If you are thinking of investing in a new business or you already have your own company and would like to expand, Spain is the ideal place to carry out your project. Did you know that the country is considered a technological hub in southern Europe? In this article we tell you more about it.

What is a technology hub?

In the business world, when we talk about a hub, we refer to a space in which businessmen and entrepreneurs can develop, coincide, work together and create a network of knowledge and communities.

In this sense, a technology hub represents concentrations of companies that focus their activities on technology, either directly or indirectly.

Importance of hubs in companies

In recent years, it has become increasingly common to hear about hubs in companies, why? They promote technology and global ventures; not to mention that they facilitate the commercial basis for connecting with services, partners and investors.

They also favor the internalization of companies and provide access to technological laboratories that highlight the development of the knowledge economy and scientific human capital.

Here are 3 of the main benefits of a technology hub today:

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1. A boost to innovation

Undoubtedly, by concentrating talented people and entrepreneurs seeking to expand their businesses, hubs generate innovation and a large part of the new proposals are based on technology and business digitalization.

A technology hub, for example, expands the possibility of sharing experiences among professionals who often generate new ideas and innovative proposals in companies.

2. Increased concentration of companies

When people realize that a certain area is characterized by certain business activity, such as a technology hub, it somehow encourages the future growth of new companies, and promotes participation in the sector in which they operate.

In addition, experts indicate that cities that foster relationships between workers and colleagues in an industry tend to generate an increase in jobs and business creation.

3. Promote business stability

Hubs not only represent a plus point for the creation of new companies, but are also associated with the survival and success of companies already created and located in a geographic region.

The business stability of those companies that are part of a hub is boosted by witnessing an increase in the number of suppliers they can source from, as well as in the availability of human capital.

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How is Spain positioned?

According to the Top Tech Cities of The Future 2021 ranking, Spain stands out among the most important technology hubs in Europe thanks to two of its major cities: Madrid and Barcelona. The capital is in fifth place, and Barcelona is in seventh place.

In the case of Madrid you have probably heard of recognized hub networks such as Campus Madrid, Impact Hub, Silicon Alley, and The Cub; and in Barcelona, the 22@ technology district, Tech Barcelona, Disseny Hub or Impact Hub stand out.

Likewise, the Community of Madrid reinforces its role as a technological hub in southern Europe, concentrating 25% of the companies dedicated to the aeronautical and aerospace sector in Spain and positioning the region as an attractive destination for investors and entrepreneurs.

Similarly, the National Institute of Statistics states that the companies that concentrate their activities around technology and, in turn, operate in Madrid generate a turnover of more than 5,200 million euros, which represents almost 48% of the total at the national level.

The Minister of Economy, Finance and Employment, Javier Fernández-Lasquetty, announced Madrid’s capacity to attract new talent, as it represents the second region in Europe in terms of the number of high-tech employees, with more than 262,000 professionals.

In addition, the Spanish capital stands out for its entrepreneurial ecosystem, with Madrid startups accounting for 60% of total national investment.

It should also be remembered that Spain has been selected by the U.S. group Prime Data Centers to install its first European data center, which once again confirms the country’s relevance as a technology hub.

As a consequence, we can not fail to mention the fact that, recognized in the technological environment as Microsoft, Google, Amazon, and Meta have taken the decision to start their cloud regions in Spain.

In this context, it is understood that both Madrid and Barcelona are in the sights of international funds, large investors, as well as global real estate and technology groups.

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Promoting the development of a technological hub is an extremely important step to attract talent and continue adding companies in the country. So, if you are thinking of starting your own business in Spain, don’t forget that in TAS Consultancy we advise you in every step you need. Do you have any doubts about it? Click here and consult our services.