Following the approval of the Startups Law in Congress last week, Spain is closer to having a regulatory framework that boosts innovative entrepreneurship. The Law recognizes the uniqueness of the startup as a business model for innovation and introduces a series of tax benefits for investors and companies, as well as an important set of measures to attract and retain digital talent, which will help our ecosystem compete with neighbouring countries. It should also be noted that the law has brought together many political forces and the entire entrepreneurial ecosystem, who have worked together in a firm and committed manner during the process, in what has been a great example of public-private collaboration. The passage of the law through the Senate is expected to be as agile as possible, and if there are no modifications to the text, the Startup Law could be approved and enter into force in a few weeks.
This is undoubtedly great news for startups and innovative entrepreneurship, but also for Spain since the law will bring greater competitiveness to our economy and our productive fabric. Together with other initiatives such as the Crea y Crece Law, the European Funds Package, or the new Vocational Training Law, the Startups Law generates the necessary substratum for the progress of an innovative productive model.
However, not everything is done. The law gives us a very good basis, but we must continue working along these lines. The Spanish entrepreneurial ecosystem is facing a historic opportunity. In recent years, significant progress has been made at both the public and business levels. The number of new technology companies has increased exponentially, creating one of the fastest-growing ecosystems in Europe and generating a valuable multiplier effect that, as shown in Endeavor’s recent report – “Mapping Spain’s Tech Sector” – is generating more entrepreneurship. In addition, national and international investment in companies has also reached historic highs, allowing Spain to be close to having 15 unicorns.
We have the right levers. That is why, as a country, we must continue to develop instruments that favour the creation, scalability, and consolidation of our companies in an increasingly competitive and uncertain global environment. Promoting the technological entrepreneurial sector means having an engine of growth and prosperity in our economy, and even more so in times of crisis. This requires maintaining both public and private financing instruments and continuing to make progress in generating, attracting, and retaining digital talent. It is also key to increase the dialogue and exchange of knowledge and opportunities between startups, scale-ups, and large corporations, creating a framework for open innovation.
The law brings us a little closer to what the ecosystem needs. From here, we must continue working, in close public-private collaboration to face future challenges and work together to create an ambitious and long-term regulatory framework that will boost the competitiveness of the Spanish ecosystem and turn Spain into a technological hub of reference.