In 1994-2000 Galicia region was among the weakest regions with a GDP per capita below the median of the European countries, that gained a strong increase in GDP in subsequent years. Thus, the aim of the article is to identify factors which had an impact on the change of Galicia’s development path as well as to indicate barriers limiting further development. The article is based on a desk research, statistical data analysis as well as structured in-depth interviews conducted with representatives of regional and local authorities, scientifi c units and business-related institutions. The findings show that there was no shock that could become a direct cause for a change in the innovation process model of Galicia. The success of the transformation could be seen in attracting automotive and shipbuilding industries decades ago and the creation of a strong knowledge base. The case study of Galicia shows that even with a diffi cult history and only a few pillars of the economy, it is possible to grow faster than other regions in Europe.