European city in terms of access to business accelerators
out of 67 European cities in terms of talent, investment and tourism
million social network users in Spain
of Spaniards are active within the collaborative economy
Madrid is the 8th city in Europe, out of 67, that best supports digital entrepreneurship (Digital City Index), ahead of cities like Vienna, Milan, Copenhagen, Stockholm, Helsinki or Munich.
Digital entrepreneurship can only thrive through leadership and innovation, and according to the Global Cities 2017 ranking, Madrid excels in those skills as the No. 1 city in Spain, 4th in Europe and 13th worldwide. This position has been achieved thanks to its digital, institutional, economic and physical connections with its social and economic environment.
Madrid is a modern, connected city with pervasive online communications through mobile phones (99% of the households) and internet connection (98% of the companies, 89% of the households, a majority broadband). Spain also leads Europe in the Fiber To The Home penetration rate with an extensive 30% of fixed broadband lines. In Madrid, that percentage increases to 36%.
Madrid is the large European city with highest fiber optic availability (Nesta).
Madrid residents are amongst the heaviest users of technology in Spain and Europe. According to IAB, there are nearly 20 million social network users in Spain, with 86% penetration between ages 16 and 65. A modern approach to public governance contributes to this usage as a large amount of public administrative procedures have been moved online. This applies at both regional and local levels with nearly 76% of the state’s technical procedures able to be completed via the web.
Madrid’s economy is characterised by widespread digital integration and diversity. The full value chain exists within the city with companies both producing and consuming technology. This extensive tech sector is a sign of a highly developed market.
Corporate use of technology (companies over 10 employees)
|Usage Type||% of Madrid companies|
|Social media use||45%|
|Cloud computing use||27%|
|Big data use||11%|
|Online interaction with the public administration||93%|
Technology expenses – Madrid Companies
|Expense Type||Value (millon €)||% of Spain total|
|ICT services and consulting||2,601||55%|
The digital transformation of Spain is on the rise with an expected 1,250,000 new jobs being created in the coming years, according to HR consultancy firm Randstad. High technology already accounts for 15% of employment in Madrid.
The Fintech sector is a good example, with nearly 300 companies in Spain (source: BBVA Research), 72% of which collect a fee for their services (the others working in freemium or advertising models).
The ICT and digital content sector in Madrid makes 69% (€ 67,755 million in 2016) of their national turnover. In telecommunications alone, the percentage goes up to 90%. Madrid also leads the Spanish market with 19 out of 56 data centers (Data Center Map).
Madrid has an extensive startup and technology entrepreneurial ecosystem and a business-friendly public sector.
It is one of the 10 European cities that most values entrepreneurship, ahead of Milan, Luxembourg, Munich, Barcelona, Amsterdam, Berlin and even London, according to Nesta. Madrid’s administrations provide support for new projects, many of them related to the collaborative economy. Madrid Emprende and La N@ave de Madrid are business and event spaces developed to foster innovation in the city. According to Nesta, Madrid is the 4th European city in terms of access to business accelerators.
Over 500 companies in Spain operate within the collaborative economy, generating 1.4% of GDP. Estimates predict an increase to 2-3% of GDP by 2025.
Madrid city council offers various coworking spaces to entrepreneurs across the city.
There are many coworking spaces in Madrid, including the Council’s own: centers like the Business Incubators Network (Red de Viveros de Empresas), the Lope de Vega Culture Centre or the Madrid International Lab. These spaces can be used by entrepreneurs for pre-incubation (6 months to prepare a business plan) and also for projects that have already been launched (during one year) Business assistance is also offered. Private coworking companies also operate numerous coworking spaces throughout Madrid.
Taking advantage of the strategic cultural and business ties between Europe and Latin America, Google opened its 4th global Campus in Madrid to connect entrepreneurs. This centre intends to be a reference for startups, offering different spaces for working, education and events management.
According to a study by PricewaterhouseCoopers 31% of Spaniards are familiar with collaborative economy, through services such as hosting, transport, crowdfunding, etc, which is higher than the EU average of 27%.
Collaborative economy companies in Madrid (source: PwC)
Crowdfunding Safari, SocioInversores, Loanbook, Arboritus, Growly, FamiliaFacil, Wayook, Geniuzz, Niumba