The Madrid CaseOECD Territorial Review

Bonifacio VegaDirector General of International Strategy

Madrid City Council

Madrid in 2007

• Madrid is a Metro-Region of 6 million• The 3rd largest metropolitan area in

Europe• In the period 1995 – 2005 the average

annual growth had been 3,7%• Population growth of 16% in 5 years• 760.000 new jobs• 17% of Spain’s GDP• Titanic improvement of public transport

systems

ADMINISTRATION

BUSINESS ACADEMIA

Madrid in 2007

MADRIDURBAN INTELLIGENCE

CLUSTER

Madrid in 2007

Reality

Perception

Closing the gap

Madrid in 2007

OECD Diagnosis in 2007

• Madrid has captured the advantages of globalization

• It has become a world class business hub

• Madrid’s success has been sustained by a set of ambitious policy measures

• Madrid has exceptional human, social, infrastructure and institutional resources

OECD Diagnosis in 2007

Challenges

1. Low economic productivity

2. Inmature R&D system

3. Inadequate spatial development

Madrid’s overall economic system has structural deficiencies that contribute to low labour productivity and innovation capacity

OECD Diagnosis in 2007

Low economic productivity• 18% less productivity than the

average 78 OECD metropolitan regions

• Between 2000-2005 high technology manufacturing fell 13%

• Fast economic growth based on lower valued activities

OECD Diagnosis in 2007

Inmature R&D system• Overall R&D expenditure is less

than 2% of the regional GDP• Percentage of private investment

in R&D is below OECD average • Limited scientist mobility

generating an endogamic structure

OECD Diagnosis in 2007

Inadequate spatial development• Madrid metro-region has a

mononuclear and radial shape• Escalation in housing prices

attracts investors but keeps out large parts of the population, especially the younger (40% of annual household income)

• Madrid has the highest rate of vacant dwellings: 24%

OEDC Recomendations

Long term shifts in:• Economic structure• Labour market• Spatial development

Madrid Madrid’s situation does not require another institutional reform but the upkeep of the existing governance mechanism along with some innovative solutions

Facing the Challenges

Low economic productivity• Development of a network of 7

new urban business incubators • Creation of Madrid-Global and

design of a New Internationalisation Strategy

• Regional Innovation Plan – Public support is shifted towards high end sectors

La Casa de Bambú•Creación del prestigioso estudio de arquitectura FOA, Foreign Office Architects,(Alejandro Zaera y Farshid Moussavi)•RIBA European Award 2008

Facing the Challenges

Inmature R&D system• Creation of the Madrid Institutes of

Advances Studies (IMDEA)• Madrid Science Park• New Financial System for

Universities• Cross institutional R&D

consortiums

Facing the Challenges

Inadequate spatial development• Comprehensive Urban Renovation

Programme• Calle 30 and Madrid Rio Projects• Housing stock renovation and

retrofitting programmes• Innovation in Public Housing

EMVS

Madrid today

• Skilled workforce– Graduates and post-graduates levels:

• 7th in the European Ranking• 1st in the Spanish Ranking

• Innovation– R & D investment: 2,4%– 7 public and 8 private universities– 8 institutes advanced studies– 3 science parks– 7 business incubators

Madrid today

• Public Transportation & Connectivity– Barajas Airport: 70 millions passengers/year– High Speed Train Network– Radial Road Network– Metro of Madrid– Improvement of infrastructures (M-30)

• Economic structure diversity– Specialized services center– Financial and advanced business services– Urban Utilities and Infrastructure Cluster– HQ of top Renewable Energies Corp.

Madrid today

• International Financial crisis– The banking system is resisting well (so far)– Drop in Direct Foreign Investment

• Spain’s Economic Model Crunch– Increased public deficit– Skyrocket unemployment (near 18%)– Destruction of industrial fabric– Internal demand is at its lowest

• City Finances– Dramatic decrease in revenues– Increased debt

Global Power City Index

The Mori Memorial FoundationTokio, Japan

Madrid 1910

Madrid 2010

gracias

tack så mycket

www.munimadrid.es