/Publication of the first quantitative report on Deep Tech in Spain

Publication of the first quantitative report on Deep Tech in Spain:
a driver of growth
and industrial sovereignty for the country and the EU.

Publication of the first quantitative report on Deep Tech in Spain:
a driver of growth and industrial sovereignty
for the country and the EU.

/Publication of the first quantitative
report on Deep Tech in Spain:
a driver of growth and industrial
sovereignty for the country and the EU

A driver of growth and industrial sovereignty for the country and the EU

A driver of growth and industrial sovereignty for the country and the EU

A driver of growth and industrial sovereignty for the country and the EU

A driver of growth and industrial sovereignty
for the country and the EU

The author of the report: Faÿçal Hafied, the author of this report, is an expert

in innovation financing and the author of several books and papers on

innovation financing topics. In 2022, he published a first report proposing a

series of measures for the development of a “National Deep Tech Strategy for

Spain.” This new report complements the author’s foundational studies on the

subject in the country leveraging the PitchBook database.

The author of the report: Faÿçal Hafied, the author of this report, is an expert in innovation financing and the author of several books and papers on innovation financing topics. In 2022, he published a first report proposing a series of measures for the development of a “National Deep Tech Strategy for Spain.” This new report complements the author’s foundational studies on the subject in the country leveraging the PitchBook database.

The author of the report: Faÿçal Hafied, the author of this report, is an expert

in innovation financing and the author of several books and papers on

innovation financing topics. In 2022, he published a first report proposing a

series of measures for the development of a “National Deep Tech Strategy for

Spain.” This new report complements the author’s foundational studies on the

subject in the country leveraging the PitchBook database.

The author of the report: Faÿçal Hafied, the author of this report, is an expert

in innovation financing and the author of several books and papers on

innovation financing topics. In 2022, he published a first report proposing a

series of measures for the development of a “National Deep Tech Strategy for

Spain.” This new report complements the author’s foundational studies on the

subject in the country leveraging the PitchBook database.

Scope of the report: This pioneering report offers the first quantitative and

detailed assessment of Deep Tech in Spain at the national level and across

five key regions: Catalonia, the Community of Madrid, the Basque Country,

the Valencian Community, and Andalusia.

Scope of the report: This pioneering report offers the first quantitative and detailed assessment of Deep Tech in Spain at the national level and across five key regions: Catalonia, the Community of Madrid, the Basque Country, the Valencian Community, and Andalusia.

Scope of the report: This pioneering report offers the first quantitative and

detailed assessment of Deep Tech in Spain at the national level and across

five key regions: Catalonia, the Community of Madrid, the Basque Country,

the Valencian Community, and Andalusia.

Scope of the report: This pioneering report offers the first quantitative and

detailed assessment of Deep Tech in Spain at the national level and across

five key regions: Catalonia, the Community of Madrid, the Basque Country,

the Valencian Community, and Andalusia.

This work, which required 18 months of research and interviews with key

stakeholders in Spain's Deep Tech ecosystem (entrepreneurs, investors, senior

officials, policymakers…), is presented within the context of profound strategic

reflection on Spain and the EU’s industrial sovereignty and growth, amid concerns

about a potential decline of the continent.

This work, which required 18 months of research and interviews with key stakeholders in Spain's Deep Tech ecosystem (entrepreneurs, investors, senior officials, policymakers…), is presented within the context of profound strategic reflection on Spain and the EU’s industrial sovereignty and growth, amid concerns about a potential decline of the continent.

This work, which required 18 months of research and interviews with key

stakeholders in Spain's Deep Tech ecosystem (entrepreneurs, investors, senior

officials, policymakers…), is presented within the context of profound strategic

reflection on Spain and the EU’s industrial sovereignty and growth, amid concerns

about a potential decline of the continent.

This work, which required 18 months of research and interviews with key stakeholders in Spain's Deep Tech ecosystem (entrepreneurs, investors, senior

officials, policymakers…), is presented within the context of profound strategic

reflection on Spain and the EU’s industrial sovereignty and growth, amid concerns

about a potential decline of the continent.

/Key aspects highlighted
in this report

/Key aspects highlighted
in this report

/Key aspects highlighted
in this report

/Key aspects highlighted
in this report

Resilience and continuous growth
of Spain’s Deep Tech ecosystem

Resilience and continuous growth
of Spain’s Deep Tech ecosystem

Regional disparities, with Catalonia as the dominant hub of national Deep Tech

Catalonia leads with 39% of Deep Tech investments in the Iberian Peninsula over the last decade (2013–2023), although other regions such as Madrid and the Valencian Community show positive momentum, supported by local public initiatives to consolidate their ecosystems.

Strong sectoral specialization in health technologies:

Health accounts for 57.8% of the capital invested in Deep Tech in Spain over the last decade, with a strong concentration in Catalonia. This positions the country as a prominent player in this strategic vertical.

Low internationalization of capital and a domestic bias among investors

The capital invested in Deep Tech in Spain remains primarily national, showing a “domestic bias.” This lack of internationalization reflects the limited maturity of the ecosystem, in contrast to other countries that attract substantial foreign capital to finance their innovations. This aspect underscores the need for initiatives similar to those undertaken in other regions: the United Kingdom (ARIA agency, Breakthrough Innovation Fund), France (Deep Tech Plan and France 2030 Plan), and Germany (Deep Tech and Climate Fund).

Massive public funding to address market failures:

Public investors continue to dominate Deep Tech financing in Spain, responding to the needs of a capital-intensive sector with high entry barriers. Through European programs (European Innovation Council), national programs (CDTI), and regional programs (local innovation agencies like the Agència Valenciana de la Innovació or ACCIÓ in Barcelona), public support compensates for the lack of private capital for long-term, high-potential projects.

Regional disparities, with Catalonia as the dominant hub of national Deep Tech

Regional disparities, with Catalonia as the dominant hub of national Deep Tech

Strong sectoral specialization in health technologies

Strong sectoral specialization in health technologies

Low internationalization of capital and a domestic bias among investors

Low internationalization of capital and a domestic bias among investors

Massive public funding
to address market failures

Massive public funding
to address market failures

Resilience and continuous growth
of Spain’s Deep Tech ecosystem

In a context where venture capital investment fell by 31% in Spain in 2023, investments in Deep Tech in Spain reached a historic record that same year (+45.9% compared to 2022). This resilience demonstrates the importance of the sector for economic growth and industrial competitiveness.

Regional disparities, with Catalonia as the dominant hub of national Deep Tech

Catalonia leads with 39% of Deep Tech investments in the Iberian Peninsula over the last decade (2013–2023), although other regions such as Madrid and the Valencian Community show positive momentum, supported by local public initiatives to consolidate their ecosystems.

Strong sectoral specialization in health technologies:

Health accounts for 57.8% of the capital invested in Deep Tech in Spain over the last decade, with a strong concentration in Catalonia. This positions the country as a prominent player in this strategic vertical.

Low internationalization of capital and a domestic bias among investors

The capital invested in Deep Tech in Spain remains primarily national, showing a “domestic bias.” This lack of internationalization reflects the limited maturity of the ecosystem, in contrast to other countries that attract substantial foreign capital to finance their innovations. This aspect underscores the need for initiatives similar to those undertaken in other regions: the United Kingdom (ARIA agency, Breakthrough Innovation Fund), France (Deep Tech Plan and France 2030 Plan), and Germany (Deep Tech and Climate Fund).

Massive public funding to address market failures:

Public investors continue to dominate Deep Tech financing in Spain, responding to the needs of a capital-intensive sector with high entry barriers. Through European programs (European Innovation Council), national programs (CDTI), and regional programs (local innovation agencies like the Agència Valenciana de la Innovació or ACCIÓ in Barcelona), public support compensates for the lack of private capital for long-term, high-potential projects.

Resilience and continuous growth
of Spain’s Deep Tech ecosystem

In a context where venture capital investment fell by 31% in Spain in 2023, investments in Deep Tech in Spain reached a historic record that same year (+45.9% compared to 2022). This resilience demonstrates the importance of the sector for economic growth and industrial competitiveness.

/International context
on Deep Tech

/International context
on Deep Tech

/International context
on Deep Tech

This report aligns with the ongoing reflections of the EU, where Deep Tech has recently

been identified as a strategic growth driver for Europe in the Draghi Report

(September 2024) and previously highlighted in the Letta Report on the challenges

of the single market (May 2024), the Strategic Compass presented by Josep

Borrell and approved by the European Union in March 2022, and NATO’s New

Strategic Concept presented in June of the same year during the Madrid Summit.

This report aligns with the ongoing reflections of the EU, where Deep Tech has recently been identified as a strategic growth driver for Europe in the Draghi Report (September 2024) and previously highlighted in the Letta Report on the challenges of the single market (May 2024), the Strategic Compass presented by Josep Borrell and approved by the European Union in March 2022, and NATO’s New Strategic Concept presented in June of the same year during the Madrid Summit.

This report aligns with the ongoing reflections of the EU, where Deep Tech has recently

been identified as a strategic growth driver for Europe in the Draghi Report

(September 2024) and previously highlighted in the Letta Report on the challenges

of the single market (May 2024), the Strategic Compass presented by Josep

Borrell and approved by the European Union in March 2022, and NATO’s New

Strategic Concept presented in June of the same year during the Madrid Summit.

This report aligns with the ongoing reflections of the EU, where Deep Tech has recently

been identified as a strategic growth driver for Europe in the Draghi Report

(September 2024) and previously highlighted in the Letta Report on the challenges

of the single market (May 2024), the Strategic Compass presented by Josep

Borrell and approved by the European Union in March 2022, and NATO’s New

Strategic Concept presented in June of the same year during the Madrid Summit.

This category of disruptive innovations, situated at the frontier of current knowledge,

is considered essential for reinforcing Europe’s industrial competitiveness and

resilience.

This category of disruptive innovations, situated at the frontier of current knowledge, is considered essential for reinforcing Europe’s industrial competitiveness and resilience.

This category of disruptive innovations, situated at the frontier of current knowledge,

is considered essential for reinforcing Europe’s industrial competitiveness and

resilience.

This category of disruptive innovations, situated at the frontier of current knowledge,

is considered essential for reinforcing Europe’s industrial competitiveness and

resilience.

Due to its high strategic importance, Deep Tech is the focus of intense global

competition among major powers, reflected in the creation of numerous public

support plans: the “CHIPS and Science Act” and “Inflation Reduction Act” in the

U.S., “Made in China 2025” in China, France’s “Deep Tech Plan” (launched in

2019), the United Kingdom’s “Breakthrough Innovation Fund” and ARIA agency,

and Germany’s “Deep Tech and Climate Fund” with a capacity of €1 billion.

Due to its high strategic importance, Deep Tech is the focus of intense global competition among major powers, reflected in the creation of numerous public support plans: the “CHIPS and Science Act” and “Inflation Reduction Act” in the U.S., “Made in China 2025” in China, France’s “Deep Tech Plan” (launched in 2019), the United Kingdom’s “Breakthrough Innovation Fund” and ARIA agency, and Germany’s “Deep Tech and Climate Fund” with a capacity of €1 billion.

Due to its high strategic importance, Deep Tech is the focus of intense global

competition among major powers, reflected in the creation of numerous public

support plans: the “CHIPS and Science Act” and “Inflation Reduction Act” in the

U.S., “Made in China 2025” in China, France’s “Deep Tech Plan” (launched in

2019), the United Kingdom’s “Breakthrough Innovation Fund” and ARIA agency,

and Germany’s “Deep Tech and Climate Fund” with a capacity of €1 billion.

Due to its high strategic importance, Deep Tech is the focus of intense global

competition among major powers, reflected in the creation of numerous public

support plans: the “CHIPS and Science Act” and “Inflation Reduction Act” in the

U.S., “Made in China 2025” in China, France’s “Deep Tech Plan” (launched in

2019), the United Kingdom’s “Breakthrough Innovation Fund” and ARIA agency,

and Germany’s “Deep Tech and Climate Fund” with a capacity of €1 billion.

Beyond the challenges of growth and industrial sovereignty, Deep Tech also offers

solutions to the major challenges of the 21st century: combating climate change,

reducing pandemic risks, ensuring food security, enhancing defense capabilities, and

strengthening economic resilience.

Beyond the challenges of growth and industrial sovereignty, Deep Tech also offers solutions to the major challenges of the 21st century: combating climate change, reducing pandemic risks, ensuring food security, enhancing defense capabilities, and strengthening economic resilience.

Beyond the challenges of growth and industrial sovereignty, Deep Tech also offers

solutions to the major challenges of the 21st century: combating climate change,

reducing pandemic risks, ensuring food security, enhancing defense capabilities, and

strengthening economic resilience.

Beyond the challenges of growth and industrial sovereignty, Deep Tech also offers

solutions to the major challenges of the 21st century: combating climate change,

reducing pandemic risks, ensuring food security, enhancing defense capabilities, and

strengthening economic resilience.

© 2024 Faÿçal Hafied. All rights reserved.

© 2024 Faÿçal Hafied. All rights reserved.

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