Industry has historically been a fundamental driver of economic growth, technological innovation, and job creation. However, its relative weight in the economies of Spain and many Latin American countries has declined over the past decades, raising concerns about their ability to remain competitive in an increasingly demanding global environment.

Today, both Spain and Latin America face a shared challenge: revitalizing their industrial policies to strengthen resilience, sustainability, and competitiveness—while navigating a context shaped by the energy transition, digitalization, and growing geopolitical tensions.

Spain: Between Challenge and Opportunity

In 2023, Spain’s industrial sector accounted for just 14.7% of GDP, well below the European Union’s 20% target. This is compounded by several structural challenges:

  • Small average company size, with a predominance of SMEs that are poorly internationalized.

  • High dependence on external energy sources, limiting strategic autonomy.

  • Lower degree of internationalization compared to other European peers.

In response, Spain has launched an Industrial Policy with a 2030 horizon, making industry a central pillar of the Recovery, Transformation, and Resilience Plan. The Strategic Projects for Economic Recovery and Transformation (PERTEs) stand out, focusing on strategic sectors such as sustainable mobility, advanced healthcare, green hydrogen, and semiconductors.

Key strategic pillars of Spanish industrial policy:

  • Digitalization and Industry 4.0: adoption of big data, artificial intelligence, IoT, robotics, and cybersecurity to increase efficiency and competitiveness.

  • Innovation and human capital: boosting R&D+i, attracting scientific and technological talent, and strengthening digital skills.

  • Sustainability and energy transition: advancing toward decarbonization and a circular economy.

  • Financing and business scale: improving access to capital and supporting SME growth.

  • Internationalization: strengthening participation in global value chains and achieving greater strategic autonomy.

In parallel, the upcoming New Industrial Law—which will replace the current framework from 1992—will be key to adapting the sector to today’s challenges: green transition, digitalization, supply chain security, and greater resilience.

Latin America: Shared Challenges and Untapped Potential

Latin American countries face similar issues, often with greater intensity:

  • Dependence on raw materials and limited productive diversification.

  • Low investment in R&D+i and limited industrial technological innovation.

  • Financing difficulties for industrial SMEs.

  • Urgent need to advance sustainability and circular economy practices.

At the same time, the region has strategic sectors with high potential, including renewable energy, electric mobility, agribusiness, semiconductors, and technology services linked to digitalization.

To capitalize on this potential, Latin American countries are developing reindustrialization strategies aimed at deeper integration into global value chains, while reducing vulnerabilities to external shocks.

The Opportunity for Ibero-American Cooperation

This scenario presents a unique opportunity: industrial cooperation between Spain and Latin America.

Both regions share challenges but also have complementary strengths. Spain can contribute expertise in digitalization, innovation, and the green transition, while Latin America brings natural resources, energy potential, and expanding markets.

An Ibero-American industrial bridge could:

  • Drive joint strategies for digitalization and Industry 4.0 adoption.

  • Collaborate on technological innovation projects and talent development.

  • Advance a shared green transition, focusing on renewable energy and circular economy models.

  • Build a stronger, more competitive, and resilient industrial ecosystem that generates sustainable value and high-quality employment on both sides of the Atlantic.

Conclusion: A Lever for Economic and Social Transformation

Industrial policy can no longer be viewed as a collection of isolated measures for specific sectors. Today, it is a strategic lever for economic and social transformation, shaping the future of competitiveness, sustainability, and resilience in our economies.

Spain and Latin America face a historic opportunity: to leverage the technological, energy, and geopolitical transition to build a solid and sustainable industrial model together.

The challenge is ambitious, but the key question remains:
 Will we be able to transform industrial policy into a truly shared strategy for the future?