Interview with Jaume Baró, Secretary of Business and Competitiveness, CEO, ACCIÓ

01 Apr Interview with Jaume Baró, Secretary of Business and Competitiveness, CEO, ACCIÓ

Why does Catalonia stand apart as a leader in industrial development within Spain and Europe?

Catalonia has a population of 8 million people, similar in size to Denmark and Austria, but with significantly higher wealth levels. Catalonia is comparable to regions like Lombardy and other advanced powerhouses in Europe and often faces the same challenges. Numbers and metrics from Catalonia in the last few quarters of 2024 are positive and reflect a general trend in Spain. This region has significant assets, including one of the best airports, the Port of Barcelona and its capital city, Barcelona, which attracts talent from all over the world. Catalonia knows how to generate retain and attract talent, which is the key driver of regional development. Talent is the fuel that drives our high levels of wealth creation and innovation; talent is the raw material of the 21st century for developing economies. Catalonia is attractive as a Mediterranean destination, a bridge to Latin America and an open society. For the first time, more than 30% of those registered in Barcelona were born outside of Spain, making it a truly cosmopolitan city.

Catalonia also has an industrial heritage that plays a significant role in fueling our economy. The region accounts for more than 20% of all industrial wealth creation in Spain. Our modern industry is decarbonized, offers better pay and generates stable and quality jobs. We have a diversified economy. Industrial activity represents 20% of our wealth, and we aim to increase it to more than 25% to reclaim economic leadership. Industry drives innovation, stabilizes the population and generates quality, well-paid jobs — on average, 170% of the minimum wage. Our strong industrial base allows us to attract foreign investment. Catalonia is a proven destination for foreign businesses looking to attract and retain talent. We are well connected to the world through our port and airport. Catalonia accounts for more than 26% of all Spain’s exports, which reflects our productivity. The new government is eager to recover lost ground and regain economic leadership. When we visit companies and regions, we are welcomed with optimism and a willingness to work together. A common goal is shared prosperity for everyone.

Catalonia houses many industries, the most classic being our automotive sector. Volkswagen is leading the way in terms of electrification. We have managed to reindustrialize a historic Nissan plant, which is now operational due to foreign investment. This plant provides more than 1,500 jobs that we have been able to maintain. The automotive industry remains a key focus for Catalonia, particularly in the transition to electrification. We are attracting battery companies and others that contribute to this new automotive value chain. Being at the forefront of new industries is crucial for maintaining jobs, reindustrializing and continuing to lead in the sector.

Additionally, we house a significant agrifoods sector. Innovation in both automotive and agri-food sectors is essential, and significant investments are helping us rebalance the territory. In Tarragona, we have a major European petrochemical hub. Several companies operate there and act as the main drivers of Spain’s chemical industry. We are working on decarbonization projects worth millions and are well-organized to maintain leadership in this vital sector. Our industry is multi-sectoral, and we are catching up in building significant sectors based on emerging technologies.

What distinguishes Catalonia’s research and development capabilities in emerging technology sectors?

Regarding innovation, development and research, our hubs related to photonics and supercomputing make us European leaders. Our obligation is to translate this knowledge and research into business. Catalonia will hold the presidency of the European Semiconductor Regions Alliance in 2026 and will help determine the direction of the new European flagship program to strengthen semiconductors in Europe. Europe needs to reposition its leadership in economic value chains and reduce its dependency on the USA and China. Semiconductors are key in this battle. Catalonia is well-positioned because we have been investing in this technology for a long time. Talent is crucial in reindustrializing the country and supporting new economies like semiconductors and green hydrogen. We are in a critical three-year period, and we must seize the moment. Catalonia and Barcelona are not just prime tourist destinations, they are global hubs for business.

What actions is the government taking to support the growth of small businesses?

The structure of businesses in Southern Europe is less balanced compared to Northern Europe. In the north, there are more medium-sized companies, while in the South, smaller companies dominate. Southern Europe tends to have a less ambitious business culture. However, there are small oases within the south, and Catalonia is one of them due to its entrepreneurial spirit. Despite it not being a capital region, the region maintains a high level of entrepreneurial activity.

The government of Catalonia is working toward having more than 1,500 medium-sized companies. We are implementing a program focused on training CEOs, instilling ambition and showing them what is possible. This program includes strategies, growth plans and support through public and private financing. The internal objective is to help companies grow in size, which means gaining access to innovation, internationalization and exports. It is well-documented that larger companies achieve greater efficiency and productivity. One of the new government’s priorities is to develop programs that address this lack of medium- and large-sized companies and provide the energy and support needed for businesses to gain economic leadership. The government is fully committed to strengthening businesses.

How crucial are new technologies and digitization in strengthening Catalonia’s entrepreneurial ecosystem?

In terms of technology, we are skilled at creating new startups. However, the challenge we currently face is supporting them when they need to scale and secure larger funding rounds. Startups operate through funding rounds, and the government of Catalonia is helping deep tech startups with early-stage instruments for initial investments to ensure that they develop enough to prove their technology. However, we need to create mechanisms to lead late-stage funding rounds of €15 million–€20 million in Europe rather than having companies move to the USA where markets are more mature.

We are establishing specific funds, particularly in areas like deep tech and frontier technologies. With our strengths in photonics and semiconductors, we expect to generate many spin-offs. We aim to ensure our new companies are technology-based startups and not just e-commerce. Deep tech companies can leverage and develop the knowledge we have generated, for example, in the healthcare sector. Our goal is to replicate the success of healthcare in other sectors. Catalonia has one of Europe’s most significant startup associations, Tech Barcelona, which positions us as a key player in fostering technology-driven businesses.

The process of digitalization must reach all of society, including small and medium-sized enterprises. This is a cross-cutting issue that involves the education system and all levels of society. It is a significant challenge because an economy becomes truly digitalized only when its society is digitalized. We need to create, maintain and attract digital skills — and we are actively working on this. Another important aspect is consolidating the technology sector and continuing to grow employment opportunities in Catalonia. The number of jobs in this sector keeps increasing, which demonstrates that we are modernizing industries and ensuring no one is left behind.

What efforts are being made to advance Catalonia’s energy transition and decarbonize industry?

One of the government’s key priorities is the decarbonization of the economy. A distinctive approach of this administration is addressing challenges transversally, and the decarbonization effort involves all departments. For instance, one of our goals in agriculture is to convert organic farm waste into biogas. Another critical objective is to increase the renewable energy production capacity of our region. The Iberian Peninsula is ideally suited for solar energy, yet it is not fully utilized, and we must change that. We are reducing bureaucratic barriers to facilitate the development of renewable energy installations. A pact has been established to accelerate these investments. On an industrial level, we have prioritized strategic industrial projects and initiatives that generate new technologies for decarbonization. These projects will benefit from a fast-tracked bureaucratic process. These efforts align with the European Union’s Net-Zero Industry Act, which mandates that Europe recover its technological sovereignty in clean energy generation. It also calls on member states to accelerate the adoption and implementation of technologies for clean energy. In Catalonia, we have reached an agreement to halve the approval times for all strategic associated projects to expedite the decarbonization process.

What strategy is the government employing to attract foreign direct investment into Catalonia?

Our investment attraction strategy for Catalonia is well-organized and carefully planned. One of our key strengths is having a clear map of the various value chains within our sectors. We operate 40 offices worldwide, each with a dual mission to help Catalan companies export and attract investments to Catalonia. These offices actively engage with American companies and present Catalonia as an ideal location for creating jobs and expanding their businesses. We assist in building business opportunities and crafting proposals so that when companies consider investing abroad, Catalonia is part of their strategic options. Our highly strategic approach has three main focus areas: industry, technology and sustainability. We are surgical in identifying what we need to strengthen these three verticals and their value chains. Our goal is not just to enhance one sector but to strengthen our entire ecosystem.

While maintaining 40 offices worldwide staffed by 100 professionals comes at a cost, the rewards we generate are tremendous in terms of investments and exports. For each euro invested in foreign direct investment, we have attracted €245. For every professional that works at Catalonia Trade & Investment, 125 jobs are created or maintained. We track these metrics closely, and we are on track to close 2024 with a record high in foreign investment. Additionally, Catalan exports have accumulated new records every year and surpassed €100 billion in 2023. When a country exports, it demonstrates competitiveness.

What main goals are at the forefront of the government’s reindustrialization strategy?

We are concluding our second National Pact for Industry and will begin our third in 2026. This agreement has been negotiated by many stakeholders, including unions, employers’ associations, company representatives and more than 10 departments of the Catalonian government. The giant initiative involves everyone to ensure that industry is our main growth vector and a driving force behind our development. My top three objectives as CEO of ACCIÓ and Secretary of Business and Competitiveness are to enhance the competitiveness of the business ecosystem, increase the number of companies that can benefit from ACCIÓ and ensure that no one is left behind. It is critical that we continue to generate employment opportunities.