Selected Issues Papers

Spain's GDP per capita gap with highest-income euro area economies and the US is mainly due to a productivity shortfall. Spanish tech firms lag in productivity and innovation, partly due to weaker R&D investment. Beyond leading firms, there's a broader lack of dynamism; firms enter small and fail to scale up, resulting in fewer high-growth firms compared to Europe and the US. This scarcity of "gazelles" is linked to limited venture capital, human capital, and regulatory obstacles. Policy remedies include enhancing market integration, improving access to long-term risk capital, and boosting the innovation ecosystem and higher education quality.