Eight years ago, the idea that a mid-Atlantic island could become a center for technological innovation seemed ambitious to many. Today, on Terceira Island, that ambition has matured into one of the Azores’ most compelling success stories. What began as an experiment in fostering entrepreneurship has evolved into a thriving innovation ecosystem where scientists, entrepreneurs, engineers, and researchers from around the world are building companies, attracting investment, and proving that geography is no longer destiny in the knowledge economy.

At the center of that transformation stands TERINOV – Terceira Island Science and Technology Park, whose Executive Director, Duarte Pimentel, believes the park has fundamentally altered both the island’s economic landscape and perceptions of what is possible in an ultraperipheral region.

“Within less than a decade,” he says, “we have established Terceira as a territory capable of generating innovation, attracting investment, and participating in leading European projects.”

Today, TERINOV is home to 99 organizations—91 business ventures and eight scientific entities—bringing together approximately 340 highly qualified professionals representing 14 nationalities, including more than 25 Ph.D. holders. Although the facility has reached its original physical capacity, recent expansion projects and new virtual incubation programs are allowing the innovation hub to continue supporting additional entrepreneurs and research initiatives.

For Pimentel, however, the numbers tell only part of the story.

“What matters most is not simply how many companies we host,” he explains, “but the quality of the ecosystem we have built. TERINOV has become a place where businesses, researchers, and institutions collaborate daily, share knowledge, and develop projects with regional, national, and international impact.”

That collaborative philosophy lies at the heart of the park’s mission.

Unlike traditional business centers, TERINOV functions as a community where innovation is cultivated through constant interaction between entrepreneurs, universities, scientific institutions, investors, and public agencies. The objective is not merely to launch startups but to create an environment where ideas can mature into sustainable businesses capable of competing well beyond the Azores.

The results are becoming increasingly evident. Over the past eight years, approximately 50 companies have graduated from the incubator. Of those, 17 are considered clear success stories, having expanded their teams, achieved commercial growth, and moved into their own independent facilities. Companies typically remain within the incubator for about four years, a period Pimentel notes aligns closely with international standards for business incubation.

He is equally candid about the realities of entrepreneurship. Innovation, he says, inevitably involves uncertainty, experimentation, and occasional failure. At TERINOV, unsuccessful projects are not viewed as defeats but as valuable learning experiences. Embracing the widely recognized startup philosophy of “fail fast,” the park encourages entrepreneurs to identify weaknesses early, adapt quickly, and continue refining their ideas rather than fearing setbacks.

This culture of resilience has helped cultivate an increasingly competitive business environment. Companies incubated at TERINOV are now regularly participating in major international innovation events. Twenty-two startups from the ecosystem attended the Web Summit 2025, while twenty-nine companies represented TERINOV at the SIM Conference 2026, forming one of the largest Portuguese delegations at both events.

The ecosystem has also demonstrated an impressive ability to secure competitive financing. Several companies have attracted private investment and European funding for research, digital transformation, and technological development. Through Portugal’s IFIC financial instrument alone, four companies secured more than €24 million for high-value innovation projects. TERINOV businesses also captured nearly half of all awards granted under the Azorean Government’s Voucher Incubação program, underscoring the quality and competitiveness of their proposals.

Success has also extended into specialized sectors.

Within the Azorean Gastronomy entrepreneurship program supported by Turismo de Portugal, startups from TERINOV claimed the competition’s top three positions, further illustrating the breadth of innovation emerging from the park. These accomplishments, Pimentel argues, demonstrate that companies incubated on Terceira are no longer competing solely within regional markets but are succeeding on national and international stages.

Perhaps the park’s greatest achievement, however, lies not in investment figures or competition results, but in its contribution to reversing one of the Azores’ longstanding challenges: the loss of highly educated young professionals.

“When we see young Azoreans choosing to stay on the island—or even returning—to work in a startup, technology company, or research center located at TERINOV,” Pimentel reflects, “we realize we are creating opportunities where none previously existed. That is probably the greatest recognition we could receive.”

Looking toward the future, TERINOV is continuing to embrace emerging technologies.

The park recently introduced “Tery,” an artificial intelligence assistant currently in its pilot phase, designed to support entrepreneurs, researchers, and investors navigating the innovation ecosystem. The AI platform provides information about incubation programs, available facilities, funding opportunities, and collaborative partnerships while helping connect organizations working in related technological fields. Pimentel believes it may become the first AI agent developed specifically for a science and technology park in Portugal.

For him, the project symbolizes TERINOV’s broader philosophy. Technology should not simply automate processes—it should connect people, accelerate opportunities, and make knowledge more accessible.

As the Azores continue expanding investments in research, digital transformation, aerospace, and advanced technologies, TERINOV stands as evidence that innovation can flourish far from major metropolitan centers. What has emerged on Terceira is more than a science park; it is a demonstration that island regions, when they successfully unite talent, education, entrepreneurship, and public investment, can become laboratories for the future. In less than a decade, TERINOV has helped redefine not only the economic aspirations of Terceira but also the role the Azores can play within Europe’s growing innovation economy.

Based on a story in Diário Insular-José Lourenço-director. Photos also from DI.