In the iconic work The Tree of Knowledge (El Árbol de la Ciencia) by Pío Baroja, two visions of existence are contrasted: the Tree of Knowledge, which symbolizes rationalism and the pursuit of knowledge through an arduous path, and the Tree of Life, which represents vitalism and immediate pleasure. This duality serves as a powerful metaphor to analyze subsidy and innovation policies in the current European context, especially in the field of sustainable mobility.

Subsidies: the Tree of Life

Subsidies can be compared to the Tree of Life, offering immediate and tangible solutions. Programs such as MOVES III in Spain, approved in 2021 and canceled in January 2025, have provided incentives for the acquisition of electric vehicles and charging infrastructures. However, this plan was criticized for prioritizing the deployment of massive charging networks, often managed by large companies, without a strategic evaluation of whether this model truly contributes to sustainability.

Furthermore, MOVES III failed to incentivize the adoption of electric vehicles to the level of other European countries. While in France and Portugal electric vehicles reach market shares of 21% and 16%, respectively, in Spain they hovered around 10%, far from the European average. This imbalance reflects the disconnection between the subsidies granted and the results obtained.

Regarding subsidy spending, the most recent data from 2024 shows that the countries that invest the most in aid within the European Union are:

  1. France: 50,038 million euros.
  2. Germany: 40,091 million euros.
  3. Italy: 27,154 million euros.
  4. Belgium: 16,890.1 million euros.
  5. Spain: 13,123 million euros.
  6. Netherlands: 11,511 million euros.
  7. Czech Republic: 5,568 million euros.
  8. Greece: 4,313 million euros.

It is relevant to highlight that Spain spends 61.1% more than the European Union average on subsidies, given that the average spending in the UE is 8,146 million euros per country, placing Spain significantly above that figure.

Innovation: the Tree of Knowledge

On the other hand, innovation resembles the Tree of Knowledge: a complex path that demands effort, perseverance, and sustained investment in research and development. This journey is full of failures, but it is essential for generating significant and long-lasting advancements. Xavier Marcet summarizes it masterfully: “To innovate is not to scatter into a thousand ideas, it is to have focus and persist in those that truly generate an impact.”

In terms of global R&D investment, the countries that spend the most on research and development are:

  1. United States: 473.4 billion dollars (2.742% of GDP).
  2. China: 409 billion dollars (2.1% of GDP).
  3. Japan: 179.8 billion dollars (3.584% of GDP).
  4. Germany: 109.4 billion dollars (2.869% of GDP).
  5. South Korea: 91.6 billion dollars (4.292% of GDP).

In terms of R&D spending as a percentage of GDP, South Korea leads with 4.292%, followed by Israel (4.109%), Japan (3.584%), Sweden (3.161%), and Finland (3.174%).

Despite the increase in R&D investment in Spain, which reached 22,379 million euros in 2023 (1.49% of GDP), the country remains below the European Union average, which stands around 2.2% of GDP.

Sustainability is emerging as the major driver of innovation in the 21st century. Pascual Berrone maintains that “there is no future without companies that commit to a responsible and innovative model.” Areas such as artificial intelligence, the Internet of Things (IoT), cybersecurity, and sustainable mobility represent the technological pillars upon which progress must be built. However, innovation does not happen in isolation: it depends on a solid ecosystem that fosters collaboration between companies, research centers, and universities. Xavier Ferràs explains it like this: “Innovation is not a tool, it is an attitude: that of challenging the status quo, breaking barriers, and constantly seeking better solutions.”

The necessary synthesis

Although often perceived as opposites, subsidies and innovation are complementary approaches. Subsidies can be the catalyst that drives innovation, but only if they are designed to foster excellence, technological competitiveness, and sustainability. Europe must avoid falling into subsidy policies that chase immediate results but lack a long-term strategic vision.

The acceleration of technological cycles underlines the importance of adopting this combination. If in the last decade we experienced revolutions like Big Data and Blockchain, and we are currently in the midst of the Artificial Intelligence boom, the next major technological leap is just around the corner. Whatever it may be, the key will be combining strategic subsidy policies with a decisive commitment to research and development.

Final reflection

Just as in Baroja’s work, where the balance between the Tree of Knowledge and the Tree of Life is essential for a full existence, in public policies, the combination of subsidies and innovation is the winning formula. As Nobel laureate Harold Kroto noted, “without science education, humanity will not last beyond the 21st century”. If we want a sustainable future, we must invest in science, innovation, and sustainability. These must be the priorities of our subsidy policies, because they represent the foundation of true and lasting progress.

Sources: libremercado.com, wipo.int