24 November 2025
Bilbao Campus
Orkestra–Basque Institute of Competitiveness presented the Basque Country Competitiveness Report 2025 on 24 November at the University of Deusto, in an event attended by the Deputy General of Biscay, Elixabete Etxanobe, and the Minister for Industry, Energy Transition and Sustainability, Mikel Jauregi.
The Report, titled La conexión internacional, impulsora de la industria and prepared in collaboration with the SPRI Group, highlights that the Basque Country starts from a strong position in competitiveness and well-being to address the new geopolitical context. As stated by Orkestra’s president, Iván Martén, at the opening of the event, “we must reshape our global connections with strategic insight, collaboration and a long-term outlook; only in this way will we strengthen the resilience of Basque industry and support the rootedness of our leading firms”.
The Report concludes that, to continue generating well-being,the Basque Country must move from a model based on traditional trade openness to one of strategic internationalisation. This involves diversifying geographical and technological risks, attracting and integrating high-quality foreign investment without undermining the rootedness of the region’s leading firms, developing international flows of knowledge and talent, and strengthening strategic intelligence and European cooperation.
Three avenues of international engagement that affect competitiveness
In an increasingly uncertain and fragmented global context, the Report examines the responses of Europe and the Basque Country, clearly aimed at strengthening our industry. These include the Basque Government’s new Industry Plan – Euskadi 2030, which aligns with the European Union’s major strategies (Competitiveness Compass and Clean Industrial Deal) and aims to position the Basque Country as a benchmark in reindustrialisation, focusing on promoting more and better industry while reducing emissions.
According to Orkestra, the competitiveness and well-being of the Basque Country depend on its ability to maintain and transform its international connections in line with this new context. To this end, the Report analyses the three avenues of international engagement that influence industrial competitiveness: commercial interdependencies, investment flows, and the mobility of people and knowledge.
1) New trade balances to diversify risks
Basque manufacturing industry shows a high dependence on exports, close to 80% in the value chains of leading sectors such as automotive, metallurgy, sustainable mobility, and advanced manufacturing. The Basque Country primarily exports mid-tech goods and maintains the EU-27 as its main trading partner, although it also exports higher-tech goods to the United Kingdom, China, the US, and the rest of the Americas. The Basque Country stands out nationally for the sophistication of its exports, offering a wide range of products, few of which are exported by other countries.
Orkestra calls for diversification of international markets, both through new trade relationships and by strengthening its physical presence in those territories. The Report also warns ofimport dependence, particularly for energy and critical raw materials. In this regard, Orkestra recommends diversifying commercial risks through a greater variety of suppliers, strategic management of critical supply chains, and the promotion of links between industry and advanced services.
2) A new investment paradigm to transform and anchor industry
Outboundinvestmentby Basque companies continues to exceed the foreign capital present in the region, with the Basque Country accounting for more than 15% of the state’soutward Foreign Direct Investmentstock. In a context of local presence requirements, such as the Made in USA initiative, the Report emphasises the importance of strengthening direct establishment in strategic markets. However, it notes that between 2019 and 2023,inward Foreign Direct Investment(FDI) stock grew by 12.6% per year, concentrated in manufacturing (38.3%) and energy (37.6%). 16% ofbusiness groupsoperating in the Basque Country have a foreign parent company, rising to 23% in manufacturing.
Orkestra highlights the need to complement the attraction of foreign investment with anchoring strategies, promoting participation in clusters and prioritising investment linked to transformative projects. The Report advocates an internationalisation approach that ensures the return of knowledge, capabilities, and strategic functions to the Basque Country. These conclusions align with several of the priorities and actions set out in the Industry Plan – Euskadi 2030, particularly regarding the attraction of investment in high-potential projects.
3) Promoting flows of people and knowledge to meet business needs
Attracting individuals with vocational and university-level trainingand placing them in roles that match their qualifications remains a challenge. Only 6.8% of university students are international, and fewer than half of immigrant graduates work in roles matching their qualifications. By contrast, international knowledge flows are showing a positive trend: The Basque Country is involved in an increasing number of European projects, the volume of scientific publications is above the European average, and patents with international collaboration are on the rise, particularly with Germany, the US, and Canada.
In this regard, Orkestra proposesleveraging the full potential of Basque institutional structures abroad, strengthening synergies between talent-attraction initiatives, increasing the flow of international students through universities and vocational training centres, and boosting scientific and technological collaboration in strategic areas. The analysis also links to ongoing public policies aimed at strengthening technical training, attracting specialised talent, and consolidating key scientific and technological capabilities for industry.
4) European cooperation and intelligence mechanisms
This reinforces the need to promote European cooperation and enhance strategic intelligence to anticipate global changes—areas for which initiatives are already underway, such as the planned 2026 launch of an Advanced European Intelligence Office in Brussels, a transformative project designed to improve foresight and connection with European industrial initiatives. Coordination between clusters, delegations, and overseas offices can also help anticipate global changes and strengthen ties with the productive fabric in strategic locations.
As Orkestra's CEO, James Wilson, pointed out, "the internationalisation of the future will not be just about opening markets, but about weaving strategic connections that generate shared value”.
The Minister for Industry, Energy Transition and Sustainability, Mikel Jauregi, echoed this view during his closing remarks at the event, emphasising that “from the Basque Government, and in line with the Industry Plan – Euskadi 2030, we highlight the need to internationalise our industry through productive establishments in key markets, as well as to create new partnerships with local stakeholders. In the new trade context, we will continue with our export-oriented approach, but in a different way”. The Minister also expressed his agreement with the priorities set out in the Report, which are already reflected in the Industry Plan, such as anchoring companies, attracting foreign investment, developing new talent, and increasing the scale of SMEs.
Competitiveness and well-being assessment
The Report provides the annual assessment of results, showing a positive position and trend in the main competitiveness indicators, with the exception of exports, which have declined and reflect the changes occurring in trade relationships.
Well-beingresults are also generally positive, with some challenges identified in the creation of quality employment and access to housing. The evolution of all these indicators is available and updated in real time on Orkestra’s Competitiveness Observatory.
Access the full report: www.orkestra.deusto.es
Access the Competitiveness Observatory: https://labur.eus/ObservatorioCompetitividad
Event images are available at the following link: https://labur.eus/ImagenesConferencia
