Spanish Industrial Structure, Policies, and Areas
Spanish Industrial Structure
Current Situation
Mature sectors such as metallurgy (steel, transformed metal), appliances, shipbuilding, textiles, and clothing are facing declining competitiveness and reduced demand. These sectors are undergoing a necessary conversion process.
Dynamic, high-productivity sectors like automotive, chemicals (petrochemical, chemical transformation), and food industry benefit from specialization, secured demand, and foreign capital.
High-technology sectors, including electrical equipment, computers, pressure and optical instruments, offer product differentiation and high demand. Spain’s implementation of these sectors has been later and less developed compared to other countries. Technology parks, concentrated around major cities, aim to stimulate local development and foster innovative companies.
Structure
- Size of enterprises: Spain’s industrial landscape is dominated (99%) by small and medium-sized enterprises (SMEs). These include small businesses (under 10 employees, turnover below €2 million), small enterprises (10-50 employees, €2-10 million turnover), medium enterprises (50-250 employees, €10-50 million turnover), large businesses (over 250 employees, over €50 million turnover), and cooperatives (5 employees).
- Research, Development & Innovation (R&D&I): Investment in R&D&I in Spain is lower than in more advanced countries, often concentrated within specific sectors, companies, and areas. Recent years have seen some growth.
- Location: Classic location factors (proximity to resources and markets) are losing importance, while transport, communication, and labor availability remain relevant. Access to information for innovation and competitive advantages based on location are key factors.
Industrial Areas in Spain
Developed Areas: Madrid and Barcelona are the most developed industrial areas, influenced by the conversion of mature sectors and industrial revitalization. Expanding area types include:
- Metropolitan crowns (traditional and innovative industries located near metropolitan areas or in technology parks)
- Peri-urban fringes (transition areas between rural and urban zones)
- Industrial development axes (national—Ebro Valley and Mediterranean; regional—Madrid area)
Rural Areas: These areas host smaller, low-skilled, and flexible industries. Some face decline due to specialization in mature industries, difficulties in industrialization, and disorganized urban growth.
Induced Industrialization Areas: Areas with induced industrialization exist in Aragon, Leon, and Andalusia. Strategically important areas (ESAs) in Castilla-La Mancha, Extremadura, Balearic, and Canary Islands face challenges due to their location.
Industrial Policies in Spain
Framework and Objectives
Current industrial policy is characterized by increasing openness, reduced state intervention, and greater involvement of the EU and autonomous communities. Objectives include increased competitiveness, balanced territorial distribution, and sustainability.
Sectoral Policies
- Addressing low skills
- Completing the conversion of declining sectors and re-industrializing affected areas
- Creating observatories to support sectors exposed to external competition
Structural Policies
- Addressing low competitiveness and internationalization of businesses
- Supporting SMEs and large enterprises
- Promoting innovation, research, and technology through increased R&D spending, improved research, and transfer of university/scientific research to companies
Territorial Policies
- Correcting imbalances in industrial distribution
- Promoting industrial development through regional incentives in less-developed areas
- Encouraging endogenous development through micro-planning, support for local SMEs, and promoting innovation and information (e.g., regional development agencies, industrial development companies, and industrial districts)
Environmental Policies
- Combating environmental problems caused by resource overuse, pollution, and landscape degradation through prevention, investigation, corrective actions, and rehabilitation measures
- Protecting industrial heritage sites of historical interest