Innovation Europe > News > Innovation EU Vol2-1 > Innovation and openness in Portugal

The economic openness of Portugal, its strong ties with the EU and unique geostrategic location make it a natural gateway between the EU and world markets. The country’s ties with the African continent, Brazil and the US provide a cost-effective internationalisation base.

This advantage of Portugal is supported by a modern infrastructure, which is continually being maintained and extended. The deep-sea port in Sines, with its adjacent industrial and logistics zone, is an example of the modern infrastructure Portugal has to offer.

The industrial platform of Portugal spans over 2,000 hectares, representing an excellent option for investors wishing to supply the EU market and to ship products by way of the most westerly deep-sea port in Europe.

Portugal makes proactive investment reforms

Already a business-friendly country, with a successful track record of FDI inflow, Portugal has been undertaking competitiveness-enhancing reforms in a wide range of areas, including:

Labour law: The labour law is now able to produce a flexible and balanced labour market.

Tax system and incentives: Large-scale productive investment benefits from a reduction of the fiscal burden. Corporate tax rates are 25%, among the lowest in the EU.

Administrative reform: Company licensing requirements are being alleviated and the length of time taken to incorporate a company significantly reduced to just one hour.

Supporting infrastructure: Portugal has actively promoted the liberalisation of the energy market. Public investments are being directed to complete and upgrade existing infrastructures, such as the leading seaports, rapid rail links and motorways.

Market regulation: The Competition Authority has a mandate to prevent anticompetitive practices and promote market transparency.

Cost competitive, skilled and flexible workforce

Employees in Portugal are known for their versatility and commitment, with a positive attitude towards the adoption of new technologies and practices. Excellent language skills are another advantage Portuguese workers have.

Portugal has one of the lowest labour costs in the EU, both in industry and services. When considering labour costs growth rate together with productivity levels, Portugal is a great location in terms of cost benefit.

Portugal also has one of the smallest number of working days lost due to labour disputes.

Education and science

Portugal has experienced outstanding scientific progress among EU and OECD countries. The country today has a fast-growing and strongly internationalised science and technology community, drawing on a community of young and future-oriented researchers.

Despite an initial position of disadvantage, the dynamic indicators are strong. The percentage growth in R&D investment from 1995 until 2004 was the biggest in the EU.

Infrastructure

Portugal has an impressive network of modern roads and highways, linking all major cities in the country, and providing rapid access to Spain. The rail network covers the extent of the country, linking Portugal with Spain’s major cities. With a coastline on the Atlantic Ocean, Portugal’s ports represent an important advantage for multinational companies shipping products throughout the world.

Most major international airlines serve Lisbon, Porto, Faro, the island of Madeira and the Azores.

To enhance the country’s cost competitiveness and business value, Portugal has implemented an extensive natural gas grid and is set on offering attractive energy rates for investors.

Quality of life

Living in Portugal implies a rare quality of life in a modern society. Portugal has safe urban centres and suburbs that offer true freedom to anyone living in Portugal. All major international studies put Portuguese cities on the top of almost every European cities ranking for conducting events and conferences.

Research and innovation in Portugal

Portugal has a thriving and energetic research community. A number of recent success stories show the strength and diversity of the scientific community based in Portugal.

Pharmaceuticals

In May 2010, GeniBET, a Portuguese biopharmaceutical company, produced a vaccine against typhoid fever, for millions of children in India. The new product is already in clinical trials, called ViCRM 197, or Typhivac, and represents an investment of E500,000.

Portugal is also at the cutting edge of research into disease treatment and prevention. In March 2010, researchers from the Faculty of Science and Technology at Lisbon University, discovered a process that will allow a better understanding of the causative agents and help to fight diseases such as malaria and sleeping sickness.

The discovery – resulting from three years of work by Paula Gonçalves and José Paulo Sampaio, researchers from the Microbiological Resources Center, in partnership with US investigators – was published in Nature Magazine.

The researchers explained: “This work demonstrates that natural selection of species – theorised by Charles Darwin 150 years ago – can act in a much more complex way than previously thought.

“In general, the bodies belonging to the same species have an identical genetic heritage. This applies to all species and is because natural selection typically favours a single version of each gene.”

So far, they added, “the differences between individuals of the same species had been detected only for a defined region of the genome.”

This discovery could pave the way for better understanding of the genetic adaptability of pathogens to humans – such as the causative agent of malaria or sleeping sickness – and can contribute to combating these diseases. “Knowing their mechanisms, we are better equipped to fight them,” the researchers concluded.

At the University of Coimbra, meanwhile, researchers from the Neuroscience and Cell Biology Center, have identified a defect in the structure of cells that may help in the treatment of Parkinson’s disease. Co-ordinated by Sandra Morais Cardoso, in collaboration with a team from the University of Kansas (US), the research identified the mitochondria, an organelle that synthesises intracellular cell energy, as the flag of the dysfunction in cellular function that causes the disease.

“We have shown that a dysfunction of mitochondria enhances a change of structures (microtubules) essential to make the transport of cellular constituents,” said Sandra Morais Cardoso.

Auto engineering

The Renault-Nissan Alliance is to locate its planned battery production site in Portugal.

The new plant, which will manufacture advanced lithium-ion batteries for vehicles, will be located at the Renault CACIA (Companhia Aveirense de Componentes para a Indústria Automóvel) industrial complex located in Aveiro, about 250km north of the capital, Lisbon. Construction of the plant will start in 2010, with production commencing in 2012. Projected annual capacity is 50,000 units.

Prime Minister of Portugal José Sócrates said: “After becoming a leading country in renewables, Portugal aims at being a pioneer in electrical mobility as it is developing a nationwide charging network for EVs. The battery factory of the Renault-Nissan Alliance reinforces the role of Portugal as a place to research, produce and test components and solutions for EVs.”

Software

Portuguese software firm Critical Software was responsible for the verification and validation of the most critical software systems on the CryoSat-2, a satellite whose mission is to precisely measure alterations in the thickness of sea ice and the northern ice cap.

“The launch of CryoSat-2 will be a very special moment for Critical Software, as this is one of the company’s first missions in the space area, but also for the emotional weight of seeing almost 10 years of work coming to fruition, not only of their elements, but also by all the European partners involved in this project,” said Nuno Silva, Manager for Space Programmes at Critical Software.

Aeronautics

Critical Software is to partner with another member of the Critical group in the European program, CleanSky – JTI, to develop a new generation in systems for structural health monitoring in aircrafts.

The CleanSky Project – JTI is the biggest R&D programme in the aeronautics sector, with a total budget of e1.6bn, in the period between 2008 to 2013, shouldered in equal parts by the European Commission and the European industry in the aeronautics sector.

This public – private partnership aims to establish a clear leadership of the European industry in the aeronautics sector, shortening the time to market of ground-breaking technological solutions.

The project aims to lower the costs associated with the aircraft maintenance and inspection, through an effective monitoring of structural degradation.