Centro Region of Portugal

Region

Introduction

The Centro Portugal region (regional capital: Coimbra) is spread over 28,000 km2. In 2018 the region had 2,231,346 inhabitants (Eurostat, 2019), which accounts for approximately 31% of Portugal's total area and 21.7% of the population living in the country. Located in the central part of Portugal, Centro has a strategic position since it is situated between the two major national urban centres: Lisbon and Porto.

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Economy

Socio-economic profile:

Taking into account the population dynamics, the region is characterised by presenting, as a whole, a low population density resulting from the existence of an asymmetry within the region characterised by a desertification of the "inland" areas (except the urban centres located there) in contrast with the coast lands, which are most populated and urbanised areas.
In 2017 the region’s gross domestic product (GDP), which has been increasing since 2012, was at €36.8bn, corresponding to 18.9% of the national GDP (Eurostat, 2019). Taking into account the GDP per capita expressed in purchasing power standards (PPS), the Centro region, with 20,000 (2017), is below the national average (23,000) and the EU average (30,000) (Eurostat, 2019).
In 2018, the unemployment rate was 5.8%, below the EU average (6.9%) and the national average (7.1%), which makes Centro the Portuguese region with the lowest unemployment rate (Eurostat, 2019). This value has been decreasing since 2012, when it was at 12.1%, and from the last year (7.1%).
The regional economy is rather diversified encompassing both low technology level industrial sectors (e.g. ceramics, glass, cement, forest industries (wood, pulp, paper), agro-food), and some medium and high-tech sectors such as health services, biotechnology, telecommunications, new materials (particularly the moulds industry), ICT and renewable energies. It is worth mentioning the strong regional potential of indigenous resources for the production of renewable energy using water, wind, solar, geothermal, biomass, bio-gas and bio-fuels.
The tertiary sector is the most important contributor to the regional gross value added (GVA) with a relative weight of 66.9% (2017) but the secondary sector still plays a very relevant role in the regional economy with 29.5% of regional GVA. The primary sector accounts for 3.6% of regional GVA (INE, 2019).

Research, Development & Innovation

RTDI profile:

In terms of R&D and innovation resources, and when compared to other Portuguese regions, Centro ranks second regarding PhDs in Science and Technological areas per 1,000 inhabitants (0.8 in 2017, the same as the national average) and ranks third concerning R&D researchers (FTE) in active population (0.70% in 2016, below the national average of 0.80%) (INE, 2019). In Centro, in 2017, 35.5% of the population aged 30-34 had tertiary education (Eurostat, 2019), which is above the national average (33.5%) but lower than the EU average (40.7%).
The number of employees in the high-tech sector has been increasing since 2012 until 2017, having a small decrease in 2018, with 20,500 employees (Eurostat, 2019). This represented 14.3% of the national employment in the sector and 1.9% of the total employment (against the EU average of 4.1%) (Eurostat, 2019).
Centro ranks also third among the Portuguese regions regarding the regional Gross Expenditure in Research and Development (GERD as percentage of regional GDP), which has been increasing over the years. According to the available Eurostat figures, in 2016 the R&D expenditures were at €447.2m, corresponding to 1.27% of the regional GDP (in line with the national average of 1.28% and below the EU average of 2.04%) (Eurostat, 2019).
The business activities are the main players regarding RTD activities in the region: in 2016, 52.0% of the expenditure in R&D was made by activities implemented by businesses; 45.6% by higher education institutions; 1.8% by the national government; and 0.6% by private non-profit institutions (INE, 2019).
Concerning patent registration, in 2012, Centro has reached 11.7 patent applications to the EPO per million inhabitants (Eurostat, 2019), which is the highest value for the country.
In 2017, Centro had the highest percentage, in the country, of households with internet access at home: 100% (Eurostat, 2019).
The region has three public universities, five polytechnic institutes, three technological centres, several private R&D units, and numerous incubators for innovative businesses. It is well endowed with relevant critical mass for high quality RTD activities in various scientific areas. It is worthwhile to mention particularly the following regional competences:

Telecommunications and Information and Communication Technologies (ICT) stimulated by the presence of the RTD unit of "Portugal Telecom", the largest telecommunications company in the country, as well as many spin-off and start-up companies in this field;
Health services, as there are several hospitals in the region with national and international leading knowledge on various health topics supported by the universities of the region;
Exploitation and transformation of natural resources such as water, forest, wind resources and geology. Quite a few clusters can be mentioned around resources such as wood, pulp, paper and forest, which are well assisted by local RTD infrastructure;
The moulds industry that encompasses important business agglomerations with strong capacity for exports.

There are also other traditional industries of utmost importance to the region (e.g. number of SMEs) that are supported by good scientific and technological capacity of RTD units established in the region in fields such as ceramics, glass and cement and metallurgy/metal-mechanics.

Regional Innovation Scoreboard results

Latest Regional Innovation Scoreboard results:

In the Regional Innovation Scoreboard (RIS) 2019, Centro has been classified as a “Strong - Innovator” region, with innovation performance decreasing over time. During the successive performance reviews made in the years 2004, 2006, 2008 and 2010, the region has maintained the status of "moderate innovator", being classified now as a strong innovator.
The Regional Innovation Index (RII) in 2019 was 0.445 (normalised score), 102.2 relative to Portugal and 91.6 relative to the EU. The RII change between 2011 and 2019 was 8.9 (normalised score).
The RIS 2019 also provides an analysis of Centro’s performance in each innovation indicator, allowing the identification of the region’s relative strengths and weaknesses when compared to Portugal and the EU.
Thus, the region has its best performances in the following indicators:

Non-R&D innovation expenditures (normalised score of 0.795);

International scientific co-publications (normalised score of 0.579, 1’2 relative to Portugal and 101 relative to the EU);
Product/process innovations (normalised score of 0.848);
Marketing/organisational innovations (normalised score of 0.670);
SMEs innovating in-house (normalised score of 0.859);
Innovative SMEs collaborating (normalised score of 0.406);

On the contrary, the region’s worst performances both relative to Portugal and the EU were in the indicators that follow:

Public-private co-publications (normalised score of 0.212, 91 relative to Portugal and 52 relative to the EU);
Trademark applications (normalised score of 0.406, 75 relative to Portugal and 92 relative to the EU);
Design applications (normalised score of 0.399, 92 relative to Portugal and 81 relative to the EU);
Employment MHT manuf./KIS services (normalised score of 0.231, 73 relative to Portugal and 46 relative to the EU);
R&D expenditures public sector (normalised score of 0.527, 95 relative to Portugal and 92 relative to the EU);

(Some relative scores for comparison are not available due to confidentiality.)

Governance

Governance profile:

Portugal is not a regionalised country, except for the autonomous regions of the Azores and Madeira. For the five mainland regions there are members of the central government with responsibility for regional development and there are regional administrations. These regional administrations are mainly performed by the Regional Coordination and Development Committees - CCDRs, which are decentralised bodies of central government with administrative and financial autonomy.
The Centro Commission of Coordination and Regional Development (CCDR Centro) main competence is therefore to implement governmental policies with regard to regional planning and development, environment, city and land management, and transnational and inter-regional cooperation.
CCDR Centro is also responsible for managing EU programmes based on funds allocated to Portugal by the European Union, as well as other financing instruments intended to promote regional development.
Although some RTDI initiatives have a regional dimension and may be delivered regionally, research and innovation policies are mainly defined at national level.

Policy

Policy trends profile:

The “CRER 2020” initiative has been developed in the framework of EU’s Europe 2020 growth strategy aiming to set the strategic guidelines for the programming cycle 2014-2020. CRER 2020 has been the basis to establish a regional action plan, a smart specialisation strategy (RIS3 Centro) and a new regional operational programme for the period 2014-2020. RIS3 Centro aims to reinforce the region’s living, diversified and need oriented lab condition. It intends to do so by following four main strategies: taking advantage of its multiple endogenous resources, existing infrastructures, territory and regional agents; potentiating knowledge creation capacity; reinforcing the region as an innovating and employment, economic, social and territorial value creator space; and finally, by reinforcing productivity, territorial cohesion and resilient, structuring and responsible competitiveness.
With the implementation of CRER 2020, Centro aims to become an innovation leader region. By 2020, the region aims to enhance its performance in the national context representing 20% of Portugal’s GDP and R&D expenditure. Centro aims also to decrease by 10% the internal territorial disparities, have 40% of the young population with higher education and have an unemployment rate that is less than 70% of the national average.
The following eight strategic priorities have been selected in the framework of RIS3 Centro: i) agriculture; ii) forestry; iii) sea-related economic activities; iv) tourism; v) information and communication technologies; vi) materials; vii) biotechnology; and viii) health and wellness. Three additional areas have been transversely identified during the consultation process with regional actors: i) sustainable industrial productivity; ii) energy efficiency; and iii) rural innovation. Taking into consideration all the above mentioned areas and their interconnection, four priority innovation platforms have been established, which are the central areas of Centro’s regional specialisation strategy:

sustainable industrial solutions;
efficient use of natural resources;
quality of life technology;
territorial innovation.

The Centro 2020 Regional Operational Programme (ROP) is the main funding instrument available to the region for the implementation of its development strategy in the period 2014-2020. ROP Centro will have available about €2.2bn from EU funds: €1.8bn (ERDF) and €404m (ESF).
The use of European funds under the ROP Centro 2020 will be geared primarily to strengthening the competitiveness of the companies based in the region and job creation. 10 strategic priorities have been established within the programme, including R&D and innovation (€169m), competitiveness and internationalisation of regional economy (€818m) and human potential development (€288m) (in brackets the amount of EU funding).

Activities linked with Advanced Manufacturing

Activities linked with Advanced Manufacturing:

In the framework of ROP Centro 2007-2013, a number of measures were funded in order to promote the use of innovative technologies to improve products and processes in industry. For instance, in the context of incentive measures addressed to companies to foster RTD, innovation and modernisation activities (“SI I&DT”, “SI Inovação” and “SI Qualificação”), about 2,200 projects were supported during that period.
Within the new ROP Centro 2014-2020, measures that are particularly addressed to companies (e.g. Incentives System for Research and Technological Development, Incentives System for SMEs Qualification, and Productive Innovation for large companies and SMEs) support actions such as development of new products and processes, new organisational models, ICT development, energy efficiency, use of renewable resources, enhanced environmental performance, better waste management, noise reduction, use of eco-efficient technologies etc.
Furthermore, within the main areas (i.e. innovation platforms) selected under RIS3 Centro, support to advanced manufacturing is present in more than one platform. For instance, in the framework of the “Sustainable industrial solutions” platforms there are two priority items for investment clearly related to this concept: i) optimisation of industrial productivity through the development of advanced production technologies to support manufacturing, efficient use of resources and materials, and decarbonisation of production processes; and ii) development and use of materials through the recycling of industrial waste, design of new materials and new usages for agro-forestry materials.
Another example can be found under “Innovation platform 3 - Quality of life technology”. Here it is aimed to boost digital industry so as to help create a knowledge-based society surrounded by a high-tech global economy that strongly influences the manufacturing sector to operate in an efficient way. It is aimed for instance to develop mechanisms for remote access to new devices and platforms, making use of technologies used on the Internet; leverage opportunities associated with cloud computing and the Internet of Things; create integrated systems for optimised networks management; and develop cyber security systems.
In addition, clusters based in the region are also contributing to advanced manufacturing sector. This is the case of the clusters in the fields of agro-industry, and economy of the sea, engineering and tooling, sustainable habitat, chemical industry, forestry and ICT that are based in the region.
The region encompasses a number of research and technological infrastructures that provide a wide range of services to industry such as promotion of new products, processes and services; development, test and demonstration of production processes; and new production technologies. These infrastructures include Institute Pedro Nunes (IPN) – Association for Innovation and Development in Science and Technology; CENTIMFE – Technology Centre for Moulds Industry, Special Tooling and Plastics; CTIC – Leather Technology Centre; and CTCV – Glass and Ceramics Technology Centre. Furthermore, research targeted at process innovation in regional factories and technology transfer is also undertaken at some of the above mentioned entities, as well as at the main universities based in the region (University of Coimbra, University of Aveiro and University of Beira Interior) and at Biocant – Biotechnology Innovation Centre.
Taking into account RIS3 Centro, the following two priorities related to industrial modernisation can also be related with the thematic areas included in the Smart Specialisation Platform for Industrial Modernisation:

Efficient use of natural resources (related to ADMA Energy);
Sustainable industrial solutions (related to Efficient and Sustainable Manufacturing).

Complete Regional Profile

Economy

Research, Development & Innovation

Telecommunications and Information and Communication Technologies (ICT) stimulated by the presence of the RTD unit of "Portugal Telecom", the largest telecommunications company in the country, as well as many spin-off and start-up companies in this field;
Health services, as there are several hospitals in the region with national and international leading knowledge on various health topics supported by the universities of the region;
Exploitation and transformation of natural resources such as water, forest, wind resources and geology. Quite a few clusters can be mentioned around resources such as wood, pulp, paper and forest, which are well assisted by local RTD infrastructure;
The moulds industry that encompasses important business agglomerations with strong capacity for exports.

Latest Regional Innovation Scoreboard results

Non-R&D innovation expenditures (normalised score of 0.795);

International scientific co-publications (normalised score of 0.579, 1’2 relative to Portugal and 101 relative to the EU);
Product/process innovations (normalised score of 0.848);
Marketing/organisational innovations (normalised score of 0.670);
SMEs innovating in-house (normalised score of 0.859);
Innovative SMEs collaborating (normalised score of 0.406);

On the contrary, the region’s worst performances both relative to Portugal and the EU were in the indicators that follow:

Public-private co-publications (normalised score of 0.212, 91 relative to Portugal and 52 relative to the EU);
Trademark applications (normalised score of 0.406, 75 relative to Portugal and 92 relative to the EU);
Design applications (normalised score of 0.399, 92 relative to Portugal and 81 relative to the EU);
Employment MHT manuf./KIS services (normalised score of 0.231, 73 relative to Portugal and 46 relative to the EU);
R&D expenditures public sector (normalised score of 0.527, 95 relative to Portugal and 92 relative to the EU);

(Some relative scores for comparison are not available due to confidentiality.)

Governance

Policy

sustainable industrial solutions;
efficient use of natural resources;
quality of life technology;
territorial innovation.

Activities linked with Advanced Manufacturing

Efficient use of natural resources (related to ADMA Energy);
Sustainable industrial solutions (related to Efficient and Sustainable Manufacturing).

Repository

Support Measures

Policy Documents

Organisations

European Commission - Internal Market, Industry, Entrepreneurship and SMEs

Centro Region of Portugal

Vertical Tabs

Economy

Research, Development & Innovation

Latest Regional Innovation Scoreboard results

Governance

Policy

Activities linked with Advanced Manufacturing