Business

Córdoba: Innovation beyond borders

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The Argentine province of Córdoba is the second largest in population, the fifth in terms of area and the sixth with the highest population density. With a GDP per capita of 13,375m, in 2022 it contributed 8.5% of the national Gross Domestic Product.
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Located in the centre of Argentina, Córdoba is described by many as an agricultural-livestock province and metal-mechanical hub. But it is much more than that. Although its economic activity is based on grain and oilseed production, automotive and auto parts production, dairy and meat farming, agricultural machinery and tourism, Córdoba boasts an important technological hub.

It is popularly known as “la Docta”[1],  because the first national university was founded there in 1613. It currently has 14 universities, more than 250,000 university students and a 98.5% literacy rate. Furthermore, it is a pioneer in multiple fields: it promoted the direct sowing system, modifying the agricultural exploitation process; it is the main producer of corn bioethanol, it has supportive public policies that have even reached the sports world[2], and was it the first province to consider software development as an industry.

Cordoba's knowledge economy

Throughout its territory, Córdoba has centres, parks, hubs, Information and Communications Technology (ICT) clusters, and chambers dedicated to the development of information technology and software initiatives. The province's Ministry of Production, Science, and Technological Innovation reports that 1,491 knowledge-based service companies have been established there, 48% of which are software and ICT companies. 

Photo of Cristian BertoneCórdoba has a key strengh for technological development: human capital. Approximately 12% of the province's university graduates are from disciplines related to STEM (Sciences, Technology, Engineering, and Mathematics),” says Cristian Bertone, Partner at BRS - Financial Services and leader of IT Advisory Services. “And this is complemented with tax exemptions to promote the sector, such as the one granted for the hiring of science, technology, engineering and mathematics professionals.”

According to the National Ministry of Economy, in 2023, Córdoba was the second jurisdiction with the highest labour intensity in computer software and services (SSI), behind the City of Buenos Aires. The knowledge economy cuts across all industries, and technological developments are not limited to IT, but also involve the automotive, aeronautical, medical, agricultural, energy, and telecommunications sectors, among others.

Photo of Alejandro ChiappeCórdoba has demonstrated great potential in the application of biotechnology in its productive matrix and has become a key player in regional and national biotechnological development. Its diversity and strength have been the driving force behind provincial governments' implementation of the important infrastructure projects needed to support its development, accessing loans from multilateral organizations for financing," comments Alejandro Chiappe, Advisory Partner and Life Sciences spokesperson at Grant Thornton Argentina.

To mention one example, CEPROCOR, the scientific-technological centre of the Provincial Government, has been a benchmark in the sector since 1992. It performs more than 50,000 analytical tests annually for the public and private sectors and holds 18 patents in 35 countries in the medical, pharmaceutical, energy, food and livestock sectors.

“Both the public and private sectors have placed the Province at the forefront of biotechnological advances. The policy adopted by the State was widely appreciated and supported by the private and academic sectors,” Chiappe emphasized. “This allowed them to open the doors to new companies with national and/or foreign capital so that, with local intellectual capital, they are able to develop their products and achieve their goals.”

Beyond borders

Córdoba's geographical location places it at a strategic point for regional connectivity and MERCOSUR integration: it is located at the heart of the Bioceanic Corridor and it is crossed by the country's main routes. In addition, its airport, Ingeniero Ambrosio Taravella International Airport (also known as Pajas Blancas Airport), is Argentina's second-largest air hub in terms of the number of flights and passengers it connects.

Photo of Fernando Fucci"The wealth of its natural resources, its consolidated and diversified industry, infrastructure, technological development, and skilled human capital make Córdoba a major production centre and position it as an attractive destination for the establishment of new businesses and subsidiaries of large foreign companies seeking to expand into new markets," highlights Fernando Fucci, Managing Partner of Grant Thornton Argentina.

Córdoba is one of the main productive and exporting engines of Argentina. Its goods and services compete in both the domestic and international markets. In 2023, it was the third province in exporting goods with USD 8,308 million FOB, representing a share of 12.4% in national exports. By 2024, exports grew 20% year-over-year, placing its products in more than 130 countries. 65% correspond to Primary Products, 20% are Manufactures of Agricultural Origin and 15% Manufactures of Industrial Origin.

“Córdoba's main exports are cereals. They represent more than a quarter of the province's shipments. But we can also highlight food industry waste and residues, land transportation equipment, dairy products, and chemicals,” says Fucci. “It is also the nation's leading exporter of agricultural machinery, combining the metallurgical industry with the knowledge economy and technological development.

Brazil is the main trading partner of the province and the most important destination for the wheat cluster and the automotive industry. In 2024, the largest South American market imported USD 1.65 billion FOB from Córdoba, primarily in three categories: wheat, milk, and auto parts.

Vietnam was the second destination for 2024 exports, composed mainly of primary products. Of the USD 785 million[3] traded, USD 449 million corresponded to grain corn -the province's flagship product-, USD 7 million to wheat and meslin, and USD 70 thousand to uncarded and uncombed cotton. China imported USD 602 ​​million FOB in 2024, ranking third. USD 440 million corresponded to soybeans, USD 40 million to grain sorghum, and USD 24 million to peanut oil.

“When it comes to services, several software development and new technology companies export Cordoba systems, applications, and services to different destinations,” Fucci points out. “Cordoba is a province with an interesting level of trade openness for goods and services. Although Mercosur countries stand out, it also has trading partners in the European Union, the ALADI bloc, Middle East, and Asia. Cordoba's position in the international market is positive, and with the right incentives, it can increase its market share, enter new markets, and place new products.”


 

 


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[1] Docta: learned person, scholar; knowledgeable, well versed.
[2] Since 2024, the provincial rally championship uses E17, a Grade 3 fuel blend with 17% bioethanol
[3] FOB amount (Free on Board): considers the value of the merchandise placed on board a vessel for shipment in the country of origin, excluding insurance and freight. It covers the cost of the merchandise in the country of origin, transport of the goods and export duties.