4.1.4. Summary of firm performance indicators

The innovation data indicate that the level of inputs (R&D personnel and expenditure) is high, despite declining in recent years, and that according to the actors’ assessment, it seems to have bounced back in the last year, but this is still to be confirmed. The analysis of business finance indicates that Basque firms are able to allow themselves this investment, as they are in a sound financial position when compared with both Spain as a whole and Europe. In part, this positive financial position has been possible due to trends in salary costs, which have been dropping as a result of both pay restraint and increased productivity, thus creating the conditions for business margins to recover in the Basque Country.