Innovative Companies in Spain: Constitution, Evolution and Profitability
In the business world, there are many types of innovation that a company can pursue. In recent years, a large number of Spanish businesses have developed and established themselves in the global market. They often refer directly to individual products, internal processes or workflows, or business models. Some companies even adopt all three types of innovation to stimulate growth while adapting to an ever-changing market.
1. Establishment of innovative companies in Spain
The formation of innovative companies in Spain follows a process similar to that of any other type of company, although the innovative sector tends to receive more help from the government and specialized agencies. In order to establish an innovative company in Spain, a few steps are essential.
- To get started, it’s essential to have a plan, because if a company doesn’t have a solid business plan that demonstrates the viability of the idea and the potential for growth, it’s impossible to start the process.
- Next, it is essential to ensure that the legal form chosen is the appropriate one.
- Once these first two points are established, the company must be registered in the Mercantile Register to obtain the Tax Identification Number (NIF).
- Finally, it ensures that specific legal and tax requirements are met, such as the Entrepreneurs Act and its Internationalization.
In Spain, companies can benefit from support programs and tax rewards, such as grants, credits and deductions, that help innovative companies. They can be very useful to avoid any financial obstacles and facilitate access to new markets.
2. Evolution of innovative companies in Spain
Innovative companies in Spain are able to make progress thanks to different factors. Companies that embrace innovation have a significant advantage in meeting the demands of their customers. In other words, companies can’t stay afloat if they don’t embrace innovation and change.
A number of innovative companies have experienced rapid growth and considerable success in Spain. This growth potential is probably why, in a recent survey conducted by The Boston Consulting Group, 79% of the executives surveyed said that innovation was among their top three business initiatives, the highest percentage since the survey began almost ten years ago.
In addition, BCG notes that companies that are consistently among the “50 most innovative companies” have in common their orientation towards science, technology and development. These companies continue to grow while staying ahead of the competition, because they value the positive impact of innovation.
3. Profitability of innovative companies in Spain
The profitability of innovative companies in Spain can vary according to several characteristics such as the sector, the size of the company and its ability to adapt to market conditions. However, a large number of innovative companies have managed to generate profitability thanks to different factors.
- Differentiation: Innovation is essentially about doing something different from what others in your industry are doing. If a company innovates in its products, for example, the goal is to develop or update its products until there is nothing similar left on the market. This will give you a competitive advantage over other companies that are stuck in their systems.
- Efficiency: The fact that companies obtain new technologies or any other type of innovation, leads to an increase in the operational efficiency of a company, and leads it to reduce costs and improve profitability in the long term.
- Expansion into new markets: Innovation helps companies to anticipate market changes more quickly to take advantage of opportunities as they arise, and to act instead of reacting to shocks.
- Greater adaptability: Innovative companies are often more flexible and able to adapt quickly to changes in the business environment. This ability to adapt is very positive, as it allows them to take advantage of new opportunities and minimize the risks they may encounter.
- Investment attraction: innovation attracts even more the attention of investors, who see great economic potential in them.
Success in exploiting new ideas is crucial for a company to improve its processes, bring new and improved products and services to the market, increase its efficiency and, most importantly, improve its results.
Markets are increasingly competitive. Competition has increased due to greater access to new technologies and the growth of commercial and knowledge-sharing opportunities on the Internet. Faced with this movement, Spanish companies have been able to adapt and develop in the best possible way.
