The deep tech spin-off ecosystem in Spain has shown significant progress in recent years and has established itself as a key driver in accelerating innovation. With universities and research centres playing a crucial role, these companies stand out for their ability to turn scientific breakthroughs into disruptive products and services, adding value to the country’s industrial fabric. It is a flourishing ecosystem with 1,210 deep tech companies that currently employ 12,200 highly qualified professionals and generate a total revenue of 2 billion euros, according to the latest report led by Mobile World Capital Barcelona
Leading Technologies for Healthcare, ICT, Industry 4.0 and Clean Energy
The predominant technologies in the business models of deep tech spin-offs in Spain include biotechnology (18%), digital health and telemedicine (16%), IoT, edge computing, 5G and sensors (15%), advanced analytics and big data (8%), and AI, machine learning, computer vision, and deep learning (7%). Most of these technologies are applied in sectors crucial to society and the economy: 35% operate in healthcare; 17% in ICT and digital, 12% in Industry 4.0, and 12% in energy and sustainability.
Higher concentration of deep tech in Catalonia and Madrid
55% of these companies are concentrated in Catalonia (355) and Madrid (319). The regions with the highest number of spin-offs also include the Valencian Community (124), Andalusia (120), and the Basque Country (92). CSIC, Universidad Politécnica de Madrid, UPC-BarcelonaTech, and Universitat d’Alacant are the leading institutions in spin-offs creation.
A driver of employment, economy and innovation
Deep Tech spin-offs, based on disruptive technologies, provide competitive advantages over conventional SME and start-ups. They employ 10 professionals per company on average, more than double the average of national SMEs (4.7), and create 12,200 highly qualified jobs, serving as an essential tool to retain talent.
Spin-offs are also integral to the business landscape and have great potential to impact the economy and technological innovation. Their average revenue is €1.67 million, which outperforms the average revenue of SMEs and start-ups, with an 18% annual growth over the past three years. With an estimated annual revenue of 2 billion euros, Energy and Sustainability (€673 million), Logistics (€390 million) and Healthcare (€374 million) are the sectors in which spin-offs reach a higher economic impact.
Key proposals for driving up technology transfer
Although investment in Spain's deep tech ecosystem has increased more than eightfold from 2014 to 2023, spin-offs still need greater investment, as well as new measures to support their growth. Increasing funding during the early stages is needed, along with tax incentives for companies and investors, harmonizing the regulatory framework, and fostering public-private collaboration within tech and venture acceleration programmes.
If you’re interested in spin-off and deep tech, check out the 4YFN University & Spin-off hub here.