Industrial and Structural Policy Strategies for Competitiveness

D. Current Sectoral Policy

The sectoral policy objective is to address the problem of specialization in mature industries—some in need of conversion—and the insufficient development of high-tech sectors. The main measures for achieving this include:

• Restructuring and Redevelopment: Completing the restructuring of declining industries and the industrial redevelopment of affected areas. These efforts must align with standards that prohibit state aid for business conversion to protect free competition. Instead, support is permitted for accessing resources necessary for modernization and re-industrialization, such as infrastructure to foster innovative investments.
• Industrial Building Observatory: Promoting the competitiveness of specific industries by collecting information on sector needs and demands to advise on improvement measures.
• Support for Competitive Sectors: Assisting sectors most exposed to foreign competition, both low-tech and high-average, within European Union regulations. This includes the textile industry (threatened by export suspension and relocation), the automotive industry (threatened by offshoring), and the aerospace sector (due to long investment payback periods).

E. Current Structural Policy

The aim of structural policy is to resolve competitiveness and internationalization challenges faced by small firms, specifically regarding insufficient size, research investment, and technological capacity. The primary measures include:

a) Improving Company Size

• Support for SMEs: Enhancing development and growth through Business Development Plans, the formation of industrial districts (networks of SMEs that collaborate to gain merger-like benefits), innovation initiatives (such as Plan Innoempresa 2007-2013), grouping for innovative projects (Innovative Business Partnerships-IEA), and internationalization programs (PIPE 2000).
• Support for Large Companies: Stimulating concentration and strategic agreements to increase global competitiveness.

b) Promoting Research, Innovation, and Technology

The goal is to achieve convergence with the EU and position the nation among leading countries. Key objectives of the National R+D+i 2008-2011 and associated programs include:

• Increased R&D Spending: Raising investment to reach 2% of GDP, increasing private sector contributions to 55% of that total, and allocating 7% of GDP to ICT (Programa Ingenio 2010).