Spain – Technology Performance Digest

Executive Summary

This report provides a comprehensive assessment of Spain’s current performance and future trajectory in four critical dual-use technology domains: 3d-printing, edge-computing, quantum-key-distribution, and smart-materials. The analysis focuses on the activities and capabilities of four Spanish organisations: Cetemmsa, LuxQuanta, Nearby Computing, and Ziknes. Spain has made notable progress in these areas, leveraging a combination of public investment, EU funding, and a growing ecosystem of research and industrial partners. However, challenges remain in scaling innovation, bridging gaps between research and deployment, and ensuring competitiveness on the global stage. The next five years present both significant opportunities for Spain to strengthen its position and risks that must be carefully managed.

Strengths

Robust Research and Innovation Ecosystem

Spain benefits from a well-established research infrastructure, with organisations such as Cetemmsa and LuxQuanta acting as key nodes in national and European innovation networks. The country’s universities and technology centres have a strong track record in materials science, photonics, and information and communication technologies (ICT), providing a solid foundation for dual-use technology development.

Strategic Focus on Dual-Use Technologies

Spanish government policy increasingly recognises the dual-use potential of advanced manufacturing, quantum technologies, and edge computing. This is reflected in recent national strategies and funding programmes that prioritise these sectors for both civilian and defence applications.

Leading Organisations

• Cetemmsa: Renowned for its R&D in smart-materials, particularly in flexible electronics and functional coatings, with applications ranging from defence to automotive and health.
• LuxQuanta: A pioneer in quantum-key-distribution (QKD), providing secure communication solutions for critical infrastructure and defence.
• Nearby Computing: Specialises in edge-computing orchestration platforms, enabling real-time data processing for smart cities, transport, and defence.
• Ziknes: Innovates in industrial-scale 3d-printing, focusing on metal additive manufacturing for aerospace and defence supply chains.

EU Support and Integration

Spain actively participates in EU-funded programmes such as Horizon Europe, the European Defence Fund (EDF), and Digital Europe, ensuring access to collaborative research, funding, and standardisation efforts.

Weaknesses

Limited Scale-Up Capacity

While Spain excels in R&D and prototyping, it faces challenges in scaling innovations to mass production and commercialisation. This is particularly evident in 3d-printing and smart-materials, where pilot projects often struggle to reach industrial maturity.

Fragmented Ecosystem

The Spanish dual-use technology ecosystem remains fragmented, with insufficient coordination between academia, industry, and government. This can result in duplicated efforts and missed opportunities for cross-sectoral innovation, especially in rapidly evolving fields like edge-computing and quantum-key-distribution.

Dependence on Foreign Technology

Spain’s supply chains for advanced manufacturing equipment, quantum hardware, and specialised materials are still reliant on imports, primarily from Germany, the US, and China. This dependence creates vulnerabilities in the context of global supply chain disruptions or geopolitical tensions.

Talent Retention Issues

Despite a strong educational base, Spain struggles to retain top talent in high-demand fields such as quantum engineering, AI, and advanced manufacturing. Brain drain to other EU countries and the US remains a concern, limiting the growth potential of organisations like LuxQuanta and Nearby Computing.

Notable Programmes & Investments

National and Regional Initiatives

• Spain’s National Strategy for Artificial Intelligence (ENIA): Includes significant funding for edge-computing and AI infrastructure, with dual-use applications in defence and security.
• PERTE for Aerospace: A strategic project for economic recovery and transformation, supporting advanced manufacturing (including 3d-printing) and materials innovation for the aerospace and defence sectors.
• Quantum Spain: A national initiative to develop quantum computing and communication infrastructure, with LuxQuanta as a key participant in QKD pilot deployments.

EU-Funded Projects

• Horizon Europe and EDF Projects: Spanish organisations are leading and participating in several consortia focused on smart-materials for adaptive camouflage, lightweight armour, and sensor integration.
• Digital Europe Programme: Supports the deployment of edge-computing platforms, with Nearby Computing involved in smart mobility and critical infrastructure projects.

Corporate and Venture Investment

• Private Investment in Ziknes: Recent funding rounds have enabled the expansion of metal additive manufacturing capabilities, targeting both domestic and international aerospace and defence markets.
• Industry Partnerships: Cetemmsa collaborates with major Spanish and European defence primes to integrate smart-materials into next-generation platforms.

Competitive Comparison

European Context

• Germany and France: Remain leaders in industrial-scale 3d-printing and advanced materials, with larger domestic markets and stronger integration between defence and civilian sectors.
• UK: Excels in quantum technologies, particularly in QKD and quantum sensing, with more mature commercial ecosystems than Spain.
• Italy and Portugal: Spain outperforms these neighbours in R&D output and EU project participation in the assessed domains.

Global Benchmarks

• United States: Far ahead in quantum communications, edge AI, and additive manufacturing, supported by massive defence procurement and venture investment.
• China: Rapidly advancing in smart-materials and edge-computing, with aggressive state-led industrial policy and export ambitions.

Spain’s Niche Advantages

• Agility and Collaboration: Spanish organisations, such as Nearby Computing and LuxQuanta, are highly agile and effective in EU-level collaboration, giving them a competitive edge in accessing international research networks.
• Cost-Effectiveness: Lower operational costs make Spain an attractive location for pilot projects and early-stage manufacturing.

Opportunities for Collaboration / Export

EU and NATO Partners

• Joint R&D: There is strong potential for Spanish organisations to lead or participate in multinational projects targeting dual-use applications, particularly in QKD and smart materials for secure communications and survivability.
• Technology Integration: Spanish edge-computing and 3d-printing platforms can be integrated into broader European defence and security systems, leveraging interoperability standards.

Emerging Markets

• Latin America: Shared language and historical ties provide export opportunities for Spanish-developed edge-computing solutions and smart materials, particularly in critical infrastructure and security sectors.
• Middle East and North Africa (MENA): Demand for advanced manufacturing and secure communications is rising, creating export potential for Ziknes’s 3d-printing technologies and LuxQuanta’s QKD systems.

Industry Partnerships

• Aerospace and Defence Primes: Spanish SMEs and RTOs can partner with larger European and global primes to co-develop and supply advanced components, leveraging Spain’s strengths in materials science and digital platforms.

Risks & Mitigation

Geopolitical and Supply Chain Risks

• Mitigation: Develop domestic capabilities in critical hardware and materials; diversify supplier base; participate in EU resilience initiatives.

Talent Drain

• Mitigation: Enhance incentives for STEM talent retention; foster international research exchanges with return pathways; invest in advanced training programmes.

Fragmentation and Duplication

• Mitigation: Establish national coordination platforms for dual-use technology; incentivise public-private partnerships; align regional and national strategies.

Cybersecurity and Regulatory Risks

• Mitigation: Adopt robust cybersecurity standards for edge-computing and QKD deployments; ensure compliance with EU dual-use export controls; participate in international standardisation bodies.

Market Uncertainty

• Mitigation: Support early-stage commercialisation through public procurement and innovation vouchers; facilitate access to venture capital; promote export consortia.

Outlook (5-year)

3d-Printing

Spain is expected to consolidate its position as a European leader in industrial-scale 3d-printing, particularly for aerospace and defence applications. Ziknes and similar firms will benefit from increased demand for lightweight, custom components and the integration of additive manufacturing into supply chains. However, scaling to mass production and ensuring quality standards will remain key challenges.

Edge-Computing

The adoption of edge-computing in critical infrastructure, smart mobility, and defence will accelerate, driven by organisations like Nearby Computing. Spain’s participation in EU digital infrastructure projects will enhance interoperability and resilience, but competition from US and Asian platforms will intensify.

Quantum-Key-Distribution

Spain, through LuxQuanta and national initiatives, will be at the forefront of QKD deployment in Southern Europe. Pilot projects are likely to mature into operational systems for government and critical infrastructure, positioning Spain as a regional hub for quantum-secure communications. Continued investment and international collaboration will be essential to maintain momentum.

Smart-Materials

Spanish RTOs, led by Cetemmsa, will drive innovation in smart-materials for dual-use applications, including adaptive camouflage, lightweight armour, and embedded sensors. The main challenge will be scaling laboratory breakthroughs to industrial and military deployment, requiring closer collaboration with end-users and integrators.

Overall Trajectory

Spain’s dual-use technology sector is poised for moderate but sustained growth, underpinned by strong R&D capabilities, EU integration, and a growing cohort of innovative SMEs. Success will depend on addressing scale-up and coordination challenges, retaining talent, and leveraging international partnerships. If these issues are managed effectively, Spain can secure a leading role in the European dual-use technology landscape by 2030, with significant export and collaboration opportunities.