For the first time in its history, Portugal is exporting more technology than it imports. Business services have overtaken cheap textiles and footwear, the country’s traditional industrial breadwinners, as export earners. More money is being invested in science and research than ever before.

Other trends, including a shift in investment away from labour-intensive industry to more technologically-advanced sectors, suggest Portugal has reached the tipping point in a gradual transition from a low-cost manufacturing economy to a provider of knowledge-based services.