Andorra pledges €5m for innovation in 2026 budget and sets ambitious 10‑year target; CATSA rebuild to start in Sept 2026

The Andorran government has earmarked €5 million for innovation in its 2026 budget as part of a wider strategy to reposition the microstate as a technology and research hub. The commitment was announced this week by Conxita Marsol, minister for Presidency, Economy, Labour and Housing, while opening the fifth Andorra Business Market. Marsol framed the investment as the first step toward a much larger goal: increasing the country’s innovation spending to 8% within the next ten years. Sources from the government and local commentators differ on what that 8% refers to — some descriptions say 8% of GDP, others say 8% of the general budget — and officials have not resolved the discrepancy in public statements. As part of the national plan for innovation and diversification, the government unveiled the Andorra Altitud brand to promote the country as “elevating innovation”. The plan also foresees creating the Centre Andorrà de Tecnologia i Solucions Avançades (CATSA), which will be housed in the former tobacco factory in Sant Julià and is intended as a business incubator and advanced‑technology cluster. Ministry officials say structural checks on the old factory are nearly complete and that the first stone for the CATSA reconstruction should be laid in September 2026. Marsol estimated the refurbishment will require about 18 months of work, putting completion in the spring of 2028. The building is described as a core piece of the government’s diversification programme but Marsol stressed that the broader innovation ecosystem must be operational now, not just the physical centre. At the Andorra Business Market, organisers reported around 360 people registered and roughly 20 start‑ups pitching ideas; Andorra Business director Judit Hidalgo said about 18 of those start‑ups are Andorran and the remainder are foreign projects establishing a local presence. Hidalgo also noted the country now hosts more than 60 companies linked to innovation, technology and high‑value activities. The government argues initial public investment is essential to jump‑start a private‑sector response: officials cited a rule‑of‑thumb that every euro of public spending in innovation attracts about three euros of private capital. Marsol described the €5 million line in next year’s budget — specified as separate from funds allocated to Andorra Business and Andorra Recerca i Innovació (ARI) — as a “step change” in public support. Local commentators and an editorial voice urged caution, asking for more granular information on how the money will be spent and whether it will fund specific projects such as CATSA. They also highlighted the scale of the government’s ambition: OECD‑level leaders in innovation typically spend a considerably higher share of GDP on research and development, and closing that gap will require sustained, measurable actions beyond branding and planning. The government says the national innovation plan will combine public leadership, ongoing investment and targeted calls for projects to build a functioning ecosystem. Authorities have signalled their intention to keep increasing resources over the coming decade; details on precise accounting — and whether the 8% target will be measured against GDP or the central budget — remain to be clarified.