R&D Investment & Regional GDP in Spain (2005)
R&D Investment in Relation to Regional GDP in Spain (2005)
This table shows the investment in R&D by companies in relation to regional GDP by regions in Spain in 2005.
Regional Differences in R&D Investment
The Community of Madrid, Navarra, Catalonia, and the Basque Country invest the most in R&D, with over 1% of their GDP. These are the most developed industrial areas. The least developed or declining areas are the Balearic Islands, Murcia, Castilla-La Mancha, and Cantabria. The other communities spend between 0.5% and 1% and are considered expanding industrial areas.
Territorial Imbalances
There are strong territorial imbalances, aggravated by the tendency of the most dynamic sectors to concentrate in the more advanced regions. The industrial location can be differentiated into industrialized areas with different dynamics:
Developed Industrialized Areas
- Industrial revitalization due to the introduction of high-technology sectors.
- Presence of head offices of large national and multinational companies, attracted by the advantages of a central location (Madrid, Barcelona).
- Outsourcing of industry, manifested in the emergence of industrial and business parks where office tasks outnumber factory work.
- Increased industrial productivity thanks to modernization, restructuring, and employment adjustments.
- Concentration of R&D in sectors like chemical, pharmaceutical, material transport, machinery, and aerospace.
- R&D concentrated in large companies and specific territories (Madrid, Catalonia, Navarra, and the Basque Country).
Declining or Scattered Industrial Areas
- Limited diversification.
- Affected by strong environmental degradation, making them less attractive for new industrial locations.
- Strong presence of traditional industries and a workforce with low skills.
- Negative consequences of industrial decline include unemployment and marginalization.
Areas with Low Industrialization
- Low industrialization due to historical factors, unfavorable positioning, and lack of competitiveness.
- Presence of large, traditional industries and small and medium enterprises with low competitiveness.
Consequences of Industrial Location Imbalances
Industrial location has serious imbalances as a result of the industrialization process. Inequalities in spatial distribution are the source of other territorial imbalances, including the distribution of population, wealth, infrastructure, equipment, services, and political weight. These imbalances have negatively affected the less industrialized regions of Spain.
Regional Development Policy
The promotion of industry has been one of the key actions in regional development policy to address these imbalances.