The construction of a composite indicator of development is the result of the partnership between Statistics Portugal and DPP (a body from Ministry of Environment, Physical Planning and Regional Development), taking advantage of the expertise of both institutions in the field of statistics and territorial analysis.
It aims to making available a tool that can support the context analysis of public policies being of territorial nature or other policies with different territorial impact, while making it possible to synthesise regional development with its different strands. It would also serve as a tool for several actors with an interest in territorial matters.

From the viewpoint of territorial cohesion, meaning sustainability of development relying on a threefold dimension (economic, social and environmental sustainability), the composite indicator presented herewith (ISDR – Índice sintético de desenvolvimento regional, the Regional development composite indicator) is based on a tridimensional structure. Through ISDR the overall development in each region (measured by the overall indicator of regional development) results from the regional performance regarding three major components: competitiveness, which gives rise to the ability to penetrate markets and to generate economic growth; cohesion, which as a result of acceptable and equitable living conditions, fosters the conditions for sustainable, social and economic reproduction and territorial attractiveness; and, environmental quality, expressed in an integrated platform of both environmental living conditions in the region and environmental sustainability of broad (economic, social and territorial) development process.

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