTER POLICY > 9 SECTORAL PRECLUSTERS

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CLUSTER POLICY> 9 SECTORAL PRECLUSTERS

Members Jobs Turnover Exports

(No. members)

(No. persons)

(In millions of euros)

(in % on sales)

AFV Foundry 68 7,710 872 60%

SIFE Die-press Forges 16 1,815 260 59%

HABIC Habitat and contract 70 4,200 750 30%

CLUSTER Food Industry 31 6,147 647 11%

BIOSCIENCE Bioscience 25 1,036 194 17%

HERRAMEX Hand tools 28 2,000 243 45%

SIDEREX Steel Industry 64 12,000 7.620 26%

ERAIKUNE Construction 56 6,775 1.607 2%

MLC – ITS Mobility and Logistics 93 67,387 11.796 7.1%

20

RESEARCH AND DEVELOPMENT (R&D)

R&D indicators in the Basque Country, 1996-2010 1996 2000 2005 2010

Gross domestic expenditure on R&D (% of GDP) 1.16 1.43 1.44 2.08

Full time personnel over employed personnel (‰) 8.55 10.69 12.95 18.02

Full time research personnel over employed personnel (‰) 5.15 6.46 8.10 11.78

0,4

0,6

0,8

1

1,2

1,4

1,6

1,8

2

2,2

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Basque C.

EU 27

Spain

Gross domestic expenditure on R&D (% of GDP)

21

INNOVATION INDEX

According to the new Innovation Union Scoreboard – IUS 2010 – the Basque Country is at

number 15 in the EU-27 ranking. The Basque Country is among the group of high innovation

countries, although at the lower end.

European Innovation Union Scoreboard – IUS 2010

22

TECHNOLOGICAL INFRASTRUCTURE

FOUR TECHNOLOGY PARKS. One of the most consolidated

networks in Europe, headquarters of excellence companies, Universities and Research and Technology Transfer Centres.

2 km from the airport, 15 from the report, 10 from Bilbao and 6 from the Central campus of the University of the Basque Country. Number of companies, 217, with 7300 direct employees.

BIZKAIA TECHNOLOGY PARK

5 km from Vitoria-Gasteiz and the university campus and 7 from Foronda airport, and with good access to several European routes. Number of companies, 112, with 3110 direct employees.

ALAVA TECHNOLOGY PARK

SAN SEBASTIÁN TECHNOLOGY PARK

5 minutes from San Sebastián city centre and 10 from the French border. Number of companies, 74, with 3000 direct employees.

MONDRAGÓN POLO GARAIA TECHNOLOGY PARK Led by the private initiative of Corporación Mondragón, Fostering research and development: energy, material technologies, organisation and administration of companies, electronics, microelectronics and nanotechnology, ICTs and surface finishing machines and processes. Number of companies, 20, with 526 direct employees. Created recently

Polo de Innovación

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Universities (4)

• UPV – EHU

• Mondragón University

• Deusto University

•Navarra University (E.S.I.I. Of S.S.)

BERC (6)

• BC3

• BCAM

• BCBL

• MPC

•Bizkaia Biophysics Foundation

• DIPC

CIC (7)

• bioGUNE

• biomaGUNE

• microGUNE

• marGUNE

• nanoGUNE

• tourGUNE

• energiGUNE

Technology Platforms - CCTT

Tecnalia

TECNALIA RESEARCH & INNOVATION

IK 4 (8)

• CEIT

• CIDETEC

• GAIKER

• TEKNIKER

• IDEKO

• IKERLAN

• VICOMTech

• LORTEK

Sector centres (4)

• Assoc. ARANZADI

• AZTERLAN

• F.T. Aeronautics

• F.T, AZTI

OPIs (3)

• CADEM

• Consorcio ESS

• NEIKER

Uds, Business R&D (47)

Uds, Health R&D

• INGEMA

• B+I+O+E Fundaz,

• BioDonostia

• Fund, CITA Alzheimer

Laboratories (5)

• CALEB BRETT

• ERAIKER

• AZARO Fundazioa

• INBIOMED

• CETEST

Technology Parks (4) • Alava Technology Park

•San Sebastián Technology Park

• Bizkaia Technology Park

• GARAIA Innovation Pole

Risk capital (3)

• SGECR

• Seed Capital de Bizkaia

• Seed Gipuzkoa

BERC: Basic Excellence Research Center CIC: Centre for Cooperative Research

CCTT: Centros Tecnológicos OPIs: Organismos Públicos de Investigación

BASQUE SCIENCE, TECHNOLOGY AND INNOVATION NETWORK

Technological Development

Generation of Knowlege

Application

DEVELOPMENT OF FOREIGN TRADE

Millions of € 2000 2005 2010

Exports 11,871 14,297 17,546

Imports 10,324 14,537 15,257

Balance 1,547 -240 2,289

Coverage 115% 98% 115%

,000

5,000

10,000

15,000

20,000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Exports

Imports

Source: EUSTAT

EXPORTS 2010: 10 main custumers countries

17,2

13,8

6,2 6,25,5

4,74,1

2,3 2,2 2,2

0

2

4

6

8

10

12

14

16

18

20

Franc

e

Ger

man

yUSA

Italy

U.K

.

Portu

gal

Belgium

Chi

na

Net

herla

nds

Brazil

% over the total exports

EXPORTS 2010 per PRODUCT (%)

16,2

15

8 7,87,3 7

6,2

4,7

0

4

8

12

16

20

78 Road vehicles

(parts and

accessories)

67 Iron and steel 33 Petro leum by-

products

69 M etal products 74 M achines and

general industrial

equipment

79 Other transport

equipment

62 Rubber

manufacturers

77 M achinery and

electrical

apparatus

Exports per product following Uniform classification for International Trade, Revision 4 (CUCI)

27

15,8

10,810,2

5,8 5,8 5,75,1

4

2,7 2,5

0

2

4

6

8

10

12

14

16

18

Russia Germany France China Iran Italy U.K. Holland Belgium USA

% over the total imports

IMPORTS 2010: 10 Main suppliers countries

28

30,2

9,7

6,4

4,3 4 3,7 3,3 3,3

0

4

8

12

16

20

24

28

32

33 Petro l and

petro leum by-

products

67 Iron and steel 28 M etal ores and

waste

74 M achinery and

industrial

equipment in

general

77 M achinery and

electrical devices

69 M etal products 68 Non-ferrous

metals

34 Natural and

manufactured gas

Imports per product according to Uniform Classification for International Commerce, Revision 4 (CUCI)

IMPORTS 2010 per product (%)

29

s

INTERNATIONALISED BASQUE COMPANIES

•Main locations of facilities abroad: France, Germany and USA

More than 150

From 50 to 100

Less than 50

From 100 to 150

30

RELEVANT INNOVATING PROJECTS

BIOBASQUE

Aims to create an industrial biosciences sector.

Consolidation of the Basque Bioregion that has more than 70 companies, some of them of international relevance,

basic research (CICs Biogune and Biomagune) and applied research centres, 6 hospitals and 30,000 people working

in the system.

Selected finalist for the RegioStars 2011 award of the European Commission for the best innovating project.

NANOBASQUE

Aims to incorporate micro and nanotechnologies in order to increase the technological intensity of the Basque

business fabric.

Major investments in the scientific-technological offer materialised in two CICs, Nanogune and Microgune and a

complete network of scientific and technological infrastructures.

CREATION OF NEW LEADING INDUSTRIAL SECTORS: BIOBASQUE Y NANOBASQUE

ESS – BILBAO: SPANISH HEADQUARTERS OF THE EUROPEAN SPALLATION NEUTRON SOURCE

Spanish headquarters of the Spallation Neutron Source (ESS), large European Scientific Infrastructure under

construction in Sweden

The Basque Government and MICINN signed a contract for its construction and operation in the Scientific Park of

the Basque Country University (Leioa, Bizkaia)

Total investment of 180 million euros (financed 50-50% between MICINN and the Basque Government)

31

RELEVANT INNOVATING PROJECTS

ELECTRICAL VEHICLE

Collaboration protocol between Iberdrola, EVE, BBK and the Bizkaia Provincial Council for the development and

implementation of intelligent electrical distribution networks in the urban centres of Bilbao and Portugalete,

Iberdrola and EVE represent an economic interest group (54% and 46% respectively) which will invest 60 million

euros over the next three years in the new intelligent distribution networks in Bilbao and Portugalete.

The next steps: Detailed investment plan (31-7-2011), first network systems, equipment and installation tenders (31-

12-2011),

Infrastructure to research and use the power generated by waves on the open sea. With connections to land-based

electricity networks.

Located in Armintza, Bizkaia. Will come into operation during the last quarter of 2011.

Total investment of 20 million euros.

WAVE POWER: BISCAY MARINE ENERGY PLATFORM (BIMEP)

Agreement between the Basque Energy Board (EVE) and Repsol to develop the basic network of EV charging

points in the Basque Country. Formation of the company IBIL financed 50-50 by both entities for the development of

the network.

Agreement between EVE and Mercedes Benz for the manufacture of electrical vans in Vitoria-Gasteiz. First E-

VITO vans delivered, and the first vehicles are currently being monitored in movement.

INTELLIGENT ELECTRICAL NETWORKS

32

RELEVANT INNOVATING PROJECTS

Around Vitoria there are 7 million square meters dedicated to logistics activities, with connections to the rest of the

world by land, sea and air through the ports of Bilbao and Pasajes, Foronda airport and several high-speed

connections by road.

VIAP: VITORIA INDUSTRIAL AIR PARK

The expected investment amounts to 60.4 million euros in an area of 390,000 square metres.

Following the agreement signed between the Basque Government, Vitoria City Hall and AENA, an industrial park

with the characteristics of a technology park linked to the aeronautic sector will be built.

VIT: VITORIA INTERMODAL TERMINAL

This Intermodal station will channel all the traffic between continental Europe and the Iberian peninsula through the

western Pyrenees.

A twin-gauge track infrastructure, Iberian and international, which will have dimensions of 2.200 metres in length by

220 in weights, with 48 ha of surface area.

An expected total investment up to the year 2037 of 120 million euros. 62 million are planned for the first stage.

ALAVA: A TOP LEVEL LOGISTICS NODE IN SOUTH-WESTERN EUROPE

CREATION OF THE FIRST GAS HUB IN SPAIN

In 2011, a company formed by three partners: Basque Government, Enagás and BBK.

It is the first initiative of its kind in Spain.

It is engaged in the promotion of logistics, marketing and financial services to facilitate short-term natural gas

transactions in the Iberian gas system.

Although there are 35 natural gas dealers on the Iberian peninsula and 3000 transactions are carried out on a

monthly basis between agents, there is currently no organised natural gas market.

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TOURIST DESTINATION

Sculpture “Peine de los vientos” Donostia-San Sebastián

Plaza Virgen Blanca, Vitoria-Gasteiz

Hanging Bridge Bizkaia