This paper presents the results of an analysis of the relationship between public sector research and
industrial development in the functional foods sector in a peripheral region of the European Union: Andalusia
(Spain). Results show that the innovation system and its component parts have made a qualitative
and quantitative leap forward in the last decade, which means that the gap is diminishing compared to
similar regions in the European Union, mainly due to a relatively intense effort from the public research
sector. In order to take advantage of the potential of the Andalusian region, the public authorities will
have to focus their efforts and funds on fostering relations between regional social players that lead to
the creation of durable links; increasing the entrepreneurial spirit of university students/researchers;
promoting and improving the quantity and quality of international excellence research groups; and stimulating
the creation of scientific and technological parks where spin-off companies can contribute to
increasing wealth and employment in the region.