Opinion

“In Bilbao, local innovation ecosystems allow us to envision unthinkable horizons”

25 July 2024

Latest image provided by Bilbao Ekintza, E.P.E.L.

As Bilbao gears up to host the next Economic Development Forum meeting next October, Eurocities sat down with Juan Mari Aburto, Mayor of Bilbao, to discuss the city’s remarkable transformation and vision for the future.

Bilbao has undergone a profound metamorphosis from its industrial origins to its current status as a dynamic centre of innovation and creativity.

In this interview, Mayor Aburto gives an overview of the city’s main projects, the challenges facing EU cities today and the role of local innovation ecosystems in stimulating economic growth.

As Bilbao prepares to host the Eurocities Economic Development Forum 2024, what are the main achievements and innovations you aim to showcase, and how do they align with Bilbao’s long-term strategic objectives?

Our objective is to showcase the projects we are promoting in Bilbao from an economic development perspective, always putting people at the centre, to address the challenges all cities are currently facing globally.

In our specific case, I would highlight Zorrotzaurre, one of the city’s strategic projects, where we are working intensively to transform this area, which is an island, into an environmentally sustainable setting where people can study, work, innovate, and live. We want it to be the ‘island of talent and innovation’.

We are boosting the competitiveness of the economic fabric, and creating innovation ecosystems under a collaborative governance model, co-designing and developing projects together with other local stakeholders.
— Juan Mari Aburto, Mayor of Bilbao

Another initiative I would like to mention is how we are boosting the competitiveness of the economic fabric, and creating innovation ecosystems under a collaborative governance model, co-designing and developing projects together with other local stakeholders.

Additionally, we will discuss important topics such as the financing of urban transformations, Public Procurement of Innovation, innovation in the context of the Sustainable Development Goals, and support for start-ups, giving other cities the opportunity to showcase their initiatives on these topics.

From your perspective, what are the most pressing challenges currently facing EU cities in terms of economic resilience and sustainability? How can the EU better support cities in overcoming these challenges?

One of the main challenges is the ability to develop, retain, and attract the talent demanded by the economic fabric. Addressing this from an inclusive perspective is essential, to tackle another current urban challenge, social inequality. Regarding sustainability, goals such as energy transition, sustainable mobility, the maintenance and creation of green spaces in cities, and the development of nature-based solutions must be addressed.

The EU plays a fundamental role in supporting cities, both by giving them a voice in forums such as Eurocities, and by designing their strategies, policies, and funding initiatives based on these imminent challenges.

Bilbao has shifted from an industrial economy to one based on knowledge and creativity. Could you discuss the role of local innovation ecosystems in this transition, and what lessons can other cities learn from Bilbao’s experience?

Bilbao is well known for its significant transformation process, moving from a predominantly industrial city, in the midst of a deep socio-economic and environmental crisis, to reinventing itself by focusing on culture, knowledge, talent, entrepreneurship, and urban development.

Bilbao has undergone a significant transformation process, moving from a predominantly industrial cityto reinventing itself by focusing on culture, knowledge, talent, entrepreneurship, and urban development
— Juan Mari Aburto, Mayor of Bilbao

Key examples of this process include the Guggenheim Museum Bilbao, the sanitation of the estuary, the new airport, metro, tram, and universities, transforming a grey, polluted city into a modern, cosmopolitan city without losing its essence or past. This transformation has made us a model for other cities internationally. We continue on this path of innovation and the future, facing challenges that all cities encounter.

Local innovation ecosystems are a fundamental part of this transition period because they allow us to envision new, different, and until recently unthinkable horizons to drive these complex processes forward.

As I mentioned, Bilbao has undergone a metamorphosis in recent decades regarding its urban, economic, and social transformation, driven by what we would now call ‘innovative governance’, supported by various stakeholders who have backed this collective and joint effort. That may be one of its key aspects, but without becoming complacent, Bilbao wants and needs to remain vigilant in the face of imminent future challenges.

What are the main sources of funding driving Bilbao’s local economy? What role do EU funding opportunities play in the green and digital transition compared to other funding sources? Are there good strategies that can be applied to other cities in Europe?

In our Basque Autonomous Community, and therefore in Bilbao, we have a unique financing system known as the Economic Agreement, with a unique financial and tax structure at the Spanish state level. This revenue-raising ability also gives us some autonomy in undertaking projects where we are well-known for using the tool of combining public and private funding.

In addition, we have the opportunity to access EU funding for projects related to creating innovation ecosystems in strategic sectors, such as the As Fabrik project, funded by the Urban Innovation Actions initiative.

Regarding the green transition, I would mention the ATELIER project, an initiative we are currently working on with other European partners, focused on creating positive energy districts. In my opinion, EU funding, compared to other funding sources, offers us greater possibilities for research, innovation, and knowledge sharing among cities.

Eurocities forums are a fundamental tool for sharing knowledge, learning from the successes and failures of urban policies, and joining forces to advance the transition to more sustainable, inclusive, and prosperous cities
— Juan Mari Aburto, Mayor of Bilbao

Furthermore, all the knowledge gained from participating in these projects can be extrapolated to other cities, so their benefits have a multiplier effect. In Bilbao’s case, we had the opportunity to transfer the experience and knowledge from the As Fabrik project to other European cities through the As Transfer initiative.

This is not the first Eurocities event that Bilbao has hosted, having previously hosted a Policy Dialogue on Urban Living Labs in 2022. Based on this experience and looking to the future, how do you think international forums like the Eurocities Economic Development Forum can foster collaboration and mutual learning between cities? What role do you foresee for Bilbao in this future of collaboration?

These forums are a fundamental tool for sharing knowledge, learning from the successes and failures of urban policies, and joining forces to advance the transition to more sustainable, inclusive, and prosperous cities.

This is precisely the focus of the meeting that Bilbao will host in October, with the confidence that its content and the discussions that arise will inspire the participants.

In Bilbao, we firmly believe in the benefits of collaboration. This is why we have taken the initiative to host these events; we continue to strive to play an active role both in the Working Groups, as we are currently doing as co-vice chair in the EDF Innovation and Entrepreneurship Working Group, and in any other initiative proposed by the network.

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Bilbao will host the next Eurocities Economic Development Forum, ‘Cities in transition: towards a sustainable, inclusive and prosperous future’, on 22-25 October 2024. Full programme and registrations are available here.

Contact

Lucía Garrido Eurocities Writer

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