Beyond tourism, Barcelona is paving the way to become a tech city. And tech in the strictest sense of the term, delving into quantum and supercomputing, which is quite different from the online marketplaces that have dominated the scene so far.
This fall, the Catalan capital has attracted significant amounts of public funding for the development of critical infrastructures on a European scale. The Barcelona Supercomputing Center (BSC) announced last week an investment of 200 million euros to open one of the largest European Artificial Intelligence factories. Shortly before that, this institution also learned it would receive another 240 million to design its own chip as part of the DARE project, which is on par with the technology at CERN in Switzerland. The Institute of Photonic Sciences (ICFO) has also just announced that it will receive 380 million to lead the development of a photonic chip in the European Union.
The city takes a turn after years of dominance by simple digital solutions companies
These three investments showcase the top-notch infrastructure that is established in Barcelona. However, they are not an isolated phenomenon, nor are they new. These projects are the result of a sustained commitment to science and technology, which was articulated over two decades ago and has, for years, fostered the creation of an ecosystem made up of hundreds of startups and around forty centers and parks linked to deep tech. The Center for Genomic Regulation, the Barcelona Microelectronics Institute, the Computer Vision Center, the Robotics and Industry Institute, the Alba Synchrotron, or the Barcelona Science Park are just a few examples of this ecosystem, which has grown in parallel (and perhaps less noisily) than the city's digital sector.
“The investments of ICFO and BSC have demonstrated the scientific and technological potential of Barcelona, which boasts unparalleled infrastructure compared to other regions of Spain, such as Madrid or the more industrial Basque Country,” commented Josep Miquel Piqué, CEO of La Salle Technova.
The EU's commitment to technological sovereignty boosts a sector that was born two decades ago
These recent investments would not be understood without the local commitment, but also without the role of the European Union, which has stepped up its efforts to gain technological sovereignty in the face of the United States and China following the pandemic. In the reports commissioned by Mario Draghi and Enrico Letta, it became clear that there is no choice but to mobilize resources to enhance domestic infrastructures if Europe does not want to be exposed to increasing geopolitical risks and vulnerabilities in areas such as energy and technology. This is why the Commission is mobilizing billions in aid, with the Next Generation funds leading the way.
In this technological endeavor by the European Union, Barcelona has played its cards right and has positioned itself on the investment attraction map (alongside other cities in the south and north of Europe). The Catalan capital has been successful in attracting millions of euros, resources that will facilitate the attraction of international talent and the development of cutting-edge critical technology.
The Spanish Security Council (BSC) will receive 200 million euros to boost a European AI factory
What does all this millions rain of investment in deep tech mean for the city? Miquel Martí, CEO of the association Tech Barcelona, comments that these investments will ultimately benefit the city's business ecosystem, leading to the creation of more deep tech startups. This shift is expected to transform an ecosystem that has been predominantly led by digital companies using simpler or more superficial technology, such as software, mobile applications, or video games. “Thanks to the investments attracted by the BSC or the ICFO, we are starting to see this shift towards deeper technologies,” confirms Martí. The executive points out that this transition does not mean abandoning the digital ecosystem; on the contrary, both worlds will coexist and even collaborate, developing hybrid solutions and transferring talent between them.
Quantum computer facilities at the BSC.
For now, Catalonia has 340 deep tech startups, representing 16.2% of the total technological industry. This number continues to grow year after year, with a 6% increase from 2023 to 2024. Miquel Rey, Eurecat's business director, stated in a report by the Mobile World Capital Foundation that “the ecosystem of new technology-based companies is in an early stage, but it has a very promising future. Most accelerators and investment funds are shifting their investment thesis from rapidly scalable digital platforms to investing in companies with differential technology.”
The biotech companies and artificial intelligence startups lead the deep tech sector in the city
In the last five years (2019-2024), these deep tech companies have secured funding worth $544 million, which represents around 10% of the total. It is not a high investment, but it is significant considering that the maturity times for these projects are longer (5-7 years) than those for simpler digital solutions (2-3 years). By type of technology, deep tech companies in Catalonia are predominantly focused on biotechnology – accounting for 37.4% of the total – followed by artificial intelligence (27.9%) and sustainable or cutting-edge materials (11.2%). The concept of deep tech is quite broad and encompasses various types of solutions. According to the European Institute of Innovation and Technology, the term includes artificial intelligence, quantum computing, advanced manufacturing, and biotechnology (or biotech). In this last field, Catalonia “has an advantage,” says Martí, due to the strong presence of the pharmaceutical industry in the region. Indeed, data shows that 37% of deep tech companies are dedicated to this field. Overall, these companies develop complex solutions, scientific and technical challenges that require a significant investment of resources and generate intellectual property that is difficult to replicate.
In most cases, their creation would not be understood without the role of research centers, which are the first piece in the innovation gear. To prevent it from ending up in a drawer, it is necessary for it to be transferred to the market through the role of science parks and technology centers. This is how hundreds of spin-offs have been created at the Barcelona Science Park or a dozen as a result of BSC technology.
The technology transfer from science to the market continues to be the great pending subject
“It is crucial to strengthen the role of parks and technology centers, which are key agents in bringing science to the market,” comments Rey, from the Eurecat technology park. In this regard, the executive recalls that Catalonia has always done its homework in terms of research, with the boost of the Science Law at the end of the nineties. This legislation has allowed the creation of around forty top-level R&D centers. However, the executive acknowledges that Catalonia has always lagged behind in terms of technology transfer, unlike the Basque Country, with more favorable legislation providing resources to technology parks. “In this community, 25% of the country's scientific production takes place, however, the transfer to the market is more stagnant,” Piqué adds.
A fact that demonstrates this is the number of patents that emerge from the laboratories of Catalan universities (to which the majority of research centers are affiliated). According to the report The State of Science in Catalonia 2023, this number has stagnated at around 250 applications per year over the last decade. The report, commissioned by the Generalitat and prepared by the Catalan Foundation for Research and Innovation, also indicates that the same has happened with the creation of spin-offs. Likewise, the study warns of the shortage of university doctors working in the industry. “It would be necessary for the talent from universities to benefit the economic and social world. The rate of doctors working in companies stands at 20-25%, while the percentage is much higher in other countries like the United States (45%), Denmark (37%), or the Netherlands (54%),” the report cautions.
The problem has been going on for a long time, and the investment that the BSC and the ICFO have received in recent months will not solve this technology transfer deficit overnight. Nevertheless, there is no doubt that this public investment, and potential future investments, will help strengthen a deep tech ecosystem that is emerging in the city.
An indebted ecosystem
Science parks and technology centers are a key piece in the 'deep tech' ecosystem. They allow the science that emerges in research centers to transition to the business world, facilitating the creation of spin-offs or startups. Their existence would not be possible without the funding received over 20 years ago from the central government. Although the 'parquetazo' credits were a useful tool at the time to finance the construction of these parks, the legal framework has been a challenge for the research centers and universities responsible for them. Many have been heavily indebted for years, unable to meet the short deadlines demanded by the government. In total, more than 1.7 billion euros were granted, and as of last year, 4% remained to be repaid. Sources from the Ministry of Science have not updated the figures for this year. It has been reported this week that the UPC has managed to repay the remaining 100 million euros. Both the Barcelona Science Park and the Lleida Science Park also have outstanding debts.
