The 2024 Competitiveness Report explores the transversal axis of inclusion with the aim of reflecting on the challenges we face to ensure inclusive competitiveness that can generate inclusive wellbeing. At Orkestra we believe that the more people participate in the processes of building competitiveness, the more inclusive the resulting wellbeing will be, as they are two sides of the same coin that cannot be understood without each other.
The Report begins with an analysis of the Basque Country's global performance in competitiveness and wellbeing, presenting the most recent evolution in 66 indicators organised by our territorial competitiveness for wellbeing framework.
We then combine conceptual reflection on the importance of inclusion in sustaining a territory's competitiveness and wellbeing with empirical analysis of three dimensions of inclusion — place of origin, gender and age — in the competitiveness and wellbeing of the Basque Country.
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Six recommendations to ensure inclusive competitiveness
The Report presents a vision of a territory with comparatively good and relatively inclusive results in economic competitiveness and wellbeing. Reinforcing the results of previous years' reports, the major challenges lie in the levers of knowledge and natural capital, and in innovation and environmental performance. To work on these and other competitiveness challenges in our current and changing demographic scenario, it is especially important to actively work on the inclusion of all people in competitiveness processes, making better use of existing capabilities and enhancing them through lifelong learning. It also implies learning how to effectively manage diversity in our companies and organisations and generating the right leadership in contexts of diversity.
In this context, the report's analysis provides recommendations in six specific areas that may be of interest to other regions seeking to ensure inclusive competitiveness:
- Build on the capacities of all people: The analysis indicates that we are not taking advantage of the participation or capacities of all people living in the Basque Country, particularly women and people of foreign origin. It points to the need to work on the obstacles to the participation of these groups, in line with their capacities and the needs of the territory.
- Embrace diversity: In a changing demographic scenario, it is particularly important to actively work towards the inclusion of all people in competitiveness processes. This inclusion, by gender, of immigrants, of different ages, etc., increases the likelihood of increasing activity rates and meeting the challenges faced by companies in their generational transitions and in the search for talent of all kinds, thus contributing to the generation of competitiveness and wellbeing.
- Strengthen digital-technological-green competitiveness: There is a clear need to prioritise actions and strategies that strengthen the levers of natural capital and knowledge. Investment in R&D and the commercialisation of new knowledge must be accompanied by a special sensitivity to sustainability and digitalisation so that our industry can position itself at the forefront of the transition towards a new digital-technological-green competitiveness.
- Foster innovation and productivity: Innovation in SMEs is a strategic issue due to its critical role in generating sustained increases in the productivity of the economic fabric in the medium and long term. It is necessary to continue fostering an innovative culture, supporting the reduction of costs associated with innovation, simplifying regulation and bureaucracy, and promoting the organisational and marketing innovations that are complementary to product and process innovations. In particular, it is necessary to focus these efforts on smaller companies.
- Address threats to wellbeing: Despite high levels of wellbeing achieved in the Basque Country, and improvements made in recent years in a weak area like employment, it is important to be aware of threats to this wellbeing. These include negative trends and inequalities in aspects of health, the difficulties of access to housing, and the educational performance of young people. The challenges are especially acute in the environmental dimension of wellbeing.
- Increase inclusion in wellbeing outcomes: There are some aspects of access to various dimensions of wellbeing by different groups in society that demand attention to achieve truly inclusive wellbeing. In particular, the need to continue to address the gender gap in income, to find solutions to the great difficulties faced by young people and people of foreign origin in accessing housing, and to better understand the causes of the higher prevalence of mental health problems among women.
New Panel of Territorial Competitiveness Indicators for Wellbeing
The Regional Competitiveness Observatory provides information on the dimensions that make up Orkestra's competitiveness framework for wellbeing. It collects data from more than 200 European regions and allows us to compare their position and evolution with respect to other regions, countries or the European Union as a whole.
This year, we have incorporated a new panel to the Observatory that collects the level and evolution of the 66 indicators included in the Basque Country Competitiveness Report. Available in 3 languages, it allows comparisons to be made with the EU-27 and offers data updated in real time.
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