Transformation of Tenerife’s Production Model
The switch from the Santa Cruz de Tenerife City Council to the Island Council marked a new chapter in Juan José Martínez’s political career. Over a year ago, he embraced the challenge of boosting the scientific and technological landscape of the island as the head of the Research, Development, and Innovation (R+D+i) Department. The primary goal is to revolutionise Tenerife’s economic model by embracing technology-based sectors. The ultimate vision is to establish the island as a global nucleus for satellite monitoring.
-How would you evaluate your first year leading the R&D&I sector?
“The pivotal aspect is the endeavour to reshape Tenerife’s economic framework towards a technology-centric sector to retain local talent and prevent brain drain. While much attention is on the immigration phenomenon, there is also the outflux of skilled youth who lack opportunities for professional growth. Our aim is to revitalise efforts to address this issue. Upon assuming office, we found dormant projects like ITER, the Science Park, and similar initiatives spearheaded by the Cabildo. Hence, the primary focus of this initial year has been rekindling these key projects to make the island an alluring investment destination.”
-What sets Tenerife apart to position itself as a prominent technology hub?
“The Canary Islands boast a favourable tax regime, with Tenerife possessing assets that entice technology-driven businesses. For instance, our robust fibre optic network, comprising eleven undersea cables, ensures connectivity on par with mainland Europe. Additionally, Tenerife houses one of Spain’s largest supercomputers and a cutting-edge data centre at ITER. Moreover, research centres like the Canary Institute of Astrophysics (IAC) have facilitated the island’s foray into aerospace, a feat previously deemed unattainable for our region. Riding on this momentum, the first Canarian satellite was launched into space last November. Consequently, we are leveraging this surge to establish aerospace-related factories and industries on the island, with ongoing discussions in this regard.”
-Was the Canarian satellite project financially fruitful?
“The IAC’s collaboration led to a recent triumph with the launch of our inaugural satellite into space. The genesis of this project dates back to Carlos Alonso’s tenure as Cabildo president, during which the research centre initiated optics workshops to adapt telescope components. This endeavour culminated in designing a micro-satellite to deploy high-resolution observation cameras. The satellite venture, orbiting Earth, incurred costs of €2 million, yielding imagery almost tantamount in quality to the €400 million Sentinel satellite.”
-Is Tenerife aspiring to establish itself as a satellite hub?
“Our current focus hones on two space industry endeavours, one spearheaded by Tenerife-based firm Alquimia, centred on a constellation of communication satellites. A collaboration is underway to establish a satellite tracking facility in Tenerife, essential for ensuring continuous satellite coverage in orbit. The Alquimia initiative aims to establish tracking centres in New Zealand, California, and Tenerife. Encouragingly, positive developments are anticipated soon.”
-Are there emerging technological sectors to foster?
“Undoubtedly, Tenerife is endowed with abundant talent from university education, chiefly from La Laguna, and top-tier research institutions under CSIC’s purview. These establishments like the Institute of Natural Products, the Oceanographic Institute, and ITER offer promising opportunities in domains such as renewable energies, attracting substantial private investments. Exploratory efforts in geothermal energy are underway, and a potential breakthrough would alleviate reliance on fossil fuels. To accommodate more companies, efforts are underway to expand the Science and Technology Park, along with actively seeking national science-business collaborations to invest in Tenerife.”
-How does the local R&D&I sector support companies?
“Significant investments are channeled into promoting local startups, exemplified by the partnership with Tenerife-based company EAVE, specialising in photovoltaic energy and electric mobility. A collaboration with ITER and the Science Park is underway to catalyse the establishment of EAVE, envisaging around 40 job opportunities in the energy storage realm, pivotal in ensuring energy security.”
-What incentives do R&D companies relocating to Tenerife receive?
“In 2019, the Canary Islands ratified amendments to the REF, albeit hindered by the pandemic and subsequent socialist governance tenure, limiting maximal utilisation of these measures. These incentivize investors to reclaim up to 85% of their R&D&I expenditure, a unique proposition unmatched elsewhere. Subsequently, Tenerife witnessed a 30-40% annual surge in R&D&I projects and companies, culminating in the creation of 2,400 job opportunities. Traditionally reliant on tourism for job creation, the Canary Islands are now diversifying into a more skilled, better remunerated workforce, fostering long-term economic impact. These tax benefits are exemplified by Alquimia, which burgeoned during the pandemic and now thrives, having secured over 100 employees. Initiatives like the collaborative quantum computing project with ITER, attracting €30 million in European funding, accentuate Tenerife’s allure. The tax incentives combined with high-calibre supercomputing establish Tenerife as an optimal destination for cultivating technological ventures.”
-Is there a commitment to expanding the scientific infrastructure network?
“The infrastructure network spearheaded by Cabildo is expanding and solidifying. Plans are afoot to tender an extension for the Teide supercomputer, propelling Tenerife among Spain’s top five, enhancing its competitive edge vis-à-vis counterparts across Spain. This project, previously dormant, is now reinvigorated.”
-Given the technology companies’ traction, are there proposals for new constructions in the confined territory?
“Efforts are underway to utilise the Cuevas Blancas building, with ongoing dialogues with Santa Cruz de Tenerife City Council. Irrespective of urban considerations, the aim is to secure a temporary
Making space for companies is a top priority due to the high demand we are experiencing. Furthermore, we are finalising the leasing of spaces in the urban area to cater to our needs, and we are also repurposing warehouses at ITER to accommodate niche businesses.
– What are the key areas of research and development being emphasised?
“The focus lies on sustainability, renewable energies, blue energy, digitalisation, the audiovisual industry, and biotechnology – a sector with great potential in Tenerife, thanks to the CSIC Institute of Natural Products. We collaborate on significant projects, primarily centred on transferring research outcomes into viable economic activities that will drive employment on the Island.”
– So, is the primary aim of attracting technology firms to create job opportunities?
“Indeed, it is. Our goal is to double the employment rate in R&D&I sectors on the Island within this term. It’s an ambitious yet achievable target, and we anticipate launching major initiatives by year-end to facilitate this growth. We are diligently working to reignite a multitude of stalled projects that we inherited at the Cabildo, such as bioclimatic housing, supercomputer expansion, and the enhancement of ITER’s wind turbine infrastructure. Our aim is to rectify these setbacks before the year concludes, and I am confident that we will succeed, given our dedicated R&D&I team.”
– Do you envision Tenerife becoming a global leader in R&D&I?
“Countries like Singapore and Ireland have leveraged their natural resources to champion R&D+i and have become international success stories by attracting tech giants from Silicon Valley. Likewise, Malaga in Spain has made substantial strides in talent acquisition and industry diversification. Consequently, I believe Tenerife can also aspire to global recognition by harnessing our connectivity through submarine cables, top-tier research facilities, assets like the supercomputer, and a highly favourable tax environment.”
