Each million euros invested in R&D creates eight new jobs, both direct and indirect, in Portugal, stated the economist at a press presentation of a study to be discussed at the second edition of Portugal Capital Markets Day 2025. This event, organized by Euronext Lisbon and the Portuguese Listed Companies Association (AEM), is being held in Lisbon today and on Thursday.
Currently, the investment in R&D averages 400 euros per capita, aligning with Spain and Italy, yet significantly below the European average of 800 euros per capita.
Portugal’s innovation ecosystem and infrastructure, notably its transport network, renewable energies, and telecommunications, are pivotal in attracting investment. However, the report highlights that national economic growth potential primarily lies in human capital and talent attraction.
The job creation dynamics, the increase in population qualifications, and the “ease of integration” for most immigrants into the labor market due to cultural, linguistic, and religious affinities with Portugal contribute to “a virtuous effect of a self-sustaining economy,” the academic notes.
About 50% of immigrants come from Brazil and Portuguese-speaking African countries (PALOP), which is “a huge advantage,” according to Filipe Santos, as it ensures “easy integration into the labor market,” unlike in most European countries.
Additionally, over 20% of immigrants are Europeans, and 1% are North Americans, indicating that about three-quarters of foreigners arriving in the country are qualified or integrate easily.
Portugal also benefits from “a strategic and safe location” and “historical connections with Latin America and Africa.”
The coordinator of the report identifies the lower energy cost, compared to the European average, due to renewable investments, along with 5G and fiber optic coverage across virtually the entire country, and the interconnection with a network of submarine cables linking the country to Europe and the world, as key factors for attracting international investment.
Modernizing agriculture and the forestry sector, investing in marine resources, the existence of valuable metal reserves like lithium, and a “solid” financial sector, with banks showing an ability to finance the economy, are other highlighted factors.
The report also identifies development opportunities in four areas: Health (with examples like the Gulbenkian Institute of Science, Champalimaud Center, and Bial), Multinational Competence Centers (BNP Paribas, Siemens, Natixis, Bosch), Digital and Cloud Industries (Feedzai, Sword Health, data centers), and Defense and drones (Tekever, aeronautical cluster).
As threats to the economy, the study’s coordinator warns of “increasing geopolitical uncertainty” and a potential rise in trade barriers imposed by the Trump administration. Although the United States is Portugal’s fifth-largest trading partner, it accounts for only 7% of Portuguese exports, implying that a tariff war would have a less than 0.1% impact on GDP.
The second edition of Portugal Capital Markets Day 2025 features the participation of 55 international investors and aims to “attract and promote investment in listed Portuguese companies,” according to Euronext Lisbon president, Isabel Ucha.
