Barcelona Special Report

BARCELONA SPECIAL REPORT

32 60 84 135 FINANCE & INSURANCE NEW TECHNOLOGIES & ICT TRANSPORT & MOBILITY TOURISM & SPORTS The regional government Barcelona is leading the way on A high-speed rail project along The legacy of 1992 Olympic has cultivated a near-perfect 5G rollout. Spain’s Mediterranean coast is Games still lives on today, mostly ecosystem for start-ups. set to transform the country. for the better. Image: Feel good studio from aroundtheworld Antoni Gaudienthusiasts Park Güell,whichattracts A viewofBarcelona’s

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AAFF_T&I_PressAdd_V2.indd 1 9/12/2019 11:46:05 Contents 3 FROM THE EDITOR’S DESK

Regional Director Carlos Martinez THE BUSINESS YEAR: Country Editors Tamara Juburi, Minerva Estruch Rectoret Project Assistant BARCELONA Jazmin Jurevich Chief Executive Officer Ayşe Hazır Valentin SPECIAL REPORT Editor-in-Chief Peter Howson Senior Editor Terry Whitlam Writer/Editor Evan Pheiffer Associate Editor Liz Colavita Chief Sub-Editor Shireen Nisha Sub-Editors Kabir Ahmad, Alia Kıran Editorial Coordinator Belemir Ece Çolak Web Editor Aidan McMahon Web Assistant & Social Media Coordinator he Business Year is making its debut in markets was prominent. Growing exports and Ahsen Durukan the Spanish economy in 2020 with two supporting companies, particularly SMEs, to in- Web Developer T Volkan Görmüş publications, focusing on Barcelona and ternationalize has propelled further growth in all Assistant Web Developer Spain at large. For these editions we partnered its biggest industries. Zişan Yalçınkaya with AMEC, COTEC, and the Catalan Trade and This edition focuses on specific sectors that Art Director Investment Agency and conducted more than have been important in this evolution. First, the Emily Zier-Ünlü Junior Art Director 300 interviews in the most important sectors that real estate and construction industry has made Emre Boduç make up the economy. The editions focus on a notable progress over recent years, effectively ris- Senior Motion Graphic Designer range of topics, including investment opportuni- ing from the ashes. Second, Spain is leading the Serkan Yıldırım Motion Graphic Designers ties across the nation, newly emerging industries European transition to a green economy in line Yiğit Yeşillik, Ahmet Emir Korur such as technology and innovation, as well as the with the central government’s ambitious plan to Senior Graphic Designers unique political circumstances. make its electricity sector reliant on renewable Bilge Saka, Şule Kocakavak Spain in general, and Barcelona in particular, sources by 2050. This, coupled with Spain’s cli- Transcribers Emily Damgalı, Adrian Espallargas, have a rich recent history that is crucial in our mate, has made it a reference in terms of photo- Cain Day, Jason Shaw, Heather Conover, understanding of its business today. Barcelona’s voltaic and wind energy. Gillian Docherty, Oscar Crespo, Emi Teruya, Catalina Salazar, economy, in particular, has been growing in spite Thirdly, Spain’s world-renowned tourist sector Kağan Soyubol, Michael Mariaud, of the pressures of its political limbo. A notable continues to lead, breaking its own records on Yamila Ortiz, Kevin Mataraci, Jeffrey Rogers, Susan Barrett, event that called into question its economic sta- arrivals YoY. There is a conscious effort here to Babak Babali bility was the October 2017 independence refer- diversify tourism and transform Spain into a hub HR Manager endum held by the Catalan regional government for MICE tourism. Lastly, and perhaps most im- Merve Yıldırım in spite of the central government’s rejection of portantly, the technology sector is consolidating PR Manager Şölen Cenberoğlu its legitimacy. Toward the end of 2019, this result- efforts to digitalize the economy as a whole, suc- Operations Manager ed in long sentences for nine Catalan leaders on cessfully becoming a tool for the growth of all oth- Öznur Yıldız sedition charges. Furthermore, the Spanish gover sectors. New players in all the aforementioned Operations Assistant Can Ünsan ernment has held four elections in the past four sectors are disrupting and reshuffling the frame- Office Coordinator years; the most recent of which, in November work of business in Spain, breathing new life into Gamze Zorlu 2019, once again resulted in a hung parliament. the economy. Testament to this is the sheer num- Finance Director Serpil Yaltalıer In spite of this, and the hard-hitting 2007 fiber of start-ups being created across both Madrid Accounting Manager nancial crisis, Spain is the world’s 13th-largest and Barcelona. Quenie Ann Gonzales economy today, and the fifth-largest economy This publication is unique in that it provides a Office & Finance Assistant in the EU, with GDP of USD1.4 trillion. Spain is holistic and multisectoral view of development at Lovely Mae Jesalva also the 15th most-attractive country for FDI, the a point of much political uncertainty, all amidst 13th-largest issuer of FDI, and the 11th-largest notable efforts to become a leader in Industry 4.0 exporter of commercial services. In the interviews in the European bloc. With information straight we held, pushing companies to become more from the mouths of leaders and decision mak- global in their markets was often cited as the best ers across the economy, this is a comprehensive consequence of the financial crash. In particular, guide to investment throughout the diverse and ISBN 978-1-912498-47-5 the trend toward expanding into Latin American industrially rich region of Catalonia. ✖ www.thebusinessyear.com BARCELONA SPECIAL REPORT

3 From the editor’s desk 28 FINANCE & 49 Got a signal • Focus: Mobile World In partnership with: Congress 6 Timeline INSURANCE 50 Ángel Ramírez, President, GTD 7 DIPLOMACY 29 Back to business • Chapter • Interview summary 51 Voices from the sector 7 Global city • Chapter summary 30 Joan Hortalà i Arau, President, 52 Ernest Pérez-Mas, CEO, Parlem 9 Alfred Bosch i Pascual, Former Barcelona Stock Exchange • Interview Minister of Foreign Action, • Interview Institutional Relations, and 53 Technological consultancy Published 31 Gerard Olivé, Co-founder, & Transparency • Interview • Forum 2Q20 Miguel Vicente, Co-founder, Antai 10 Ada Colau, Mayor of Barcelona Venture Builder • Interview 54 Carlos Eres, Managing Director, • Interview GFT • Interview 32 City of smart beginnings • Focus: 11 Jaume Collboni Cuadrado, First Start-ups 55 Accelerators • B2B Deputy Mayor, Barcelona City Hall 33 Venture capital • B2B 56 Voices from the sector • Interview • Interview 34 Vicente Aparicio, Managing 58 Brian J. Stumm, Vice President 12 Tijjani Muhammad-Bande, Director, Asepeyo • Interview & General Manager, Jade Bird Fire President, United Nations General Alarm International (Europe), S.L. Assembly • Guest speaker 36 FOOD & • Interview 13 Nikos Christodoulides, Minister 59 Press and communications • B2B of Foreign Affairs, Government of INDUSTRY Cyprus • Guest speaker 60 To 5G and beyond • Focus: 5G 37 Make it, eat it • Chapter 14 Soft powers • Focus: Regional summary 61 Antonio Huerta, Director, ICREA agencies • Interview 38 Joan Tristany, Director, 16 Public policy • B2B Association of Internationalized Industrial Companies (AMEC) 62 RESEARCH & 17 Voices from the sector • Interview INNOVATION 39 Juan B. Renart Montalat, CEO, 18 ECONOMY 63 A place to innovate • Chapter Vichy Catalan • Interview summary 19 All-round perfection • Chapter 40 Jonathan Stordy, CEO, Grupo summary 64 Maria Terrades, Director, Parc Agora • Interview Científic de Barcelona • Interview 20 Joan Romero, CEO, Catalonia 41 Ramon Raventós Basagoiti, CEO, Trade & Investment (ACCIÓ) 65 Gabriel Silberman, Director Raventós Codorniu • Interview • Interview General, Barcelona Institute of 43 Food • Forum Science and Technology (BIST) 21 José Ignacio Pradas Poveda, • Interview Regional Director (Catalonia), España Exportació e Inversiones 44 NEW 66 Barcelona’s cluster-wunderkinds (ICEX) • Interview TECHNOLOGIES • Focus: Innovation parks 22 Joan Canadell, President, & ICT 67 Knowledge transfer • B2B Barcelona Chamber of Commerce 68 Research centers • Forum • Interview 45 Tech up • Chapter summary 23 Branding Barcelona • B2B 46 Jordi Puigneró Ferrer, Minister 70 for Digital Policy and Public 24 In funding we trust • Focus: Administration • Interview SUSTAINABILITY European FDI 47 Carlos Grau, CEO, Mobile World 71 New and improved • Chapter 26 Félix Ortega, CEO, Barcelona Capital Barcelona Foundation summary Activa • Interview (MWCAPITAL) • Interview 72 Damià Calvet i Valera, Catalan 27 Pere Navarro i Morera, State 48 Miguel Ángel Lagunas Minister of Territory and Sustainability Delegate, Consorci de la Zona Director, Centre Tecnològic de • Interview Franca (CZFB) • Interview Telecomunicaciones de Catalunya (CTTC) • Interview Contents 5

96 Voices from the sector 119 Jaume Casals, Rector, 73 Ramon M. Torra i Xicoy, General Universitat Pompeu Fabra - Manager, Barcelona Metropolitan 97 The logistics of managing Barcelona (UPF) • Interview Area (AMB) • Interview success • Focus: Logistics centers 121 Antonio Rodríguez Engelmann, 74 Oscar Gómez, Founder & CEO, Managing Director, GBSB Global SolarProfit • Interview 98 HEALTH Business School • Interview 77 Voices from the sector & MEDTECH 122 Koldo Echebarria, Director, 78 The stargazing ghost of Cerdà 99 Salud the sun • Chapter ESADE • Interview • Focus: Urban planning summary 123 Business schools • B2B 100 Josep M. Campistol, General 124 Private universities • Forum 80 TRANSPORT Director, Hospital Clínic Barcelona 128 & MOBILITY • Interview 125 The digital revolution • Focus: Digitalization 101 Eduardo González, CEO Europe 81 Keep it moving • Chapter and LATAM, Eugin Clinic & NMC’s summary IVF operations • Interview 127 TOURISM & 82 Mercè Conesa, President, Port of 102 Joan Puigdollers Fargas, SPORTS Barcelona • Interview President, Parc de Salut Mar 127 Beyond the beach • Chapter 83 Terminals • B2B (PSMAR) • Interview summary 84 High-speed growth • Focus: 104 Josep M. Ramírez Ribas, 128 David Font i Simon, Director, Mediterranean corridor General Director, Guttman Institute Catalan Tourism Agency (ACT) • Interview 85 Ricard Font i Hereu, President, • Interview Ferrocarrils de la Generalitat de 105 Ricardo Ruiz López, Former 129 Joan Torrella, Former Managing Catalunya (FGC) • Interview President & Founder, Clínica Director, Barcelona Turisme Vertebra and World Institute of Pain 130 86 Enric Ticó Buxados, President & • Interview (WIP) • Interview CEO, CIMALSA • Interview 130 Constantí Serrallonga, General 106 Engineering health • Focus: 87 Josep Mateu, President, Royal Manager, Fira de Barcelona Biotech Automobile Club of Catalonia • Interview 140 RETAIL & (RACC) • Interview 108 Pharmaceuticals • Forum 131 Tourist attractions • B2B E-COMMERCE 88 Mobility • B2B 109 Jordi Naval, CEO, Biocat 132 Pascal Billard, Director General, 141 Retail therapy • Chapter • Interview 89 Logistics • B2B Majestic Hotel & Spa Barcelona summary 110 Private healthcare • Forum • Interview 142 Alba Tous, Chairwoman, TOUS 90 REAL 112 Health associations • B2B 133 Jordi Mestre, President, Gremi • Interview d’Hotels de Barcelona • Interview ESTATE & 143 Shopping experience • B2B 114 EDUCATION 135 Blast from the past • Focus: CONSTRUCTION 145 Rosa Tomàs, Director of Olympic legacy 114 Barcelearner • Chapter Barcelona, CIRCA • Interview 91 Changing trends • Chapter summary 136 FC Barcelona • B2B summary 146 Staying fresh • Focus: 116 Josep Bargalló i Valls, Minister, 138 Joan Fontserè, Director, Circuit E-commerce and retail in Catalonia 92 Albert Civit Fons, Director, Department of Education (Catalonia) de Barcelona-Catalunya • Interview Institut Català del Sòl (Incasòl) 147 Voices from the sector • Interview • Interview 139 Sports clubs • B2B 117 Joan Elias García, Rector, 93 Jorge Miarnau Montserrat, University of Barcelona (UB) President, COMSA Corporation • Interview • Interview 118 Public higher education 94 Real estate • Forum • B2B

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thebusinessyear thebusinessyear thebusinessyear TBYupdates 6 Barcelona Special Report TIMELINE

FEBRUARY APRIL 2019 2019 The largest annual mobile event, Snap national elections are held Mobile World Congress, is held in Fira in an attempt to stabilize Spain’s de Barcelona for the 13th consecutive political scene following the 2018 year, reaching an economic impact of vote of no confidence that ousted the EUR473 million. conservative PP party. The socialist party PSOE, led by Pedro Sanchez, wins the election, though still falling short of a majority.

DECEMBER OCTOBER 2019 2019 Barcelona prepares to implement its The Supreme Court sentences nine low emissions zone from January out of the 12 Catalan leaders being 2020, covering 95sqkm with the tried for sedition. With sentences promise of easing pollution and traffic ranging from eight to 13 years, this in the region’s central city. result prompts widespread protests across the region and growing demands for independence.

JANUARY FEBRUARY 2020 2020 The head of Catalonia’s regional The GSMA, the organizer behind the government, Quim Torra, announces annual Mobile World Congress event, plans to hold early elections at some announces its cancellation of the tech point in 2020 in order to stabilize the fair over COVID-19 concerns, a huge government following growing rifts blow to the industry. between the governing coalition and smaller independence parties.

MARCH FEBRUARY 2020 2020 As the number of confirmed COVID-19 Spanish Prime Minister Pedro cases surpasses 18,700, the Catalan Sanchez announces plans to meet government pledges to provide EUR80 the head of the Catalan regional million to fight it. At the same time, government, Quim Torra, to begin FC Barcelona players agree to a 70% discussions on the Catalan question. pay cut to ensure non-playing staff are supported. Image: Xxx 01 CITY GLOBAL the region’seffort tobranditselfthroughanum es that independent states enjoy. Despite that, which meansitlacks boththepowerandresourc because Cataloniaisnotanindependent state, the world.Thedriveisparticularly interesting between citizensofCatalonia and therestof courage citizenstocreaterelationships oftrust example, oneofDiplocat’smain plansistoen equally importantroletoplayas diplomats.For of theregion’swide-reachingdiplomaticefforts. na MayorAdaColau,providingagoodroundup Chambers ofCommerce(ASCAME),andBarcelo- from theAssociationofMediterranean Council of Catalonia (Diplocat), AnwarZibaoui ra ForasteriLloretfromthePublicDiplomacy er notablediplomaticfigures,includingLau outcomes. about theministry’sgoals,strategies,anddesired al Relations,andTransparency,whospoketous regional MinisterofForeignAction,Institution is openedbyAlfredBoschiPascual,theformer the region and the rest of the world. This chapter C According toForasteriLloret,citizenshavean The chapteralsofeaturesinterviewswithoth- Diplomacy initiatives thatpromotetiesbetween number oforganizationalbodiesand atalonia’s diplomacymodelfeaturesa - - - - - dom-loving.” ✖ ety thatispeace-loving, hardworking,andfree a global scale as “a dynamic and talented soci- instance, was astrongpromoterofthecity on tity asaglobalcitycontinue.Bosch iPascual,for suspension bySpain’scourts. tina, andMexicowereputunder acautionary plans tosendnewdelegations Tunisia,Argen political situation, the Catalonian government's their challenges.Forexample,duetotherecent that thesediplomaticmissionsarenotwithout representation withintheEU.Itmustbenoted with animportantfocusonBrusselstocultivate ration. SuchdelegationsmostlyexistinEurope, of Cataloniaandencouragetradecollabo tries, whereitworkstoshapepublicperception tions, andTransparency'spresencein12coun Ministry ofForeignAction,InstitutionalRela celona’s statusasaglobalcity.Thisexplainsthe different fromtherestofSpain. identity forthemselvesthatisbothuniqueand and privatesectorsareinsynccreatingan is furtherhelpedbythefactthatbothpublic organizations isnothingshortofimpressive.This ber ofregionalgovernmentagenciesandprivate Even still,effortstopromoteBarcelona’s iden One aspectofthisidentityismaintainingBar------Diplomacy 7 Barcelona Special Report

The Military Government of Barcelona building in Portal de la Paz square Ihicaer spelit magnimus. Lenduciis ne audit mi, cullabor a sitatem ea sit, officidis reptus. Quis entusciate et autem etur re ped qui ut volorem id et velictur Image: Bruce Alan Bennett Diplomacy 9 INTERVIEW

THE CITY with all the strings

Alfred Bosch i Pascual FORMER MINISTER OF FOREIGN ACTION, INSTITUTIONAL RELATIONS, AND TRANSPARENCY

Barcelona has long played a leading role in ensuring need to be in the EU whenever an agricultural deal is made, for example, since we have exclusive powers. Mediterranean integration continues in a progressive The same goes for education and many other social and prosperous fashion. aspects. That is why we have an office and a delega- tion in Brussels. It takes care of many things, though the important point is that it deals with all these is- What were your main responsibilities as the Minister of sues that are dealt with in the European Commission Foreign Action, Institutional Relations, and Transparency? or other European institutions. Otherwise, whatever We are best known for being responsible for any for- deals Spain conducts with the EU would not respond eign action involving Catalonia. It is a competitive to our administrative or economic reality. Apart from global world that we inhabit, and we cannot afford to that, we have institutional participation in things like lose ground. Apart from that, we have other responsi- the Committee of Regions, an official European in- bilities such as institutional relations, which include stitution in which we are also officially represented. bilateral relations with the Spanish government, Another example is the European Regional Develop- which is within my scope. The last part is what we call ment Fund (EFRD), which, apart from agricultural participation and transparency, which is telling peo- assistance, is our most important source of funding ple what we do, how we run our operations, and how from the EU. That has also been devolved. The part- we spend our money in an open and transparent way ner for receiving, administering, and deciding how with open data and whatever else is needed. With- those funds are allocated is the Catalan government. in the sphere of international relations, there is also An added factor is that we have historically and tra- aid and cooperation with countries in development, ditionally been very central in leading Euro-Mediter- where we sustain financing and promote a number ranean relations. There was the first Euro-Mediterra- of development projects. There is another aspect nean conference almost 25 years ago, and in 2020 we regarding the UN’s 2030 Agenda, which is not only are celebrating an important anniversary. The Union about sustainability, but also human sustainability for the Mediterranean, an EU organization, is head- in general. Topics such as poverty, gender inequality, quartered in Barcelona. We have traditionally been BIO and the urban agenda comprise a significant amount active in all kinds of networking on both shores of the Alfred Bosch i Pascual is the of work. We have a fair number of functions, though Mediterranean. The most important city network in former Minister for Foreign Action, Institutional Relations, most people identify us with international relations the Mediterranean, Med Cities, is also headquartered and Transparency of Catalonia. first. in Barcelona and is helped by many administrations. Bosch holds a BA in history In this regard, we still have a strong will and deter- from the UAB and a PhD on How do you ensure Catalonia is represented within the Nelson Mandela and the civil mination to act as a Mediterranean hub in leading a rights movement in South EU? more social and sustainable Mediterranean region, Africa. He was the leader of Regarding the EU, we do several activities. We carry apart from being an economically efficient base. the ERC on the Barcelona City out all of the functions associated with the fields where Council from 2015-2018 and of the ERC’s parliamentary we have exclusive powers recognized legally within Several new delegations are being opened abroad. What group in the Spanish Congress Spain. We have exclusivity when it comes to educa- is the status of those, and which markets are you looking from 2011-2014. He has been tion, healthcare, and general social welfare. That in- to expand the Catalan influence into? a university professor in Spain and abroad in addition to cludes agriculture and fishing. There are a number of We currently have 15 delegations, mostly in Europe, working as an international fields in which the Catalan government has fully de- but we are also present in the US, Mexico, Argentina, correspondent in 20 different volved powers. There are other things, among which and Tunisia. We want to be present on the five con- countries. He was involved in the organization of the Olympic are international relations, which have to be coordi- tinents and broaden our vision of international rela- Games of Barcelona in 1992. nated with the Spanish government; however, we do tions. ✖ 10 Barcelona Special Report INTERVIEW

Mayor Ada Colau aims to position INCLUSIVE Barcelona as an international example by developing strategic economic sectors that generate quality growth in occupation and growth, and addressing action inequalities and climate change.

Ada Colau MAYOR OF BARCELONA

Barcelona’s major challenge is maximizing space and the entire coastline is another such plan, ensuring Building more increasing access to decent housing. How is the 2016- greater capacity of our port and free zone. than 4,500 2025 Right to Housing Plan being implemented to tackle this problem? Barcelona has gained much traction recently as an inter- public housing In Barcelona, the real estate crisis meant that we national hub for start-ups and innovation. How are you buildings suffered a delay in terms of public housing policy. working to create an ecosystem that can continue foster- In similar cities, public housing accounts for 15- ing innovation and attracting investment? 30% of the total housing, but in Barcelona, it was When I took office, the 22@ district, where we have only 1.5%. To right this, we used the municipal opted for an economy based on technology and machinery and placed housing as a central ob- digitalization, was experiencing slow growth. We National jective of our government. We are building more are in a moment of greater growth in this area, government than 4,500 public homes, buying back buildings, with more space offerings and support for start- must enable and introducing new types of sustainable housing; ups. Most companies that come to Barcelona municipalities however, more structural measures are needed never want to leave because they find an active to deal with the rent bubble. The national gov- economic and technological ecosystem that helps to regulate ernment must enable municipalities to regulate them grow. This balance between quality of life, rental prices rental prices and end abusive increases. With the culture, services, and economy has allowed Barce- and end abusive new government, this will be possible. As a munic- lona to position itself as an exemplary city. increases ipality, we have approved a new measure that has created structural change: for some time, any new What are some of your main objectives for 2020? housing development in the city must make 30% We have to position Barcelona as an internation- of the housing built affordable. We have also fined al example while attracting strategic econom- those who have empty housing and use it solely ic sectors that generate quality occupation and for tourists. economic growth, and addressing inequalities and climate change. We must move toward a What is the strategic plan to ensure that Barcelona’s en- new green deal, in which we work hand in hand tire metropolitan area benefits from the city’s wealth? with administrations, companies, and citizens on There is no point in talking about Barcelona with- economic and social transformation. We need to out considering the entire metropolitan area. We strengthen strategic sectors, advance in energy must overcome center and periphery debates to rehabilitation, decarbonize transport and ener- deepen the analysis and better plan the entire met- gy, and support an economy committed to green ropolitan area. Regulating tourism in Barcelona is sectors. Recently, the European Institute of Inno- of no use if we do not carry out similar reforms in vation and Technology designated the MOBILus all the surrounding cities. The challenge of afford- consortium, led by Barcelona City Council, as a able housing can only be answered from a met- center for R&D in urban mobility at a European ropolitan view. The generation of wealth must be level. This represents an economic opportunity distributed throughout the metropolitan territory. that will mobilize EUR1.2 billion to find sustain- BIO Therefore, it is important to move toward greater able solutions to mobility. Finally, we will contin- Ana Colau is the current Mayor metropolitan governance and generate dynamics ue to place the issue of housing at the center of of Barcelona, a position to of shared sustainable growth. The commitment to our political agenda, which is essential in the fight which she was elected in 2015, an economy based on innovation, knowledge, and against inequality. Our fight will be dependent on becoming the first woman to hold the office. She is also sustainability requires metropolitan development the newly created Metropolitan Housing Operator a founding member of the plans. The Besós Plan is one such type of plan and and other initiatives for developers and compa- Platform for People Affected is a commitment to generate an economic eco-dis- nies. Speculation is not welcome in Barcelona, but by Mortgages, set up in 2009 in the wake of the 2008 financial trict of the municipalities that lie east of Barcelona good collaborative ideas that can increase afford- crisis. along the Besós river. Our development plan for able housing are. ✖ Diplomacy 11 INTERVIEW planning DONE RIGHT

Barcelona City Hall is assembling all the resources to improve the city’s Jaume Collboni Cuadrado tourism services and at the same time FIRST DEPUTY MAYOR, safeguard the rights of citizens. BARCELONA CITY HALL

Barcelona is a consolidated tourism destination. Addi- orities. For example, we are interested in attracting tionally, the city is gaining traction as a MICE destination. business investments that create quality jobs in Renovation of How important is it for the city to consolidate the tourism the technology and digital sectors, as they are bet- local markets sector? ter paid and more flexible. Barcelona is currently For Barcelona, tourism is a crucial source of in- ranked eighth globally in terms of work-life bal- will create come. In relation to MICE tourism, we are currently ance, according to the Cities for the Best Work-Life more cohesive the number-one city in the world in terms of num- Balance 2019. We are the best-ranked city in south- neighborhoods ber of delegates at international congresses, and it ern Europe, substantially ahead of cities around and stimulate is, therefore, a priority for us to continue strength- the world such as Paris, Vancouver, London, To- ening this sector. With this vision, we are dedicat- ronto, Sydney, and Milan. This proves, once again, the local ing ourselves to improving some key aspects, such that we are one of the best cities in the world in economy as our cultural offerings. We are adopting a sus- terms of quality of life. tainable mobility system and setting up the largest low-emission area in Southern Europe. We are also The Generalitat agreed that the Barcelona City Hall would Receives more working on crime prevention by increasing the collect part of the tourism tax. How will this work in prac- number of police officers. All these changes have a tical terms? than 13 million direct impact on improving the quality of life, both We are a city of less than 2 million inhabitants, and tourists annually for citizens and visitors. yet, throughout the year, we receive more than 13 million tourists. The dimension of tourist activity In an effort to foster local commerce, Barcelona is ren- in Barcelona forces us to constantly improve all of ovating some of its markets. Why is it important for the our tools in order to manage tourism properly. For economy to work on these emblematic markets? this reason, we have reached an agreement with We are currently promoting a constant modern- Catalonia’s regional government that the Barce- ization of Barcelona’s neighborhood markets, be- lona City Council will apply a surcharge to each cause we understand that these local markets con- tourist for the amount of days one stays in the city. tribute to improved social cohesion. Such spaces The tax will be a maximum of EUR4, and it may are fundamental to our urban model and for the vary depending on each specific neighborhood. All BIO identity of Barcelona. Therefore, in 2019, we made these extra resources will then be used to improve Jaume Collboni Cuadrado is improvements in almost 30 markets. In additon, the city’s tourism services and to offset the effects currently the deputy president of the municipal socialist we recently completed the renovation of the Sant of tourism on the city. group and the First Deputy Antoni and Bon Pastor markets. We will continue Mayor for economy, labor, carrying out actions along these lines. What are the main achievements that you would like to competitiveness, and finance. Prior to that, he was the see accomplished in Barcelona during your time in office? deputy mayor for business, The Barcelona City Hall is endorsing the eighth edition of Barcelona is, and has historically been, one of the culture, and innovation and the the Conciliation and Time Prize, known as Premi Concilia- leading cities in terms of quality of life, talent, in- vice president of social and economic development for the ció i Temps. What is the aim of this initiative? novation, digital economy, and entrepreneurship. Metropolitan Area of Barcelona. This award aims to recognize, promote, and dis- However, in the past few years, it has lost its rep- Moreover, between 2010 and seminate the work of companies committed to utation; therefore, we need to recover it as soon 2014, he worked as a deputy at achieving a better work-family-life balance for as possible. We aim to open up Barcelona to new the Parliament of Catalonia. He also held managing roles at the employees. These are companies that implement public and private investments, ensuring sustain- national level at UGT, and acted measures to make it easier for employees to better able and inclusive economic growth. I want to do as a member of the Economic organize themselves, while simultaneously im- all this while making sure the city guarantees all and Social Council of Spain. A lawyer by profession, he got his proving the internal organization of the company. the social rights of its citizens, such as access to degree from the University of Promoting work-life balance is one of our top pri- housing. ✖ Barcelona. 12 Barcelona Special Report GUEST SPEAKER

Tijjani Muhammad-Bande PRESIDENT, UNITED NATIONS GENERAL ASSEMBLY

The UN will celebrate its 75th anniversary in “The impact of new 2020. What are the primary goals of the Gen- eral Assembly? technologies has a As we look forward to the 75th anniver- security dimension sary of the UN’s founding, it is important to acknowledge the challenges that that must be seriously confront us, as well as the opportunity considered to mitigate for the UN as a multilateral institution to highlight its key role in tackling complex risks and prevent global problems. As president of the 74th session, I will focus on promoting peace conflicts.” and security, with a special emphasis on conflict prevention. Strengthening global that this will make nature and climate STRONGER action to tackle climate change is inte- change mainstream in all key political, gral for the effective implementation of economic, cultural, and social decisions, the SDGs that will naturally receive my and more so as environmental pollution together attention. I shall also give high priority and climate change pose grave threats to to inclusion, human rights, and the em- humanity as a whole and to agriculture, powerment of youth and women. Above food, and economic security. I hope that all, my presidency will adopt measures to world leaders will send the strongest sig- Under Tijjani Muhammad- strengthen partnerships for the purpose nal at the summit on the need to reverse Bande’s leadership, the UN of advancing the achievement of the the loss of biodiversity and to protect and is adopting measures to SDGs, in general, and for poverty eradi- restore nature by 2030. advance the achievement of cation, zero hunger, and quality education, in particular. During the 74th session of the General Assem- the Sustainable Development bly, Spain recommitted to tackling security Goals, with a particular focus on The UN will hold its ‘biggest-ever global con- within the UN’s framework to face growing poverty eradication, zero hunger, versation’ on the future of the planet to ad- global security concerns including cybersecu- dress issues such as climate change. What is rity, nuclear non-proliferation, and terrorism. quality education, and climate the strategic plan in terms of addressing the What is the role of collaboration and legisla- change. outcomes of this conversation? tion in addressing these threats? The General Assembly is the space for When it comes to global security threats, dialogue and consensus building. The it is essential to have dialogue and build Biodiversity Summit, also known as the agreements based on consensus. Col- Nature Summit, is an important oppor- laboration between countries is crucial tunity and milestone to highlight the for a successful fight against security planetary emergency and to accelerate threats. The threat of a nuclear war still action for people and the planet. Accord- exists and cannot be ignored. Any use of ing to the 2019 World Risk Report, bio- nuclear weapons would be a humanitar- diversity loss and other climate-related ian and ecological catastrophe and cause factors are among the top-10 global risks irreparable damage to communities and for 2019. And 10 of the 21 targets of the livelihoods. Nuclear disarmament is, SDGs set to mature in 2020 are related to therefore, one of the UN’s top priorities. biodiversity, so 2020 will be a critical mo- When it comes to terrorism, what affects ment for environmental decision mak- one country affects all. There is a need for ing. The global biodiversity framework all states to adopt and stringently imple- BIO for post-2020 is expected to strengthen ment counter-terrorism laws at a nation- Tijjani Muhammad-Bande is the the linkages between and among diverse al level. Furthermore, implementation President of United Nations General Assembly. He earned a bachelor of initiatives, notably, the 2030 Agenda should not end at countering terrorism, science Ahmadu Bello University, a for Sustainable Development, the Par- but should place high emphasis on pre- master of arts from Boston University, is Agreement on Climate Change, and vention. The impact of new technologies and a PhD in political science from the University of Toronto. As a permanent other relevant processes adopted under has a security dimension that must be representative, he worked with the biodiversity-related conventions. seriously considered to mitigate risks and colleagues from all regions of the The Biodiversity Summit will build on prevent conflicts. I have in mind the issue world in pursuit of common objectives. the political momentum from the cli- of cybersecurity. “Do no harm” should He served as vice president of the assembly’s 71st session and was active mate and SDG summits in New York in be the first and foremost principle gov- in several other forums, including September 2019. As president, I will call erning the internet. To make it a reality, as chair of the special committee on on world leaders to set ambitious com- all states and stakeholders in the digital peacekeeping operations and member of the advisory board of the United Nations mitments for nature and find robust world must refrain from any malicious Counter-Terrorism Centre. nature-based solutions. It is my hope activity contrary to international law. ✖ Diplomacy 13 GUEST SPEAKER bound by FRIENDSHIP As southern European states and close partners in the EU, Cyprus and Spain are tackling common challenges such as rising sea pollution, climate change, and growing migratory flows.

Nikos Christodoulides MINISTER OF FOREIGN AFFAIRS, GOVERNMENT OF CYPRUS

Diplomatic relations between Cyprus and the planning of tourism development, The successive credit rating upgrades Spain were established in 1967. How do you and the overall political supervision of since 2015 and the country’s return to evaluate relations between the two nations the tourism sector. Over the past de- investment-grade rating in 2018 have today? cade, Cyprus has established the sun attracted significant FDI flows from the In 2018, we celebrated the 50th anni- and sea model, which can now serve US, Asia, Russia, and the Middle East. versary of the first exchange of ambas- as the backbone that allows us to go The sectors recording the highest FDI sadors between Cyprus and Spain. We for the more detailed and special forms volumes are banking, shipping, retail, have come a long way since then. The of tourism. In this respect, the Deputy tourism, pharmaceuticals, and ener- two countries are bound by tradition- Ministry of Tourism is in the process gy. The main reasons behind this are al friendship, as well as European and of finalizing the National Strategy for positive economic outlook, access to Mediterranean solidarity. We share the Tourism for the 2020-2030 period. The the EU, an attractive and transparent same values of democracy, rule of law, opening of new markets and upgrading tax regime, low cost of doing business, freedom, and respect for human rights, of the quality of the Cyprus tourist prod- strong business support services, and and cooperate within the EU and in in- uct that could boost tourist arrivals to 5 a highly skilled workforce. Last but not ternational fora. As southern European million by 2030 are the main targets of least, the government is committed to a states and close partners in the EU, we the 10-year strategic plan. On the other continuous reform effort, modernizing share the same goals and aspirations. hand, the private sector is collaborating legislation, introducing incentives, and At the same time, we are faced with the with Greece, Israel, Egypt, Lebanon, and simplifying licensing procedures for in- same special challenges, such as in- Jordan to sell joint holiday packages. In vestors. ✖ creased levels of sea pollution, climate the short term, the primary target is to change, and growing migratory flows, to develop new markets, enhance Cyprus’ name a few. This makes our cooperation presence abroad, and improve and up- all the more meaningful, in terms of not grade Cyprus’ tourist products by pro- only addressing challenges within the moting specialized forms of tourism, EU, but also to reach collective solutions such as cycling, gastronomy, sports, re- with our neighbors in the Middle East ligious pilgrimage, health, and wellness. and North Africa. I note with satisfaction Making Cyprus an all-year round desti- that our bilateral cooperation has devel- nation will create jobs and boost regions oped to an excellent degree, in various that may have been left behind, such as fields, and I am confident we can con- mountainous and rural areas. Cyprus is BIO tinue to elevate our ties to even higher fully ready in terms of infrastructure to Nikos Christodoulides is the Minister levels, especially in areas such as trade, welcome more tourists, as it has reno- of Foreign Affairs of Cyprus. He was a career diplomat between 1999 and investment, tourism, and education. vated hotels, new marinas, and the in- 2013. During this time, he served as tegrated casino resort that will open in director of the office of the Minister In 2018, almost 4 million tourists visited Cy- 2021. of Foreign Affairs, spokesperson of the Cyprus Presidency, deputy chief prus, a 7.8% increase YoY. What is Cyprus do- of mission at the embassy of Cyprus ing to further boost tourism? In recent years, Cyprus has been ranked in Greece, director of the office of the In 2018, tourist arrivals reached a new among the top destinations for attracting permanent secretary of the Ministry of all-time record of 3.94 million. Given FDI, which totaled USD224 million in 2018. Foreign Affairs, and consul general at the high commission of the Republic of the importance we attach to the devel- What makes Cyprus an attractive destination Cyprus in the UK. He holds a bachelor opment of the tourism industry, we have for FDI? of arts in political science, economics, created the Deputy Ministry of Tourism Following the recession of 2013, Cyprus Byzantine and modern Greek studies from City University of New York and a in order to facilitate the implementa- surpassed international expectations postgraduate degree in political science tion of necessary horizontal policies, with regards to its growth performance. from New York University. 14 Barcelona Special Report FOCUS Regional agencies

SOFT POWERS

BARCELONA, AND THE CATALAN perts. By integrating efforts with start-ups, schools, REGION AS A WHOLE, USES ITS and NGOs, they aim to open up dialogue among REGIONAL AGENCIES FOR A NUMBER stakeholders, promote Barcelona as a think-tank, OF ACTIVITIES, INCLUDING SOFT and create an international network of experts in the field. Operating on a global scene allows them POWER, INNOVATION, AND INCREASING to address and tackle pressing economic and so- CULTURAL AWARENESS. cial challenges, which require strong diplomatic solidarity. In coordination with the city council’s international activities, Barcelona’s city diplomacy works to establish a democratic image that celebrates THERE ARE A NUMBER OF DIFFERENT indepen- ethnic diversity, gender equality, and global jus- dent organizations that are devoted to consoli- tice. The diplomatic strategy to achieve these goals dating Barcelona’s image as a global city across can be divided into two different areas. The first the Catalan region. These groups work both in- is partnering with global organizations to share dependently and collectively to coordinate their knowledge and develop common policies, and diplomatic efforts on national and regional levels, the second focuses on reinforcing the region’s while also maximizing their reach. Given the po- role in international networks. Without relying litical turmoil surrounding Catalonia’s bid for in- on hard military force, Catalonia takes advantage dependence, these diplomatic organizations have of its rich culture to win the hearts and minds of reinforced their commitment to differentiating the everyone and boost the nation’s image. This form region from the rest of Spain. One such example of cultural diplomacy makes it increasingly hard is Diplocat, a public-private consortium that was to disentangle culture from diplomacy. Since the first created in 2012 for the purpose of public diplo- fall of Franco’s regime, for example, “El Clásico” macy. The organization’s history perfectly demon- games between Real Madrid and Barcelona have strates its unique position as a body for diplomacy represented much more than just a football game, that does not function at a state level. Testament to but rather a conflict of interests and political histo- this is the fact that the organization was shut down ry. It is no surprise that FC Barcelona is the crown by the Spanish government in 2018, as a result of jewel of the city’s image both at home and abroad, the latter invoking Article 155 to temporarily seize reflecting both the region’s identity and its de- control of the region following the 2017 referen- sire to be seen independently of the rest of Spain. dum held on Catalan independence. Hence, many in Catalonia display great loyalty Barcelona’s recognition as an innovation capital and support for the Catalan movement both on comes from its major contributions to research in and off the football pitch. Art and music in Catal- science and technology. In order to position itself onia, have also served in operating as soft power. as an important geopolitical player, it has shifted Recently, an exhibition of Antoni Tàpies art was to channeling innovation and research into world- held in Barcelona. The artist’s political work under wide issues such as climate change. The resulting Franco’s reign evokes a consistent commitment to sense of shared responsibility evoked by these dip- Catalonia’s social justice, as a son of a Catalan na- lomatic actions frames Catalonia as a reliable part- tionalist. The Antoni Tàpies Foundation is one of ner in a global context. To emphasize this, Barcelo- many art and culture organizations in Barcelona to na became the first city in the world to implement subtly address controversy on political autonomy. a science and technology diplomacy strategy. Nonetheless, the majority of these art movements SiTech diploHub, for example, is a non-profit sci- struggle to overcome their financial dependency ence and technology diplomacy hub in Barcelona, on Spanish governments, which limits their ability led by scientists, engineers, and public policy ex- as a soft power. ✖ Diplomacy 15 Image: Hadrian 16 Barcelona Special Report B2B

MR We have six main pillars: connection, initiative, soul, contrast, talent, and commitment. The city has been able to reinvent itself several times and is always looking for new challenges. Soul and contrast are two unique pillars. We have a strong tradition of welcoming people from abroad. Some 20 years ago, around 3-4% of the city’s population was foreign, while today that number is around 18%. Our ability to integrate these people into the city is great compared to other cities. We have an equalizing social fabric. The work- Mireia Ingla i Mas Mario Rubert life balance we are famous for is crucial for MAYOR, CITY PROMOTION DIRECTOR, attracting talent. If we are able to generate SANT CUGAT CITY COUNCIL BARCELONA CITY COUNCIL an ecosystem that welcomes people and makes them feel comfortable, more companies will choose Barcelona over other cities. PUBLIC POLICY Sant Cugat, Rubí, and Cerdanyola created the Catalonia Investment Triangle (CIT). What is the aim of this alliance? Sant Cugat City Council and Barcelona City Council have introduced a host of initiatives to build the Catalonia brand and make the region MIIM We created CIT to strengthen col- a magnet for investment and talent. laboration with the neighboring towns of Rubí and Cerdanyola. Through CIT, we promote investment in the area by creating stronger alliances between municipalities. The CIT area has 11 business centers and 21 industrial areas. Seven of those in- In 2018, the Metropolitan Council of Barcelo- 80 activities during this community day, dustrial parks are in Sant Cugat. We have, na approved a flat-rate tariff for public trans- had nearly 100 exhibitors, and attract- for example, come up with a joint signal- portation for 18 municipalities, including Sant ed more than 5,000 people. Our third ing system for geolocalization that can be Cugat. What are your views on this measure? area of activities relates to supporting used by all logistics companies in the area. the Barcelona brand and its reputation, MIREIA INGLA I MAS We are extremely which we have worked hard to develop. How can an equilibrium be achieved between in- pleased to be part of this program. This ternational success and quality of life for locals? was a historic request from the people What other initiatives are in place to further of Sant Cugat to be better connected integrate Sant Cugat in the metropolitan area MR This is the million-dollar question to Barcelona, the capital of Catalonia. of Barcelona? that every major urban area in the world In exchange for that flat-rate tariff, we must face. We must combine our efforts contribute through a tax to the munic- MIIM Due to our geographical location, and recognize that solutions must be de- ipality of Barcelona that includes other we have closer ties with Barcelona than veloped with a sense of common respon- services, like garbage collection. This tax the rest of the Vallès Occidental region, sibility. For example, local governments is charged by the metropolitan council; which we belong to. Our connection are taking initiatives aimed at regulating thus, the Sant Cugat municipality does with Barcelona is evident because we rental price increases. We are also trying to not participate in its collection. have grown significantly over the last few increase the number of locals that can live years, in part because we have received and work in the city. What are the main responsibilities of your de- many people coming from Barcelona. partment? The quality of life and all the opportuni- The Financial Times Group chose Catalonia as ties that Sant Cugat offers are attractive. the best region to invest in for two years in a row. MARIO RUBERT We basically do three The socioeconomic profile of our popu- What are the reasons behind this? things. We work to promote Barcelo- lation is high, and the businesses locat- na abroad to attract foreign economic ed in Sant Cugat are of great relevance. MIIM Barcelona and Catalonia have the ca- activity. We do more than 30 activities The environment is diverse, and we have pacity to attract people with an innovative a year in concrete markets to promote large companies located here. We are and entrepreneurial mindset. Catalonia the main economic sectors. Second, we home to several scientific parks, includ- has a great deal of talent thanks to schools make things easier for foreign workers ing biotech and pharma companies like and universities that foster innovation. We coming to Barcelona through a 360-de- Boehringer Ingelheim, Roche, Ferrer, aim to further promote and support fe- gree plan. We hold an annual fair called and Grifols. male entrepreneurs. We have many start- International Community Day where we ups and coworking spaces, but we want to offer public and private services to ex- What are the pillars on which Barcelona must have an entrepreneurial center to facilitate pats. In 2019, we organized more than build its brand and identity? the ease of doing business in Sant Cugat. ✖ Diplomacy 17 VOICES FROM THE SECTOR

Laura Foraster i Lloret SECRETARY GENERAL OF THE PUBLIC DIPLOMACY COUNCIL OF CATALONIA (DIPLOCAT)

Anwar Zibaoui How are you working to raise greater awareness of the benefits of COORDINATOR, Barcelona? ASSOCIATION OF Promoting Barcelona and the rest of Catalonia to the world, with Andreu Mas-Colell THE MEDITERRANEAN its many values and assets, is our way of attracting not only more EMERITUS PROFESSOR CHAMBERS OF foreign investment, but also more Erasmus students, tourists, and OF ECONOMICS, COMMERCE (ASCAME) top researchers. Of course, we are not alone in this mission. We UNIVERSITAT POMPEU work closely with Catalonia Trade and Investment in the business FABRA & PRESIDENT, ASCAME represents more than field, with Institute Ramon Llull when we do cultural diplomacy, BARCELONA INSTITUTE 300 chambers of commerce and and with the Catalan Tourism Board in matters related to tourism. OF SCIENCE AND the private sector of the Medi- We look for partners so we can provide them with the tools of pub- TECHNOLOGY (BIST) terranean. How did it begin, and lic diplomacy and our expertise in terms of international contacts, how has it evolved? and in return, they can provide us expertise of their specific field. The Financial Times has voted ASCAME has grown into an Catalonia the best region for extensive network and has What do you do to promote tourism? foreign investment for two con- consolidated itself as an entity Tourists flood to Barcelona and Catalonia, so little promotion secutive years with a focus on that represents the interests needs to be done. Moreover, the Catalan Tourism Board does a R&D, technological innovation, of the Mediterranean private wonderful job. We do try to go beyond Barcelona when we orga- and competent human talent. sector. This consolidation nize our programs. For example, we have been promoting tourism What conditions does this city is nothing more than a step in cities such as Sitges, Manresa, and Arenys de Mar. We want to offer that make it such a hub? forward in our mission, which show the country as a whole, and this is important because more Investors find in Barcelona every day has new challenges, than 30% of our board comprises Catalan municipalities. a metropolitan area where considering the reality of the it is comparatively easy to region. ASCAME is the voice of recruit the required talent, be the economy and the private it groomed by excellent local sector before major institution- universities and business al and economic actors, help- schools or attracted directly ing the chambers to promote from abroad. The cosmopol- and participate in the key areas Vinton Cerf itan atmosphere of the city of Mediterranean development VICE PRESIDENT & with an airport well-con- and offer a coordinated and CHIEF INTERNET EVANGELIST, nected to the world is one of synergistic response. Through GOOGLE its main competitive edges. ASCAME, the chambers influ- Good schools and a first-rate ence and participate in the key Barcelona has been gaining much international recognition for being public health system also help. issues that drive and condition an innovation hub, particularly in terms of new technologies. What By now, the scientific and development and growth, makes Barcelona unique in this regard? technological sectors have offering a perspective clearly I have many friends in Barcelona and Catalonia, and they share an reached critical mass and are focused on the Mediterranean entrepreneurial spirit driven by curiosity and a desire to explore in a phase of sustained growth. region. ASCAME represents new ideas. One of the earliest municipal internet services, TINET, At the same time, costs remain the business interests of the was born in Tarragona, and technology start-ups have followed, contained. Mediterranean chambers and driven in part by a highly educated workforce that is willing to take companies by working closely risks. I recall an innovative motion capture studio I visited that As former regional minister with policymakers, stake- used real-time technology to capture the motion of actors and of universities, research, and holders, and opinion leaders. translate it into computer-generated images. information society, what are the ASCAME's work as an interloc- strengths of the Catalan universi- utor is recognized by relevant Since 2013, you have been on the Council of the Cybersecurity Board ty system? And what should be regional and international of Advisors. What ought to be the strategic plan to address cyberse- incentivized or improved? institutions through numer- curity? Catalan universities do a ous collaboration agreements We need to develop operating systems that are much more good job at training students and joint participation in a resistant to hacking. We need to introduce high-quality, two-fac- and, therefore, at providing large number of cooperation tor authentication to protect users from hackers. We need to use excellent professionals. This projects. ASCAME occupies a cryptography to protect confidentiality. Social media is proving to is a recurring observation of prominent place in the field of be a powerful megaphone for voices that might not otherwise be the multinationals that have cooperation between cham- heard, but this amplification is also being abused by actors with invested, or plan to invest, bers of commerce, cities, and harmful intent. We need to establish cooperative agreements at in Catalonia. That said, we companies in the Mediterra- the international level to apprehend people engaged in behaviors should strive to sharpen their nean region. harmful to the general public and institutions. effectiveness. Barcelona Special Report

Ihicaer spelit magnimus. Lenduciis ne audit mi, cullabor a sitatem ea sit, officidis reptus. Quis entusciate et autem etur re ped qui ut volorem id et velictur Image: Denis Mironov Image: Xxx 02 PERFECTION ALL-ROUND Investment, allworking tohighlight’sBarcelona’s tiva, BarcelonaGlobal, andCataloniaTrade sented through organizations likeBarcelonaAc- future intermsofitstransitionto Industry4.0. rich and varied, but also for the city and region’s the ecosystem, which isincreasingly becoming city. Thesedevelopmentsnotonly bodewellfor their southernEuropeanheadquarters tothe well-established multinationalsarealsomoving SMEs makeupthevastmajorityofeconomy, Glovo, Wallapop,Reby, and Cooltra.Although ups thatstartedtheirjourneyinBarcelonaare start-ups. Some of the most successful start- Barcelona is now home to approximately 1,197 celona Activa’s2019Start-upEcosystemreview, ture and stabilize by the day. According to Bar- celona’s start-upscene,whichcontinuestoma- diversified inrecentyears.AcasepointisBar both competitivenessandflexibility. novation andIndustry4.0technologies,ensuring recent yearsbytheregion’scommitmenttoin cess of these industries has been perpetuated in the region,accountingforabout12%.Thesuc with tourism, another major source of income in gion’s economy,makinguparound21%ofGDP, health. Industrycontinuestodominatethere and beverage,pharmaceuticals,chemicals, omy thatthrivesonsectorssuch as retail,food has keptitsreputationsince,buildinganecon- The region’seconomicinterests are wellrepre Catalonia’s economyhasbecomeallthemore I Economy that datesbacktothe19thcentury.It nia hasatraditionofindustrialactivity t iscommonknowledgethatCatalo ------to come.✖ celona maintain itscompetitiveedgefordecades celona Activawill goalongwayinhelpingBar Rest assured,initiativesoforganizations likeBar- promoting acultureofinclusion andinnovation. ny’s programshavetwomissions, oneofwhichis CEO, FelixOrtega,notedthatall ofthecompa for children.TalkingtoTBY,Barcelona Activa’s boost vocations through educational programs LIDERA forwomenandSTEAM,whichworksto gap throughanumberofprojectsincluding challenge, BarcelonaActivaisbridgingtheskills only inCataloniabutworldwide.Tocounterthis the righttalent—aresourceinhugedemandnot economy asawholeisattractingandretaining itize corporatesocialresponsibility. vative techhubandpushingcompaniestoprior on promotingBarcelona’spotentialasaninno- acquisitions. Equallyimportant,theplanfocuses of companiesthroughexportsandmergers that includespromotingtheinternationalization 13 otherchamberstoexecuteastrategicplan roadmap fortheeconomyandjoinedforceswith Barcelona ChamberofCommercehasdesigneda exclusively focusingonBarcelona.Tothisend, distribute wealthacrosstheregion,ratherthan ent private-andpublic-sectorplayerstobetter the importanceofcollaborationbetweendiffer na ChamberofCommerce,whounderscored ter wasJoanCanadell,thePresidentofBarcelo ate wealthoutsideofBarcelona. key sectorsontheinternationalstageandgener- The biggest challenge for businesses and the A notablefigureweinterviewedforthischap ------Economy 19 20 Barcelona Special Report INTERVIEW can’t stop WON’T STOP

Joan Romero CEO, CATALONIA TRADE & INVESTMENT (ACCIÓ)

Smart and nimble responses to the 2007 financial crisis have helped make Catalonia the number-one region in southern Europe for investment.

Working on cluster How has the agency evolved since its creation? It forced our companies to find their way in the policies for ACCIÓ is the Catalan government agency in international market. Furthermore, we are now charge of FDI promotion. It helps Catalan com- facing on-going revolutions, like Industry 4.0, panies internationalize and innovate, working which involves challenges that we must face very 26 from both its headquarters in Barcelona and the differently to how we have in the past. We used to years 40 offices around the world that collectively cover have many constants with only one value that was 115 markets. It is a dynamic organization that was changing. Now, changes come from many direc- created in 1985 and has evolved significantly since tions, from consumers, the process, technology, then, always trying to adapt to the needs of Cat- the materials, and more. It is a huge revolution alan industry. The agency opened its first inter- that evolves on a day-to-day basis, and imminent national offices in Tokyo and New York 30 years changes are harder to predict. If a company wants ago, and the office network has handled more to continue exporting, it has to incorporate new than 20,000 company projects to date. The agency technologies into its processes, products, and also works actively on promoting clusters; in fact, business models. In the automotive sector, for ex- Catalonia was a pioneering region internationally ample, if we move toward electric vehicles, there when it began to put public promotion policies for will be a lot of companies producing parts for clusters into practice a quarter century ago. petrol-powered cars with no market. They need to change and take into consideration the new What have been some of ACCIÓ’s recent projects? products they should be developing for a broader As an agency, we have traditionally been firmly sector. committed to internationalizing Catalan companies. In fact, for the last eight years Catalonia has How important is FDI for Catalonia? been consistently breaking records in terms of It is crucial for the economy: Catalonia has attract- BIO exports. For example, we are working above all to ed EUR23 billion over the last five years, 45% more Joan Romero holds a degree in minimize internationalization barriers via a spe- than the previous five-year period. We have 8,600 economics from the University cific team that helps SMEs export to the UK after multinational companies that are the motor of of Barcelona, a master’s in operations management, and a Brexit or the US after its new agro-tariffs. But now our economy and that work with many local com- DAF diploma in operations and is the time for innovation. Today, we have a clear panies. We try to have as much foreign investment innovation, both from ESADE. strategy focused on digitalization and new ways to as possible, such as in R&D, where Barcelona and He taught Spanish and world economics as a professor at the innovate both locally and worldwide with multi- Catalonia are highly competitive. In this sense, University of Barcelona. He has ple cooperative programs in other regions includ- our offices and strategy here are mainly focused participated in the preparation ing Israel, South Korea, Chile, Germany, France, on attracting technological projects, R&D centers, of several public policy plans: the Catalan Agreement on Scotland, and more. In 2020, we have decided to and industrial investments (both greenfield and Industry; several research and go even further and have launched an initiative reinvestments) through tailor-made projects. Our innovation plans of Catalonia; called Catalonia Exponential, through which we international offices work to get Catalonia on the the Catalan Agreement on Research and Innovation; and help the more disruptive companies contrast their shortlists of these projects. It is worth mention- different CIDEM and ACCIÓ projects in different international innovative envi- ing that the Financial Times Group recognized strategic plans. He has also ronments, such as Silicon Valley. Catalonia as southern Europe’s top region for conducted annual research and investment in 2018-2019. It also gave an award innovation reports on Catalonia as well as the annual innovation Where is the urgency for innovation coming from? to Catalonia for having the best FDI attraction barometer. The 2007 crisis was a crucial point for everyone. strategy. ✖ Economy 21 INTERVIEW eyes on THE PRIZE

With a global network of trade offices in more than 100 locations around the world, ICEX works with José Ignacio Pradas Poveda regional development institutes on REGIONAL DIRECTOR (CATALONIA), ESPAÑA the internationalization of Catalonian EXPORTACIÓ E INVERSIONES companies. (ICEX)

What were the origins of ICEX, and how has it evolved? The business climate is stable, which is why Bar- Created ICEX was established 32 years ago through the celona receives highly valued assessment from natural evolution of different services supporting entrepreneurs and venture capitalists. The Span- Spanish exports. ICEX has evolved in line with ish economy is the fifth largest in Europe, the 32 the economy of the country. We focus on pro- fourth largest in the EU, and it is diverse. We cover years ago moting exports and investments. We have certain all sectors, but we focus on SMEs because they are branches set aside for attracting FDI. I am the re- the most affected by the lack of information relat- gional director of ICEX, which is in close contact ed to international markets. Large enterprises are Over with Catalonian companies and firms. We assist also our clients. We also help companies in tradi- them in connecting with the whole batch of ser- tional sectors with their digitalization strategies. vices that ICEX provides. We also connect them to This is the only way they can survive and prosper. a global network of trade offices in more than 100 In terms of training, we are implementing our 100 locations around the world, from which we cover Digital Cross Border program, which helps CEOs locations around the nearly 200 countries. Our main goal is to provide of SMEs become more familiar with digital skills world and be in connection with this two-pronged net- and the strategic importance of digitalization. We work, locally and globally. have trained 25 CEOs of Catalonian enterprises, mainly SMEs. This was a huge success, and What measures are in place for you to attract FDI into will be repeated in Girona in 2020. There will be Spain? 25 such programs all throughout Spain. One of This is a centralized issue and service, so it is dealt the companies we work with is TGD, the largest with primarily through our headquarters. How- cheese producer in Spain. This program will help ever, I support regional development institutes it become stronger and face foreign competitors. in some cases, for example ACCIÓ or local facil- While the expectations are higher, so is the return BIO José Ignacio Pradas Poveda itators such as Barcelona Activa. We work closely on investment through this process of digitaliza- is the Regional Director with them in supporting internationalization of tion. of ICEX. A member of the Catalonian companies. Training is a major part of Spanish Corp of Industrial what we do, and every year ICEX grants nearly 300 With the overarching aim of internationalization, do oth- Engineers since 1994, he has vast international experience students the opportunity to specialize in interna- er regions present opportunities for Spanish and Cata- in the fields of industrial, tional business or marketing. This can be B2B or lan companies? energy, and innovation. At B2C, or it can also be in relation to international It depends. For example, the average SME in Spain the European level, he has officially represented Spain financial institutions. The purpose of these 300 should look at Portugal, France, Germany, and It- as deputy managing authority highly qualified students is to provide fresh blood aly. These markets are close. Eventually, they can of the European Maritime and to the economy. Other entities also try to provide find channels into Poland and Eastern Europe. Fisheries Fund (EMFF). He is a specialist in European funding such services with more targeted seminars related This is not only in terms of exportation but also and multilateral institutions, to internationalization, finance, and regulations. collaboration, which is another area on which we and has launched several Our main task is the organization of workshops should focus. Companies should integrate tech- collaborative endeavors related to the engineering industries, devoted to covering the sector and geographical nology transfer into their strategies. It is import- such as the technological approaches. ant to gather the information that makes Spanish platform on advanced businesspeople safe in terms of resources. We manufacturing (Manu-KET) and The Financial Times Group has ranked Barcelona the want to focus on traditional European markets. In the clusters on electric vehicle infrastructure (Aedive) and best place in southern Europe for start-ups. Can you Spain, we should not take for granted the fact that smart city industry. elaborate on this? it is easy to access a number of markets. ✖ 22 Barcelona Special Report INTERVIEW

Barcelona Chamber of Commerce’s LEADING primary task is to carry out as many actions as possible to propel Barcelona’s economy, with a special from the emphasis on self-employed people and front SMEs.

Joan Canadell PRESIDENT, BARCELONA CHAMBER OF COMMERCE

Represents more than Can you briefly explain the main services of the chamber? will work for the next four years. One of the biggest Simply put, the Barcelona Chamber of Com- steps that business people have to take is not just merce’s goal is to boost the economy. In our case, to export, but conduct M&As or open new branch- 400k we focus on spurring growth around the province es abroad. At present, 80% of the Catalan economy companies of Barcelona. Our main task is to carry out as many is centered in Barcelona, so we want to diversify it actions as possible to propel Barcelona’s economy. and develop other regions. For example, we see an We represent more than 400,000 companies, with opportunity to attract tourists to other parts of the our services being mostly oriented toward self-em- region. To that end, we are moving from a touris- ployed people and SMEs, because large companies tic-industrial model toward a value-added orient- already have their means. That does not mean we ed economy. Furthermore, Barcelona will become do not represent large corporations. For example, a technology hub in the next 20 years. At an entre- we can lobby with the local government if a large preneurial level, local companies are being estab- company asks us to do so. That said, we do not nor- lished on a regular basis. Customers are becom- mally provide a specific service to large companies. ing more demanding, so companies have to start Our daily operations are for SMEs and self-em- thinking of corporate social responsibility. Another ployed workers, who together represent 99% of the goal is to become more self-sufficient in terms of economy. energy, which is an area with much room for improvement. These aims will be more feasible if we What goals are you planning to accomplish through your can establish certain institutions that can back all trade missions? the goals that we want to achieve. The missions try to create a communication channel between Barcelona-based companies and What is the main challenge that you are facing? international companies. Every case is different We have overcome our biggest challenge, which because it depends on the market and country but was developing a roadmap for the Catalan region. the end goal is always to form ties between Barcelo- Our goal as a chamber is to lead the way, but we na and other international destinations. Our main cannot achieve this alone. We are working with all markets are Africa and Latin America. Additional- the stakeholders to structure this project in a way ly, Asia and the US are growing tremendously, and that ensures Catalonia can improve its economy so are their ties with Catalonian companies. There over the next 10 years. are many companies in Catalonia that export up BIO Joan Canadell is the President to 80% of their entire production to probably 50 What is your relationship with other chambers? of Barcelona Chamber of countries, with SMEs being no exception. Catalo- Chambers normally work independently. The Commerce. He has a degree in nian businesspeople have traditionally been open Chamber of Spain brings all chambers together, industrial engineering degree from E.T.S.E.I. Barcelona and to the world. In the last 40 years, Catalan compa- though at a structural level it does not coordinate a master’s degree in marketing nies just exported 35% of their production, and we with the rest of the chambers. We have a council of from the Institut Català de currently export 65%. In the coming years, compa- chambers in Catalonia that coordinates with all the Tecnologia. He is the co-owner nies will export 80% of their production. regional chambers. of Petrols Independents, manager of BCN Cluster Graphics, and owner of Giracat. Can you elaborate on your economic development plan? What are your main goals for 2020? He is also co-founder of CCN. The plan is led by us, but has been jointly developed In 2020, we want to start implementing our road- He has been the national secretary of the ANC since by 13 chambers in Catalonia. The economic devel- map. Soon, we will start developing the 15 bullet May 2018. opment plan has 15 bullet points around which we points for our Catalonia 2030/40 project. ✖ Economy 23 B2B

Since 22@ is described a network, what benefits are enjoyed by the institutions that participate in it?

XM We are indeed a group of institutions that comprise universities, companies, and other organizations representing a total of 25,000 people connected through the network. The main benefit is having the chance to be a part of the innovation, human capital growth, and business success that comes with having many stakeholders of the digital industry working in Pau Guardans i Cambó Xavier Monzó the same space. It has been proven that PRESIDENT, PRESIDENT, there is a significant increase in produc- BARCELONA GLOBAL 22@ NETWORK tivity when a group of companies with mutual objectives are located close to each other.

Does Barcelona need more diversification BRANDING BARCELONA away from innovation? PGIC The idea of cities being oriented to Barcelona is world renowned for its entrepreneurial spirit but one activity is part of a vision of what is Barcelona Global and 22@ Network are two organizations that are happening today. For example, there turning it up a notch and making the city a magnet for talent and are people working for the market here who concentrate on the digital world investment. or tourism. However, something interesting that is happening in Barcelona is that people are moving to Barcelona to work remotely. If we want to succeed as a global hub in the long term, we have to How was Barcelona Global founded, and how es and activities. Moreover, according to create the conditions that will help re- has it evolved? the plan, part of the tall buildings spread mote workers serve markets across the across the district were transformed into world, which means a well-connected PAU GUARDANS I CAMBÓ Barcelona Glob- housing projects and recreational pub- airport, excellent infrastructure, a high al was established eight years ago after a lic areas. The idea is to serve as a model quality of life, affordable housing, and a group of entrepreneurs and prominent of gentrification of economically under- robust health system. It does not mean people felt the city was losing its mo- served areas of major cities. all our resources and work should go to a mentum as a global city. We decided to single project like 5G. create an association that is fully private What initiatives or tangible services do you and completely open in terms of repre- offer to your members? How are you planning to collaborate with oth- senting different sectors, from large to er districts? small companies, culture to economics, PGIC We do three different things. The and artists to entrepreneurs, with a clear first is strategic thinking regarding Bar- XM We have collaborated with many in- mission of bringing more talent and celona as a global city, which means novation districts, including London, Sil- economic activity into the city. Now, we identifying the challenges Barcelona icon Allee in Berlin, and Helsinki, among have more than 1,000 members, partly can tackle to be more attractive for tal- others. We need to define our district’s because of the work we have done and ent and investment. That opens a wide model of business to start drawing com- partly because of people worrying about range of things, such as how a city like parisons. Barcelona’s 22@ is a three-di- the future of Barcelona. Barcelona can manage tourism, resolv- mensional public-private project with ing the affordable housing problem that urbanistic, social, and economic ele- As one of the first global innovation districts, many successful cities face, improving ments. The public sector sets the direc- how was did 22@ District come about? the tax portfolio for foreigners that want tion, ground rules, and incentives and to work here, and getting the public the private sector invests based on the XAVIER MONZÓ 22@ is actually the first and private sectors to cooperate on cul- joint plan. This differs from Boston’s global innovation district alongside Bos- ture, science, and medicine. Barcelona innovation district, which is completely ton’s innovation district. 22@ is a project shares problems with other successful privately run and oriented. Our advan- by the city hall to revitalize a district that global cities such as Paris, London, and tage comes from balancing all three di- was originally home to industrial and New York. One can learn a lot by look- mensions and hosting economic invest- textile factories. At the time, it was nec- ing at others. Second, we participate in ments that would yield social dividends essary to recover this area of Barcelona, many projects to implement the ideas and an urban upgrade. Some major proj- and we decided to do so by investing in that came from this strategic thinking. ects have failed due to this lack of con- technology. We formed a plan to trans- Finally, we work international media sideration of the social aspect, such as form factories into office spaces and partners to rebuild the reputation of the Google’s project in Berlin and other big universities involved in digital business- city. projects in New York. ✖ 24 Barcelona Special Report FOCUS European FDI Image: Radu Bercan

IN FUNDING WE TRUST Great leaps forward in ICT, logistics, design, and automotive are merely four of the sectors that have made Barcelona the number-one destination for FDI in all of continental Europe.

CERTAIN CITIES seem impermeable to systemic city that has long held the world’s imagination— downturns. Whilst the rest of Europe saw a melt- Whit Stillman’s 1994 classic Barcelona is but down, for example, in the years after 2008, FDI in one of many classics that come to mind—tran- Barcelona and the region of Catalonia only grew. sitioning from cultural and lifestyle to economic While Europe saw its FDI levels plummet by 72% powerhouse was never going to be as tricky as it from 2007-2013, not to mention Spain’s by 47%, seemed. After all, the city has long boasted one of that of Barcelona and Catalonia shot up by 50% the most robust educational markets in Europe, over the same period—proof that whatever’s in with five leading business schools and countless the pudding, it’s something tasty. Seemingly cri- research institutions devoted to ICT, biotechnol- sis-proof, Catalonia went from receiving 7% of ogy, and other cutting-edge sectors. Add these to Spain’s total FDI prior to the crash to 20% since, the city’s intangible assets—temperate and sun- while Barcelona is now home to more than 7,000 ny climate, extraordinary architecture, proximi- foreign offices and 91% of all foreign companies ty to the sea and mountains, excellent services, registered in Catalonia. What’s more, 46% of for- and general security (apart from the pickpock- eign firms operating in Spain, the EU’s fifth-larg- ets)—not to mention its low cost of labor—with est economy, have an office in Barcelona, while average salaries of merely EUR1,400, despite the city now boasts the highest FDI of any city being one of Europe’s best-educated cities, com- in continental Europe, and the third-highest pared to EUR2,200 in Dublin and EUR3,100 in behind London and Dublin in the entire EU in London—and it is almost a wonder Barcelona terms of both capital invested and jobs created. doesn’t lead the EU. What accounts for the extraordinary growth in Ranking in the top five in Europe in each of the the city’s popularity as a destination for FDI? For a following sectors—construction, ICT, logistics, Economy 25

mobility, retail and consumer goods, biotechnol- cities rather than countries, Barcelona’s place at ogy and life sciences, tourism, food and agricul- the cusp of Europe’s most competitive has al- ture, creative industries/media, design, energy, ready propelled it far beyond the Spanish mar- and higher education and research—Barcelona’s ket. And given Catalonia’s ‘fresh start’ legislation legacy as an ancient port with excellent trans- to help reduce the burden of business failure, portation and logistics only sweetens the deal for local and foreign entrepreneurs alike have more investors looking for excellent long-term bets. reason to choose the Catalonian capital for their What’s more, its cross-cultural and internation- operations going forward. With a strong claim to al appeal has not only allowed the city to garner having “the best city in the best time zone,” as FDI from Europe and Asia, especially Japan and local branding efforts have been hard working ASEAN, but also increasingly South America, to promote, only political uncertainty over the where Catalonians have long held important cul- future of Catalonia’s relationship with Madrid tural and commercial sway. Indeed, as the larg- stands in the way of Barcelona’s place at the top est métropole on the Mediterranean, it stands to of the FDI ecosystem in Europe. Regardless of serve as the port of entry and commercial head- regional outcomes, the more power devolved to quarters for all of southern Europe, especially for cities going forward, the greater will be Barcelo- seaborne trade. na’s claim to propelling the region, peninsula, With the future of FDI redirecting itself toward and entire western Mediterranean forward. ✖

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SENERpubli the business year_Digitalizacion.indd 1 27/09/2019 11:29:37 26 Barcelona Special Report INTERVIEW COLLECTIVE growth Activa’s mission is to align its objectives with the people’s will and needs and contribute to the development of Barcelona.

Félix Ortega CEO, BARCELONA ACTIVA

How has Barcelona Activa evolved since it was founded and even Spanish governments to develop research Celebrating 20th in 1986? centers. To enhance this sector, we must develop anniversary of Barcelona Activa was originally established as an new strategies to incentivize universities, compa- agency to develop employment policies after the nies, and the public sector to work together. We want Cibernàrium crisis in the 1980s. At that time, Spain was a newly to collaborate with public and private initiatives. For formed democracy, so everything had to be built example, we give support to the Pasqual Maragall from scratch. Unemployment was high across the Foundation or the ICFO, both centers for different country, but the political leaders back then had a vi- types of research. Even the zoo itself is developing sion to make Barcelona a global city by creating and a new plan to become a research center. But we are attracting economic activity. In a simple way, our more focused on software and hardware start-ups role has evolved over the last 30 years, from helping and companies; so, it makes more sense for us to people find employment to helping them find quality promote biotech and medtech. jobs. What initiatives are in place for companies and start- What do you do for the youth of Barcelona? ups? Spain has one of the highest youth unemployment We work with the Barcelona Tech City, the rates in Europe. This is why we offer a number of Canòdrom, Barcelona Global, and the 22@ network trainings and courses, with a special focus on digital associations to develop actions related to strategic skills. Barcelona is known as an innovation hub and sectors. To make things easier for professionals that companies come here to seek digital talent. At Acti- come from start-ups, we have incubators and 12 fa- va, we do not only focus on young people but also cilities. Some of these are Glòries, Almogàvers, Tech- on older people. In November 2019, we celebrated 20 nology Park, and Mediatic. We also have spin-offs years of the Cibernàrium, a large academy that pro- from some universities and research centers. Addi- vides trainings for all the sectors, from basic digital tionally, we can also provide SMEs help with grants, technologies to specialized ones. support programs, and lending facilities.

What are the different groups of people you train? Why do you think is it useful to have all the companies We work in the basic education system, helping chil- in one place?

BIO dren learn the basic competencies in different areas. Around 80% of the projects that originated in our in- Félix Ortega is the CEO Beyond that, people of all ages from many sectors cubators are still running, which is a very high rate. I of Barcelona Activa, the come to us for continuous education and training. believe clustering allows firms to access high-quality local development agency Digital transformation is cross-cutting, so all sec- services and networks and create synergies. of Barcelona City Council responsible for boosting the tors of the economy must become digital, even the local economy through the traditional ones. At Barcelona Activa, we develop Do you have partnerships with other agencies? creation of start-ups, promotion capacities of a diverse group of people. We work We have partnerships with Fukuoka from Japan and of talent, fostering of quality employment, and training of with small- and medium-sized enterprises. We also Kigali from Rwanda. The latter developed the Smart the citizenship and productive provide online training for individuals. In a parallel Africa program. We also partner with programs for sectors. Ortega has extensive effort, we are trying to leverage major events such entrepreneurs with hubs or other cities around the experience in the public sector, having held positions such as as Mobile World Capital Barcelona and bring them world. We also work with the Barcelona metropolitan manager of enterprise, culture, closer to the general public. A couple of years ago, we area agency. and innovation at Barcelona offered some tours to the commercial sector to come City Council and director of What other programs do you offer beyond the training economic promotion for El Prat to the Mobile World Congress and look for solutions de Llobregat City Council. He they can adopt. courses? is also the founder and CEO of We have a leadership program called LIDERA for Redclash Strategic Networks, a How do you foster innovation for the biotech and med- women. Another one is the STEAM program, which start-up focused on improving the management of artists and tech sector? is an excellent educational program for boosting vo- creative organizations. There has been a strategic focus from the Catalonian cations in children and women. ✖ Economy 27 INTERVIEW

Being a hub for local and regional THE HEART collaboration is just as important as FDI when it comes to developing the of the Spanish companies of the future. matter

Pere Navarro i Morera STATE DELEGATE, CONSORCI DE LA ZONA FRANCA (CZFB)

The free zone consortium was the first of its kind in 3D-printing business incubator, which is the re- Spain. Can you tell us about its evolution? sult of the relationship between the consortium The consortium was born over a hundred years and the Chambers of Commerce of Spain through 3D ago. At the end of the 18th century, Spain lost the INCYDE Foundation; we have received aid factory measuring 17,000sqm with the colonies of Cuba and the Philippines, and a from ERDF funds, the EU, and the private tech- investment of problem related to international trade arose. In nology center, Leitat. These three public and pri- EUR17 million addition, after World War I, trade opportunities vate entities have come together to create some- appeared that Catalan society wanted to take ad- thing new in an innovative field. In June 2019, we vantage of. There was intense pressure to rent a held seven international events at the same time, free port in Barcelona, a claim that was demanded including the world congress of the World Free in the meeting of 499 municipalities in the city of Zone, the Mediterranean Summit, and the meet- Barcelona. In the end, a consortium was created ing of the free zones of Latin America ATSFA. in 1916, which included the city council of Barce- lona, the Chamber of Commerce and Navigation, A priority for the consortium is DFactory, a 3D-printing the Chamber of Industry, and the Association of project. What is the strategic plan for its implementa- San Isidro (an association of farmers). From that tion? moment onward, the consortium was created The project was inaugurated in April 2019. The to manage this free port, and it has evolved ever idea is to incubate 100 companies there over the since. Besides this, there was also an interest in next five years. The project was inaugurated by having a physical public space, and it focused the Minister of Science, Innovation, and Univer- its attention on part of the Delta del Llobregat. sities, Pedro Duque, as well as the mayor of Barce- The state, through a concession free of charge lona. We are currently incubating 26 companies, for the exploitation of coastal sands, granted the surpassing 2019’s objective of 20. It is extremely exploitation for 50 years, and the consortium ob- useful because in the incubator the companies tained the necessary resources to expropriate this can interact with each other. 3D-printing works part of Delta del Llobregat. It was no longer only with different materials: plastics, resins, ceramics, a free port. In the 1950s, the first installation of and so on. There is one company manufacturing BIO SEAT marked an important step for the consoli- glasses and another that manufactures motor- A graduate in biology from dation of the industrial estate. cycle parts. Other companies also manufacture the Autonomous University aeronautical or automotive parts, as it is possible of Barcelona (UAB), Pere Navarro i Morera was appointed This consortium is a good example of the power of col- to manufacture more resistant pieces with less Special State Delegate of the laboration between the public and private sectors. What weight, which is key. We have all that here. In the Consortium of the Barcelona is the role of this alliance on the philosophy and expan- next five years, we will incubate all these compa- Free Zone by the Council of sion of the free zone? Ministers of Spain in 2018. He nies, though we are also building DFactory, a fac- obtained this after a long career, Its origin comes from the public and private sec- tory in line with Industry 4.0. In that factory, we including as mayor of Terrassa tors. We have the economic world of the city of will do 3D-printing, AI, robotics, and aspects re- from 2002 to 2012 and as a Barcelona, town hall, and the Spanish state. The lated to cybersecurity. Architecturally, it is differ- member of the Catalonian Parliament from 2011 to 2014. performance of the consortium since its incep- ent and more expensive. What we are building in In the latter, he was the first tion has gone hand in hand with this relation- this first phase will be ready in June, and the first secretary of the Socialist Party ship between the public and private sectors. In companies will begin to occupy it after the holi- of Catalonia, president of the Socialist Parliamentary Group, fact, current projects are sustained on that type days. It is around 17,000sqm with an investment and a member of the directive of relationship. Our current flagship group is the of EUR17 million. ✖ board in parliament. Barcelona Special Report

Ihicaer spelit magnimus. Lenduciis ne audit mi, cullabor a sitatem ea sit, officidis reptus. Quis entusciate et autem etur re ped qui ut volorem id et velictur Image: Show Must Go On Finance & Insurance 29

03 Finance & Insurance

BACK TO BUSINESS

inance sectors across the globe have The sector’s recovery has been facilitated by F worked to redeem their reputation fol- the growth of technological tools, which, in turn, lowing the widespread and long-lasting demands financiers collaborate on these proj- effects of the 2007 financial crisis that affected ects. This serves to justify the proliferation of job Spain’s economy disproportionately as a result opportunities in the financial sector since 2017, of global trade tensions. Through a process of coupled with more attractive salaries. Testament restructuring and consolidating economic poli- to this is the growing importance of the role of cies, Catalonia has since made significant efforts fintechs, from which much of the change is orig- to recover from the economic recession. inating. Fintechs integrate entrepreneurial start- However, it has not been a smooth road. In ups with conventional financial institutions to late 2018, following a period of political instabil- drive innovations including cryptocurrencies ity that emerged with the Catalan crisis, impacts and mobile banking apps. As new companies to industry and exports meant the economy fell gain the right to act as financial institutions do, to its lowest growth rate since 2009. This pushed but without the same constrictive regulation, the banks, such as Caixabank and Banco Sabadell, more traditional banking sector must work to ac- which are responsible for approximately 14% of commodate these shifts in power dynamics, or Catalonia’s total assets, to consider moving their they won’t be able to keep up. headquarters elsewhere in Spain. Similarly, investment funds are also trans- Catalonia was able, however, to bounce back forming financial conventions in the sector. from this financial setback and stabilize its econ- Two of the funds we spoke to, Nekko Capital and omy over 2019. In 2020, driven by the enhance- People and Planet Partners, highlighted their ment of peripheral economies, growth in Catalo- commitment to catering to start-ups with social nia is expected to increase to 3.4%. Therefore, in impact and technological potential—an area of- spite of the political turmoil Catalonia has faced, ten neglected by large capital funds. As a result, the finance sector has managed to remain at the a more representative future of finance is on the heart of the economy, with the capital represent- horizon, one reflecting the actual ideas emerging ing an important place for commerce on an in- from society that develop in tandem with tech-

Image: Xxx ternational scale. nology. ✖ 30 Barcelona Special Report INTERVIEW e pluribus UNUM Political instability and geographical centralism are the two biggest challenges to the long-term prosperity of one of southern Europe’s most important stock exchanges.

Joan Hortalà i Arau PRESIDENT, BARCELONA STOCK EXCHANGE

Can you tell us about the Barcelona Stock How has the political crisis in Catalonia influ- the BME holding after the reform of the Exchange and how it has evolved in recent enced the Barcelona Stock Exchange? stock market. On the one hand, this gave years? Everything influences the stock market. us greater business opportunities, but on The Barcelona Stock Exchange is an old The political crisis may occasionally af- the other hand it diminished our capac- institution. Its transaction records date fect a Catalan company, but it does not ity and independence. At present, one back to 1830, and its activity was car- influence the global market. In spite of of our main challenges is to clearly dis- ried out at Casa Lonja de Mar. Through- this, there is a real psychological impact. tinguish between functional centralism out the 19th century, Barcelona had the For example, people who invested in the and geographical centralism. Since four most important stock market in Spain. stock market may no longer want to in- exchanges were integrated into the BME, In Madrid, public debt and public effects vest in certain Catalan securities. There it makes sense to have only one account- were basically contracted, while the con- are other factors that can have a bigger ing department. This concentration is ventional private income exchange was impact, such as the US-China trade war, acceptable and necessary but not all op- in Barcelona because this was where the Brexit, crisis in the Middle East and Tur- erations have to be based in Madrid. In first public limited companies in Spain key, and fluctuations in oil prices. our opinion, functional centralism is val- were established. The Barcelona Stock id but the geographical one is not. This Exchange remained in a self-regulation We always talk about technological develop- is a topic that currently concerns the pe- regime until 1915, when the official stock ment, especially in Barcelona, which is a hub ripheral exchanges and particularly the exchange was introduced. In 1987, the of technological development and innovation. Barcelona Stock Exchange. ✖ stock market law was introduced, as a What is the exchange doing in this regard? result of which markets were unified, Technology has monumentally trans- exchange agents disappeared, and the formed the stock market in every aspect, stock market became a limited compa- including hiring, liquidation, and the in- ny. Thereafter, four exchanges were individual behavior of those who operate tegrated into a holding company called in the market. All stock exchanges have the Spanish Markets Exchange (BME). In specific departments trying to innovate 2006, BME went public. and implement the latest technologies. We often work with major IT and tech How do you evaluate the future of this market? companies on a global level. We try to The economy is based on two pillars: the promote tech companies of different real economy, where raw materials are types since our intention is to assist in- transformed into finished products, and novative entrepreneurs form consolidat- BIO the financial economy. In an economic ed companies and support them going A professor of economic theory at the system, it is the real economy that cre- public on the stock market. Blockchain is University of Barcelona, Joan Hortalà i ates wealth, not the financial economy. another technology we are working on. Arau studied economics and law at the University of Barcelona and holds a PhD The financial economy creates efficien- We are taking into account all high-fre- from the London School of Economics. cy because it brings together savings quency latency systems, even if they do A member of the Royal Academy of and investments. Since those who save not currently have a direct influence. Economic and Financial Sciences, he has been Dean of the Faculty of Economics are different from those who invest, the and held different positions at the system would lose effectiveness if there The stock market is complex and fluctuates University of Barcelona and the Superior were no mechanisms to bring them to- greatly. What has been the most difficult part Council of Scientific Research. He has gether. As a result, potential resources of your career? also been a Councilor of the City Council of Barcelona, a member of Parliament, would not be fully utilized. The financial The most difficult part was integrat- and a councilor for industry and energy system links savings with investment. ing the Barcelona Stock Exchange into for the government of Catalonia. Finance & Insurance 31 INTERVIEW

Gerard Olivé CO-FOUNDER, disruptive ANTAI VENTURE BUILDER

BIO INNOVATION Gerard Olivé is an entrepreneur who creates disruptive digital companies in sectors such as classified, last Antai Venture Builder uses a matrix that weighs down consumer mile, fintech, insurtech, digital native brands, marketplaces, digital trends and a company’s capabilities to look for business ideas that consulting, advertising, and SaaS. He disrupt the B2C and B2B markets. is the Co-founder and Co-CEO of Antai Venture Builder, which has given birth to start-ups such as Wallapop, Glovo, Carnovo, Bepretty, and Shopery, amongst others. He is also the founder of the creative agency BeAgency and the digital business holding company Garapa. He was named one of the most relevant How has the company evolved over the years? MV We look for the best entrepreneurial entrepreneurs at the 2010 World GERARD OLIVÉ Antai looks for the best talent to build companies that target in- Entrepreneur Week of IESE Business entrepreneurs and business ideas that dustries that have been fairly untouched School. can be launched in the B2C and B2B by technology. This places our start-ups markets. We have a presence in south- on the path to becoming unicorns. The ern Europe and Latin America, and work common trait that our co-founding with companies related to e-commerce, teams share is the diversity in terms of Miguel Vicente fintech, insurtech, and other sectors. experience and background. Every team CO-FOUNDER, Although companies that were created needs people that complement each ANTAI VENTURE BUILDER by Antai have received over USD1 bil- other with their respective capabilities. lion in financing from risk capital funds What differentiates Antai from the competi- BIO in the US, Latin America, Asia, and Eu- Miguel Vicente is the Co-founder of rope, Antai itself was established with a tion? Antai Venture Builder, the leading online bootstrapping model. A year and a half GO What we do is create businesses and and mobile venture builder in southern ago, we formed partnerships with Banco speed up their growth process. The core Europe. He has helped the company create new business models, select Sabadell and Mutua Madrileña to boost team is very small, around 14 people. In the best talent, and find new ventures, our fintech and insurtech divisions. An- terms of competition, we are not accel- accompanying them through the whole tai is an evergreen company and not a erators or an investment fund, so it is process. So far, he as co-founded multiple ventures with international risk capital fund with periods of invest- more a matter of why it makes sense to presence such us Wallapop, Glovo, ment and divestment. build a company with us. We have the Prontopiso, Elma, Singular Cover, and skills and experience required to create Nemuru, among others. MIGUEL VICENTE After selling Letsbonus, digital businesses, and this improves the first company I co-founded in 2012, the chances of success. We help with I realized that what excites me the most strategic planning, fundraising, tech de- is launching new ventures. Over the last velopment, and big data. seven years, we have co-founded 25 companies with great success. One such How much of your operations are outside of company is Wallapop, which we have Spain? managed to expand into the US. As you MV During my experience as an entre- can see from our portfolio, the first gen- preneur at Letsbonus, I had the chance eration of ventures was mainly focused to expand the company into five coun- on e-commerce. These include start- tries in South America. Then, when I ups such as Wallapop, Glovo, and Mas- co-founded Antai, I knew Latin Ameri- coteros, among others. We have grown ca would be a natural expansion target. over the years and are now steering our We have experience in Argentina, Chile, attention to business models with a Peru, Colombia, and Mexico. Two of higher technological complexity. our companies, BePretty and Trandi- er, have Latam as their main market. What are your selection criteria, and where do We also have experience in Italy and you look for them? France. GO We use a matrix with consumer trends on one side and a company’s What is the biggest challenge you are facing capabilities on the other. One of the today? co-founders needs to believe in the proj- GO The biggest challenge is adapting to ect because we dedicate years of our life the new internet wave influenced by AI to every project. Moving forward, every and big data. These are new technolo- company will need to be socially re- gies that require large investments and sponsible in order to succeed. All com- specialized profiles. Barcelona has to panies need to have technological entry tackle this aspect. At Antai, we have to barriers, be innovative, and have the ca- evolve this aspect in all our B2B and pability to be leaders in the market. B2C projects. ✖ 32 Barcelona Special Report FOCUS Start-ups

CITY OF SMART BEGINNINGS

A CITY THAT’S SMART, AFFORDABLE, for copyright violations of both digital and physi- POLICY-WISE, EXPERIMENTAL, cal property. Having raised nearly EUR60 million CAPITAL-RICH, AND LEGALLY by April 2019, its clients include Bang & Olufsen, FORGIVING, BARCELONA HAS MVMT, and Mighty Mug. Then, there’s Glovo, a package-delivery service CULTIVATED A NEAR-PERFECT that enables people to receive almost anything ECOSYSTEM FOR START-UPS. within 60 minutes. Launched in Barcelona in 2015, it has more than 1,200 employees and a presence across Spain, Italy, Portugal, France, Argentina, Chile, Ecuador, Bolivia, Peru, Turkey, Georgia, Egypt, Morocco, Ukraine, Serbia, Poland, and Romania. With a war chest of over EUR300 mil- WITH LOWER LABOR, rent, and property costs, lion since the spring of 2019, Glovo seems as well a young and educated population, high levels of poised as any to dominate the global delivery mar- FDI, and an increasing tolerance for business fail- ket. ure (such as recent "fresh start" legislation that In a city known for its slick design, it is only fit- makes it easier to file for bankruptcy in Catalonia), ting that Barcelona gave birth to Typeform, a de- it is no wonder that Barcelona has become one sign company that provides free online forms for of Europe’s most important start-up hubs in the conducting surveys, polls, quizzes, subscription past decade. The unadulterated innovation hub of campaigns, or application processes. Launched southern Europe, the city’s natural wonders (both in 2012 by two designers, Typeform has already human and geographic) have only been buffeted raised over USD50 million. Though its services are by good policy choices. City Hall, for example, has free, it offers a premium service with unique sell- launched Barcelona Activa, a portfolio of services ing points. As CEO Muñoz put it, “We are proud to provided by the city to help entrepreneurs and in- be the first company to transform the online data vestors relocate or invest in Barcelona. collection space by creating conversational forms” This includes, but is not limited to, help with that “bridge the gap between data collection and immigration procedures, online business incorpo- customer interaction.” ration services, support for recruitment (including The trajectory of Typeform Co-founder David both employees and interns) and business loca- Okuniev perfectly encapsulates Barcelona’s at- tion searches, help finding suppliers, and liaisons traction as a start-up hub. A musician-turned-de- with various city stakeholders. What’s more, Spain signer formerly based in Bogotá, Okuniev had also passed the "Entrepreneurs Act" to fast-track originally given up on design to move to Barcelona visa services for investors, entrepreneurs, highly and attend a cooking class. Dabbling in design on skilled professionals, scientists and researchers, the side to pay the bills, he and fellow cofounder and intra-corporate transfers. Muñoz were coincidentally tasked with making a This financial and policy environment has led to lead-gen form for a Spanish toilet company. Un- an explosion of smart, funky, and successful start- happy with the prototypes, they decided to build ups. This includes Badi, an online marketplace to their own. Though neither had set out to create rent and find spare rooms across major European their own company, they found to their delight cities. Founded in 2015, Badi uses machine learn- that Barcelona made things surprisingly easy. ing to better match users across leading markets Though they had to get VC from outside of Spain in Europe and the Americas, including Barcelona, (this was back in 2014), the size of the ecosys- Madrid, London, Rome, Lima, New York, and Bue- tem—small but flourishing, meaning many in the nos Aires. Raising over EUR40 million by January industry know one another and can bounce ideas 2019, Badi crossed the million-user threshold later off one another—and the fact that 34% of all Span- that year. Another is Red Points, a machine-learn- ish start-ups are now based there, means there has ing-enhanced software-as-a-service company scarcely been a better time, or place, to launch a that scans social media and online marketplaces business in Europe. ✖ Finance & Insurance 33 B2B

Mercè Tell Elena Rico Nicolas Touboulic GENERAL PARTNER, FOUNDER, FOUNDER, NEKKO CAPITAL PEOPLE AND PLANET PARTNERS PEOPLE AND PLANET PARTNERS

NICOLAS TOUBOULIC Yes, definitely, which VENTURE CAPITAL is the reason why we decided to create People and Planet Partners. It is possible to have a strong social or environmental Barcelona’s entrepreneurial spirit and mature start-up ecosystem impact with on a profitable business mod- make it an obvious base for venture capital funds like Nekko and el. This is our investment thesis. Even if it People and Planet Partners. is true that in Spain there are no priors in this field, we have had discussions at the European level in the last few months, and other funds have succeeded in getting a Can you tell us about the vision of Nekko Cap- How did People and Planet emerge as a ven- profitable return on their investment and ital? ture capital firm? making a strong social or environmental impact. MERCÈ TELL I am one of the three founders ELENA RICO People and Planet was born of Nekko Capital. We are based in Barce- from a combination of three ingredients. What makes Barcelona so attractive for start- lona, and we have offices in both Madrid The first is past professional experience. ups? and London. The three of us have been Together, the two founders have over 15 in the venture capital industry for many years of experience in the venture capi- MT We have seen the city transform over years, having different experiences and tal industry and more than eight years in the last 15 years. The entrepreneurial spirit working with different types of funds. I the M&A area. The second is a new vision is there, and the public administration has was part a managing company that was of investment; we believe that today, the done a great deal of work to concentrate a pioneer in Spain. Once the company’s old financial metrics are obsolete. In- and launch clusters such as Barcelona partners retired, there was a portfolio vestment must be socially and environ- Tech City and Health Hub. There are also of companies that had to be managed, mentally responsible. The third is the many companies with global ambition, which gave me an opportunity to create start-up environment that surrounds us, many with a mix of cultures. The city at- my own venture capital firm. Since there which is contagious. We questioned our- tracts a great deal of foreign talent. The was a need to make a new team, I started selves for a long time and, in the end, we cost of living in Spain also attracts com- divesting the portfolio of companies, most established our own company. panies to establish their technical teams of which were based in Spain. This is when here. In the last few years, we have seen I proposed the other two founding part- Who are your investors? foreign investors coming here to find those ners join me. My focus had been series opportunities and co-invest with local A and theirs were seed and series B, with MT Our main investors include public investors. These are all factors that make European operations in the fintech and lo- institutions in Spain such as Instituto Barcelona appealing for investors. gistics sectors. The combination of our ex- Valenciano de Finanzas and Institut perience led us to create a global fund that Català de Finances. These are regional What are your criteria for a good project? was also close to the local ecosystem. This administrations helping their autono- means we are close to the opportunities in mous regions better access financing ER Technology has the power to change Barcelona, Madrid, and London, helping for innovation. We also have corporates our lives. For example, we can use AI or companies increase their exposure in the coming from the industries where we Big Data to understand consumption or UK and Spain. We launched our first fund, aim to invest, namely insurance and look for information to find the holes in which started investing by the end of 2019. tourism. the distribution capabilities or the logistics With our experience in different verticals, network. We look at using technology to we decided on five industries that will have It is thought that profitability and social or en- solve a range of significant challenges in great potential for both countries: travel, vironmental impact cannot go hand in hand. the world. We are highly aligned with the mobility, proptech, fintech, and insurtech. Can it be achieved at the same time? UN’s SDG and the 2030 agenda. ✖ 34 Barcelona Special Report INTERVIEW

Asepeyo aims to continue improving its IMPROVISE, facilities and evolving in the healthcare sphere so that it can find new ways to adapt, and improve the lives of workers. overcome

Vicente Aparicio MANAGING DIRECTOR, ASEPEYO

How has Asepeyo evolved over the years? in the city can come to a single center with all the Volume of Asepeyo is the number-one mutual insurance physiotherapists and specialists. We are trying to workers company in Catalonia and the second nationally. strengthen health because it is not just our goal, Considering the country is emerging from a dif- but an obligation. In doing so, we put profession- represented ficult period that began with the 2008 financial als in close proximity where they can share expe- increased 3.3% crisis, we are doing well. Furthermore, as mutu- riences and knowledge amongst themselves. Fur- in 2018 als, we never stop being business associations as thermore, we have collaborated with companies we collaborate with companies that protect their working in virtual reality. Every year there are workers with us. When companies encounter more than 80,000 accidents, about 13% of which problems, as was the case in the financial crash, are traffic accidents. We acquired four driving

we too face problems. We had 2.3 million work- simulators, which are significantly more effective Helps 6,000 ers, and that number fell to around 1.65 million in raising awareness on prevention. We tackle the people a year after the crisis. Since 2013, the economy in Spain issue from a social security point of view. Compa- has been recovering, and now we are back to nies are delighted with this proposal because we outside the pre-crisis income levels. give them a new product. Now, we are also look- granting of ing to use drones for risk prevention. social security The volume of workers Asepeyo represents has been benefits growing, increasing by 3.3% in 2018. What is your strat- What is Asepeyo’s main objective for 2020? egy to continue this growth? We have several objectives. Overall, we aim to The strategy is based on our service, as we have continue in our line of transformation, continue several limitations when it comes to increasing evolving in the healthcare sphere, and continue our activity. For example, we cannot legally carry improving our facilities. Another goal is to com- out commercial activities by attracting compa- plete the digital transformation strategy. We have nies. Therefore, if we want to be attractive, it has developed applications of all kinds, such as one to be based on our reputation and services. We for injured workers to communicate with one seek to meet companies’ requirements so that another. Our strategic plan will end in 2020, by they know they can rest assured with us. What is which time we hope to have finalized the pro- more, we are always looking to improve our facil- cesses and built a new plan. We have many chal- ities, healthcare, and human capital because we lenges, but improving injured people’s home and realize the importance of person-to-person rec- lifestyle is our priority. We can help 6,000 people ommendations. a year, and EUR13 million can be distributed BIO among all these people to help them with their Vicente Aparicio is the Managing Director of Asepeyo. What is your perspective on the importance of innova- problems when they have an accident at work. He graduated with a law tion for the future of all sectors? At the hospital in Madrid, we have launched and degree from the University It is not just Asepeyo—our competition is also adapted the exoskeleton that was created as an of Barcelona in 1980 and began working as a lawyer for doing it. In the health sector, much to the de- experiment by the US and Israeli armies. Re- Asepeyo. In 1988, he became light of our traumatologists, we have installed a markably, a patient who was in a wheelchair for director of the company’s legal 3 Tesla MRI scanner in Coslada, which few hos- 30 years was able to walk using the exoskeleton. department. By 2002, he was pitals in Spain have. Thus far, we have renovated In Madrid, we recently gathered around 90 inva- promoted to assistant director general of Asepeyo. He has a 12 centers in 12 years. The center in Girona went lids with their caregivers and spent a whole day Senior Business Management from being 800sqm to 2,400sqm, and we have explaining new techniques, such as sexual ther- Program qualification from equipped it with everything. There is a 2,000sqm apy. We have even received invalids from other IESE. Previously, he was a profressor of social security at center where we will dedicate 1,000sqm to phys- mutual insurance companies because this pro- the University Les Heures. iotherapy. It will have a gym so that all patients gram does not exist elsewhere. ✖ Finance & Insurance 35

People withdraw money from ATMs in Las Palmas, Gran Canaria Image: Tupungato 36 Barcelona Special Report

Vineyards in the Penedés wine region with the Montserrat mountain range in the distance Image: Xxx Image: M. Vinuesa Food & Industry 37

04 Food & Industry

MAKE IT, EAT IT

ccording to EU analysis, the Catalan spending on R&D, which gives a competitive A region’s economy has always relied on edge to businesses in the long term. As a result, its industrial tradition, which has un- Barcelona and the greater metropolitan region is dergone progressive modification toward a new dominating innovations in 3D printing, AI, and economic model. Industrial activity currently robotics, amongst other things. represents more than one-fifth of Catalan GDP, Aside from industrial innovation, exports are and this figure is set to continue rising. Through- another area of growing economic wealth; in out 2018, for example, industrial investment 2018, exports accounted for EUR71,624 million, a grew by 16.1% and industrial turnover rose by 1.1% rise YoY and the highest number on record. 3.7%. In terms of employment, the industrial The government's strategy aims to take the ex- sector is directly or indirectly responsible for ports sector abroad, making it more globalized, 46.5% of employed Catalonian citizens, rein- to meet foreign demands. Hence, almost every forcing the importance of industry. The food, car industry has boosted their propensity to export, manufacturing, pharmaceutical, and chemical in terms of their exports per unit produced. Ac- industries are amongst the strongest industries cording to Joan Tristany, director of AMEC, Bar- in Catalonia today. celona’s potential to grow as an international Catalonia’s strategic geographic location fur- industrial hub stems from its ability to offer an ther complements this industrial potential, as it alternative vision to trade to those offered by is a gateway between Europe and the rest of the China and the US. world, a central point in the Mediterranean Cor- The main challenge for Catalonia’s industrial ridor. In addition to this, it is a diversified sector sector will be its ability to remain flexible and comprised of a rich community of small- and continue changing alongside new trends be- medium-sized companies that make up the ma- yond just digitalization. The many companies jority of multinationals. we spoke to highlighted the need for such adapt- As our economy becomes increasingly digi- ability to respond to a world that is changing at talized, Catalonia is leading Industry 4.0 in the a pace faster than before. As Tristany put it, "In- region, a transition facilitated by its strong tech- dustrial companies should think not only about nological and innovation sectors. Industry is the the present, but they must look further, because sector in Catalonia that contributes most to the the changes are going to be deep." ✖ 38 Barcelona Special Report INTERVIEW

clear-cut OBJECTIVES A business organization for mainly medium-sized industrial enterprises, AMEC facilitates internationalization and innovation to help companies compete in the global market.

Joan Tristany DIRECTOR, ASSOCIATION OF INTERNATIONALIZED INDUSTRIAL COMPANIES (AMEC)

What is your assessment of the current inter- Why do you think internationalization has be- the key is to act in an orderly and orga- national atmosphere of the business world? come so urgent? nized fashion. For example, recently an At present, profound changes are hap- AMEC was established around 50 years associated company complained about pening, such as the trade war between ago and it has been operating in foreign how one of its containers is stuck in China and the US. Industrial companies markets for a long time, but the differ- Algeria due to regulatory changes. Any should think not only about the present ence now is that changes occur faster European body there could have known but also the future. This brings us to the than before. The geopolitical changes about this change. If it had been shared, concept of VUCA. The concept of VUCA that are taking place are accompanied the company would not have sent the was coined by the US military in the first by profound technological changes. container. At AMEC, we have a unit that Gulf War because they were in a volatile, AMEC is focused on internationalization has many online and physical contact uncertain, complex, and ambiguous en- and the development of talent, a scarce points in the world. The job of this unit vironment. They developed a methodol- commodity. In one of our forums, we is to detect changes in regulations and ogy of action that had not been previous- invited Juan Carlos Cubeiro, an interna- send alerts to the relevant companies. ly established and required prospective tional expert in talent, leadership, and Companies must do some of this inde- and rapid action. Some theorists of man- coaching, and according to him, we are pendently, but there is a part that can be agement, specifically Charles Edouard in the Human Age 4.0 and one asset we done collaboratively through the associ- Bouée, developed a theory called Live are all competing for is talent. So far, we ation. This is where we come in. Footprint. This inspires us to contrib- have competed for the market in terms ute as an organization to visualize the of financing. Technology and talent What makes the Barcelona brand so strong in future and to contribute with tools that have a big impact on internationaliza- terms of attracting investment? allow companies to act quickly. This mil- tion. Technology and innovation can Barcelona is a recognized brand in the itary concept has been translated into have a double impact on trade flows. world. The beginning of the brand was the world of management. In terms of For example, 3D printing will reduce in- the "Barcelona Get Pretty" campaign. sustainability, one big issue is the use ternational trade, but digitalization will The goal was for the people of Barcelona of plastics. We have manufacturers that facilitate it. to feel proud of their city. I recently read turn plastic into packaging materials. We a paper by the foreign investment col- must do our best to predict future trends How can this challenge be solved? lection agency of the Madrid city council so we can prepare in advance. Notably, There is no easy solution, but I do have a and found out that the Barcelona brand a group called Business Round Table in recommendation. First, you have to set a is stronger than the Spain and Catalo- the US, which brings together approxi- milestone and take small steps. Second, nia brands. The Barcelona brand is po- mately 120 CEOs from all the major US it is important for companies to share sitioned well, but we have to continue companies, made a statement that West- their experiences. Companies who have managing it well in order to maintain it. ern capitalism must change because it encountered similar situations should This means expanding the tourist offer- has almost exclusively considered the communicate and cooperate. They ings beyond Barcelona and distributing shareholder’s interests as the only objec- should try to face problems or challeng- tourism activity across different neigh- tive. es collaboratively. The knowledge exists, borhoods. ✖ Food & Industry 39 INTERVIEW

Established in 1881, Vichy Catalan’s IN A naturally carbonated, high-mineral- content water has become synonymous LEAGUE with good health. of its own

Juan B. Renart Montalat CEO, VICHY CATALAN

Founded in How did Vichy Catalan emerge more than a century ago? and the strategy is to enter via distributors seeking Dr. Modest Furest, our founder, was a doctor at a premium, healthy, and sustainable product. Caldes de Malavella and he discovered a natural 1881 spring in 1881. A shepherd explained how animals Vichy Catalan is well known for its emblematic bottle. went to the spring to heal, and as a curious doctor, How important is packaging as a point of differentiation? he started analyzing this water and discovered it Packaging has become more important due to was beneficial for the human body internally and new trends, which is why we took the decision externally. That is how he started the spa and wa- that good water should have better packaging. 60% ter factory, which in 1900 became the Vichy Cata- Indeed, we have been given prizes for our glass of online sales include lan Corporation. and plastic packaging designs. To fit new trends, reusable containers we have incorporated cans and plastic packaging. How has Vichy Catalan diversified its beverage portfolio? From a sustainability point of view, the plastic we The expansion of the portfolio began by acquiring use is 99% recyclable, the can is 90% recyclable, other springs in the 1980s, namely Malavella, Les and cardboard containers are 40%. We also com- Creus, and Fontd’Or. Today, we count upon more mercialize reusable containers. In Spain, we are than 20 brands. Recently, in 2004, we started sell- the only ones providing eight-liter glass jars. 60% ing internationally. In 2012, we launched the Vichy of our online sales are reusable containers, since Catalan Lemon, the first flavor of the new category people care and look out for our containers. Three of waters, and then in 2018, we created the Vichy out of five products we sell are reusable; this shows Catalan Fruit. With the flavored waters launch- that our initiatives have been successful. ing, we made two major changes in our company and the Vichy Catalan brand: the introduction of Vichy Catalan has 8% market share in Spain. Is there po- canned Vichy and innovating with flavors such as tential for organic growth? lemon, orange, lemon-lime, and mint, and a pre- There is a great deal of potential for Vichy Cata- mium tonic, all with no added sugars. Then came lan because 95% of bottled water is still, and spar- the Vichy Catalan Fruit, basically sparkling water kling water only makes up 5%. Recently, this has with fruit juice. Today, 20% of our entire units are increased to 7%, and we have contributed to this. the result of innovation. With Vichy Catalan Fruit, In Italy and Germany, the percentage of sparkling we doubled the forecasts for the first year. water is higher, so we are looking at these markets.

How has your internationalization process evolved? How important is the spa and hotel for the group? BIO Juan B. Renart Montalat is We want sparkling mineral water to be on the ta- We receive around 37,000 guests per year. Every the CEO of Vichy Catalan bles of any consumer interested in consuming the Thursday, we organize cultural visits from the Art Corporation. He has a degree minerals that their body needs. We used to sell Nouveau spa to the plant. The spa offers massag- in marketing and international communication management internationally on request, but then in 2004, we es, Scottish showers, Vichy showers with thermal and a master’s in business wanted to increase our coverage and service, and water, Vichy thermal pool, and beautiful gardens administration from the hence started to export. Today, it is a consolidat- where one can relax and drink a Vichy Catalan. We International University of Catalunya. Before starting his ed department, thanks to new technologies that also offer accommodation, balneotherapy, gas- professional career at Vichy facilitate communication with consumers from tronomy, and meeting rooms for conventions. The Catalan, he worked in several all over the world. Vichy Catalan Corporation is point is differentiation; we offer an oasis of tran- companies like Sehrs Group, present in 50 countries in small proportions, since quility where guests can have both a cultural and Cobega, and Caprabo. He joined Vichy Catalan in 2002 and exports represent only 5% of the company’s turn- an industrial experience to understand how Vichy became its CEO in 2006. over. We are mostly in Central and North America, Catalan is bottled. ✖ 40 Barcelona Special Report INTERVIEW master BREWER

Jonathan Stordy CEO, GRUPO AGORA

With more than 160 years of brewing experience, Grupo Agora has expanded its range of products over the years to become one of the most well-known Spanish brands.

In Could you give us an introduction to the origins and evo- currently in 20 countries with Ambar and Moritz. lutions of the company? Our focus with Moritz is in the UK, Chile, and Ita- We are the oldest brewery in Spain, which is ly. Chile is one South American market that loves 20 amazing considering how important authentici- imported beer. Overall, 2% of our total business countries with Ambar ty and history are to brands. My personal theory comes from international markets. and Moritz is that Spanish beer is better compared to Italian or French beer because of the tradition of Ger- You mentioned depopulation and social responsibility as man brewers coming to Spain. Louis Moritz came a core part of the business. What else do you do in terms from Alsace in 1865 and built the first brewery of corporate social responsibility? here. Later, a wonderful EUR25-million project A few years ago, things such as environmentalism, 70% was developed with Jean Nouvelle to build an diversity, and inclusion were just nice things to do. market share in incredible microbrewery. Although the majority They have now become integral parts of business Zaragoza of production is in Zaragoza, we also produce at not only for profit growth, but also consumer sup- the new location, with 1,500 daily visitors and a port. The new facilities we have built in La Cartu- turnover of more than EUR7 million. In total, we ja is a demonstration of this. We are also heavily are a EUR200-million company in terms of sales involved in the craft beer sector, which has revo- and EUR60 million in terms of distributing oth- lutionized the beer industry in Spain. We recently er brands, such as Coca-Cola. We also distribute launched a new beer called La Triple de Sa Antoni Diageo, Pernod Ricard, Maximum, coffee brands, in collaboration with Barna Brew, which is the first water brands, juice brands, and everything a bar neighborhood beer company in Barcelona. Col- needs. The strategy is to satisfy customer needs laborating with craft breweries, while great for us, with a broad range of products, including Asturi- is also our contribution to the sector. We are the ana milk, for example. Our figures are EUR135 mil- new sponsors of the Spanish Paralympics team. lion in beer, EUR55 million in brands we distribute for others, EUR10 million from our Lunares water What trends are shaping the sector? spring, and EUR10 million from our two bars in There are two big trends if you look at the sector, BIO Barcelona (Fabrica Moritz and Velodromo). We which is the fourth largest in Europe. The first is Jonathan Stordy has been recently won 50% of the awards given to Spanish the specialty segment, which includes ales and Grupo Agora’s CEO since 2017. He has more than 35 years breweries at the World Beer Challenge, proving we toasted beers. Then, there is the wellness seg- of experience working in the are highly respected in terms of quality. We con- ment, including beers with low to zero alcohol consumer goods industry. He trol our own distribution in core areas of Zaragoza content. In the US, for example, there has been a started his career at Unilever UK in 1984 and then spent 15 and Barcelona, which differentiates us from sever- boom in what they call seltzers, or sugarcane al- years at Diageo, ultimately al other brewers. cohol-based products with 90 calories a can. At leading Diageo Spain. Stordy the retail end, there is great pressure on the shelf has previously held managerial Where are you looking to expand internationally? because so much innovation is coming out. Our roles at Beam Suntory, Russian Standard Vodka, and There is so much to do in Spain still. Ambar is our master brewer, Antonio Fumanal, is a great inno- Mahou San Miguel, Spain´s top priority, as it is the main engine of the com- vator in specialty and wellness beers, and he is our leading brewer. He graduated pany. Moritz is the second priority of the business go-to source for innovation. We produced the first from Edinburgh University in business studies and Spanish and is doing very well. We have enough types of non-gluten beer as well as the first non-alcoholic literature. beer to satisfy a wide range of consumers. We are beer. ✖ Food & Industry 41 INTERVIEW

Whoever is able to convey how beautiful BEST and accessible the winemaking regions outside Barcelona are stands to gain a in class great deal.

Ramon Raventós Basagoiti CEO, RAVENTÓS CODORNIU

In 2018 Codorniu was acquired by the capital fund Car- at reasonable prices. That is why we are building Codorniu exports to lyle. How did this acquisition come to be, and who are a strong international team and trying to find the the stakeholders now? best partners in every country. We export to 70 When the company modernized and issued different countries, but we are designing a strat- 70 shares, all the siblings inherited a part, so we had egy for each area by finding the right partner for different countries about 200 different shareholders. I am part of the the long term. Our partners are distributors and family, and my father has been on the board of di- producers of local beverages, which makes them rectors for many years. I established my own bou- strong competitors in the local market, and pure Carlyle owns tique winery business out of Codorniu in 2006: importers with various profiles. Today, our export Parxet. Because it was successful, there was a turnover is just below 50% of the total and, in the proposal to merge the two companies, and I took future, it will be around 75%. 60% on the challenge of managing the new company. of Codorniu Almost 100% of the family shareholders are still in How can big players like you cooperate or work to bal- the company, but we introduced a leading share- ance collaboration and competition between big and holder with modern management that was pow- small players to make the sector successful? erful and had the capacity not only to develop our We own four houses of cava, with the best known amazing brands and wineries, but to also do new among them Codorniu. We own the leading high- things in the future. Carlyle eventually agreed to end winery in the region, Parxet, and are leading buy 60% of the company. local markets in the high-end business. We own Mont-Ferrant and have a beautiful single vine- BIO In terms of product portfolio, which are Codorniu’s most yard project called Titiana, so we know the needs A graduate in law from the important brands and products, and how much do they of every scale. Codorniu is far away from the vol- Universitat Pompeu Fabra and the executive program in contribute to global operations? umes of Freixenet because it is a different busi- business management and Codorniu has some of the best wineries in ev- ness. We are around 20% in volume, but in value administration at Stanford, ery region, although it is also a matter of taste. we are closer, so we have a different position, Ramon Raventós Basagoiti founded and has been the It is pretty balanced in terms of how much each strategy, problems, and opinions about new regu- managing director of Gleva winery contributes to the business, although lations and organic growth. Cellars since 2007. The CEO some are bigger because the facilities are larger of the Raventós Codorniu Group, Spain’s long-running or the brand is older, like Codorniu or Raimat. How is Codorniu working to promote enotourism and wine company, he is the 17th Our strength is our portfolio; nobody could have bring value to regions outside of Barcelona, including of 18 generations to lead the dreamed to put one like this together a few years moving its headquarters to Sant Sadurní d'Anoia? family business. As the CEO of Gleva Cellars, which owns ago. This was done with the acquisition of two im- In Catalonia, I can visit and work for three hours Parxet, Mont-Ferrant, Titiana, portant areas: Artesa in Napa Valley and Septima in four or five wineries every day. One can go from Raventós de Alella, Portal del in Mendoza. Alella, the white wine region, to Barcelona in 10 Montsant, Tionio and Basagoiti, minutes. The same goes for Penedès, which is he managed the business until its fusion in 2018 with Codorníu What is your internationalization strategy, whom do you 30 minutes from Barcelona by car. Everything is Raventós. Since November rely on, and what are the most important markets? close to the city, so we must get all these people 2018, he has managed the The international business will be a huge asset in to these beautiful places. We are trying to explain wineries under Raventós Codorníu, a company that now the future, as Spain is probably the best country how beautiful the winemaking regions are outside contains 17 wineries across in the winemaking world to produce great wines the city through our wines. ✖ Spain, Argentina, and California. 42 Barcelona Special Report

Lorem ipsum dolor sit Image: Alexey Pevnev Food & Industry 43 FORUM FOOD With a food industry generating more than EUR30 billion in turnover per year, Catalonia feeds far more than Spaniards, bringing both luxuries and staples as far afoot as China and Japan.

Ramon Sentmartí Antonio Llorens Tubau Jordi Gallés DIRECTOR, PRESIDENT & GENERAL EXECUTIVE PRESIDENT, PRODECA DIRECTOR, EUROPASTRY SERUNION

OUR HISTORY GOES BACK TO 1986. At the SERUNION WAS CREATED 30 YEARS AGO THE COMPANY WAS FOUNDED by my fa- time, the agricultural sector was quite as a private company with private share- ther in 1987 after the bakery industry in important in Catalonia, though not holders. At the beginning, we started Spain started moving away from a model many companies exported. This is why buying some small operations all over under which bakeries were not allowed Prodeca was established to help the Spain and have been growing ever since. to operate on Sundays or offer different agrifood industry to reach new markets I have been managing this company for products than those specified by law. in Europe and beyond. At present, Cat- the last 28 years, so am extremely invest- This dramatically transformed the indus- alonia exports EUR10 billion worth of ed in it. Today, we feed some 498,000 try, and my father took this opportunity food, our main market being Europe. people every day in different segments. to introduce parbaked bread technolo- For many years, Japan was our prima- We are in charge of the nutrition of our gy. French bakers were freezing bread ry market outside Europe. However, for customers from the day they are born dough, but instead of freezing the dough, the last few years China has become our until their last day on earth, feeding peo- he froze the bread once it was 80% baked. number-one destination outside Eu- ple in kindergartens, schools, and uni- This allowed him to use a much more rope. Our main exports are meat and fine versities; those doing sports; and those natural recipe and give final products a food products such as premium snacks, at work. Business and industry is anoth- better taste. Frozen bread made things chocolates, bakery products, and coffee. er big segment alongside education and easier for bakers, as otherwise the baking Catalonia has an important industry of healthcare, the three standard segments had to be done overnight. At present, our quality food. Next come fruit and vege- in this market. We feed people when they main brands for the international mar- tables, particularly peaches, nectarines, are sick at the hospital or in retirement ket are Dots, our main brand for donuts; pears, apples, and citrus fruits. Olive homes, when they go to the army, when Viennoiserie Caprice, our brand for pas- oil, wine, and cava are other strong cat- they are at the opera, when they go to tries; and Saint Honoré, our most well- egories. If we take food production, the see Barça play, or when they travel on known brand for value-added bread. For food industry and directly related com- AVE trains, so we really cover all types of the Spanish market, Fripan, Frida, and panies represent more than EUR30 bil- activities. We employ more than 20,000 Yaya Maria are our most popular brands. lion in turnover per year. Having one people in Spain. We have been part of a Fripan is more oriented toward orga- of the leading ports in southern Europe French company, Elior, since 2001, and nized food service; Frida is for artisan further boosts the sector. The airport of under my leadership we are running bakers; and Yaya Maria is more focused Barcelona and the port of Tarragona also Spain and Portugal. Our market share is on independent food services. In total, provide a lot of connectivity with Europe standardized across the country, and we we reach more than 60,000 customers, and the world. Above all else, Barcelona are the market leader. Some 22% of our of which around one-third is modern is a strategic point through which we can operations are in Catalonia, while the retail, 40% artisan bakers, and 30% food reach the Mediterranean, Latin America, rest is across Spain. service. This means that as a whole we and Asia. When I joined, Prodeca most- serve a wider network of customers with ly went to international fairs in Europe, a strong distribution network. In Spain, Asia, and the Middle East. From 2016 on- we had sales of EUR729 million in 2018, ward, we focused on attending and or- 50% in bread and 50% in our sweet goods ganizing both international fairs as well and savory pastries categories. as business forums related to different sectors. Image: Frantic00 New Technologies & ICT 45

05 New Technologies & ICT

TECH UP

arcelona’s tech sector is experiencing notable interviewee is Mateo Valero, Director of B something of a golden age, as all indus- the Barcelona Supercomputing Centre, home to tries move to digitalize processes as a the MareNostrum IV, which has committed to re- way to increase productivity and competitive- search in general, and the development of Euro- ness in the dawn of Industry 4.0. Popular devel- pean technology, in particular. opments include cloud technology, blockchain, Collaboration between such companies is big data, and AI. now considered central to the sector's continued Perhaps the most significant development in evolution. As a result, spaces that group together the sphere in recent years is that Barcelona has like companies and promote knowledge sharing, been chosen to be the first open lab for 5G in Eu- such as 22@ and Barcelona Tech City, are becom- rope. The regional government is prioritizing this ing more and more significant in the city’s tech- evolution, testament to which is its creation of a nological ecosystem. regional government department for digital pol- The most pressing problem in the sector, both icy, the first of its kind in Catalonian history. We across Spain and internationally, is that of hu- spoke to the regional Minister for Digital Policy man talent in terms of training and retaining. As and Public Administration, Jordi Puigneró Ferrer, demands for qualified employees both grow and who detailed the region’s commitment to putting diversify, the education system is struggling to re- the digital revolution high on the political agen- spond quickly enough to industry demands. da, focusing on five lines of action. Another challenge is that of growing cyberse- In this chapter, we spoke to a variety of com- curity concerns, with calls for a stronger regula- panies that are revolutionizing the sector, includ- tory framework from public administrations to ing Carlos Grau from Mobile World Capital, an tackle threats. This is particularly pressing con- association dedicated to developing technology sidering that public administrations are poten- in the region and holding events, including Eu- tially the most vulnerable in terms of cybersecu-

Image: Xxx rope’s leading World Mobile Congress. Another rity attacks. ✖ 46 Barcelona Special Report INTERVIEW

In order to become the global 5G TALENT capital, the government is working around the clock on 5G pilot projects in and data rural areas.

Jordi Puigneró Ferrer MINISTER FOR DIGITAL POLICY AND PUBLIC ADMINISTRATION

How would you evaluate your first year as minister? 5G is the first mobile technology that will not Catalonia has This is the first time that the government of Cat- only be a technology for mobile phones but also participated alonia has a Ministry for Digital Policy, and it is connect everything else. In the fifth line of ac- an honor for me to be the first minister. I joined tion, ‘innovation as the motor of the new econ- in 22 of the 39 the Catalan government in 2013, first as director omy,’ 5G plays a key role. This is why Catalonia research projects general of telecommunications and digital soci- approved the 5G strategy a year ago, and we are the EU has ety. The most important achievement in this first already launching some projects. One of them is funded in 5G year was putting the digital revolution on the po- the 5G corridor for autonomous mobility. With litical agenda. There is a report from the World the motorway between Catalonia and the south in the past five Economic Forum stating that humanity will face of France, we have joined forces to apply for Eu- years three big challenges in the coming 20 years: im- ropean funds for a project in 5G in which we will migration, climate change, and the digital revo- install infrastructure along the motorway on both lution. We want Catalonia to become digital and sides of the border so that companies can start are working on five lines of action. One is to give testing autonomous driving. Many companies, all citizens quality access to the internet. The including Cellnex and Vodafone, will cooperate private market works extremely well in Barcelo- in the project. In Catalonia, we have the biggest BIO na in terms of providing internet access, though congress in technology, the Mobile World Con- With a master’s degree in things change when we go to remote and rural ar- gress, which has made us the mobile world capi- engineering and information eas. Public actors must incentivize the market to tal. We now want to be the 5G capital, and to this systems from the University of Surrey, Jordi Puigneró Ferrer deliver access in those areas as well. The second end we are working on 5G pilots project in rural began his career in the IT line is to define a new digital citizenship, which areas in partnership with Orange. In the health department of Deutsche Bank means empowering citizens and providing them field, during the last Mobile World Congress, we in Frankfurt, where he worked as an analyst and programmer with the right skills in the digital world, and pro- did the first worldwide 5G remote live gastro op- from 1997-2001. In 2001, tecting their rights and freedoms on the internet. eration, where the doctor was at the event and he joined IBM-Barcelona The third focus is becoming a digital administra- the patient was in the hospital. These projects as a senior consultant and tion, while the fourth is ensuring cybersecurity. happen, in part, thanks to EU funding, since Cat- head of IT projects and new technologies. Since 2013, he We have to create and provide the tools to the alonia has participated in 22 of the 39 research has been responsible for the government. Cyber-attacks can bring down an projects in 5G that the EU has funded in the last government of Catalonia’s entire healthcare system, therefore we need to five years. ICT policy, firstly as director general of telecommunications create a cybersecurity culture. Finally, digital in- and information society, novation is the motor of the new economy, as the What are your strategic plans in terms of blockchain and secondly, from 2016- jobs of the future will be in this area. Talent and implementation? 2018, as secretary for telecommunications, data are the main raw materials of this digital rev- When we defined what would be the key tech- cybersecurity and digital olution, just like oil, electricity, and gas were the nologies of the future, one was 5G and the others society of the government raw materials of the industrial revolution. were blockchain, big data, AI, computer vision, of Catalonia. In June 2018, he was appointed Minister and quantum technologies. In each of them, we for Digital Policy and Public How are you involved in 5G, and how you are tackling have specific programs to go one step forward for Administration cybersecurity in the age of 5G? society and companies. ✖ New Technologies & ICT 47 INTERVIEW ring, RING, RING MWCapital Barcelona wants to become the most dynamic and impactful event regarding technology and transformation. But it also wants to help create and innovate mobile technology that improves people’s lives.

Carlos Grau CEO, MOBILE WORLD CAPITAL BARCELONA FOUNDATION (MWCAPITAL)

Can you give us an introduction to the compa- mon strategy and promotes new projects to drive the digital advancement of sony? to foster talent. The program ensures the ciety while helping improve people’s We are a young foundation that started alignment between the needs of compa- lives globally. We will continue focusing in 2014 as a public-private partnership nies and digital talent initiatives, helps on the acceleration of innovation, the (PPP) led by GSMA. On our board we citizens to develop new digital skills, and transformation of industries through have the three public-sector entities: the positions Barcelona as a global digital digital technology, the rise of digital tal- Spanish government, the Catalan gov- talent capital in Europe. This also means ent, and the reflection on the impact of ernment, and Barcelona City Hall. We helping people from abroad to find great technology in our society. In 2020, we also work with Fira de Barcelona, the job opportunities in the new digital also have an ambitious project: Digital entity that manages events and confer- space in Barcelona. It is urgent to upskill Future Society is preparing a world sum- ences in the city. We have also opened people from other industries that gen- mit on technological governance to be the foundation to private companies, erates less employment than the digital held in Barcelona. Its goal is to analyze with large telco carriers such as Tele- economy. The first aim is to reduce the the major challenges raised by techno- fonica, Vodafone, and Orange, in addi- gap between the demand for talent and logical transformation, to establish rec- tion to Damm and CaixaBank being on our offerings today in universities, voca- ommendations, and to seek public and our board. We have two major objec- tional training, academies, and so on. It private commitment to promote better tives. The first is to contribute to make is important that the public sector plays governance of the digital future and thus MWCapital Barcelona the most dynamic a key role here. One of the things we build a more inclusive, fair, and sustain- and impactful event regarding technol- need to solve is the express visa for dig- able society. ✖ ogy and transformation. The event gen- ital talent through simplifying the pro- erates synergies and opportunities that cess, thus lowering the cost of attracting contribute directly to the digital hub in international talent. Barcelona, acting as a vehicle to generate the conditions that attract senior How do you address the reluctance to change executives from large to the city. Our based on ethics and regulation concerns? second goal is to leave a legacy of mobile The only way is to bring about scenarios technology in our society that improves and agreements that give everyone secu- people’s lives. To this end, MWCapital rity through the good use of technology. focuses on four areas: the acceleration Technology is agnostic, and it must be of innovation through digital entrepre- seen as an acceleration tool that gener- neurship, the transformation of indus- ates opportunities. The challenge is that tries through digital technology, the rise the speed, deployment, and use of tech- BIO With an industrial engineering degree of digital talent among new generations nology, especially in terms of disruption, from the Polytechnic University of and professionals, and the reflection on is always faster than we estimate. That is Catalonia (UPC) and a graduate of the the impact of technology in our society. why we created Digital Future Society, Direct Development Program (PDD) by the IESE Business School, Carlos Collectively, our programs are positively a program promoted by the Ministry of Grau has had a long career in the field transforming the economy, education, Economy and Business and MWCapital of communication and information and society. that analyzes the impact of technology technologies, as well as in the on society and the economy. development of digital business. After holding various sales and marketing How do you work to foster technological talent management positions in companies in in Barcelona? What is your main objective for 2020? the ICT sector such as Hewlett-Packard We built Barcelona Digital Talent, an We want to take a step forward to build and Telefonica, Grau joined Microsoft as general manager in Catalonia. In alliance with public and private entities conditions to ensure MWCapital is im- November 2017, Grau was appointed that coordinates initiatives under a com- pactful. But our main objective is always CEO of MWCapital. 48 Barcelona Special Report INTERVIEW

THE BUMP before the boom

Miguel Ángel Lagunas DIRECTOR, CENTRE TECNOLÒGIC DE TELECOMUNICACIONES DE CATALUNYA (CTTC)

This center was founded in 2001. From what need was it Ceaseless networking and a constant 105 employees, born? desire to institutionally improve of which 95 are At my lectures, I used to talk about why the university model is not strong enough to withstand research, be- oneself are but two of the hallmarks of on permanent cause it is based on personal promotion and the repu- successful longevity. contract tation of the professor: when a professor leaves a university, their reputation leaves with them. I mentioned the lack of an intermediate infrastructure between the

personal promotion and the productive sector, which for cars. The current discourse on entrepreneurs is not Has signed depends more on teams and discipline. Universities are clear. But this focus is exaggerated because entrepre- contracts with more relaxed and more based on reputation than effi- neurs must have buyers for their ideas. The dream of companies from ciency. In the private sector, what matters are results. many entrepreneurs in the US is to sell their company In 1998, I created a report for the local government to after five years and move on to the next idea. That type Qatar, Canada, identify the main productive sectors. We found that the of buyer does not exist here, and when the companies France, the UK, strongest sectors were agriculture, chemical and phar- grow, they borrow credit and go into debt. We should China, Israel, maceuticals, and tourism, but since tourism is in the not always bet on self-employment; it is dangerous. In services category, it is difficult to provide it with struc- terms of the center, it is different, because I cannot hire Portugal, and ture. The latter is the one that pays the most for private engineers as temporary workers. Out of 105 employees the US research. I had experience with these reports because I here, 95 are on a permanent contract. had been an advisor in the national plan for the government and was used to telling the truth in these reports. A great deal of the work you do is to export research and For tourism to grow, there are a few crucial points such knowledge, and you have many partnerships with compa- as judicial security, personal security, good healthcare nies in Qatar, Canada, France, and the US. How did you find services, and food quality. For agriculture, I suggested these partners?

BIO they enlarge the research center in Lleida and focus There are no flagship companies, and the ones that Miguel Ángel Lagunas has more on agriculture, rather than fishing. Back then, could be are used to receiving public subsidies. They a communications and medical tourism was also booming, and I suggest- do not initiate a project if they do not have the subsi- engineering degree from Pol ed they open a public center but manage it through a dies beforehand. To support these, I travel, give talks, University of Madrid and a PhD from the University of private party. Afterwards, a decree was passed for the and sign contracts with companies. The first was with Barcelona. He has served as creation of three centers: one for chemistry, one for an Australian company. I actually never met them in an associate professor and cardiovascular surgery, and one for telecommunica- person, but they requested a project that we were well- vice-rector of research at UPC. He was elected as a member tions. The cardiovascular center was opened because paid for. After five years, we had a few contracts with of the Royal Academy of it was the most scientific branch of healthcare. In the European countries and some Catalan companies. We Engineering of Spain in 1998 communications sector, there were no large compa- acquired a contract with an important US technology and a member of the Royal Academy of Science and nies back then, so the sector’s impact was low, and it company thanks to a student who went to work there. Arts of Barcelona in 2004. needed a push from the public sector. The sector has The company posted ads in London, Munich, and Paris Since 2001, he has been since grown but is still small. looking for engineers. In Qatar, we acquired contracts Director of CTTC. His fields of through people who know us. They visited the center research include digital signal processing, spectral estimation, One of the center’s main priorities is to create permanent and signed the contract. They want to improve inter- radar/ sonar systems, satellite jobs in R&D. How will you achieve this? national relationships rather than simply make mon- communications, multi-antenna We believe in entrepreneurs. The president went to Is- ey. We also had cooperation contracts with significant array processing, and space- time diversity processing for rael with some companies, and they marveled on the public agencies abroad. We also have contracts with communications. inventions created in Israel, such as an ignition button companies in the UK, Portugal, China, and Israel. ✖ New Technologies & ICT 49 FOCUS Mobile World Congress Image: Alejandro Mendoza R

GOT A SIGNAL In 2019, Barcelona hosted yet another successful edition of the mobile phone industry’s largest annual exhibition. Though its 2020 edition has been cancelled for public health reasons, it remains the standard-bearer of the industry’s trade fairs.

THE GSMA'S MOBILE WORLD CONGRESS (MWC) is one of those trade patible smartphones in the market. fairs that sets the tone for the entire year across an increasingly im- However, leading handset manufacturers such as Samsung, Hua- portant industry—and one that leading mobile phone manufactur- wei, and Motorola have already announced models with onboard 5G ers, mobile network operators, and tech journalists would hate to capabilities, and some of which used MWC 2019 as a launch pad for miss. The event incorporates everything from seminars geared to- their 5G-powered devices or as an opportunity to showcase their al- ward industry insiders to high-profile unveiling events that appeal to ready launched products. Samsung had just announced the addition a more general audience. of five new smartphones to its lineup, including its new flagships Gal- As the leading exhibition of the trade fair’s newest incarnation, axy S10 and Galaxy S10 5G, but one of the brand’s most controversial MWC Barcelona has managed to establish itself as a trendsetting products so far, Samsung Galaxy Fold, became the focus of attention event in the decade since its inception, attracting around 2,400 com- in Barcelona. panies and entrepreneurs and up to 100,000 visitors each February. Huawei, too, had come to the event with its own foldable smart- MWC 2019 in Barcelona was attended by 110,000 visitors. Next gen- phone: Huawei Mate X. Meanwhile, Sony, Nokia, Xiaomi, HTC, and eration 5G networks, IoT, big data, and AI were the buzzwords that OnePlus had also brought along a new handset, gadget, or wearable dominated MWC 2019, while “intelligent connectivity” was formally to assert their presence—which more often than not had the legend announced as the theme of the event. “5G” written across them. Although the exhibition venues were divided into various pavilions Though MWC 2020, originally set for February 24-27, has been can- and halls each focusing on a single subject related to mobile tech- celed due to fears over the spread of the coronavirus, it was expected nologies, 5G was by far the hottest topic, to the extent that some at- to host over 100,000 delegates from more than 200 countries. Even tendees, including a keynote speaker, found it overwhelming. During though Huawei, one of the event’s most prominent exhibitors, had the keynote speeches of MWC 2019, Mariya Gabriel, the European flown its employees to Spain in advance to be self-quarantined, it was Commissioner for Digital Economy and Society, brought up the issue not enough to assuage the fears of the more than 40 firms that backed of cybersecurity and regulation in 5G while also expressing the Euro- out before the official cancellation, including BT, Facebook, Nokia, pean Commission’s determination to devise a common framework Amazon, Intel, Cisco, Ericsson, Vodaphone, and Deutsche Telekom. to be respected by key actors in member states. Nick Read, the CEO Though the GSMA, the event’s organizer, had already banned people of Vodafone, on the other hand, expressed his concerns about para- from Hubei province from attending the event, the fact that rough- lyzing over-regulation that limits the major players’ choices in terms ly 5-6% of the event’s attendees come from China each year was of suppliers. enough to discourage people en masse from attending. Granted, pre- 5G also featured in one of the most popular parts of the event for cautions had been enforced—such as banning handshakes and tak- the general public and representatives of the media: product launching attendees’ temperatures—but global fears were simply too high. es. After the world’s first 5G networks went online in 2019 in the US, Though the event will be held next year as scheduled, it is thought South Korea, and Qatar, among other places, tech journalists spent a the city will lose out on some USD545 million in revenue and 14,000 few months making geeky jokes about the absence of any 5G-com- temporary jobs from foregoing this year’s bonanza. ✖ 50 Barcelona Special Report INTERVIEW

With so many opportunities in the SPACE aeronautical business and explosive growth in the sector, GTD stands ready logistics to provide services and solutions.

Ángel Ramírez PRESIDENT, GTD

Considering the sector, GTD is an established company. took advantage of a constellation of 66 satellites How has it evolved since it started? by putting a small radar on board every space- 80% My business partner and I set up this company craft. Depending on the meteorological data and together with others who have since retired. The the position of the plane, we can recalculate the of revenue from customers outside takeoff was fast; we did not have to seek financ- flight plan to save fuel and arrive on time. There Spain ing or capital increase, nor did we have to let in are many things to do with the data that space partners. From the beginning, we were hired for provides us. There are many more military appli- projects in the robotics industry—it was our spe- cations but the applications of space to the civil cialty at that time and still is, though now we are field are fundamental. The new space will allow Customers include also in other sectors—and the automobile sector. the launch of small satellites with a shorter life cy- We quickly started working in other sectors, and cle but at a lower cost. Logistics will change thanks two years after our foundation, we started our first to space, although we still lack satellites. The prob- 80 contracts with the European Space Agency. Al- lem is how to put these small satellites into orbit at airlines worldwide though the core of the engineering work has not a decent price. changed, it has changed in terms of quality control, work regulations, and project organization. What are some of your most innovative projects in the The space world is much more demanding than space sector? the automotive world. In 2004, we separated from Currently, we have a positive evolution. For us, the automotive sector, as we could not continue space is mostly space transportation. Since 1990, working with a sector as demanding as the auto- we have worked on the European Space Agency’s motive industry at the same time as the space sec- launchers program, and we are now with Ariane 6, tor. Since 2004, we have five sectors with which we a spectacular new rocket that will be launched for develop our engineering: aeronautical; logistics the first time in 2020. We are already working with and transports; science, infrastructure, and ro- Ariane Next Gen (the new generation after Ariane botics; and defense and security. More than 80% 6). There will be two pitchers of this project: one BIO of our billing is with customers outside Spain. We is large and one is smaller, and both will be recov- Ángel Ramírez graduated have offices in France, Germany, the UK, and Mo- erable. We have to make everything recoverable with a telecommunications engineering degree from the rocco as well as partners in Latin America where because it is profitable. Politechnique University of we do projects. Currently, the balance is between Catalunya. In 1987, he founded services and projects, which took us a long time What developments do you want to see in 2020? GTD, which now employs more than 400 engineers, with to achieve. Our services are selling standard soft- Our aeronautical business is the one growing the a turnover close to EUR60 ware, licenses, user licenses, and adaptations of most at the moment. Every year, we double its size. million. Its headquarters is previous software. The market is aimed at airlines, air traffic control- based in Barcelona, and there are seven subsidiaries across lers, airports, and airport management. The aero- Europe. Ramírez is strongly Since the company’s beginning, so much technology has nautical sector is complex and very ‘tech demand- involved with organizations and been developed, and the use of big data has exploded. ing.’ It costs billions of dollars, and airlines have associations in relation with What change has been the most significant in this indus- to deal with many parameters to be profitable. We Spanish science and technology activities. In addition, he try? provide solutions that can help them save up to collaborates as councilor The most significant change is the way we buy 3% per year, and that is a big deal. There is much with Spanish chambers of information that is generated from space to de- work to do, especially because the sector is grow- commerce in Barcelona and Madrid and with technical termine the exact position of all aircraft on the ing exponentially and presents many opportuni- Catalan universities. planet. A Canadian initiative, alongside the US, ties for attentive engineers like us. ✖ New Technologies & ICT 51 VOICES FROM THE SECTOR

Álex Cabestany CEO, CROMOGENIA

How did the company develop? Cromogenia was started in 1942 by my grandfather, who had a chemistry background, when he started to produce chrome for the leather industry. That is how we got the name Cromogenia. The real growth came in 1975, when my father started to manage the company and shifted the focus to exporting. With high-value chemistry, you must be up to date in terms of R&D, as well as with your personnel. When we started expanding into other markets, we began to see other possibilities.

What is the biggest market that you export to? Italy is the first, accounting for about 25% of our sales, and the second is Brazil, at approximately 15%. Many other countries represent 3%, 4%, or 5%. We are diverse in this sense because leather chemicals are everywhere. Wherever there is animal slaughter, there is a leather industry. There is always some leather in transit from one country to another. Some is generated in Brazil, but gets treated in Vietnam. The reason we are so international is that we follow the cycle of leather as in Spain. We only kill 3 million animals per year for leather, which is not enough to thrive in this business.

Does your growth strategy involve diversifying your products further away from leather? We have a commercial and research strategy. In terms of research, that means that maybe 20 years ago we had to develop safety processes, especially in chemistry, where safety is important since you are managing dangerous products. Back then, 10 years ago, the focus was on decreasing pollution, considering that our customers in most cases manage the chemicals. The chemicals needed reformulation. For the last two or three years the word has been sustainability, so that is what we are working on now that our chemicals are safe and clean.

THE EXPERIENCE OF SYSTEM & SOFTWARE A LIFETIME AT YOUR SERVICE ENGINEERING

For the last 30 years, GTD has offered Founded in 1987, GTD offers its With customer satisfaction as our first-class engineering in software, solutions, services and products in first priority, we want to establish communication, and control. GTD implements very diverse sectors: aeronautics, long-term relationships with our both products and turnkey solutions for the space, defense, robotics, and clients to deliver satisfactory and top demanding sectors worldwide. logistics. quality solutions.

www.gtd.eu [email protected] +34 934 939 300

@GTDsystems @GTDSystemSoftwareEngineering GTD Communication GTD 52 Barcelona Special Report

There is a critical gap in the Catalan IT A CORNER market for a value-for-money segment, which Parlem is doing everything it can rounded to fill.

Ernest Pérez-Mas CEO, PARLEM

Turnover for 2020 is How did the idea of setting up Parlem emerge? sales. For the rest of operations, 50% is mobile and expected to reach As a Catalan engineer, I was surprised to find out 50% is landlines. there were no mobile virtual network operators in Catalonia even though there were 40 all over Spain. Who are the stakeholders of Parlem, and what have you EUR14 Catalonia represents 20% of Spain’s GDP, 25% of financed through your recent crowdfunding? million its exports, and 16% of the total population. There We sort out crowdfunding to convert customers were other successful regional operators; there- into evangelists. We have a plan to enter the stock fore, I decided to create one from scratch. One of market, but we need to have enough people to al- our tasks is to unbundle the business telecoms low for a free float there. We added 500 customers model. Telecoms have large infrastructure and as shareholders to Parlem through this. We also in- major assets which virtual telecoms use to create jected EUR5 million in capital. The idea is to have products and services. Thus, Parlem created prod- 750 evangelists-customers as the first shareholders ucts and services to attract customers while agree- of the company. At present, I am the biggest share- ing to use other operators’ infrastructure. holder, while the second biggest is the family office from Bonpreu, Ona Capital. Once we deploy infra- How do you find ADSL or TV partners to commercialize structure, we will need more capital. This is why we your services? have reinforced our existing shareholder structure. With mobiles we use the Orange network through MasMovil access, which was a Parlem sharehold- How does Parlem profile its clients? er from the beginning. MasMovil bought Yoigo, We have 87% residential and 13% corporate cli- which had its own infrastructure. While we have ents. Since we have plans to increase our corporate not moved there yet, we will in the near future. For hold to 20% over the next three years, we recently ADSL, we are in discussions with Jazztel, which acquired Lemon, a company that offers corporate was providing this service in 2016. Later, MasMo- solutions. They have their own IP, customer call vil bought part of Jazztel as the EU asked Jazztel to center, and access solutions for companies. sell part of its infrastructure. Through the Jazztel acquisition, MasMovil captured the fiber to home Parlem’s revenue has been growing every year. What are (FTTH) market. Thereafter, the balance of power your expectations for 2020? changed in the market, from one telecom having In 2019, the company is set to double its turnover BIO a monopoly over the infrastructure to all players to around EUR10.5 million. We will have a positive The CEO de Parlem, Ernest cooperating together. As for Parlem, we are not EBITDA by EUR200,000, marking our first year of Pérez-Mas was previously the deploying any infrastructure for the time being; positive EBITDA. We plan to grow our turnover to founder and CEO of Evolution Telecom Iberia; a founder of however, we will in the future in greenfield mar- EUR14 million in 2020. In December 2019 alone, IP, a part of the evo-com group kets, considering that there are 1,000 villages in we generated EUR1.3 million in revenue. with a presence in several Catalonia without access to fiber. We will start this countries; and the director of M-Cluster Capabilities at in 2H20. What differentiates Parlem from the competition? Mobile World Capital. For years, There are two main segments in this country, he has worked to develop a Can you tell us about your partnership with Agile? the incumbents that want everything and all ser- new industrial sector around mobile telecommunications in After three months in the market, we realized that vices available regardless of their cost, and the order to transform Barcelona people want three or four solutions. That means low-cost companies. What does not exist is the into a mobile capital. From mobiles, fixed lines, internet access, and TV con- value-for-money segment. This is where Parlem 2007 to 2013, he was director for Southern Europe at tent. People like to buy bundles, and this is why we comes in; we offer TV for EUR6 and give the option ShoreTel, a leader in unified added the television service in September 2019. So to add Netflix, HBO, or sports. Subscriptions can IP communications. He has far, it is running okay, although we do have some be closed. Everything is available and paid for step also worked for other telecoms restrictions with some specific applications that by step. Another comparative advantage of ours firms such as Artificial Security Technologies, Verint, Witness, are not currently available. In 2020, Netflix and is our customer service, which constantly gets ex- and ASystems. HBO will be available. TV accounts for 20% of our tremely good feedback. ✖ New Technologies & ICT 53 FORUM TECHNOLOGICAL CONSULTANCY

Catalonia’s leading tech consultancies are offering multi-cloud solutions, networks, communication services, and other solutions to a wide range of sectors.

David Cuesta David Garriga Eduard Farga Sergi Biosca MANAGING DIRECTOR, FOUNDER, DEPUTY GENERAL CEO SPAIN, CLARANET SIRT MANAGER, EVERIS SEIDOR

THE COMPANY WAS FOUNDED IN 1998, my partner and I SEIDOR IS A PRIVATE-OWNED EVERIS WAS FOUNDED as an in 1996 and has grown con- founded a company in Bar- COMPANY that was established end-to-end consulting and stantly since then in sever- celona to provide services in 1982 to develop software for IT firm in 1996. We started al ways. Initially, there was related to telecommunica- IBM solutions and products. in Madrid as a franchise of organic growth in a positive tions and infrastructure to Initially, the company devel- the multinational consulting way, followed and comple- all kinds of customers, from oped software according to group DMR, our initial brand. mented by growth through SMEs to large enterprises. In every client’s specific needs, Our aim was to build new the acquisition of several these 22 years, we have grad- but in the mid-1990s, a strate- professional services focused companies in several coun- ually transformed our com- gic decision was made to resell on talent and technology. tries. In the case of Spain, pany by adding products, a standard software. In 1997, We quickly became a lead- we are now doing exactly software, and solutions from around 150 people were working company by combining that—working on growing top IT manufacturers that ing for Seidor and the com- high-performance teams and organically with our current have accompanied us over the pany was generating EUR25 innovation as our chief orga- assets while also looking for years, such as Cisco, Palo Alto, million revenue annually. nizational values. We have complementary companies Check Point, and so on. At The same year, Seidor started grown by 1,000 people in less for acquisitions. We have a this point, we have managed working with SAP, and in the than four years, which is quite strong business plan to con- to create a matrix of products following seven to eight years impressive. Furthermore, we tinue this growth over the and services that can be ap- the company doubled its la- opened our first office in Lat- coming years. We also have a plied to different sectors. In bor force as well as its revenue in America shortly thereafter. great position in Europe as an these, we have a vertical struc- to EUR50 million. We were so It was in 1998, and we were IT company with space in the ture in terms of products and successful that Seidor became able to open new business market we cover. Claranet is services aimed at the public a success case in the SAP re- areas there because we were one of Europe's leading man- sector, education, health, re- sellers ecosystem. Later, our seen as a leading partner of aged IT services providers. tail, services, Industry 4.0, lei- top management decided to Spain’s top companies in We offer multi-cloud solu- sure, tourism, transport, and expand into other markets to those markets. If you want to tions, networks, and commu- logistics. We are also great for apply this successful business be a partner of those compa- nication services. We have anything related to connectiv- model. The easiest market for nies, you have to give them over 6,500 customers and an ity within companies. We pro- Seidor was Latin America be- support wherever they are. outstanding record for deliv- vide and manage the tools for cause of the lack of language One of our main clients asked ering high-quality solutions employees to collaborate and barrier. Moreover, Europe us for help in Chile, so we across a wide range of indus- communicate with each other and the US were already well went there and it became our tries, with over 2,200 employ- via video conferences or com- covered by SAP partners. Af- first country in Latin Ameri- ees, based in 24 offices across puter systems that hold mul- ter opening an office in Chile, ca. Today, we have more than Europe, the US, and Brazil. tiple conversations. After that the company acquired a con- 26,000 people in 17 countries. We are extremely flexible in comes the infrastructure lay- sultancy with a presence in the sense that we are both er the company has in places Argentina, Chile, and Mexico. local and global at the same like data centers, including a That allowed us to expand our time. division specialized in cyber- reach in Latin America. security. 54 Barcelona Special Report INTERVIEW

SIZE matters

GFT employs its expertise and knowledge of the sector to help its clients through the process of digitalization and adopt more open Carlos Eres MANAGING DIRECTOR, banking systems. GFT

Can you give us an introduction to the company? quisitions in the banking sector. That process has yet GFT is a German company that was founded 34 years to end; when it finishes, we will probably have five ago and went public in 1999. In parallel, Deutsche or six big banks. This makes dynamic movements in Bank was developing an internal hub for internation- technology with the banks competing hard for cus- al projects in Barcelona. GFT saw the potential to run tomers. Santander and BBVA are two large interna- projects in Spain through Germany, later running tional banks. Sabadell is now in process of interna- the same projects from Spain to save costs. In 2001, tionalization, now in the UK and with a subsidiary in Deutsche Bank decided to move its subsidiary to the Mexico. This means that the banks cannot be seen market, which is when GFT acquired the subsidiary as just local. Given our international footprint, we and entered the financial services sector. We were support these banks globally. For instance, we work 300 people, growing locally while also supporting for BBVA and Santander in Spain and Mexico as well the growth of our international business. We decid- as for Santander in Brazil. Size matters, so you can ed to focus on banking, which is our expertise, and be more efficient. You are also able to access certain thus certified many of our people and developed our markets that you could not enter if you were smaller. knowledge of investment banking, growing from 300 to 1,000 people. From Spain, we began the process of How should the traditional banking sector evolve to tack- internationalization to Brazil, the US, and Mexico as le the rise in new players such as fintech companies? well as expanding our operations into the industrial Despite the rise of fintechs, banks still represent size sector. Today, the GFT team in Spain is made up of as they are based on legacy systems. However, that around 2,000 employees, working for local and glob- is set to change in the future. In the past, one of the al projects in six locations. KPIs was the number of branches, which is no longer the case. Fintechs decide which part of the cake the What services make up the majority of your global op- banking industry takes. This is only a slice, but it is erations? very promising. If you can go to customers without Our core business is developing projects, mainte- a number of branches, employees, and IT systems, BIO nance, and consultancy. We accompany our clients then you can get the benefits without a huge cost. Carlos Eres has been the Managing Director of GFT in through the process of digitalization with tools in- Moreover, cryptocurrencies are making a great deal Spain since 2001. From 2017 cluding AI, blockchain, or cloud technology. In the of noise. The banking industry as we have known it to 2019, he was part of the finance sector specifically, our focus is on clients will disappear, forcing banks to reinvent themselves executive board of the GFT adopting open banking systems with our help. Some for the future with technological changes happening, group. During his career in the banking sector, he held customers have asked for more end-to-end solu- including open banking that works to personalize executive positions at Deutsche tions, which sometimes require partnerships. We and adapt banking services to clients depending on Bank. Before that, he worked are partners with the three main cloud providers: their needs. for Banco Atlántico and Banca Catalana. He holds an Microsoft Azure, Google Cloud, and Amazon Web economics degree as well as Services. Such partnerships are fundamental in our Where do you want to go forward with your expansion? postgraduate degrees from line of work as the majority of companies have such In our eyes, the two most promising sectors for fu- Henley and Ashridge Business Schools in the UK and IESE partnerships, creating a special relationship with the ture expansion are retail and automotive. We have a Business School in Barcelona. provider of a product or service. This helps to give a team working in Valencia for an industrial company He also completed a PDD better portfolio to the customer. in Germany that only builds robots. We also aim to (program for management development) and a PADE help banks accompany their clients in their day-to- (senior management program) What differentiates the Spanish financial market? day journeys by facilitating all their concerns related at IESE Business School. From 2008 onward, there were many mergers and ac- to finance wherever or whenever it occurs. ✖ New Technologies & ICT 55 B2B

standing capability of research in everything related to drug development, including the interactions between drugs, cells, and proteins.

What impact will your entity have on society?

MV Humanity has always needed instru- ments for business, science, and engineering. For example, Galileo could not have seen beyond his eyes without the telescope. The computer is the most wonderful instrument humanity has ever Mateo Valero Caterina Biscari produced. 75 years ago, before World DIRECTOR, DIRECTOR, War II, the fastest computers were made BARCELONA SUPERCOMPUTING ALBA SYNCHROTRON in Germany and now the fastest super- CENTER (BSC) computers use 10 million processors. The speed has increased from the 10th to the 18th power. We have an incredible tool at the service of science and engi- ACCELERATORS neering, as each of these processors has its own memory connected to a network that allows information to be exchanged Catalan accelerators are helping administrations collaborate with quickly, even up to speeds a thousand researchers to seek new solutions from the crossroads of materials times greater than 5G. These computers science, biology, and paleontology, among many others. run programs from any branch of science and engineering. We also have excellent research in personalized medicine that consists of optimizing large amounts of How did you get your start? companies and administrations. information from the sequencing of the human genome, radiographs, natural, MATEO VALERO BSC is the continuation CATERINA BISCARI ALBA Synchrotron intelligent, and artificial language, med- of another center called the Europe- started a long time ago when a group ical records, and so on. It is about or- an Center for Parallelism in Barcelo- led by Ramon Pascual, a particle physi- dering that information so that society’s na (CEPBA). In 1984, we reached an cist and former rector of the Universitat problems can be resolved and connect- agreement between the governments Autònoma de Barcelona who is now the ing the best life science research centers of Spain and Catalonia and the Univer- honorary president of ALBA, was con- with hospitals. sidad Politècnica de Catalunya to invest vinced that Spain needed a research in R&D using parallel computers. For infrastructure based on a particle accel- CB One of the latest discoveries is relat- 20 years, we grew gradually, and in 2004 erator. At the beginning, the idea was to ed to the study of the interaction of a the shareholders decided to upgrade us build a collider, which is an accelerator new drug for cancer based on iridium and establish the BSC. The center works used for fundamental science, but they nanoparticles that can heal cells. Thanks in supercomputing, which is the science saw a synchrotron as a much better fit for to the synchrotron, we have seen that of building and using supercomputers, the needs of Spain and its scientific com- these nanoparticles concentrate in cells’ the fastest in the world. When we creat- munity. The process took over 10 years mitochondria, which gives insight into ed the BSC, we decided to call our main until gaining the government’s approv- their capability to fight cancer. Another supercomputer MareNostrum after the al. In 2003, it was finally possible to get is the discovery by a collaboration led Mediterranean sea. We are currently on the national and regional governments by IDIBELL of a new disease, myoglo- MareNostrum 4, the 29th supercomput- to sign off on the whole project, not only binopathy, which causes a progressive er in the world. It has a 13.7-petaflop per- its initial investment but also long-term weakness of the axial and limb muscles, formance. We have been awarded a large operations. The government of Spain and in more advanced stages affects the investment from the European Commis- and Catalonia are now the stakeholders respiratory musculature and the heart. sion, Spain, Portugal, Turkey, and Croa- of the ALBA Synchrotron, each owning We have worked with samples of croco- tia to develop version five. Personally, I 50%. We can divide its application into dile bones and teeth belonging to both am already working on number six. The two blocks: materials science and life sci- Nile species and their ancestors who heart of BSC is that it is a place of collab- ences. But within these blocks, there are lived at the end of the Upper Cretaceous oration between administrations as well hundreds of applications. For example, about 70 million years ago. They have as a meeting point between ideas and in materials science, we research new been studied with the powder diffraction society and between infrastructure and materials dealing with energy for batter- technique by a collaboration of Spanish research. We are a group of more than ies, catalysts, and nanotechnology. We universities and CSIC research groups, 500 researchers that are experts in super- can also develop magnetic materials for which gives a new approach to research, computing and in the business of solving spintronics and quantum technology. As including the perspective of materials social problems by collaborating with for life sciences, one example is the out- science, biology, and paleontology. ✖ 56 Barcelona Special Report VOICES FROM THE SECTOR

Xavier Pujol CEO, FICOSA

How do you structure Ficosa’s portfolio of products? We have a matrix organization. On the vertical axis, we have five business units. We have control systems that until a few years ago were mechanical control cables but have now become technologies that shift by wire, brake by wire, and gear actuators. We are moving with the automotive trend from mechanics to mechatronics and full electronics. We have Cristóbal Calzado another division, which are vision systems to develop and manufacture interior and exteri- SALES AND MARKETING or mirrors. Another division is advanced driving assistance systems, which are sensors and DIRECTOR, cameras that feed information to the driver in real time, allowing them to drive safely with ARITEX a 360-degree view.

How was Aritex set up, and why has it pro- What has been Ficosa’s internationalization strategy? gressively given more relevance to the aero- In 1962, we went to Portugal, as we had close relations with Portugal. Then, our technology nautical sector? in control systems made it easy to set up a facility and export to European markets from Aritex was founded in 1961 to supply jigs there. That business focused on exporting to Italy and France. Now, we have manufactur- and tools for the automotive industry. In ing plants in Portugal, Spain, France, Italy, Germany, Poland, and Turkey, along with plants 1985, the engineering division was created, in India, China, Korea, Mexico, and the US. Some 96% of our sales are outside of Spain. The and the company become Aritex Cading, European market accounts for 60%, North America 18%, and Asia 12%. offering turnkey packages and design and manufacturing solutions. By 2000, Airbus had launched the A380 program and needed to expand its supplier base. Airbus was searching for suppliers with assembly systems expertise, and Aritex was one of the main references in the automotive sector with the major OEMs like Seat, Volkswa- Marco Bressan gen Group, and Mercedes, for example. CHIEF DATA SCIENTIST, Airbus proposed a collaboration for some SATELLOGIC packages to assemble aerostructures. Ari- tex undertook the challenge to develop an Can you tell us about the background of Satellogic? assembly system for the horizontal stabiliz- Our founders understood that the next 30 years would bring critical challenges for human- er of the A380, our first project and a large ity, such as food and energy production and distribution because of population growth. contract. Not to mention the stress produced by pollution and climate. The challenge was measuring things happening on the planet on a global scale in an affordable way, and satellites were Aritex was sold to Aviation Industry of China the solution. Essentially, Satellogic seeks to understand what is happening in real time and (AVIC) in 2016 by Comsa-Emte. How did this on a global scale, a sort of Fitbit for the planet at a more affordable price than traditional deal come to be? satellite production. Satellogic has a vertically integrated strategy whereby it does every- Comsa-Emte was a helpful partner, partic- thing from the design of the satellite to the development of the technology. The first five ularly in the growth of the company since satellites we helped launch tested the different components, and the last three are able to 2009, and we are grateful to its efforts and capture commercial data. support. However, we needed to grow technologically and were looking for fresh How much of your client breakdown is the public sector? investments. Comsa was not in the posi- Governments are currently the number-one consumers of satellite imagery. The private tion to provide such support any longer, so sector, especially smaller companies, had no access to these kinds of solutions due to cost we opened the sale of Aritex to the market. and difficulty of transforming data into decisions. Today, commercial satellite imagery There was interest from different investors companies like ourselves are starting to serve affordable imagery for the commercial sector, and industrial groups, including AVIC. which is likely to grow. New Technologies & ICT 57

Sílvia Caparrós CEO, SCYTL Ignasi Villajosana CEO, What services do you provide, and how are they split between institu- WORLDSENSING tional and private markets? Scytl started with a business oriented to governments. The first ap- How was Worldsensing created, and who are its current stakeholders? plications of our online voting solutions were devoted to local, re- Worldsensing was founded in 2008, when three PhD students de- gional, and state-level governments. We are the leaders in this field, cided to set up a company and explore the use of the wireless com- with a market share of 80% in the online voting sector for govern- munication technology they had developed during their studies. In ments worldwide. We have been in the electoral sector for 20 years total, we have been through three rounds of investment. The first and have developed a significant expertise in electoral processes. seed round was in 2013 and was a combination of VCs from Spain, We did a project for Spain’s general elections in 2015 and more re- like JME Ventures, Finaves from IESE Business School, and sever- cently the May 26 European and local elections. As a breakdown of al family offices. In 2015, we got a Series A led by Cisco Ventures, our services, 70% of our projects are based on online voting, and Mitsui & Co., and Kibo Ventures. In 2017, we closed a round led by 30% are based on other electoral technologies. McRock Capital, an IoT boutique from Canada, and ETF Partners. VC firms own 60% of the company. In the April 2019 Spanish elections, only 5% of Spaniards registered abroad voted. Why is Spain not jumping to e-voting? How is Worldsensing’s portfolio of services structured? Other countries have also realized that overseas voters have real The company mainly targets two markets. The core business, rep- challenges when voting, so an online voting solution would en- resenting the greater part of our revenue, is mining, construction, courage these voters to exercise their rights. The challenge we face and infrastructure. What we provide is technology, hardware devic- when implementing online voting in Spain is the need for a legisla- es, communication networks, and software to digitalize the control tion change, for which you need political consensus. The percent- of infrastructure. With that, we can monitor geotechnical and geo- age of votes from Spaniards living abroad that are lost is extremely physical variables related to the state of a piece of infrastructure. important. 58 Barcelona Special Report INTERVIEW

Being in Barcelona is key to partnering RIGHT with others on IoT and accelerating product adoption for the local, national, PLACE and continental markets. at the right time Brian J. Stumm VICE PRESIDENT & GENERAL MANAGER, JADE BIRD FIRE ALARM INTERNATIONAL (EUROPE), S.L.

The fire alarm sector How has the company evolved in the past years? dard, and for the US and Canadian markets it is makes over Our official name is Jade Bird Fire Alarm Interna- UL/ULc and FM Approvals. Fortunately for us, tional (Europe) S.L., which was established in July the China norms were developed from the EN 54 2018. We are a wholly owned subsidiary of our standard, with a few modifications. To move a EUR1.1 parent company based in Beijing, Jade Bird Fire product from China to Europe, some of the stan- billion in revenue in the Protection Co., Ltd. The focus of our business is dardized tests are essentially identical, while oth- European, Middle East, to bring a disruptive approach to the fire alarm ers are slightly different. We do not have to devel- and Africa markets market by innovating new products and technol- op a product from scratch; we can take the core ogies and bringing in a true customer-focused technology of the product that is approved in approach. We are now in the process of obtaining China and work on some hardware and software approvals for our products from the local agency, aspects to meet the European standards and the Applus. We expect to receive the final approval expectations of the European market. While we for our panel and devices in 1H20. We will begin are a China-supported company, as a Europe- our commercial operations around that time. an-focused company, the products that we will bring to the European markets will be tailored for How did Catalonia Trade and Investment Agency help the European markets. you to start your operations in Spain? Our manufacturing base leverages manufactur- Why should a client choose your products over a coming from China, so we needed excellent infra- petitor’s? structure for seaport importation, transportation, One of Jade Bird’s hallmarks is customer service. and warehousing to ship and sell our products Our partners will get access to our engineering across Europe. We also considered more eco- and technical support team on site for their new nomic aspects like the work culture, environment start-up. We envision being a true partner for our and availability of technical team members. Our clients and prefer to be onsite to offer swift help BIO products are unique and feature niche technolo- with any issues that may arise from installation, Brian J. Stumm joined Jade gies; we cannot just hire a software engineer who commissioning, and troubleshooting. We believe Bird Fire Alarm International has been working on another product because the direct feedback from our customers is key to (Europe) as its General Manager in Barcelona and has been our fire panels require specific knowledge. Once enhancing future products and features. We will leading its start-up activities we looked at those factors and the cost of labor, also work on a comprehensive training program for the past year. Prior to this growth, and investment opportunities, it became to teach our partners how to install and use the role, he worked for United Technologies Corporation in its clear that Barcelona was the right choice for us. products we will offer. fire and security businesses for There are many small start-ups in Barcelona that 10 years in a variety roles in are highly focused on the latest mobile technol- What is in the pipeline in terms of investment in R&D? the US, Finland, and Belgium. Prior to his work at United ogies. By being in Barcelona and working with Our business plan is to release several waves of Technologies he worked for Catalonia Trade and Investment, we can look at products within the next three years not only several other global product some of the groups it has established to deter- for the commercial fire alarm industry, but also companies in various roles. He has over 25 years’ experience mine if there is an opportunity to partner with products focused on more industrial applications in engineering, product others on IoT and accelerate product adoption in and residential fire alarms. These will feature development, and management the local market. technologies like cloud computing access, explo- across various technologies. sion-proof features, and IoT. We will showcase He holds master’s degrees in mechanical and electrical How do the Chinese standards differ from the European some of the products at SICUR 2020 in Madrid as engineering from Rochester ones? well as FIREX, Intershutz, and the Barcelona Se- Institute of Technology In the fire alarm industry, the US, Canada, and curity Forum. Our IoT-based residential products and Penn State University, respectively, and an MBA from Europe have their own set of standards that are could be connected with many of the local tele- Northeastern University. applicable. For Europe that is the EN 54 stan- phone operators. ✖ New Technologies & ICT 59 B2B

JG We have big projects for the future, several of which will already start to be reflected on the website in 2020. We are also going to create a loyalty team whose mission will be to develop high-quality content that presents an offer of added value with respect to our competitors. New visual narratives with special care to the video will also signal an important transformation of our content. As a rule, digital business models are changing rapidly because of the inclusion of technology across the entire value chain. Javier Godó Javier Moll Today, advertisers ask us for large au- PRESIDENT, PRESIDENT, diences that must be well profiled and GRUPO GODÓ PRENSA IBÉRICA qualified with data, not to mention geographically segmented.

JM The growth of digital is relatively new. Though advertising and traditional PRESS AND newspapers are still the biggest source of income, they are declining. We have closed certain pages, which means us- COMMUNICATIONS ers have to pay to access quality content, since we have journalists whose work is Publishers must thread a careful needle to remain profitable and valuable. They make an enormous effort informative in an age of constant change and disruption. that costs the company good money. We cannot give that content away for free and expect it to be paid for by advertising. What do we do if advertising does not cover it? Since the press was born at the end of the 18th century, it has fed Can you give us an overview of your history, in major leap forward in 1984 with the ac- on the cover price. Advertising became a addition to some recent achievements? quisition of La Nueva España (Asturias), bonus that helped, though was never the Levante (Valencia), and Información core. What was most important was how JAVIER GODÓ Our recent success has (Alicante). We began to grow in circu- many copies you sold, and you could been the result of many factors. In Jan- lation and advertisements, which is meet your general expenses and have a uary 2019, the two newsrooms, digital part of the income for printed publica- greater or lesser profit. This has changed and print-based, were combined into tions. We now have 25 newspapers and over the years. Some 41 years ago, the re- one, which led to an improvement in the a dozen magazines, including weeklies, gional press covered all its expenses with online content offered by La Vanguardia. monthlies, semi-annual, and annual the cover price. Now, the percentage Another factor is the success of the distri- publications. We have 50 digital portals that advertising covers has grown. For a bution teams in effectively delivering the and publish 60 corporate publications. long time, cover prices were unable to news to social networks. As a rule, our We not only publish magazines for third cover even a quarter of general costs, so group systematically identifies oppor- parties in terms of design and printing, they now depend on advertising, which tunities offered by the changing media but often accept requests to create con- is closely linked to economic crises and market. Especially at a time as intense tent or seek advertising for them. We the whims of advertisers who, at a giv- as the current one, when the digital field also have a corporate magazine division en moment, can condition the content, has become so exciting, modernization that publishes for all types of companies which is not ideal for a journalistic com- and adaptation are essential to main- such as Renfe, Telefónica, BBVA, and La pany. The editors made a mistake with taining the leadership position we have Caixa. Paper and the printed segment the digital platforms because we thought held for many years in Catalonia. generate a large part of our revenue, and that by giving away everything for free, while the printed segment is declining in we would retain readers. Yet, companies JAVIER MOLL We were founded in Las Spain and around the world, digital has are one click away from their competi- Palmas de Gran Canaria. We acquired a rapidly ascending trajectory. Since we tion, and if we charge users, they can go Editorial Prensa Canaria, which pub- started from a low base, almost all of us to another site. We are following the free- lished two newspapers and a weekly have grown to double digits. Still, digital mium model with which some content is sports magazine, La Provincia, El Diario has less economic weight than the print- free, but our own content generated by de las Palmas, and Canarias Deportiva. ed segment. our journalists has a cost. The subscrip- Then we began to expand the compa- tion is now cheap but will grow. Digitally, ny with printouts, because there was How are you tackling the digitalization of the we can charge them less because we save no digital media at the time. We took a industry? on the cost of paper. ✖ 60 Barcelona Special Report FOCUS 5G

TO 5G AND BEYOND

WHILE THE US AND THE UK HEM sectors. Jordi Puigneró, Catalan Minister for Digi- tal Policy and president of i2CAT, said in his TBY AND HAW OVER THE POLITICAL interview, "Smart digital technologies will form IMPLICATIONS OF 5G, BARCELONA HAS the basis of prosperous nations.” A key aspect that TAKEN THE PLUNGE TO BECOME THE gives 5G the ability to a play a role in GDP is its ul- WORLD’S MOST FORWARD-THINKING tra low latency, which will measure around 1 ms PLAYER IN ITS ROLLOUT. as compared to 4G’s 30 ms. As latency measures how fast content can be transported from server to user, it plays a huge role in IoT technology. Thus, 5G will allow for more accurate remote object ma- nipulation and industrial automation, two aspects that make its contribution to the GDP huge. Yet, BARCELONA, THE FIRST CITY IN SOUTHERN EU- 5G’s latency affect doesn’t stop there. It can even ROPE to create urban 5G test beds, is becoming a offer something to the world of sports. world leader when it comes to 5G technology. Cat- According to research from software specialist alonia’s Minister for Digital Policy recently signed Amdocs, most people’s debut experience of 5G an MoU with the i2CAT Foundation research technology will be at sports stadiums, and Barce- group and the University of Bristol in an effort to lona fans will be amongst the first to reap benefits. further propel Barcelona as a blueprint for smart Camp Nou plans to roll out internal 5G coverage cities around the world. as part of its Espai Barça project to renovate the Smart tech like 5G promises Barcelona’s resi- club’s 61-year old stadium. Faster speeds at the dents improvement in their transport, education, stadium will not just mean overcoming congested and augmented reality, but its biggest real-world bandwidths that make it almost impossible to send impact is already being felt in healthcare. Re- messages during a game, but will also enhance the searchers at San Raffaele hospital are developing fan experience. By connecting to video flows from 5G-equipped ambulances that allow doctors to cameras around the stadium, fans will have in- view patients in real time and offer instructions to stant access to action replays and other real-time paramedics as if present in the vehicle. They plan game information, thanks to upload speeds of up to take further advantage of 5G’s downloading to 200Mbs per second. However, amid all the hype speed—as much as 100 times faster than 4G—to around 5G, 2019 has, to a certain extent, prov- be connected to city infrastructure to ensure clear en to be a year of dissent toward the technology, roads en route to hospitals, as well as potentially perhaps most notably in Brussels. In spring 2019, providing a platform for video-assisted surgery. the Belgian capital halted the rollout of 5G tech Barcelona’s ferrocarril tram service, also known amid concerns over radiation emitted from base as Ferrocarrils de la Generalitat de Catalunya stations. Dutch members of parliament are also (FGC) too, aspires to test 5G between the stations encouraging their government to investigate these of plaza de Espanya and Europa Fira in the coming potential health issues, while Switzerland has months, to demonstrate how it can create higher agreed to carry out tests and regularly inform the quality services in the rail system. To do this, a 5G public of its findings. railway test will implement a single communica- These types of concerns toward new technology tions platform, replacing the multiple indepen- are not new, as consumers have for years proven dent networks in place today that allow for more similarly anxious about other non-ionizing radia- seamless communication between stations, trains, tion emitters like microwaves and mobile phones. operators, and riders. Unlike ionizing radiation, which is higher up the But 5G doesn’t only offer screen-addicted res- spectrum and includes X-rays and nuclear radi- idents better streaming of their favorite Netflix ation, the non-ionizing variety that is emitted by shows while commuting. It can also represent real everyday machines is far less harmful, if at all. One economic growth in terms of GDP through revo- thing we can be sure of is 5G’s impact on all coun- lutionizing manufacturing and other automated tries in the coming future. ✖ New Technologies & ICT 61 INTERVIEW flexible PROGRESS The more you push the boundaries of knowledge, the likelier huge opportunities to scientifically progress become.

Antonio Huerta DIRECTOR, ICREA

ICREA was founded in 2001 to seek new hir- in bioscience start-ups, more than 70% resources. However, the investment will ing formulas to compete with other research of it has had an ICREA research professor pay-off in a very short time because, on systems. How did it originate, and how has it behind. It is hard to imagine that a poli- average, every ICREA research professor evolved? cy of innovation could have yielded such consistently attracts over three times In its origins, ICREA was mainly an in- impressive results. It is counter-intuitive, more resources than costs. Thus, from strument to circumvent the limitations but that is how things seem to work. the perspective of a public investment, of a recruitment system that was mark- it’s really worthwhile. Moreover, in the edly rigid in a number of ways. For in- Barcelona is getting a lot of international rec- long run, we would like the total amount stance, it was designed in such a way that ognition for being a ripe breeding ground for of researchers (per million inhabitants) in practical terms, it discouraged people R&D development, as well as start-ups in ev- to be higher than it is now and reach from abroad to compete successfully. ery sector. How has the city achieved this? the standards of other successful small Even more relevant was the fact that The research system has matured and countries such as Denmark or the Neth- existing positions were rigid in terms of evolved since the turn of the century, erlands. If the total amount of research- salaries, promotions, and flexibility. Of- when Barcelona did not particularly ers increases, the number of ICREA re- ten the window of opportunity to hire stand out. Now the Financial Times says search professors, which is only about extraordinary talent is narrow, and a it has become one of the three best cit- 1% of all the researchers working in Cat- slow administrative process is generally ies in Europe to start a company. This is alonia, should also increase. ✖ unable to compete in the international a huge success, but there are lessons to research arena. While these consider- be learned, and one of them is that you ations are still valid today, ICREA is now cannot skip stages. To have a dynamic attractive for and by itself as it has gained innovation ecosystem a country needs a reputation as a landmark of excellence, to invest in research first, just like I men- and carries considerable prestige. tioned before. It does not work the other way around. And with sustained invest- An objective of ICREA is to create compa- ment, things do come to happen. This is nies or license technologies developed by not because of ICREA alone, of course. In research professors. How do you transfer this fact, it is the whole system that has had research to the market? the ambition and commitment to actu- A look at the history of science and tech- ally be there. Without a rich and diverse nology tells us that the most revolution- knowledge environment, none of this BIO ary breakthroughs that humankind has could have happened. The director of ICREA, Antonio Huerta achieved through science always come is also professor at the Universitat Politècnica de Catalunya. He holds a PhD from the most unexpected places. The What are ICREA’s primary objectives for from Northwestern University. He has most valuable innovation stems from 2020? served as a visiting professor at various fundamental research, not the other way We are pushing to increase the size of our international institutions, including the Joint Research Center of the European around. The fact that ICREA participates calls. The idea is to double the amount Commission (Ispra), l’Ecole Centrale in more than 25 spin-off companies and of positions offered every year. Because, de Nantes, Swansea University, and has more than 200 patents is a byprod- as we noted previously, the Catalan R&D Chuo University. He has also had uct of scientific excellence. When you system is mature enough to absorb more various roles in agencies of European evaluation and scientific journals. He is keep pushing the boundaries of knowl- top researchers, our success ratio is too currently president of the International edge, some massive opportunities are low (at only 5%), and many excellent re- Association for Computational bound to appear sooner or later. To give searchers cannot make it in such com- Mechanics and was the academic director and founder of the Industrial you an example, if you look at the money petitive calls. Of course, this is a huge Doctorate Plan of the Generalitat de raised in Catalonia over the last decade effort and is taxing for our government Catalunya. Image: Frantic00 Image: Xxx 06 TO INNOVATE A PLACE First is the collaborative spirit imprinted in their First isthecollaborative spiritimprintedintheir the successof researchsectorbecameclear. to takeadvantageoftherichecosystem. Amazon, movingtheirR&Dcenters toBarcelona large international companies, such as HP and emerging trendthatconsolidates thispositionis research jobs,incontinentalEurope. Another vestment inR&D,andthehighest numberof official analysis,Cataloniareceivesthemostin According toCataloniaTradeandInvestment’s domestically aswellattractitinternationally. of such research is that it serves to breed talent and socialinnovation.Anotherimportantfeature reaching andincludesgrowingeconomicoutput most 800activeresearchgroupstoday. 89 researchinstitutionsinlifesciences,withal sciences. AccordingtoBioCatOutlook,thereare celona anditssurroundingareasishealthlife One of the most popular lines of research in Bar- ICFO, aworldrenownedcenterforphotonics. of NanoscienceandNanotechnology(ICN2) recat, andLeitat,aswelltheCatalanInstitute chapter areresearchcentres such as i2Cat, Eu Synchrotron. Otherkeyplayersincludedinthe Barcelona SupercomputingCenterandtheALBA T From the interviews we held, two factors of From theinterviews weheld,twofactorsof The impactofastrongresearchsectoriswide Research &Innovation ing major scientific facilities such as the ing majorscientificfacilitiessuchasthe made upofavarietyplayersinclud- he Catalanregion’sR&Denvironmentis - - - products, andbusiness models."✖ is an excellent environmenttodevelop new ideas, we supportthissituation withtechnology,thenit lifestyle ofcreativityandopenmindedness, andif Eurecat, concurred,statingthat, "Barcelona hasa tion orcutting-edgetechnology. XavierTorra,of develop researchthatrequiresa sense ofinnova lona anattractivelocationforanyone lookingto largest researchandinnovationprogramever. innovation projects.Through2020,theEUranits EU, oneofthegreatestinvestorsinresearchand that hasbeenkeyindrivingsuchsuccessisthe investment. ecosystem abroadandcontinueattractingforeign tion hasworkedtirelesslytopromotetheresearch lines ofresearch.Barcelona’spublicadministra for thefieldandgeneralencouragementnew through suchcollaborations. in promotingresearchamongsttheirstudents nity. Universities,too,playanimportantrole edge sharingandcreatesomethingofacommu and companiesinanattempttopromoteknowl tific deBarcelona,whichgrouptogethercenters around Barcelona,including22@andParcCien Testament tothisisthenumberofclustersinand ters makinguseofeachtheirspecializations. DNA; bigprojectsareoftensharedbymanycen The culminationofthesefactors makesBarce Outside oftheregionitself,anotherinstitution Second isthepublicsector’sstrongsupport Research &Innovation ------63 64 Barcelona Special Report INTERVIEW SOCIO-SCIENTIFIC symbiosis

Maria Terrades DIRECTOR, PARC CIENTÍFIC DE BARCELONA

Can you give us an overview of the park? What are your plans for expansion? It is important to have an overview We still have some room for growth be- of the life science sector in Catalonia cause the park has been built in phases. to understand the origins of the park. The last building, Cluster II, was meant to Pharmacy and chemistry have a strong be finished in 2011, but it coincided with tradition in Catalonia, and there have the global economical crisis. At that time been important pharmaceutical com- the park management decided to finish panies since the 19th century. We also the building but to avoid further invest- have good universities in life sciences ment. The five-story building was first such as medicine, chemistry, and phar- occupied by the pharmaceutical Esteve, macy, as well as excellent research hos- which settled in the fourth floor in 2011. For companies or research pitals spread throughout the territory. In The remaining floors were empty, and outfits that stand to benefit from the past 20 years, there has been a sig- we had to find money to build the labs nificant change in life sciences thanks step by step during the following years. the existing community in the to the emergence of biotechnology and In 2019, we found an investor that paid park and add value to its existing genomics. More recently, the Spanish to upgrade 10 new labs covering 600sqm, ecosystem, there is no better and Catalan governments decided to in- who has already been paid back with the place to be in Barcelona. vest in the life science sector in order to rental fee we receive from tenants. We are make Catalonia a reference in that area. delivering the new labs in December, and To achieve that, a couple of decades ago eight out of the 10 are already booked, research centers not belonging to uni- which proves that there is a real need for versities and important scientific infra- laboratory space in Catalonia. We would structure were created in Catalonia. At like to repeat this formula in the coming the time, a program called Icrea was cre- years to finish the park in 2025. ated to attract the best researchers in the world to Catalonia, and some important How do you promote the park internationally, infrastructures were created, including and how does one get a space inside it? the Barcelona Super Computing Centre We promote the park through word of in 2005, the Synchotron, a particle ac- mouth among key players in the life sci- celerator in Bellaterra, and the National ences and innovation sectors. If a foreign Center for Genomic Analysis. The Parc company wants to settle into a laborato- Científic de Barcelona was created in ry or open new offices in Barcelona, this 1997 by the University of Barcelona as a company will probably contact BioCat, science park with the objective of host- the Catalan government agency Acció, or ing excellent private and public research another company already established in centers focused on the life sciences. The the city. Most of these key players know objective is to share scientific infrastruc- about the park and its facilities, and we ture and create synergies between pri- are usually recommended by the afore- vate and public entities to foster inno- mentioned. We also promote the park vation. Today we host research centers, by attending international events and non-profit organizations, groups from using social networks such as LinkedIn the University of Barcelona, and compa- and Twitter and reaching potential cus- nies—a total of nearly 3,000 profession- tomers thanks to our website published als work every day in our facilities. For in three languages: Catalan, Spanish, and all these members, we provide spaces, English. Once a company reaches out BIO biology and chemistry laboratories, and to us for information we verify its activ- Maria Terrades holds a degree in offices. We also provide common scien- ity and their needs. There are two con- economic and business sciences tific services, including laboratories with ditions for giving a company the green from the Universitat de Barcelona freezers, centrifuges, dark rooms, cell light: the company should benefit from and completed IESE’s Management Development Program. She has worked rooms, and microscopes that our mem- the existing community in the park, and for various companies, including Price bers can use whenever they need. We it must be interesting for the existing eco- Waterhouse and Agbar, where she was also have an animal facility and three system, i.e. it must add value. If these two management planning and control director, strategic planning director, and platforms: toxicology, proteomics, and conditions are fulfilled, they are good to treasury and finance director. chemistry and analysis. proceed. ✖ Research & Innovation 65 INTERVIEW sharpening skills BOTH HARD AND SOFT

The highly innovative projects developed under BIST’s new research programs have already yielded Gabriel Silberman DIRECTOR GENERAL, excellent results, including the BARCELONA INSTITUTE OF development of a retinal prosthesis. SCIENCE AND TECHNOLOGY (BIST)

Can you briefly explain the origins of BIST? example, the development of a retinal prosthesis. At the beginning of the 21st century, an initiative Although still in its early stages, this project has BIST gathers was launched by the Catalan government to cre- attracted significant competitive funding from together seven ate research centers to complement and enhance other sources and holds much promise to even- Catalan centers the research capacity of Catalonian universities. tually offer a qualitative improvement for people That, together with the ICREA program, set the with vision impairment due to diseases such as of research Catalan system on the path to excellence. Cur- retinitis pigmentosa. The third purpose of BIST excellence rently, the BIST brings together the Centre for is to increase its impact on society. At our seven Genomics Regulation, the Institute for Bioengi- centers, we have around 600 postdocs and about neering of Catalonia (IBEC), the Institute of Pho- the same number of PhDs, part of a workforce of tonic Sciences, the Institute of Chemical Research around 1,500 highly skilled experimental scien- Ranked 23rd of Catalonia, the High Energy Physics Institute, tists. All of them have hands-on experience in sci- in Europe and the Catalan Institute for Nanoscience and Nano- ence, and many may not end up being academic 106th in the technology, and the Institute for Research in Bio- researchers. When we reflected on that, plus the medicine (IRB Barcelona). All of these centers are mission of having an impact on society, we fig- world in the excellent, but considering how scientific institu- ured we could give these scientists additional Nature Index tions measure themselves, it is not purely quali- tools to help them succeed in whatever profes- ty but also quantity that counts. The number of sional field they choose, focusing broadly on ac- excellent publications is important, so although ademia, science education in secondary schools, the centers were very good, they lacked visibility enterprise and entrepreneurship, and public poli- because of their relatively small size. By bringing cy and communications. these centeres together we get the critical mass to boost everyone’s research in all the important Can you tell us more about the tools you envision in the rankings, such as Nature Index. With the seven various career scenarios? centers together, we are now 23rd in Europe and In an academic context, these tools may include 106th in the world in the Nature Index 2019 tables. knowledge in the field of human resources management, helping build and manage a team, and BIO What other goals does BIST pursue to increase the im- how to seek grant opportunities and apply for The Director General of the BIST and adjunct professor in pact of research? them. We also aim to provide scientists with man- the department of experimental Gaining visibility was just one reason to bring agement and soft skills they do not necessarily and health sciences at the the centers together. A more important reason is learn in the laboratory. We strongly believe that Pompeu Fabra University, Gabriel Silberman is a member to enable collaboration among the BIST centers, having scientists engage in secondary school sci- of the board of trustees of the taking advantage of their different perspectives. It ence education can have a huge impact. Several of Careers Research and Advisory is not the same being a physicist in the Institute of our centers already have significant outreach ac- Council (UK). After completing his PhD in computer science Photonic Sciences or in the High Energy Physics tivities to bring youngsters closer to science, but at the State University of New Institute. Despite them all being physicists, they more is needed to increase interest in STEM fields York at Buffalo, Silberman approach the world a little differently. To take ad- and careers. In the area of enterprise and entre- became part of the tenured vantage of this diversity in perspective, the BIST preneurship, we want to narrow the gap between faculty at Technion, the Israel Institute of Technology; a Ignite Program offers competitive funds to proj- research and industry by encouraging scientists group leader at the IBM T.J. ects featuring new collaboration among research- to learn about challenges and opportunities and Watson Research Center; and ers from different BIST centers. The highly in- then link their findings back to the research sys- a program director at the IBM Toronto Lab. He is an active novative projects developed under this program tem, as well as learning how to understand and inventor with 32 issued US have yielded excellent early results, including, for develop business strategies and plans. ✖ patents. 66 Barcelona Special Report FOCUS Innovation parks

BARCELONA’S CLUSTER-WUNDERKINDS WITH TWO OF THE LEADING SCIENCE hand, and determining genetic alterations in the PARKS AND INNOVATION CLUSTERS cells of cancer patients caused by cancer therapies IN EUROPE, BARCELONA CONTINUES to understand their long-term side effects and opti- TO FLAUNT ITS CUTTING-EDGE mize treatments on the other. Similarly, exciting research is being carried out at CREDENTIALS ACROSS VARIOUS the Institute for Bioengineering of Catalonia (IBEC), INNOVATIVE SECTORS. also headquartered at PCB. In collaboration with the Institut de Ciència de Materials de Barcelona (ICMAB), for example, researchers from IBEC are helping develop a flexible, cheap, and biocompat- ible transistor platform able to record an electrocardiogram of cells and micro-tissues over long periods of time. Essentially, this bio-platform should be THE FIRST SCIENCE PARK IN SPAIN, the Parc able to measure the effect of drugs on beating cells, Científic de Barcelona (PCB) has become one of rather than just larger organs. For example, prior Europe’s leading research centers for technolo- to undergoing surgery, patients must undergo an gy transfers and life science innovation since its electrocardiogram, which measures the electrical founding by the University of Barcelona in 1997. A activity of the heart. But what if doctors want to community with over 2,800 professionals working measure a much smaller cluster of cells, or groups across a 100,000sqm campus, the park is home to of cells within tissues? If researchers at IBEC com- six world-class research centers, over 100 compa- plete their bio-platform, this will open the door to nies, and numerous leading pharmaceuticals, bio- immediate and important applications in the cardi- tech firms, SMEs, start-ups, and non-profits. ac and neural fields. Enjoying a deeply symbiotic relationship with Though long a biotech powerhouse, PCB is the university, the PCB is predominantly focused far from the only smart district in Barcelona. The on biomedical R&D, but it also promotes multidis- city also boasts Distrito 22@, a special initiative ciplinary thinking across the social sciences, hu- launched by City Hall in 2000 to transform unused manities, and public health. land in Barcelona’s old industrial quarter, Poble- An interface between science and industry, PCB nou, once referred to as "Barcelona’s Manchester," also provides business services such as risk capital into a business incubator and tech hub. Now host- and consultancy to help create companies that will ing more than 3,500 companies that have created produce the drugs and knowledge of the future. It over 100,000 jobs, 22@ is centered on five clusters: also houses research labs and office space for his- ICT, bio-medical, design, energy, and media. toric, market-dominating firms such as Merck (Ger- From leading firms such as Yahoo!, Mediapro, Mi- man-American, 1891), Esteve (Barcelona, 1929), crosoft, Sanofi-Aventis, Capgemini, Schneider Elec- and Almirall (Barcelona, 1943). Esteve, for example, tric, Vistaprint, and Indra to countless smart young which is currently developing new chemical enti- Spanish startups, 22@ has long exceeded its original ties for neurology and analgesia and new advanced goals of urban, economic, and social renewal with- therapies for inherited metabolic disorders, has 70 in a single district; having already boosted residen- of its full-time 270 employees dedicated to R&D and cy in Poblenou by 25% and spurred landmarks such preclinical development at PCB alone. as Jean Nouvel’s Torre Agbar (since renamed Torre Much of this research and collaboration is done Glòries), 22@ now suffers from a shortage of office at several of the park’s leading research centers. space, which is hardly cause for worry. On January At the Institute for Research in Biomedicine (IRB), 13, real estate developers Mitsubishi Estate London for example, researchers are making important ad- and Europa Capital announced a EUR40-million vances in the fight against cancer. These include investment in an 11,500sqm of grade-A office build- studies on how altered protein degradation con- ing in the district to be completed before year’s end. tributes to the development of tumors to better un- Barcelona’s cluster-wunderkinds continue to defy derstand the molecular bases of cancer, on the one expectations. ✖ Research & Innovation 67 B2B

identify the needs of the market. Another source of new ideas is technology. The issue is mixing both inputs to develop new products or business models, which is a major threat for companies. In the second area, most companies have a real problem, especially medium-sized ones, as although they know their core business very well, they do not have enough resources to develop the complementary technologies to develop their business or product. Eurecat’s target is to support them with all these technologies, since Xavier Torra Joan Parra we have people skilled in these technol- PRESIDENT, VICE PRESIDENT, ogies and laboratories able to test and EURECAT LEITAT develop beta series, and so on. Our position is extremely different from universities and research centers, as we try to be close to companies to help them innovate. Our eventual aim is to achieve a po- KNOWLEDGE TRANSFER sition similar to an emergency hospital that you go to when you have a problem. Since it is difficult for many companies For the smartest incubators, the real expertise lies in transferring to develop enough disruptive innovation and transforming knowledge into innovative and actionable value. because of their size, our major success- es become repeat clients for us, which in turn validates everything we do.

How have your entities evolved in recent years? of laboratories is appreciated in the JP We work for companies that tech market so we can create an ecosystem companies will want to invest in in five XAVIER TORRA Catalonia is a small au- that fosters innovation. It is important years’ time. This is our strategic plan. At tonomous region with 7 million people. to have enough partnerships to create a present, we are working on technologies Given that technology now flows around competitive option in the global market. that emerged several years ago, one of the world quite rapidly, one needs a cer- We have three types of collaborations. which is 3D printing. Another is the cy- tain critical mass to develop something One is public, for which we have many clical economy, which has many funda- effectively. Eurecat was founded five agreements with Eurecat, with whom mentals in pre-materials and chemistry. years ago by progressively integrating 10 we are working to establish the afore- We have strong expertise in those areas technological centers related to special mentioned innovation ecosystem in as well as all areas related to consumer sectors or geographical areas. We are a Catalonia. Then, we have a collaboration goods, foods, and new production lines. research and technology organization that focuses on European projects, with Ours is a small brand, so while we want specialized in transferring knowledge over 200 partners in different countries. to be a big player in the global market, to companies, so our aim is not to gain These start in the public sphere, as do we mainly have non-disclosure agree- a deeper knowledge of science, but to all EU projects, and then we establish ments with our partners. That said, one exert a real knowledge of how to ap- connections with private organizations. project we can disclose is what we did ply science to spur innovation within These collaborations can continue once in collaboration with Ficosa, Idneo, and companies. We do not focus our efforts the project ends. We also work directly Seat. Together with other research cen- on developing science in its pure sense with companies, both large established ters and universities, we are developing but on developing companies’ ability to ones and start-ups, to develop technolo- a battery for hybrid and electric vehicles move from science to implementation. gies that usually include non-disclosure that substantially improves their dura- Our aim is not to know everything, but to agreements for R&D. tion and weight, placing the new state know where the knowledge is. of technology at the international level What do members get from being part of your in lithium-sulfur. Not using heavy met- JOAN PARRA Our institution focuses on technological center? als, it is also environmentally friendly. transforming knowledge into economic The project, called Alise, has been fund- value. The idea is to get results through XT We believe new ideas for innovations ed by the EU as part of the Horizon2020 knowledge and research either by col- come from different sources, the chief research program, and has reached the laborating or in our own laboratories. one likely being the commercial areas of first practical demonstration of a battery We work to ensure that the production companies, as they are able to properly pack with lithium-sulfur technology. ✖ 68 Barcelona Special Report FORUM RESEARCH CENTERS The construction of a delicate ecosystem can be as rewarding as it is difficult to perfect.

Pablo Ordejón Josep Paradells Lluís Torner DIRECTOR, DIRECTOR, DIRECTOR, CATALAN INSTITUTE I2CAT THE INSTITUTE OF PHOTONIC OF NANOSCIENCE AND SCIENCES (ICFO) NANOTECHNOLOGY (ICN2)

ICN2’S INITIAL GOAL was not technolo- I2CAT IS A PUBLIC FOUNDATION created PHOTONICS IS IMPORTANT because it ap- gy but pure science. This has changed by a group of professors to promote in- plies to many fundamental and applied because the institutions financing us ternet technologies. At the beginning, challenges, in other words because it is realized that nanotechnology is use- the foundation was quite small, with a very powerful scientific, technologi- ful for society. Currently, 10% of the two or three people on staff, and had a cal, and industrial tool. Our research in EUR13-million annual budget comes close relationship with universities. Over terms of applying photonics is focused from technology transfers, including time, i2Cat’s capacity grew, and it devel- on the health, energy, and information projects having to do with valorization oped its own research lines. We contin- sectors. Health, in our case, means di- of technologies, putting science into the ue to collaborate with universities but agnosis and mostly focuses on detecting market through industrial contracts, and now have specific lines of research and diseases. In energy, it is used chiefly for royalties. For the last couple of years, we a strategy to profit from this. We are an solar energy. In information, photonics have filed six patents per year. We have applied research and innovation center, is one of the essential ingredients for the a portfolio of 34 active patents, with and our aim is to take and develop our internet, fiber optics, displays, cryptog- one-third used commercially. This pro- own research and that of other institu- raphy, quantum communications, and duction of technology has resulted in a tions and offer it to companies and pub- so on. When it comes to our research total of 10 spin-off companies since the lic administrations. Different research projects, I would like to highlight three. creation of the institute. One of them, centers in Catalonia receive funding First, the European Commission’s Flag- Ahead Therapeutics, was created in 2007 from different departments, and we re- ship projects, which are major projects and develops therapies for autoimmune ceive our base funding from the depart- with a EUR1 billion budget each. There deficiencies and has already gathered ment of Digital Policy and Public Admin- is one in graphene and another in quan- around EUR2 million from private in- istration. Ours is certified as a research tum technologies, and ICFO plays an vestors. About 35% from our budget center (among 40 in Catalonia), but it is important role in both. Second, we get comes from fixed funding from our pa- a bit particular since our base funding is significant funding from philanthropy; trons, mainly the Catalan government low. In fact, we have to obtain 90% of our for example, we have received generous and Spanish National Research Council budget, close to EUR5 million, ourselves, donations amounting to EUR50 million (CSIC), while the Autonomous Universi- which makes us very involved with com- from the Cellex and Mir-Puig Founda- ty of Barcelona provides us with space. panies. Our growth rate between 2013 tions, in addition to the Gordon and The rest are competitive funds from the and 18 was 39%. Betty Moore, Templeton, AXA, and Caixa EU and the Spanish government. So Foundations. about 45% is government funding, 35% is patrons, and 10% is technology transfer. Research & Innovation 69

Marta Plana Miguel Vicente BOARD MEMBER, PRESIDENT, BARÇA INNOVATION HUB BARCELONA TECH CITY

THE BARÇA INNOVATION HUB is a labo- BARCELONA TECH CITY IS A PRIVATE, ratory initiative built during FC Barce- non-profit, and politically independent lona president Josep Mara Bartomeu’s association that belongs to the city's tenure. Barça’s slogan is ‘More than a entrepreneurs and works to promote club,’ and technology and innovation the technological ecosystem of the city. are a must in today’s world. We believed In 2012, when I sold my first company, that creating an ecosystem of knowledge Letsbonus, I called Ignasi Costas of Rou- and innovation would benefit the club seaud Costas Duran and several success- and the 2,500 athletes associated with it. ful entrepreneurs who had promoted the By adopting a collaborative model, we ecosystem. A subsequent brainstorming work to attract companies and entrepre- session led to a list of 10 action points neurs to develop new innovative tech- to promote the ecosystem so that Bar- nologies, helping FC Barcelona become celona could play in the first division a hub that promotes not only very best of global tech hubs. The association in football, but also in technology and was born in 2013 and we signed Miquel innovation. Essentially, we want to be- Marti, the CEO of Barcelona Tech City, come the Silicon Valley of sport. We are who has done an excellent job with the the first sports club to create a project whole team. Initially, I financed part of with these characteristics and ambition. the activities, but soon the association We are the largest sporting laboratory in became large and today comprises over the industry worldwide and are open to a thousand startups, in addition to hav- start-ups at the cutting edge of technol- ing more than 70 partners from the main ogy and knowledge with whom we can companies. We connect the different develop products. That means all of our components of the ecosystem: entrepre- know-how must combine with what the neurs, business angels, venture capital start-ups offer to improve our position as funds, and public institutions dedicated a club. to entrepreneurship, as well as business schools, universities, and corporations. Port Fòrum,Port Barcelona north A largesolarpanelseenat

Image: SkyNext Sustainability 71

07 Sustainability

NEW AND IMPROVED

n 2011, Barcelona approved the Barce- within Barcelona must work in solidarity. I lona Energy, Climate Change, and Air These environmental initiatives have been Quality Plan that will run till 2020. One instilled in the educational system of Catalonia of its overarching aims is to reduce emissions for nearly a decade now, through the Network and increase energy efficiency by 20% in 2020. of Schools for Sustainability of Catalonia (XESC) On January 1, 2020, in response to the growing consisting of the union of green schools—schools climate emergency, the regional government in- in Catalonia that aim to promote the importance troduced a low-emission zone that prohibits cars of sustainability through education—and locally with high emission levels from accessing certain existing networks. Their coordinated efforts in areas. In order to ensure this is a viable solution the educational sphere help form the next gen- to a growing emissions problem, other forms of eration that is aware of issues surrounding sus- mobility must be invested in to encourage cit- tainability and the room for innovation. This is izens to switch to public transport on a day-to- a much more efficient approach toward tackling day basis. According to Damià Calvet i Valera, the challenges faced by climate change. Regional Minister of Territory and Sustainability, In terms of Catalan companies, it is becom- “more bike lanes in the cities, intercity facilities, ing increasingly common for them to offer cir- planning and road reports, and better gover- cular-economy solutions in the waste materials, nance on the use of bicycles is key to achieving water, and renewable energy sectors. This in- the government of Catalonia’s goals. Barcelona’s volves replacing the continuous use of raw ma- transformation toward becoming smart city will terials with the recycling of products. Similarly, certainly help drive this change. a focus on green economies places emphasis on Alternative energy sources are also funda- the efficient use of resources together with a so- mental to meeting the targets set by the regional cial impact on well-being. Designing business government’s sustainability plan within 2020. Re- models around these sustainable frameworks cently, an evaluation of the speed and direction positions collective environmental initiatives at of wind across the entire region of Catalonia was the heart of future businesses. Underlying these carried out to identify the potential of using wind efforts, there are currently 217 research groups as a source of energy. However, to ensure these and technology centers innovating and under- are effectively put into practice and common taking research aimed at offering environmental

Image: Xxx goals are met, both the private and public sectors solutions to businesses. ✖ 72 Barcelona Special Report INTERVIEW keeping RENTS DOWN

Damià Calvet i Valera CATALAN MINISTER OF TERRITORY AND SUSTAINABILITY

Decarbonizing mobility is arguably the single-greatest task of city governments, especially Barcelona’s.

What is the scope of action of the Ministry of Territory and lic transport to accompany the low-emission zone. Sustainability? The Department of Territory and Sustainability What steps have been taken to ensure bicycles play a role manages the classic policies of territorial planning, in promoting safe and sustainable mobility and decongest- urban planning, infrastructure, and mobility to- ing the city? gether with the environment and sustainability. We have presented a bicycle strategy in line with This means the department is the first layer of every- the cycling user and town hall’s sections. This docu- thing that involves planning, execution, and man- ment follows efforts to decarbonize mobility, which agement of the territory. It has public companies means reducing the share of private transport that on its perimeter such as Railways of the Generalitat, emit greenhouse gases and increasing public trans- Catalan Water Agency (ACA), Catalan Waste Agency portation. We have seen an increase in daily bicycle (ACR), Catalan Housing Agency (ACH), and the Cat- trips, but want to reach 5-8% of all trips. Current- alan Soil Institute (Incasòl), among others. We want ly, that figure is just over 3%. This can be achieved to fit these competencies within the framework of with more infrastructure, more bike lanes, intercity the Sustainable Development Goals and the new facilities, planning and road reports, and better urban agenda, both concepts developed by the UN. governance on the use of bicycles, which has had a In addition, there is the incorporation of the recent difficult relationship with vehicles and pedestrians. concept of climate emergency. Finally, the promotion of bicycles will help promote certain areas via cycling tourism. Municipalities and What are the logistics of the low-emission zone in Barce- regions are interested in implementing this bicycle lona starting in 2020, and what benefits will be obtained? strategy. We came to this decision because there is a real concern over air quality, especially in the metropolitan How is the ministry working to ensure affordable access to BIO area of Barcelona and partially in the metropolitan housing? Holding a degree in institutional area of Tarragona. We also reached the decision be- Housing is one of the competencies of the Depart- relations and public marketing by the UAB and in technical cause we are facing a climate emergency. Under this ment of Territory and Sustainability that we share architecture by the UPC, Damià umbrella, we developed a set of concrete and urgent with city councils. There has been a sustained crisis Calvet i Valera is the current actions to face this climate emergency focusing on in access to housing for many years because of the Catalan Minister of Territory and Sustainability. He has energy transition, circular economy, and decarbon- market price and rental price. There is greater de- been professor at the UPC and ization of mobility, from which the low-emission mand from foreigners to settle in the metropolitan responsible of institutional zone emerged. We established a geographically area of Barcelona, and there are many expatriates relations of the United Nations University in Barcelona. He important and ambitious area that shares territo- who come to Barcelona to work for multinationals was also board member at riality with five municipalities of the metropolitan or launch their start-up in an attractive ecosystem the Chamber of Commerce area and will prohibit vehicles that do not have the such as Barcelona’s. We must face this reality and of Mallorca, vice president in the Real Estate Promoters qualification of zero emissions (ecological, mixed, welcome them while avoiding the gentrification of Association of the Balearic hybrid, A, B or C vehicles, depending on their level neighborhoods and Barcelona in general. The afford- Islands, and urban manager at of emissions) by the General Directorate of Traffic. able rental housing stock must also be increased, and Banc Sabadell. He started his Those vehicles that do not meet these criteria can- the government of the Generalitat and municipalities public career in the office of the minister of territorial policy and not drive on certain days or certain times; however, must promote public housing with various vehicles public works and was general that said, we cannot fail to meet the basic needs of such as Incasòl, the Housing Agency of Catalonia, director for architecture and people or companies that do not have vehicles with and the Municipal Housing Board of Barcelona. housing, secretary for territory and mobility, and director of these characteristics, so the prohibition is not total. There must be assistance in financing and maintain- Incasòl. Given the above, we will need more and better pub- ing this public housing stock for affordable rent. ✖ Sustainability 73 INTERVIEW quality FIRST AMB is targeting creating not only a smart city, but an efficient one, through various initiatives.

Ramon M. Torra i Xicoy GENERAL MANAGER, BARCELONA METROPOLITAN AREA (AMB)

What is the origin and evolution of the orga- transport too, to control the frequency “We have implemented nization? of buses and whether there are any inci- The metropolis of Barcelona is unique: dents on a given route. We have imple- quality methodologies despite being a city with high population mented quality methodologies that al- that allow us to density, more than half of the territory of low us to standardize the processes and the metropolitan area are natural spac- the quality levels that we want to obtain. standardize the processes es, the so-called “green metropolis.” It is We are currently in the process of chang- and the quality levels that an ecological space not only for leisure, ing the provision of public services that but also for production and attracting were private until now, such as commu- we want to obtain.” tourism. AMB has a staff of less than 600 nications. In the metropolitan area, there workers, while the Barcelona Provincial are points where internet connections Council, with a similar budget, has 4,000 are too slow. We must take advantage workers. We encourage intelligence and of the technological leap to learn how cities to lobby in the EU. During its an- qualification in the institution by having to extend the networks through public nual meeting, a declaration is approved, employees with high levels of education concessions. We implemented a 4G Wi- and European institutions are invited to and training. Currently, up to 70% of the Fi system and currently have a 5G pilot attend it and see how to promote urban staff has a university degree. The insti- coverage, carried out with Cellnex, on policies in the EU and put the metrop- tution manages a budget of more than beaches, which are the most used spaces olis at the center of the policies. EMA is EUR800 million, and the budget of the in the metropolitan area, with more than an initiative led from Barcelona, though consolidated group (AMB, TMB, IMET, 10 million beachgoers per year. In the it has a network structure through the IMPSOL, and AMBInformació) is EUR1.9 future, we will implement 5G through a departments of international relations billion. Operating and financial expenses public network with a neutral operator. in all the metropolitan areas that are part do not reach 10%, a low percentage com- of it. The next meeting will take place in pared to other Spanish administrations. Barcelona is now a hub for foreign investment. Porto. ✖ What is the role of your international depart- What is the strategy to transform Barcelona ment? into a smart city? Barcelona emerged on the international We seek the efficiency of private compa- stage following the Olympic Games peri- nies in the management of services and od with values of modernity, quality, and use a management system that has qual- efficiency. Now, we are trying to promote ity indicators. Firstly, to measure quality the Barcelona brand by building rela- indicators we must have a clear control tionships with international platforms. system handled through a technologi- One of them is Metropolis, a global net- BIO cal platform. The second step is to find work of major cities and metropolitan Ramon M. Torra i Xicoy graduated as an the best way to implement it in order to areas within UCLG. We also want to architect from ETSAB Barcelona School of Architecture. He worked as municipal reach all agents in real time and get them maintain social and economic exchange architect and director of territorial involved in this process. Any incident relations, beyond the institutional ones. services at the Granollers City Council that arises will be controlled in real time. Another issue are the lobbies within the between 1982 and 1992 and as director Citizens can send information through framework of the EU. EU urban policies of technical services of the Association of Municipalities of the Metropolitan Area an app. It is all about improving dialogue should be the key for the transformation of Barcelona until 2008. He is currently and using technology to facilitate ac- of the state governments and the search general manager of AMB. He is also countability. Citizens will judge if a ser- for an effective union through the cities. CEO of the Metropolitan Institute for Land Promotion and Asset Management vice is efficient and has enough quality. Five years ago, we set up the European (IMPSOL), a body responsible for We can use smart technologies in public Metropolitan Authorities, a network of promoting land and housing policies. ES19_GE_SOLARPROFIT

74 Barcelona Special Report INTERVIEW In the Americas, In Australia, Being an integrated company with an Elecnor means Elecnor means IN THE entire value chain from the factory to installation helps keep the competition “lighting the way” “energy from the sun” at bay. Elecnor has built over 10,000 km Elecnor has built and operates 380 MW solar spotlight of transmission lines and major PV energy, which provides light for 100,000 power plants from Patagonia households and avoids the annual to Quebec emission of 500,000 tonnes of CO2

Oscar Gómez FOUNDER & CEO, SOLARPROFIT

How has SolarProfit evolved since its creation? Do you have plans to participate in the international SolarProfit was created in 2007. My partner and market? EUR15 I started working in the renewable energy sector The truth is, no. We integrated Portugal be- million turnover in 2019 and specialized in photovoltaic solar energy because it is part of the peninsula, as well as the cause we thought the technology had a signifi- Balearic and Canary Islands. Outside Spain and cant growth potential. We felt it could become the the peninsula, we have done some projects be- SolarProfit has more cheapest and cleanest way to generate electricity cause we have industrial clients with factories than in the future. It is simple to install and the tech- in other countries. Nonetheless, our focus is nology had a margin of growth in cost optimiza- national. Spain has been isolated for 10 years tion. At the time, 2050 was thought to be the year from the global growth of solar energy, so there 30% of grid parity, meaning the convergence point at is much to be done. In Africa, In Europe, market penetration in which solar would be cheaper than nuclear en- Spain and ergy or traditional sources. Some optimists said Are there companies from other markets entering Elecnor means Elecnor means 2030. Incredibly, our first project without public Spain that represent direct competition? subsidies was completed in 2011. There is widespread competition from many “the power of water” “eyes in the sky” small businesses. There are companies dedi- Elecnor has participated in the construction Elecnor has developed two space missions 84% of hydroelectric power plants with a for Earth observation and has a In 2018, there was a 73% increase in photovoltaic in- cated to electrical installations, for example, in Catalonia stallations. How do you evaluate the growth of the mar- that are entering the solar field. Companies capacity of over 3,000 MW space surveillance observatory ket in the post sun-tax scenario? selling electricity and energy are also entering The elimination of the tax has certainly helped the market. But we are different. We are an in- boost the market. From the total power registered tegrated company with an entire value chain, in Spain in 2018, SolarProfit had more than 30%, from the factory to the installation. We have while in Catalonia it was 84%. What the sun tax in- not identified any competitors with this ability. directly incentivized was for people not to legalize their facilities. In general terms, however, we were At which stages is SolarProfit most present? already doubling on a yearly basis before this reg- Our base core is engineering, in addition to ulatory change. Now, we are tripling. which we have added different sections to the company. Our vision is to maintain that inte- With such high market penetration, what is the break- gration by buying directly at the origin, working down of your clients? to improve product design, and implementing Initially, we started focusing on industry and big the commercial strategy. companies, since Spain was in crisis. We were selling solar energy projects projected at 6-10 What is your relationship with public administrations years that would have a lifespan of 30-40. There- via subsidies, and what is the proportion of solar in- fore, the large companies were in a better finan- stallations in Barcelona? cial position that allowed for more stability. After There are different policies for the promotion that, managers of said companies began to ask of solar. For example, the Generalitat in Catalo- for installations in their homes, and we detect- nia raised the subsidy for energy-storing batter- Elecnor means BIO ed a business opportunity. We decided to make ies in 2018. The amount was not very high but Oscar Gómez is a computer a small division within the company focused on allowed for some installations with accumula- engineer, but his professional housing. Currently, housing represents half of the tion systems to be made. At the local level, Bar- “growth and sustainability” experience has always been related to energy. With his company and is growing the most. celona also plans to promote self-consumption friend Roger Fernández, he by subsidizing 50% of the cost of private home co-founded SolarProfit in 2007. SolarProfit expects to double its turnover in 2020 and installations. In Barcelona, the percentage of They specialized in photovoltaic reach EUR20 million. What is your growth plan? buildings with solar panels has not reached solar energy because of its significant growth potential. In 2019, we will finish with almost EUR15 million 1%, whereas in Germany they have almost two Gómez has been focused turnover, which was above our initial predic- million solar installations. The latest data pub- on sales and, thanks to his tion. We will double again, with 2020 bringing us lished by Institut Català de l’Energia in June extensive experience in this field, leads this part of the EUR35-40 million, expectations based on projects 2019 stated there were 480 installations in Cat- business. we have already signed. alonia. ✖ INFRASTRUCTURE CONCESSIONS In the Americas, In Australia, Elecnor means Elecnor means “lighting the way” “energy from the sun” Elecnor has built over 10,000 km Elecnor has built and operates 380 MW solar of transmission lines and major PV energy, which provides light for 100,000 power plants from Patagonia households and avoids the annual to Quebec emission of 500,000 tonnes of CO2

In Africa, In Europe, Elecnor means Elecnor means “the power of water” “eyes in the sky” Elecnor has participated in the construction Elecnor has developed two space missions of hydroelectric power plants with a for Earth observation and has a capacity of over 3,000 MW space surveillance observatory

Elecnor means “growth and sustainability”

INFRASTRUCTURE CONCESSIONS 76 Barcelona Special Report Image: Boumen Japet Sustainability 77 VOICES FROM THE SECTOR

Luisa Badía Alberto Santana CEO, CEO, L35 ARCHITECTS CENTRAL ELECTRICA IONICA L35 Architects was founded in 1967. How has the company evolved Can you tell us a little about the origin and evolution of Central Ionica? since then? The idea for the company came after a corrosion problem at a na- When our founding partners, Jos Galán, José Luís Martínez, and val project pushed me to do some research into corrosion. I had an Juancho de Mendoza were studying at the University of Architec- understanding that it was possible to generate energy from certain ture in Barcelona, they shared an interest in creating a profession- metals such as aluminum. Virtually all our devices work with bat- al architecture studio different to what was around at the time in teries—nearly all of them in a solid state—which limits the life of Spain. Inspired by US studios, their idea was essentially to create a galvanic cell. I developed a huge battery with 1,000 hammers of a studio where teamwork was fundamental, the full participation passing current and 100v. Ours is a new technology in the world of of architects throughout the entire process was required, and the renewable energy; the life span of these devices is five years if they aim was to do large projects. Their dream came true in 1970 when operate continuously at maximum performance. The oxide is re- they won a bidding process from the University of Valencia. Thanks covered by converting the hydroxide and regenerating it as alumi- to the experience of the construction of this campus, they later re- num. Thereafter, the water is not consumed but treated. An import- ceived a proposal to develop a social housing project near Barce- ant component of this innovation is the electrodes we now develop. lona. The leap into retail occurred in 1976 with the commission of These are made of a carbon material very similar to graphene. Nor- the first regional shopping center in Spain, Baricentro. The retail mal batteries polarize because the internal reactions that control projects continued, while we began to tackle other typologies, such the hydrogen are depleted. Notably, we have created a battery that as mixed-use complexes, sports venues or medical centers. In 2000, never polarizes. we decided to establish a partnership with a team in Madrid and found the office there. Later, after being awarded for our first proj- Who is the ideal customer for these types of devices? ect in France, we opened our headquarters in Paris in 2007. Going Our ideal customers include Cepsa, Repsol, Iberdrola, and oth- abroad was an important because you must adapt yourself to for- er such companies. We are also in discussions with the European eign countries’ cultures and markets. Railroad Network and have established contact with the developers of the hyperloop high-speed train. We also have some projects with You have offices in 10 places and have worked in 43 countries on more Renfe and Avis. In the long term, we also plan to start a project in than 1,000 projects. Do you have any expansion plans? the maritime sector. Currently, L35 Architects has 12 offices across the world: Barcelo- na, Madrid, and Paris are the main headquarters, while the others, Although not yet commercialized, your products are available for rent. Miami, Mexico, Bogotá, São Paulo, Santiago, Istanbul, Casablanca, How will you proceed? and Abu Dhabi, are associated with different models of collabora- This part of the business is called Ionic Module Renting, which is a tion. Our expansion abroad has always been done alongside a cli- subsidiary of Central Electrica Ionica and has huge potential. Ionic ent or through a competition. We always try to go abroad with a Module Renting installs the modules to supply energy for five years; partner. Recently, we have been working on several international once renewed, the local dealers are the ones who maintain the ma- bidding processes. Nearly 42% of our operations today are interna- chinery. The client initially saves 20% on the installation bill. We tional, with the remaining 58% in Spain. France is our most import- as manufacturers keep the assets because the machinery remains ant international market. our property. The volume of expansive growth is important. For a company such as Iberdrola, this is interesting because it will greatly What kind of projects stand out to you in the history of L35 Architects? improve its stock market value. Throughout the history of L35, we have won national and international competitions, public and private. For instance, two projects The new products you presented at Genera 2019 were called the most with international impact are the renovation of the Santiago Bern- powerful patent in Spain. What is the importance of this? abéu stadium in Madrid and Italik, the winner of the Reinventing At the time, my factory was valued at EUR1.3 billion. Once the Paris competition, both of which are in their construction phases. product is released, our value will increase to EUR4.3 billion. Then There is also the Vélizy-2 shopping center, our first achievement in we plan to export it worldwide for electricity consumption, which France, which we are currently renovating. That being said, Barce- corresponds to EUR24 billion. The Chinese market has shown great lona is the city with the largest share of L35 activity—a total of 27 interest in buying it after our success at Genera 2019. projects. 78 Barcelona Special Report FOCUS Urban planning Image: Artur Bogacki

THE STARGAZING GHOST OF CERDÀ

In a city that has long produced visionary urban planners, Barcelona’s Salvador Rueda has plans to completely transform the Catalan cosmopolis.

PERHAPS MORE THAN ANY OTHER CITY ON Aiming to ensure that every citizen had equal ac- EARTH, Barcelona is no stranger to urban plan- cess to water, sunlight, clean air, space, and ven- ning. First laid down by the Romans in 15BC as tilation, Cerdà designed his new 20-square block the ancient walled port of Barcino, its Roman districts on a northwest to southeast axis in order grid of perpendicular streets surrounded by to maximize the amount of sunlight each inhab- 1.5m walls ensured that for over two millennia, itant got. Barcelona would remain a dense and bounded With each building and block designed in a city, rationally spawned and logically executed proportionate and egalitarian fashion, hence- in each passing epoch. A city rare for its contin- forth no resident would tower over or lurk under uously planned expansions, unlike most cities another. With cafés and shops designed for the since the industrial revolution, Barcelona has ground floor, flats for the bourgeoisie on the first, only ever grown as according to plan, even to a and apartments for working people over them, fault. Though a set of carefully erected walls in the city’s disparate social classes would not only 1260 were expanded in the 15th century, it was mingle but cohabitate these new self-contained forbidden to build beyond these until 1854. districts, each to be supplied with its equal share Though more enlightened, the 20th century of hospitals, schools, parks, and plazas—commu- was hardly less specific. Under the brilliant vision nal happiness and hygiene for both the posh and of Ildefons Cerdà, the renowned Catalan urban the plebs. planner who first coined the term ‘urbanization,’ Though never implemented en masse, much of after tearing down its medieval walls Barcelo- Cerdà’s vision was built in the district of Eixam- na he set about implementing one of the most ple, to this day one of Barcelona’s most coveted progressive urban planning schemes in history. quarters. And though similarly radical plans to Sustainability 79

reconfigure and ‘rationalize’ the city along Cor- With an urban core of 1.6 million followed by an- busian lines were (thankfully) discarded in the other 4 million in the suburbs, a large swathe of 1930s, the stargazing ghost of Cerdà is alive and whom commute by automobile into the center well in the form of Salvador Rueda, a biologist, each day, Barcelona has an abysmal ‘urban heat psychologist, ecologist, engineer, and father of island effect’ of roughly 3 degrees Celsius hotter Barcelona’s latest “superblocks” plan. temperatures in the city than the surrounding Director of the Urban Ecology Agency of Barce- area. In addition to being unpleasant, this takes a lona, Rueda’s current plan is to make Barcelona huge toll on the city’s children and elderly, lead- the first major ‘post-car’ city on earth. By banning ing to 3,000 premature fatalities a year, according most cars from one four-square ‘super-block’ to the Barcelona Institute for Global Health. area at a time—residents of said superblock are But there is no time for despair—especially still permitted to have cars, provided they drive at since Rueda’s plan is already being implement- the speed of pedestrians once they enter—Rue- ed: after his initial 5,000-sqm car-free superblock da’s dream, which has backing from the current around Sant Antoni market was implemented in municipal authorities, is to create small green 2018, another 21,000sqm of Barcelona was “re- oases of cyclist- and pedestrian-friendly mixed- claimed” from cars in 2019. Whether Rueda can use spaces where different walks of life live, inter- pull off his masterplan—some 500 superblocks, act, and socialize among one another on a more or 70% of the city—will be determined by a much friendly and intimate basis. larger struggle. But the five already put in place The fourth-densest city in Europe, Barcelona’s suggest Barcelona may be heading for a transi- wretched congestion is hardly going to fix itself. tion of world-historic precedence. ✖ Olympic Games originally builtforthe1992 Vell,A viewofMarinaPort

Image: trabantos Transport & Mobility 81

08 Transport & Mobility

KEEP IT MOVING

iven that the transportation sector in Cat- collaborating with companies, Catalonia hopes to G alonia relies on fossil fuels at a level of ap- environmentally, socially, and financially improve proximately 95%, the government is in the the daily commute of citizens, which can otherwise process of modifying its transport systems in order be a source of great stress. To achieve this, the gov- to assimilate more sustainable forms of mobility. In ernment has suggested subsidizing the transport 2019, the ‘Clic Mob!’ photo contest was held, which cost of workers who opt to use a sustainable mode involved many Catalans posting photos of them- of transport. selves using sustainable transport on Instagram, To this end, Catalonia is working to improve its along with the hashtag #mobility2019. The use of transport infrastructure. In this chapter, we spoke social media as a marketing strategy was particu- to Ricard Font, President of the Ferrocarrils de la larly effective in engaging younger citizens in the Generalitat de Catalunya, who told us that although environmental impacts of their transport decisions there is always room for improvement, the Catalan and the differences that conscious changes can public transport system is a reference in the world: make. “We are the second-most punctual in the world To facilitate the transformation of the Catalan and the third in using mobile materials efficiently.” mobility model, the government intends to in- In regards to technology, Catalonia seeks to intro- crease access to pavements, optimize traffic light duce 5G technology to improve its services in 2020. times, and make roads safer for pedestrians to en- In terms of cargo transportation, the region is courage walking in the city. In addition, the plan again working to put itself on the map, with Spain’s to expand cycling lanes will also serve to promote principal port for international traffic located in bicycles as an urban vehicle. In turn, these actions Barcelona. A number of the interviewees we spoke will also help reduce traffic and boost road safety. to, including Guillermo Belcastro from Hutchison The latter is of particular significance, given the Eu- Ports (BEST) and Narcís Pavón from APM Ter- ropean Commission’s aim to cut road accidents to minals, highlighted the city’s unique offerings in 15% in Catalonia. terms of being a transport hub, not least because of To welcome a wider array of transports, innova- its geographic location that makes it an ideal route tive technologies and traffic management systems linking Europe with the rest of the world. The chap- will be directed at improving public transport. For ter is opened by Mercè Conesa, president of the example, bus and metro routes will be extended Port of Barcelona, who spoke to us about innova- with regards to intercity mobility, and bus sched- tion at the port and its aim to become a zero-emis-

Image: Xxx ules will be organized around workers’ times. By sions port by 2030. ✖ 82 Barcelona Special Report INTERVIEW

While the Port of Barcelona’s numbers PORT OF are nothing to sneeze at (10% YoY growth, 67.7 million tons total cargo handled, and cruise ship arrivals at call capacity), the port is looking forward to doing business more sustainably.

Mercè Conesa PRESIDENT, PORT OF BARCELONA

Total traffic of After its 150th anniversary, the Port of Barcelona been working to push operations outside of peak achieved a record volume of traffic, increasing 10% YoY season; today, around 60% of cruises are in peak in 2018. To what do you owe this expansion, and what is season, and 40% are in the off season. Barcelona, 67.7 your strategy for further growth? though, cannot grow any more in terms of the million tons First, we want to be more competitive and focus cruises it hosts, having reached capacity levels. on improving our inter-modal solutions. The We have an agreement with the city to locate the Port of Barcelona is Spain’s only port connected cruises further from the city. We have also tried to Europe. We have excellent rail connections, to improve facilities by joining forces with cruise which means we can send containers and goods companies to improve the touristic experience. to all European markets, while receiving goods from them. Therefore, the first vector of our strat- What are your primary objectives for 2020, and what is egy is competitiveness. The second is sustainable the biggest challenge you face in Barcelona today? growth. We want to grow on a scale that can serve In 2020, we will focus on improving inter-mo- the market and invest in additional infrastructure dality between ship and rail. This is vital, as 34% only when absolutely required by market dynam- of our volumes is by rail cargo. We would like to ics. The third focal point is innovation and digital increase our radius and are keen to improve our transition for better customer orientation. We will direct shipping lines to Italy. We can reduce road close this year with interesting numbers, thanks to traffic by nearly 100,000 trucks by putting trucks the US-China trade war. Although there is a fall in in ships, which also curbs emissions. The port’s exports, we have also seen a rise in imports. Our main challenge is to reduce CO2 emissions. We total traffic amounts to 67.7 million tons, and 40- cannot do this alone, but must share the goal 45% of this is imports, mainly from Asia. Two years with companies, concessionaries, and the gener- ago, exports were significantly more important al public. Meanwhile, we plan to electrify all the than imports, but now they are leveling out. A port port’s wharves. We want to offer the most effective can develop its business with an internal perspec- power-to-ship services by 2030, delivering clean tive, but our challenge is to explain to industries energy while they are in the port. We want to be a that the port is a goods gateway. zero-emissions port by 2030. We have started the process to create this new system and are work- What percentage of your operations comes from cruise ing with the government to develop a special grid BIO ships, and how do you cope with the influx of tourism that will allow us to offer power once our model Mercè Conesa has been traffic at the port? receives government approval. We expect to begin President of the Port of Barcelona since 2018. Prior to We are a base port, which means the bulk of cruis- implementing the project by May 2020 and will her current position, she held es begin and end here. This is an important point, launch subsequent phases in due course. Anoth- positions including president because it means we can link these tourists to the er area of considerable interest to us is LNG proj- of Diputació and mayor of Sant Cugat de Vallès. Conesa has rest of the city. We seek to maximize the quality of ects; we were the first port in the Mediterranean to a law degree from Universitat their visit in Barcelona. The link with the airport develop bunkering in LNG. We have all the safe- Autònoma de Barcelona and is also extremely important, because many cruise ty measures in place and have some cruises and a masters in law from the tourists arrive by plane. Additionally, some spend ships using LNG. LNG is an interesting technology Pompeu Fabra. She has also completed courses at IESE and days after their cruise traveling around Catalonia, for shipping lines, though we know that it is not a ESADE business schools. and we are an important partner in this. We have final solution due to its emissions. ✖ Transport & Mobility 83 B2B

ket, so we are not expecting exponential growth, although we do hope to continue to improve and maintain our pole position within the sector. Ever since the start of our concession in Barcelona, we have always focused on technology and efficiency in our processes to create value for our customers. We recently invested heavily in new equipment at the Barcelona terminal to further raise service levels to offer our customers the best productivity in the Mediterranean terminals. As we want to adapt our facili- Narcís Pavón Guillermo Belcastro ties to market needs, we need to upgrade MANAGING DIRECTOR, CEO, our facility, which has been in operation APM TERMINALS HUTCHISON PORTS (BEST) for 27 years now. We need to invest in equipment and upgrading to provide services to our customers, and the port community. We are also looking to di- TERMINALS versify our business somewhat, handling not only ships, trains, and trucks, but working with our customers to find new, While the Mediterranean Corridor will provide a way for Barcelona to added-value services providing cost- prove its worth on the sea, port operators and logistics teams must and time-savings for them. The market upgrade facilities quickly to stay ahead of increasing e-commerce is changing continuously. We need to adapt, not only to the market, but also to demand, along with import and export cargo flows. changing needs.

GB Apart from having the latest technology and a smart software in place, we en- What are the challenges for the logistics sec- the most efficient terminals in the world, sure that our operations remain simple tor? but efficiency alone is not enough. We and efficient. We designed a semi-au- need to create new services with added tomatic terminal to ensure we had the NARCÍS PAVÓN The greatest challenge value to our customers and introduce best of both worlds, combining technol- we face is how to adapt to market needs. new solutions, both inside and out- ogy on one side and people efficiency on This is simultaneously a great challenge side the terminal, which will allow us to the other. Every week, we receive vessels and a great achievement that sometimes bring more cargo to Barcelona. Another with a capacity of 19,000 TEUs; thus, we requires considerable investment. We challenge is to enter the French market are growing and improving our facilities. have invested USD47 million in equip- through the Mediterranean Corridor and We have increased the height of our quay ment here, which represents 30% of our thus expand the hinterland of the Port of cranes by 5m to service the largest vessels entire fleet. These efforts allow us to Barcelona. We want to be a smarter ter- and we are also increasing our contain- maintain our role as a benchmark in the minal adapting to new technology, not er yard capacity by adding three more sector. Regulations can also be challenge only through data utilization but also blocks this year to our terminal yard to as it takes longer than we would prefer through analytical prediction. However, increase our handling capacity. The in- to adapt the laws and regulations to cur- technology is becoming more and more creasing e-commerce demand must be rent industrial activities. Because we are a commodity. What really makes us dif- analyzed by all supply-chain players so working in a constantly evolving market, ferent is our people, and you need tal- they can rapidly adapt their processes, it makes it hard to adapt the legal frame- ented and motivated people to innovate especially custom procedures and reg- work. In terms of containers, the impact on a daily basis. At the end of the day, it ulations. Furthermore, we believe in of factors such as Brexit will be relative- is innovation that distinguishes between the future of rail transport. We have in- ly minor, as the Port of Barcelona is not a leader and a follower. vested in inland terminals of Pamplona widely connected directly with the UK; and Zaragoza to link Barcelona. Another however, we are more worried about the What are some strategies for growth in the thing that will improve competitiveness commercial disputes between the US future? will be the Mediterranean Corridor, the versus China and Europe, which could infrastructure of which is currently in impact the world’s handling throughput NP Our growth rate, standing at USD4.1 place. But we need to improve the effi- and consequently our terminal. billion globally in 2018, depends to a ciency in aspects such as customs and large extent on increasing export and better integration and coordination be- GUILLERMO BELCASTRO BEST is one of import activity. Spain is a mature mar- tween countries. ✖ 84 Barcelona Special Report FOCUS Mediterranean corridor

HIGH-SPEED GROWTH THOUGH BEHIND SCHEDULE, SPAIN’S freight environmentally sustainable. AMBITIOUS MEDITERRANEAN Indeed, the corridor is as much about creating, CORRIDOR HIGH-SPEED RAIL PROJECT or rather unifying, a vast European freight highway WILL CONNECT THE COUNTRY’S as it is about enabling flâneurs to have breakfast in Barcelona, lunch in Valencia, and afternoon coffee 1,300KM OF MEDITERRANEAN COAST in Alicante, as the project’s official webpage wool- WITH OVER HALF OF THE EU’S gathers. A straight line into southern and central INHABITANTS AND TWO-THIRDS OF France (with stops at Marseille and Lyon), the in- ITS GDP. dustrial north of Italy (Turin, Milan, and Verona), and the southern heart of Mitteleuropa (Trieste, Ljubljana, and Budapest), the Mediterranean Cor- ridor would form but part of a broader 3,500-km freight and transport backbone of Western Eu- rope, a corridor connecting 54% of EU inhabitants FROM ALGECIRAS NEAR THE STRAITS OF GI- and 66% of its GDP, according to its promoters. BRALTAR to Figueres on the French border, Spain’s Not only would this help boost Spanish exports 1,300km of Mediterranean coast accounts for 40% to the rest of the EU, it would also lower shipping of the country’s population, 40% of GDP, and 65% costs and logistically bind the continent in unprec- of its maritime traffic. One of Western civilization’s edented fashion. most important corridors, this axis includes Barce- But how likely is its actual completion? Though lona, Valencia, Alicante, Murcia, and Málaga, with conceived in 1990, the corridor’s first real progress rapid inland connections to world heritage cities didn’t come until 2004, when work started on the such as Granada. Once connected by high-speed Perpignan (France)-Figueres high-speed line. This rail, as the visionaries behind the great Mediterra- included construction on the Perthus Tunnel, a nean Corridor hope it will be, coastal Spain will not 9-km twin-bore railway tunnel through the Pyr- only be far more efficiently connected with itself, enees that was finally completed and opened to but with France and the rest of western Europe. passenger traffic in 2013. In 2010, the Mediterra- The Mediterranean Corridor will not only rev- nean Corridor was added to the European Com- olutionize the nature of the Spanish coast, but of mission’s list of nine ‘multi-modal corridors’ cru- Spain itself: as things currently stand, all (high- cial to the continent’s transformation, while that speed) roads lead to Madrid, a centripetal web same year the first International Union of Railways sucking everything into the central high plateau (UIC)-approved freight train completed its first around the capital. Upon completion, which is journey from Lyon to Barcelona via Perthus. These now slated for 2025, the Corridor would radically achievements notwithstanding, progress has been transform Spain’s radial infrastructure into a more slower than anticipated. Though international circular one—cutting times between Valencia and gauge lines have been laid from Figueres as far as Barcelona, the country’s second- and third-largest Tarragona in southern Catalonia, these still need cities, by a third, Barcelona and Alicante by 40%, to be converted to two-way. And beyond Tarrag- and Alicante and Valencia by half. ona, the almost entirely Iberian-size gauge lines The corridor would also boost tourism, both must be replaced. European and Spanish, promote more sustainable It is not as if things aren’t progressing, howev- economic development, vastly increase Spain’s er. In addition to continuing a massive publicity smart infrastructure network, and improve logis- campaign to drum up public support, work has tics between Spanish ports and airports, on the also begun on the Castellbisbal-Martorell tunnel, one hand, and logistical and industrial sites, on the Castellbisbal-Tarragona line, and the Cas- the other. Tripling the country’s high-speed net- telló-València line, while tenders have begun for work—which is already the second-most extensive the La Encina-Alicante line and allocations made in the world after China—it would also nearly dou- for most of the Murcia-Almería line. Though hopes ble the length of Spain’s individual freight trains have been dashed that 2019 would see the launch from between 350-500m to 750m, the length rec- of one of Spain’s greatest infrastructural feats in ommended by the European Commission to make history, there’s still a chance it launches by 2025. ✖ Transport & Mobility 85 INTERVIEW smart MOBILITY

Ricard Font i Hereu PRESIDENT, FERROCARRILS DE LA GENERALITAT DE CATALUNYA (FGC)

Given that some 60% of locals and tourists in Barcelona use public transportation, FGC focuses on increasing frequencies and providing excellent service.

Almost What makes FGC a player in the transport sector on a applied our method of using obsolete lines that global scale? the government wanted to close and improving We are the one of the most punctual railway com- their infrastructure by integrating services and panies in the world and the third in using mo- proper maintenance. 100 % bile materials efficiently. What matters is good effective in terms of practices, not size. We offer punctuality, quality What is the plan to continue putting Catalonia on the arrival times services, and excellent in-house maintenance. map and increasing its visibility abroad? For example, we have an innovative mainte- In regard to our internationalization, the general nance system that is similar to a Formula One director of FGC is the president of the Internation- pit stop. In hours with less demand, trains enter al Association of Public Transport (UITP), which our workshops, get serviced in about five hours, encompasses 6,000 public transport operators in and go back into the system. We optimize space the world. He is also the president of the Smart and maintenance work. We have an app that al- City, Smart Mobility event. Even though FGC is lows users to know at all times where the trains small compared to other companies around the are, and they can see the occupancy of the train world, when someone talks about 5G for trans- in real time. This is possible due to sensors in the port, they think of us because we are about to train’s shock absorbers that can estimate how full use the technology. There are few apps that can the train is. Right now, we can know in real time give users real-time occupancy information such everything that is happening with the train, which as ours, and there are few companies that have a allows us to help the conductor immediately if maintenance model like as ours. All these aspects they require assistance or make repairs as soon as make us referents in the sector globally. The com- possible if needed. In 2020, we want to improve it pany is not well known due to its size but the pres- using 5G technology. tige it has acquired through best practices. Part of it is the success we have had re-purposing lines What are the major goals of large events for FGC and the that were almost bankrupt and are now presti- transport sector more broadly? gious. Since we are excellent managers of trans- One of the objectives of the MWC event is to inno- portation lines, we now manage five ski tracks: La BIO vate technology to improve mobility in cities. We Molina, Vall de Núria, Espot, Port Ainé, and Vall- Ricard Font i Hereu has are interested in fulfilling the needs of the global- ter. In 2019, we also started managing Centro de been President of the public ized population that needs efficient and sustain- Observación del Universo de Cataluña, an obser- company FGC since 2018. In the past, he had been able transportation systems. Our objective is also vation center in the Pyrenees. What defines FGC secretary of infrastructure to improve our services to fight climate change is that we turn bankrupt projects into viable and and mobility and director of and improve the air quality of cities. Some 80% successful projects. We have to work with other transport and mobility. In his professional career, he of people who live in Barcelona walk, bike, and transportation companies to offer these mobility has worked as a lawyer and use public transportation to get around, with only services to address everyday needs. As the new carried out several roles in the 20% using cars. However, around 60% of visitors high-speed train system is coming to Spain, we public administration related and commuters use cars. We need to improve our also want to be a high-speed operator. We will to infrastructure management, transport, and mobility. He service by increasing frequencies and providing have to collaborate with new public and private graduated in juridical sciences excellent service. We are almost 100% effective in partners on this paradigm shift. As one of the 25 from UdG and holds a master’s terms of arrival times. We need more coverage to economic mega regions of the world, to connect in law of the territory, urbanism, and environment from UPF and reduce car usage. We have invested over the years this region through high-speed transport is an a master’s of administration in improving maintenance of these lines. We also objective for us. ✖ and management from UdG. 86 Barcelona Special Report INTERVIEW

Enric Ticó Buxados PRESIDENT & CEO, CIMALSA

Can you tell us about CIMALSA’s history? “Geographically, CIMALSA was founded 30 years ago after the government realized the importance Catalonia is important of the logistics sector. CIMALSA’s philosophy is to promote areas with high as a logistics hub for logistics activity called integrated mer- southern Europe.” chandise center (CIM) or LOGIS, if it involves a rail system. Two such examples are CIM Vallès and LOGIS Empordà. Up until 2018, the company’s name was CI- of the objectives of the strategic plan is MALSA Central de Mercancías de Cata- to make sure the company doesn’t run luña. After joining, I made a new strategic on the taxpayer’s money. Through this plan under which we opened up other plan, we can make CIMALSA the logistics PUBLIC activities to the point that we changed management body of the government of the name of the company to CIMALSA Catalonia. Logistics and Mobility. The government service decided to also transfer the management What does CIMALSA do to promote technolo- of bus stations and truck centers to us. At gy and training? present, we manage the entire transport We introduce new technologies in our A public company of the infrastructure of Catalonia. Around 25 plants and companies. Our OBSERVA- government of Catalonia, people work directly for us, and another TORY tool has been growing and now CIMALSA seeks to address the 40 work for us under external contracts. has more than a million data points. The We are making a map of Catalonia’s lo- associative world is of the opinion that needs of logistics companies gistics centers, monitoring what public training is not necessary in the logistics and people and improve mobility and private entities are doing to promote sector; however, in Catalonia alone there for everyone. the sector. Geographically, Catalonia is are 60 different fields of training, and 18 important as a logistics hub for southern are at the university level. CIMALSA ac- Europe. As a public company, our goal is tively contributes to this debate and is not to compete with private companies raising awareness. We continuously seek but to facilitate their logistics needs. to offer the most advanced service using the latest technologies. CIMALSA is committed to renewable energy, what is your plan for sustainability in terms of What is your main objective for 2020? mobility? CIMALSA wants to consolidate the best There are internal management elements possible logistics offerings in Catalonia related to the environmental and energy and improve mobility for people. We agenda. We intend to make all our estates want to further address the needs of logis- self-sustainable not only in terms of en- tics companies and people and improve ergy supply for CIMALSA, but also for the and start new logistics merchandise cen- companies that operate in our estates. ters. We want to ensure that transport in- We are betting big on clean energy. Our frastructures service the public’s needs. vocation is not to grow in volume, but to For example, we have reached an agree- outsource our activities. People say that ment with certain supermarkets where it does not matter if public companies customers can make a purchase online BIO don’t generate revenue, but I disagree and pick up the food from refrigerators in Enric Ticó Buxados has a degree in law with that view. We care about providing bus stations. We have shown it is easy to from the University of Barcelona and a service, but we also care about the sus- convert railway stations and bus stations a diploma from the Ministry of Foreign Affairs in international trade and the tainability of the company. For example, into merchandise reception centers. As a European Union. He is currently the we have started to realize the potential of public company, our role is to help peo- President & CEO of CIMALSA, president the Girona bus station, and we are gen- ple see where we are heading. We want of the Terminal Inter-modal Empordà, erating significant revenues from it. We to provide sustainable transportation SL, chair of the Spanish Federation of Freight Forwarders (FETEIA-OLTRA), are improving customer service through so that people can move easily, though and a member of the board of trustees logistics platforms that allow us to collect we do not want to lose money doing it. of the CETMO Foundation and the food or mail. We do not ask the govern- We aim to generate profits so that we RAILGRUP Railway Cluster. He is also a lecturer of several courses on logistics ment for resources but rather generate can use them to improve or expand our and transport. income through rentals and sales. One services. ✖ Transport & Mobility 87 INTERVIEW racing AHEAD

RACC has looked over the well-being of drivers and their cars for over 100 years and is ready to connect with members Josep Mateu PRESIDENT, over all modes of transport through ROYAL AUTOMOBILE exciting new apps. CLUB OF CATALONIA (RACC)

What have been major milestones since RACC’s found- What objectives have you developed in cooperation with ing in 1906? Consorci de la Zona Franca? Launched RACC is an association created as a non-profit In 2017, we created a new business lab that comes Nestor, City entity to provide services to the first car users. up with ideas related to the digital world. As a result, Back then, it focused on tourism, giving drivers we have developed a few projects with a quick time- Trips, and RACC advice on driving, mechanical assistance, and to-market. We create, develop, and launch, and if it Hop apps in as a platform for motor sports enthusiasts. As does not work, we move on. RACC Hop is a B2B app 2019 the use of cars has grown, along with the mid- allowing people who work together or close to each dle class, so has RACC. The great shift was in other to carpool. It is similar to BlaBla Car, but for 1990, when we started giving services not only daily life. In particular, Barcelona’s Zona Franca has focusing on the vehicle but also on members. around 4,000 employees and is not well-connected In 1998, we expanded from Catalonia into the by public transportation. RACC Hop helps to reduce rest of Spain. Today, RACC counts some 811,000 costs, optimize employees’ time, and encourage members. socialization. RACC Hop is now in pilot mode, but we also launched the City Trips app, which already How has RACC diversified its portfolio of services? has 60,000 users and is operating in Barcelona, Ma- Since the club was linked to cars, our insurance drid, Valencia, and Santiago de Chile. In this app, and road assistance services made a great deal of one can access all the city’s shared mobility systems sense. From then, we also started with travel ser- including bikes, motorcycles, car sharing, and pub- vices, driving schools, home emergencies, and lic transportation. The app tells users which mode mobile phone technologies. Our core business is of transport is the most cost and time effective. City our members and amounts to 50% of our busi- Trips is open to the public. We have found invest- ness, while around 40% comes from insurance. ment partners, who are either providing the services in the app or are third parties interested in being How has RACC adapted to new technologies? stockholders. We are now looking for investment In 2015, we started a 2020 strategic plan with a from public transportation companies. So far, we BIO few pillars. The first is a technological and digital received an investment from the International Au- With a degree in economics and transformation, for which we invested around tomobile Federation (FIA), which includes around business from the Universitat Autònoma de Barcelona and EUR18 million. The second is to go from being 200 auto clubs globally an MBA from IESE, Josep a club that offers services to drivers to becoming Mateu was appointed President a mobility services club. We want to be close to One of RACC’s priorities is to promote responsible practic- of the RACC in 2015. He was previously CEO and general people whether they are moving on foot, public es on the road and reduce accidents. How do you achieve manager of the RACC and transportation, bikes, scooters, motorcycles, or this? its group of companies from cars. We want to modify all processes of mem- We want mobility to be safer, cleaner, more con- 1995. He is now a councilor for Agrupació and for Assurances bers’ relationships with us. We are in contact nected, and more accessible. We lobby to influence du Crédit Mutuel España (ACM). with over 600,000 families, who can all call us drivers’ education. We supported the initiative of The RACC is also active in the about issues related to their homes, cars, insur- drivers’ licenses with points and worked with man- sectors of insurance, roadside, ance, travel, and so on. Previously, we had a silo ufacturers on collision tests. In that regard, we do a healthcare and household assistance, mobile telephones, system, meaning each area of the company had safety ranking of cars every year. We carry out rigor- travel, driver education, vehicle custom-made software, but now we have moved ous public studies on the roads, so we can influence sales, and services to motorists, to a cloud-based standard system for the entire government on how to improve roads and reduce among others, and promotes a new culture of safer, more company. We receive around 10,000 calls daily accidents. Thus, we work with the drivers, cars, and environmentally-friendly that go to a single database. the government. ✖ mobility. 88 Barcelona Special Report B2B MOBILITY With vehicle ownership declining and more sustainable transportation options available, private mobility companies are partnering with both the public and private sectors to offer citizens greater choice.

Can you give us some background on the ori- TB They need to better define the rules of gins and evolution of the company? the market. I would like to see them be more open in terms of new concepts, es- Timo Buetefisch TIMO BUETEFISCH I co-founded the com- pecially as there is a clear trend toward CO-FOUNDER & CEO, pany with two other German entrepre- such new models. We are working with a COOLTRA neurs in 2006. We saw an opportunity to fleet of 1,400 scooters, all electric, in Barce- offer mobility solutions on two wheels. lona. This is a fleet that is much more used Our vision is to be the European leader than private combustion vehicles, and it is for sustainable mobility solutions on electric. The administration should help two wheels. The company started out in and support the new concepts as well as Barcelona, and since then we have ex- put in rules. Here, the scooters have to ful- panded into different markets. We are fill a certain minimum requirement, you now present in Spain, Austria, Brazil, need to share data, and so forth. All of this Czech Republic, France, Italy, and Por- is fine. tugal. We started by renting out scooters to tourists and gradually we pivoted on KT We are involved with city halls and the that, adding different customer seg- mobility departments. There are private ments. We now rent to different com- installations that have signed on to work panies. We have two main customer with us, and our fleet is spread amongst segments: B2C and B2B. The company these locations. In addition, we can also is private, with three different inves- offer city halls access to huge data. We tors. We have 17,000 scooters, of which have trip-level information that can tell Kiran Thomas 56% are electric. In the B2C segment, us and our municipal partners where de- CO-FOUNDER, we have more than 900,000 customers. mand is being generated and supply met REBY In the B2B segment, we have 1,500 cor- on a daily basis. porate customers. We operate in more than 40 cities. What are your growth plans?

KIRAN THOMAS We started in 2018 and TB In the last three years, we have been have seen sustainable growth ever since. growing by around 70% YoY, and we are We have grown at just the right pace, trying to continue to do so. In 2020, we will despite having to make some difficult make around EUR67 million. We will keep decisions on how to do so. We have also growing mainly in the same markets where worked to create the right kind of corpo- we are. There are still many opportunities rate culture and hire the right people in inside the cities where we operate to put order to successfully build strong foun- more scooters and gain more customers. dations. We plan on using this position So, for us, it is not the smartest idea to to go after similar markets and specialize make a major geographic expansion at this in local approaches to public adminis- moment, because the markets that we are tration. We are trying to unlock cities and in are still growing. It is important to have a markets for ourselves, as we did in the good market share in the cities where you case of Zaragoza where we won a public are. tender that was the first of its kind in Eu- rope. We beat much stronger and more KT Our scaling-up strategy is based on capitalized players and won the right to the preservation of the city’s orderly but operate for three years with a partner. always assuring the convenience of our We have 850 licenses, which could po- users. In this way, we prioritize entering tentially grow to 1,750. Currently we op- in those cities compromised with a clear erate in Gijon, Zaragoza, and Barcelona. strategy not only to maintain the cityscape Shortly, we will operate in six to seven but also to evolve toward sustainability. more markets. We are extremely pleased We seek to become the key support for city with our position and the operational ex- halls so they can design the best mobility perience we have been able to develop. strategy. Furthermore, as the technology behind our scooters is designed in-house, What is your relationship with public admin- we can adapt it according to each city’s istrations? needs and regulations. ✖ Transport & Mobility 89 B2B

ficient and deliver according to the customers’ needs. We are developing our drop-off points and our online applications such as on-demand delivery (ODD) in order to offer our customers the opportunity to choose how they want their shipments to be delivered. We are also investing in ITC systems to improve the lives of our customers. On top of this is the DHL Parcelcopter, a drone able to deliver in hard-to-reach areas.

MO We do much more than just scan- Miguel Borrás Manel Orihuela ning packages. All of our messengers are MANAGING DIRECTOR, SUB-DIRECTOR, equipped with mobile phones that they DHL EXPRESS NACEX use to perform all tasks in the pick-up SPAIN AND PORTUGAL and delivery process. The system also uses augmented reality, meaning that if the messenger needs to look for a package inside the van, the system identifies LOGISTICS it, searches for it, and finds it. The inclusion of the customer in every part of the process is fundamental. All home Given the excellent location of Spain overall and Barcelona in delivery customers receive a pre-alert particular, logistics centers have much reason to continue to invest via e-mail or SMS. This message con- in expanding their businesses in the country. tains a link that allows them to choose a delivery time and date, an alternative address, or a NacexShop pick-up point. We have more than 1,000 points in Spain and rolled out this service in Portugal Can you give us an introduction to your oper- tional design committees in which fran- at the end of 2019. All these allow us to ations here? chises participate. In addition, we have maximize the number of first-attempt an international department that ac- deliveries, which is fundamental for our MIGUEL BORRÁS In 2019, we celebrate counts for about 5% of business, and this business. the 50th anniversary of DHL since it was is increasing annually. We are dedicated born in San Francisco in 1969. 10 years to importing products from Europe be- What are your main objectives for 2020? later, the company began its business ac- cause there are many centralized logis- tivity in Spain with nine people in a small tics warehouses there, especially for crit- MB Our main objective for the coming flat in Madrid, so we are also celebrating ical spare parts. Strategically, this is the years is continuing investing in state-of- the 40th anniversary in Spain. Few years most important sector we focus on. We the-art facilities such as the new instal- later, it expanded the business and was concentrate on sectors such as health- lation in Castellbisbal. We want also to established in a flat in Barcelona center. care and technology, which require se- continue investing in sustainable means Since then, we have not stopped growing cure delivery, high-quality information, in last-mile deliveries, for example with and currently have approximately 1,100 and compliance with transit times and electrical vehicles at Barcelona city cen- employees and a fleet of 900 vans and 13 delivery schedules. ter. Our budget assignment is to contin- aircraft. Today, we offer our portfolio of ue growing in B2C business and e-com- logistics services in international express What steps are you taking to digitalize pro- merce in B2B, with the aim of growing to our customers, whether they are large cesses? around 8% in 2020 for both B2C and B2B. or small businesses. In 2013, concerning the B2C business, we started moving MB We are investing in new conveyor MO We want to continue to do things from traditional document shipping to belts because we need to move more well and to improve. Our infrastructure e-commerce shipping. packages in less time by automating is constantly being adapted in order to our premises. We have invested around meet future capacity; we continue to in- MANEL ORIHUELA We have more than EUR93 million in our Madrid hub. Two novate in value-added services, stream- 300 franchises in Spain, Portugal, and years ago, we also invested in a new con- line processes and significantly invest in Andorra. We design the company’s en- veyor system in our hub in Vitoria to ex- technology in order to facilitate the work tire strategy and provide each franchise pand our network to other areas such as of our employees. Investing in people is with the means required in order to Santiago de Compostela, Lisbon, Porto, another key factor. We must continue to perform the commercial, logistics, and Seville, Valencia, and Alicante. This is improve, adapt, and be open to the fu- distribution work in the area they cover, not only about processing packages fast- ture demands of our clients. We always including the software. We have opera- er but also about a need to be more ef- want to go the extra mile. ✖ A modern pedestrian bridge at Port VellA modernpedestrianbridgeatPort

Image: DSBfoto Real Estate & Construction 91

09 Real Estate & Construction

CHANGING TRENDS

arcelona has been an attractive city for estate investors. Therefore, in spite of the con- B investors in real estate for a long time, text of political uncertainty, dominant European reflected in the exponentially rising investors identified Barcelona’s office market as prices, reaching double that of the rest of Spain. highly profitable, with a yield ranging between However, the political instability that emerged 5.5% and 6%, according to the PwC Emerging with the Catalan Crisis put a strain on foreign Trends in Real Estate 2018 survey. investment in property and construction, which As working patterns change, so too do the real is necessary to maintain high prices and strong estate spaces companies are looking for. This demand. Yet, politics is not the only contributing was a topic we discussed with Colonial CEO Pere factor to this trend. Unemployment and low sal- Viñolas, who emphasized caution when faced aries among the younger population in Spain, for with such trends: “There are different layers that example, make it increasingly difficult for them refer to changing trends, which, in a way, are to purchase properties. linked to each other. With co-working or flexi- Nonetheless, the real estate and construc- ble work spaces we still do not know if they will tion situation in Catalonia is not all that bleak. become a niche or the future mainstream busi- Since 2018, Catalonia’s real estate market has re- ness.’’ Flexible workspaces now make up 2% of claimed its position as one of the three leading their portfolio. areas for property investment. For example, in Such trends are not limited to office space real terms of residential properties, we observed an estate; the logistics market, too, is undergoing increase of 10.1% between 2017 and 2018, with much change in terms of demand. Such changes the number of financial transactions exceeding reflect greater social transformations, particular- 500,000. 2018, perhaps surprisingly, was deemed ly in terms of how cities are being designed to ac- a record year for real estate in Catalonia, a tes- commodate for new ways of living. The consen- tament to the fact that the city has remained an sus emerging from the interviews in this chapter appealing market. was although real estate and construction has re- In 2018, Blackstone acquired the Diagonal de covered from the damages of the 2007 financial Barcelona complex worth EUR250 million, which crisis, it is fundamental to exercise caution in a represented the largest individual transaction in market whose future trends are hard to predict

Image: Xxx Spain, reinforcing Barcelona’s potential for real and even harder to measure. ✖ 92 Barcelona Special Report INTERVIEW territorial BALANCE

The second-largest landowner in Catalonia, Incasòl works with Albert Civit Fons DIRECTOR, companies and investors looking for the INSTITUT CATALÀ DEL SÒL perfect plot of land. (INCASÒL)

How was Incasòl set up as an agency of the Catalan also belong to the United Cities and Local Gov- EUR1 government? ernments (UCLG) and the partnership of the Ur- billion of land: 20% of it Incasòl was established in 1980 not only to plan ban Agenda of the EU. Incasòl is unique as it has in transformation, with land but also to manage it. Incasòl is the sec- both residential space and land; it owns 18,000 20% in reserve ond-largest land owner in Catalonia after the social dwellings and is one of the largest owners Catholic Church. We purchase a large amount of of social housing in Spain. Incasòl also manages land every year to resell and preserve. We have the deposits of all rental contracts in Catalonia, Working with about EUR1 billion of land. About 20% is in trans- making Incasòl something like a small bank. We formation, with another 20% in reserve. We are al- use this money to finance social residential poli- AMAZON, ways looking for land that we can transform. If an cies, which is singular in Europe. investor or corporation, such as Lidl or Amazon, IKEA, LIDL comes to ask for 20ha of land, we work to assist What projects do you have in the pipeline to solve the them in the process. challenge of space in Barcelona? The metropolitan area is quite full, and it is im- Incasòl sold a plot for the Amazon logistics hub in El possible to create large spaces. International com- Prat. How did the Amazon project come about? panies who want to use Catalonia and Barcelona The Amazon project started at the Expo Real fair as a hub for international logistics e-commerce when someone approached us, saying they need- movement want to have large plots of land, so we ed a 15-ha plot next to Barcelona for a large com- are working with a ring of new areas in Tarragona, pany. After several more discussions, he said he Igualada, Manresa, Girona, and Ebro’s lands. We was a representative of Amazon and was actually are trying to cover the demand by going beyond looking at different regions in the south of Eu- the metropolitan area, as a land in the metropoli- rope, but Barcelona was especially interesting, as tan area is EUR400 per meter. our port and airport are close. We had a plot, so BIO we made a deal. What are some of your biggest potential clients this Albert Civit Fons holds a year? degree in architecture from the Polytechnic University What partnerships does Incasòl use for its operations? We are working for Lidl and IKEA, as they are of Catalonia school of We work with Catalonia Trade and Investment growing in e-commerce. Holland’s BPG is also architecture, a master’s in and with all of Barcelona’s real estate agents. working with us, along with Sony, Desigual, and large-scale projects, and an executive development degree Though we are not strong in building factories, Fanuc, a Japanese robotics company currently from the University of Navarra we are in transforming land, so anyone who building in Sant Cugat. We also work with small- IESE Business School. He is wants a large piece of land comes to Incasòl, not er, equally important local firms such as Embotits a member of the Architects’ Association of Catalonia board only in Catalonia but in Europe. People working Castellví or Torrons Vicens. Incasòl is using funds of directors for the Barcelona in real estate in Paris and London know Incasòl from the Amazon operation to respond to the area from 2006 to 2014. From is the main agent for land in Catalonia. We have a needs of smaller firms in the rest of Catalonia. We 1998, he began collaborating project with Barcelona’s city council and metro- work to ensure a territorial balance. Many people with the government of Catalonia, joining the technical politan area called Barcelona Catalonia, an asso- want to be in Barcelona but there are local com- team at the Catalan Land ciation between three public organizations aimed panies who want to remain in Lleida, Manresa or Institute. There, he was at attracting investors to Barcelona and Catalonia. other parts of Catalonia, so we have to provide the director of planning from 2001-2006 and technical land We attend the world’s main real estate fairs and land or they will close. For us, Torrons Vicens has director from 2006-2011. talk about the real estate policy in Catalonia. We the same importance as Amazon. ✖ Real Estate & Construction 93 INTERVIEW progressive EXPANSION

Present in over 20 countries and with over 50% of its work outside of Spain, COMSA focuses on infrastructure, Jorge Miarnau Montserrat industrial engineering, and maintenance PRESIDENT, services. COMSA CORPORATION

Can you give us an overview of the history of the com- logical advances. It is clear that Spain’s market is Targeted pany? not enough to maintain our company in railway The first generation of COMSA lived through the works, meaning we will have to work all around EUR1.3 Spanish Civil War. My grandfather started from the world. Our strategy is to focus on South Amer- million in profits in 2019 scratch again in the railway business in 1936. ica and northern Europe, where we have a strong With the growth that came during the 1960s, we presence. For example, we have a large company branched into roads and buildings, harbors, air- in Poland, from which we are working with Cro- ports, and everything, really. We became a global atia, Romania, and Bulgaria. It is an interesting construction company at that time while trying to region with growing economies, although less sta- 50% maintain our railway specialty. In the 1980s, we ble situations, which is why it is unreliable to only of work outside of Spain began to venture abroad, starting our internation- focus there. We combine this focus with more ma- al expansion in Portugal before moving to South ture and secure countries, such as Denmark and America. After the crisis of 2008, we merged with Sweden. a company specializing in industrial engineering and focused our work on other countries. Today, Where are you in the process of digitally transforming? our main areas are infrastructure, industrial en- In the office, we have a good digitalization of pro- 30% gineering, and maintenance services, and we are cesses. We do not send invoices or paper docu- of turnover from private present in more than 20 countries where we still ments but rather focus on processes that are com- sector try to maintain our railway focus. Our main busi- puter driven. Our main business is construction, ness is in Brazil, Colombia, and Mexico. With the and it is hard to bring digitalization to steel and Spanish crisis, we looked abroad extensively and concrete. However, but we are trying hard in the between 2010 and 2012, we drew back a little and soft parts of the business, such as the planning and narrowed our focus more. It is better to be in fewer how we control the projects. countries and have a stronger presence than to be in many countries doing small projects. Currently, Barcelona has been designated as a hub for logistics and over 50% of our work is outside of Spain. Mainly distribution. What makes Barcelona stand out? our projects are in the public sector all over the We are in a great situation geographically speak- world. Only 30% of our turnover is private. There- ing, as we are close to almost everywhere in Eu- BIO fore, hiccups in the public sector affect us. rope. The city is also attractive, so many people Jorge Miarnau Montserrat is are attracted, particularly young people, further an engineer of roads, canals, and ports. He completed the In 2019, your profits were forecast to rise to EUR1.299 encouraged by regional projects such as The Col- general management program million. What strategy did you take to ensure this growth lider, Pier01, and all the innovation happening (PDG) from IESE Business takes place? throughout the city. In this sense, Barcelona’s air- School and has a master’s in management and management We are focused on growing steadily as a result of port, harbor, and railway have a great deal of po- of construction companies the progressive concentration around our core tential. for the Agustín de Betancourt businesses. We want to have the right people in Foundation (Madrid). In 2003, What is your main objective for 2020? he assumed the presidency of place and the right procedures for the company to COMSA, and, after the 2009 succeed for the long term. We are working on mak- Our objective is to consolidate our situation with incorporation of the engineering ing a company for the future by making changes great projects and solid performance. We expect business, he become President to bring younger people to the company, so that to grow nearly 5% and will continue to foster a of COMSA Corporation. Previously, he was responsible we have the next 20-25 years covered. We are also spirit of innovation and sustainability. To attract for the international rail preparing for the new digital world and techno- young people, we must have such values. ✖ business of COMSA Group. 94 Barcelona Special Report FORUM REAL ESTATE With many companies flocking to Barcelona, real estate in the city is only set to boom.

Eduard Itoiz Oriol Barrachina Pere Viñolas PRESIDENT & FOUNDER, CEO, CEO, SHBARCELONA CUSHMAN AND WAKEFIELD COLONIAL IMMOBILIARIA (C&W)

WE OFFER A COMPREHENSIVE SERVICE THIS COMPANY HAS A GREAT HISTORY. It is WE ARE IN THE REAL ESTATE SECTOR, ba- to anyone who owns a home. We assign a centenarian company that is dynamic sically owning, managing, and leasing an account manager to each client, who and has the agility of a young company. assets. We are not in the business of de- then interacts with all company depart- We went from 20,000 people to 51,000 veloping residential units for sale. In our ments to offer services like interior de- through our M&A activity over the last particular case, we have a focus on one sign, decoration, works, maintenance, three years. Our yearly revenue is more single asset class: offices. We do not deal housekeeping, and insurance. It is a re- than EUR8 billion. Notably, we were with retail, logistics, or residential units. lationship of trust, as we are not just a publicly listed on the NYSE in 2018. The Our reputation comes more from our provider but a partner too. Our market- market here has two main characteris- ownership of prime assets in Spain and ing technique is based on a pull system, tics: it is absolutely global, and it follows France, where almost half of our activity rather than push. We do not have cus- a path of concentration. The easiest way occurs. The company has been around tomers per se, but we offer our products to look at our market is to divide our cli- for 30 years. We currently own and man- and services to our clients. For this, we ents into two types. We have occupiers of age around EUR12 billion worth of prop- need high visibility on Google and the buildings, or owners, and investors. Both erties. Our strategy is to allocate 85% of internet in general. We use our relation- are looking at the world globally, and this to established and well-known as- ships with large companies, institutions, there are less and less service providers sets and the rest to new interesting proj- and universities throughout the world to like us that can provide consistency from ects. Our strategy has always been to cre- offer good renter’s profile to our owners. Ho Chi Minh to Buenos Aires, San Fran- ate value for new buildings. This is our To stand out, one important point is per- cisco to Madrid. Our strong presence in strategy for organic growth. On top of sonalization. We want good, supportive Spain allows us to offer a broad spectrum that, we have also taken some initiatives people who can work as a team and are of services. We have a clear and strong such as mergers and acquisitions. Today, result oriented. This is a differentiating strategy for technology at the global lev- we are more client oriented as opposed element for us. We know that technology el. We are in the consultancy business, to asset oriented because clients expect and positioning are important, but the and our most precious asset is people us to provide more facilities to make clients, both owners and users, must feel and talent as they are our main differ- their employees happier and more pro- comfortable and satisfied. Technology entiator. We will adapt to offer the most ductive. We have to properly manage is important for us, and it shows in our efficient products. our current assets and, at the same time, annual budgets. We have more people focus on assets that suit to new trends, in marketing, communication, and in- meet the requirements and demands of formatics than people selling properties. our clients, and provide good returns. We manage over 2,000 homes in Barce- lona. Since 2002, we have had growth of over 17.5% each year. Real Estate & Construction 95

Barcelona’s most famous construction project, La Sagrada Familia, upon which work began in 1882 Image: Evannovostro 96 Barcelona Special Report VOICES FROM THE SECTOR

Miguel Ángel Gallardo BUSINESS UNIT DIRECTOR SPAIN AND PORTUGAL, Joan Molins Amat ROCKWOOL PRESIDENT, CEMENTOS MOLINS From Denmark to the world, what the origins of Rockwool, and how it expanded to the Spanish and Catalonian markets? How has Cementos Molins evolved since it was founded in 1928? Rockwool was founded in Denmark in 1937. We are the largest The company back then was directed by Joaquin Figueras, who stone wool producer in the world. Although we are a 100% Dan- went on to establish another cement company. Cementos Molins ish company, we acquired the first worldwide license to produce has always been open because there were always other sharehold- stone wool. Rockwool is family-owned business with a traditional ers, aside from the family. In 1941, we had an important shift be- approach, so we were cautious about expanding into other markets cause we needed funds to keep the company going. We entered initially. Over time, we slowly started expanding into markets in the stock market in Barcelona in 1942. Since then and to date, the northern Europe and then the rest of Europe. We entered Spain in Molins have been the majority owners but there have been times 1989, starting as a commercial subsidiary of the French Rockwool where we had other partners in different proportions. We have had company because at that time it was the closest Rockwool factory external partners like Lafarge, who at one point owned around 40% to the Spanish market. In 2000, we established a factory in Navarra, of the company. We later bought back shares from Lafarge, and at Spain. Our strategy has always been to first enter a market with our present, the family owns back 90% of the company. products and then establish a company or factory once the market has developed in line with our criteria. What is the importance of your partnership with Corona in Colombia? Colombia was going through a great period around five years ago What is the role of the Barcelona office in the Spanish market? and all manufacturers were trying to expand into the country. Co- The company entered Spain by establishing a commercial office rona had some quarries that wanted to start operating, and the in Barcelona. Back then, the Spanish market had grown but not company came looking for us, which is something rare. That proj- enough to absorb the entire production of a new factory; however, ect has been developing, and the factory, located between Medellín our growth in France had also been good so we decided to build a and Bogotá, close to Río Claro, will be opened soon, factory to serve both Spain and France. We chose to build the factory in Navarra because of its geographical location. From Navarra, What does Cementos Molins do to ensure that the environment is re- we are able to deliver to Spain, Portugal, and the south of France. spected through its productive and extractive processes? Sustainability is key, because regulations in a lot of places are shift- In what stages of production is Rockwool involved in? ing. The quarry restoration after it has been exploited is important, We are a manufacturing company and we do not do installation. and we take it as an obligation. Aside from quarry restoration, when What differentiates us from our competitors is that we only focus we manufacture cement, CO2 is produced, which we emit into the on stone wool and do not produce other type of insulation material. atmosphere. We have taken measures to keep our CO2 and dust We work through a distributor’s network, so our main customer is emissions as low as possible, and we have filters that prevent dust the distributor. production. How is Rockwool driving innovation? What is the biggest challenge and opportunity for Cementos Molins in We have different lines of innovation because we design our own 2020? machinery and technology. We are innovating to make our pro- We are reaching the same level of turnover as last year, which is due cesses more efficient and to satisfy the demands of the market to some changes in certain countries. For example, our business regarding sustainability. We are also investing in materials to im- in Mexico has slowed down, but at the same time we have grown prove the performance of our products and innovating our sys- in Spain. We made around EUR750 million in sales in 2019. Even tems. Insulations are never used alone; they are always used as a though Spain represents a small part of our business, it is still im- part of a system in a roof or an internal wall. We do not produce portant to us. The market will keep recovering, and we hope the po- the system, but we collaborate in the design. After all, what the end litical climate remains positive. Our main concern is for Barcelona customer receives is the performance of the whole system and not to maintain its growth rate. only the insulation material. Real Estate & Construction 97 FOCUS Logistics centers

THE LOGISTICS OF MANAGING SUCCESS

THE RISE OF E-COMMERCE, GOOD and logistics market, however, most firms in 2019 TRANSPORT INFRASTRUCTURES, looked for premises measuring between 5,000- AND THE ESTABLISHMENT OF 10,000 sqm. MULTINATIONAL HUBS IN THE The Catalan logistic market leased 341,243sqm in 1Q2019, 12% less than the same period in METROPOLITAN AREA REPRESENT A 2018. This lower figure can be explained not by SUCCESS STORY NOW PUSHING FOR A a decrease in the sector’s dynamism but rather a GEOGRAPHICAL DECENTRALIZATION change in the size of the plots leased. At the end OF LOGISTIC HUBS AND A of 2018, large-sized agreements were signed that CONSOLIDATION OF DISTRIBUTION made numbers skyrocket: in particular, the leasing INFRASTRUCTURES BEYOND of the 51,000-sqm logistic platform in Barberà del BARCELONA. Vallès by Amazon and the 48,000-sqm premises leased by Privalia in Bisbal del Penedès. Despite the demand, the sector is not a bed of roses. Because of its centrality, Barcelona attracts 75% of the leasing transactions of logistics areas, according to Savills Aguirre Newman. Because OMNICHANNEL DISTRIBUTION DENOTES the in- Barcelona is a compact city, the logistic land offer tegration of different shopping methods ranging in Barcelona is now as low as 1.62%. Different pub- from physical stores, online sale platforms, and lic agencies are teaming up to decentralize both app-based purchases with different delivery op- the demand and offer of logistics areas. Incasòl, tions such as store pick-up or home delivery. The for example, is consciously reinvesting the posi- growing importance of e-commerce is pushing tive earnings of its sales made in the metropolitan firms to manage distribution centers capable of area into other areas of Catalonia, where private satisfying this omnichannel demand to ensure investors fail to devote resources due to low return that the end consumer has a smooth shopping on investment. The aim of this is to allow regional experience. As such, distribution centers are in- businesses to find cheaper industrial and logistic creasingly becoming the point of origin for items land in secondary and tertiary cities, thus main- bought online. taining their production centers and employment TBY interviewees in the real estate sector agree opportunities in less urbanized areas and contrib- that Barcelona and its metropolitan area have al- uting to a territorial equilibrium. ready witnessed an increase in demand for areas Industrial areas outside Barcelona can offer low- usable as distribution centers. As the director of er per square-meter prices. While the square-me- Incasòl, Albert Civit Fons, said, “Barcelona is at the ter price of logistic premises in Barcelona reached crossroads of two major roads: one from Asia to an average of EUR5.3 per month in 2018, it was Europe and another from Europe to Africa.” This EUR3.5, EUR3.3, and EUR2.7 per month in the fact, along with the infrastructural connections provinces of Girona, Tarragona, and Lleida, re- like the railways, the port, and the airport, makes spectively. The challenge is for these regions to Barcelona the ideal location for logistic centers offer connections that are as good as the ones receiving and distributing goods not only locally found in the metropolitan area. For this reason, but also in the adjacent southern European and the Agency for Logistics and Mobility of the Cata- Mediterranean markets. Testimony to this is the lan Government (CIMALSA) is actively promoting 150,000-sqm lot in El Prat de Llobregat that Am- areas beyond Barcelona with high logistic activ- azon purchased from Incasòl in 2015 for EUR30 ity called integrated merchandise centers (CIM) million. The distribution giant invested another or LOGIS, if it involves a rail system. Examples of EUR200 million to transform it into a logistic hub these are CIM Vallès, LOGIS Empordà, and CIM for all of southern Europe, right before reselling Penedès, the latter of which will be an important the property to Korea Investment Corporation to logistics center after a 1.5-km railway terminal is gain asset liquidity and remain a tenant. According set up in the near future, making it one of the most to the Forcadell Report on the Catalan industrial important railway terminals in southern Europe. ✖ 98 Barcelona Special Report Image: Iakov Filimonov Filimonov Image: Iakov Image: Xxx 10 SALUD THESUN Spanish medtech industry,whichimplementsthe accounts for24.4% oftheannualturnover device companies establishedin2017,Catalonia to thepharmaindustryalone.With 176medical ment ofnearly54,000people. turnover ofoverEUR17million and theemploy- contributes 3.4%ofCatalanGDP withanannual such asNovartis.Asaresult,the pharma industry well asnumerousinternationalpharmaceuticals mirall, Esteve, Ferrer, Grifols, and Uriach—as five dominantpharmaceuticalcompanies—Al the majorprosperityinfield.Cataloniahosts rate ofonecompanyperweek,whichreflects Catalonia hasanimpressivecompanycreation figures. Currently,thelifesciencesindustryin according toCataloniaTradeandInvestment to the region from abroad for treatment in 2018, in the world, with over 10,000patientscoming health systemisnowoneofthemostadvanced focused onthepublicaspossible. tailoring ittodemographic changes tomakeitas mary caretoboostefficiency,safety,andquality, term. Oneoftheprioritieswastostrengthenpri and evaluatestheimpactoftheseoverlong objectives adoptedbytheCatalanhealthsystem approach. Theplanoutlinesthestrategiesand ernment andsocietyinahealth-in-all-policies However, Catalonia’ssuccessis notrestricted And effortshavehadgreatsuccess:theCatalan I Health &Medtech Catalonia, whichenvisionsboththegov Catalonia launchedtheHealthPlanfor n 2016,theDepartmentofHealth - - - ized initstreatment. ✖ the sector,promising tobecomemorepersonal power andnumbers, sotoodoesthestructureof ers thatcombinehealthwithtechnology growin was thattheindustryischanging; asnewplay- faster ratethanGDP.Anothercommon feedback making the sector sustainable, as it is growing at a repeatedly voicedinourinterviews wasthatof bodies inhealth.Acommonconcern thatwas clinics, biotechcompanies,andrepresentative maceuticals aswellhospitals,institutesand mote thehealthofcitizensCatalonia. factors (bothenvironmentalandgenetic)topro- awareness aboutdiseasesandunderlyingrisk An emphasisonresearchinthefieldalsoraises more than3%ofEuropeanscientificproduction. the world’sscientificproductionandrepresents investment. Today,Cataloniacontributes1%of as revealvastopportunitiesforinternational er workforceandgroupofresearchers,aswell a devotiontoresearchhashelpedrecruitwid matics, nanotechnology,andgenetics.Inturn, active researchgroupsintheareasofbioinfor sector, reflectedintheemergenceofover780 as a center of fundamental research in the health their centralpositioninthelifesciencessector. vancements ine-healthandbiotechreinforce the efficacyofhealthcare.Ground-breakingad tion inthefieldofmedicineordertoimprove use ofsophisticatedtechnologyandpersonaliza In thischapter,wespoketovariousphar Alongside this, Barcelona continues tothrive Health &Medtech ------99 100 Barcelona Special Report INTERVIEW guiding LIGHT

To ensure it remains a reference institution, Hospital Clínic Barcelona Josep M. Campistol continues to focus on research and GENERAL DIRECTOR, innovation. HOSPITAL CLÍNIC BARCELONA

“We are strong in oncology strong in brain tumors, autoimmune diseases, encephalitis, and epilepsy. We have a strong team EUR55-60 and hematology, with a in cardiovascular research as well, imaging, and million spent on specialty in the genetic and minimal-invasive surgery, and finally in nephrol- research per year ogy and urology. genomic background of oncology and hematology How is technology changing hospitals and how will it continue to impact the sector? diseases.” It is an important point, as technology will change 11 and help make the system sustainable. Technol- researchers in the top ogy will impact diagnosis and treatment, because 1% of the world Hospital Clínic Barcelona is a public hospital founded in it is quite important in terms of imaging. It will be 1906. Can you tell us about its background, and how it much simpler, more specific and cheaper, specif- has evolved in recent years? ically with the technology of robotic surgery and It started as a beneficiary hospital. Approximate- non-invasive treatment. This technology is here ly 40 years ago, it underwent a transformation to and used by all of us, but it will be introduced become a professional research hospital, an idea much more over the next year and will disrupt developed by professionals and physicians in the many processes. We are currently doing approx- late 1970s. The hospital is based on three import- imately 500 surgeries in the hospital, but in 2020, ant pillars: clinical work, education, and research. we expect to do at least 1,000 operations, mainly We consider these three things interrelated; if you in neurology, gastroenterology, cardiovascular, do good research, you do good clinical work. That and hepatobiliary surgery. The other big change is something important to us, and it defines who will be the use of AI to check decisions. I am cer- we are and where we want to go. We are also contain that in different areas, especially imaging and nected to the University of Barcelona’s faculty of pathology, algorithms for diagnosis and machine medicine. learning will be introduced in 2020. We need to learn to progress in this direction. These kinds of BIO In terms of research, you stand out in oncological and technology will completely change how we con- Josep M. Campistol is the neurological research. How much money is invested in sider health today and how we treat our patients. General Director of Hospital this? Clínic of Barcelona and former medical director of the same From the 5,000 professionals that work here, What do you consider the biggest threat to public hospital as well as director there are about 1,000 physicians, approximately health? of the Clinical Institute of 2,500 nurses, and about 1,000 people exclusively The biggest threat and the biggest challenge to Nephrology and Urology (ICNU). He is also professor doing research. The research budget is not only public health in the coming years is the sustain- of medicine at the nephrology for the hospital, but also the campus. It is around ability of the system. We have a fantastic public department of the University EUR55-60 million per year. It is a large budget, system in Catalonia and Spain that covers 100% of Barcelona. He received his medical degree from the but we consider research to be crucial. If we want of the population; however, we have a problem University of Barcelona and to be a reference institution, we need to do re- with the sustainability of the system. This not following his training as a search and innovation. If you do not invest heav- only applies to us, but all public systems in Eu- fellow in renal medicine at the University of Barcelona, he ily, within five years you will not be in the top 10, rope. First, there is an increase in the cost of the continued his clinical work in and you will not be the leader of any sector, es- system. Chronicity is an important point here, as renal transplantation within pecially medicine or bioscience. We are strong in it affects us in terms of costs. Second, there is a the renal transplant unit at oncology and hematology, with a specialty on the great deal of movement of professionals, making the Hospital Clinic. He also developed research interests genetic and the genomic background of oncology it difficult to recruit and maintain talent. The two into the pathogenesis of and hematology diseases. The second important main difficulties and challenges in the system dialysis-related amyloidosis area is neuroscience, including mental health. are the cost and expenses that are growing high- and undertook a visiting Fulbright Scholarship at Boston Some 10-15% of the population goes to a psychi- er than GDP, making it difficult to maintain, and University School of Medicine atrist at some point. Within neuroscience we are professionals being difficult to retain. ✖ in Boston. Health & Medtech 101 INTERVIEW ahead of ITS TIME Having established a network of clinics across four continents, Eugin is shifting its focus to improving patient comfort and teaching aspiring doctors how to manage the latest technologies.

Eduardo González CEO EUROPE AND LATAM, EUGIN CLINIC & NMC’S IVF OPERATIONS

How has Eugin evolved over the years? ating the education program, we provide society Eugin started as a small clinic in Barcelona and its with training that is not currently available. We founders soon realized that it was hard to penetrate teach how to manage new technologies, such as 75 the local market. This led them to look into France genetic testing or robotics. Moreover, by offering clinics in 15 countries and Italy. At that time, Spain had more open reg- educational programs we can select the best talent across four continents ulations than those two countries with regards to and incorporate it into our company. assisted reproduction, meaning patients in Spain could receive treatments that were not available What is the future of health tourism? Over elsewhere. Our founders dedicated their efforts We prefer to talk in terms of cross-border health- to opening up the other markets and, as a result, care; indeed, it will disappear over time. In Eu- our operations grew rapidly. Then, ProA Capital, rope, regulations are increasingly opening up. 42k based in Madrid, acquired part of Eugin. In 2012, This means patients will not travel if they do not treatments a year it started a professionalization process, turning the need to. The healthcare industry needs to bring the clinic into a company. The company made acqui- treatment to wherever the patient is. At the same sitions in Colombia, Spain, and Italy. Subsequent- time, governments around the world are also tight- ly, a group called NMC Health, based in Abu Dhabi ening their grip on the sector. This means compa- and listed on the London Stock Exchange, invested nies that have the proper reporting and controls in the company and took over 90% of the group. in place will have an easier time when it comes to Since then, we have grown to some 75 clinics in 15 sharing information with governments. countries across four continents, with 1,500 doctors and embryologists and over 42,000 treatments What special features will your new facilities have? per year. We will soon be number-one in the global In the health industry, everyone is becoming pa- market. tient-centric. Recently, we have sat on the other side and asked patients what they want. We have What does your marketing plan involve? a new 7,000-sqm facility in Barcelona, with two We have acquired a number of clinics in different floors, one for a lab and one for our patients. We countries. This is not a large industry, so when one are investing a great deal in this new layout to com- BIO With more than 25 years’ wants to grow, it has to be internationally. When pletely change the way we operate. We are build- experience, Eduardo González we make acquisitions, we go for clinics that are not ing 33 nests, which are basically rooms with a sofa, is a senior management that big. We have been doing this rapidly, and it is fridge, TV, and consultation room. The patients professional with considerable experience and knowledge now time to consolidate our growth. We are cre- will stay there, and all procedures will take place in in the management of ating assets at a group level, such as our brand, this room. We want patients to feel as comfortable national and international an IP policy, Eugin Education, an IT system, and as possible. companies in a diverse range of sectors. He has led and more. We have five initiatives at the moment and participated successfully are working to create the abovementioned assets What opportunities do you see in Spain? in the reorganization to support all our clinics. In the future, our growth As other countries open up regulations, less and and professionalization will be driven more through greenfield openings less international patients will come to Spain for of companies’ portfolio management, corporate and not so much through acquisitions. treatment. Instead of exporting treatments, we can operations, and refinancing export technology. This is not just limited to med- processes. In the last 15 years, What is the role of Eugin Education? icine, but treatments, genetic testing, nutrition, he has become a member of various boards of directors One of the key things in the health sector is ad- psychology, and more. Making this a part of a com- and an advisor to a number of dressing the future needs of our patients. By cre- prehensive treatment is how we can progress. ✖ investor groups. 102 Barcelona Special Report INTERVIEW

HEALTHY profits

With the average life expectancy of Catalonians among the highest in the world, Parc de Salut Mar targets providing the best medical service to a rapidly aging population.

Joan Puigdollers Fargas PRESIDENT, PARC DE SALUT MAR (PSMAR)

In 2010, the government of Catalonia created Parc de Catalonia’s situation is excellent compared to the New Salut Mar. Why was this consortium created? rest of the world. However, we have to find a way to collaborations The consortium was created by the government of pay for this social spending. Catalonia and the Barcelona City Hall to manage the with 22@ hospitals owned by city hall before the government Taking into account the challenges ahead, what role initiative are key of Catalonia started operating in 1979. The consor- should new technologies play in healthcare? tium evolved as part of the solutions that the city New technologies are essential. Citizens want to be provides for its problem. Originally, Hospital del Mar at home; the less time spent at a hospital bed, the was built in 1914 to respond to a typhus outbreak; it better. In order to achieve that, we must implement Biggest health then became the Olympic hospital during the 1992 technology such as 5G, which will significantly im- challenge Olympic Games. We are linked to the city’s history. prove the services we get and provide. We have a is ensuring In 2010, the current consortium was created with a program of remote medicine for heart failure being care of aging 40% stake from the Barcelona government and a 60% implemented through technology, which is an im- stake from the Catalan government. portant step. We have also implemented electronic population medical prescriptions in Catalonia, which not many What is the greatest challenge facing Parc de Salut Mar places in the world have. and the health sector? We have to sustain the welfare society. And I say wel- What steps are you taking to make Parc de Salut Mar BIO better known overseas? Joan Puigdollers Fargas is fare society, not the welfare state. We have a huge the current President of the demographic challenge: how do we solve the low We are absolutely open to any type of international Governing Council of PSMAR. birth rate through immigration? In Catalonia, the collaboration. It can be either a business or solidarity He holds a diploma in health life expectancy of citizens is among the highest in collaboration. The management of the health system and environmental engineering from the Catalan Institute the world. However, the challenge is to ensure the in Barcelona shows a number of successful experi- of Technology. He graduated quality of life of the elder population. In general, we ments on how to manage the health sector. One of in sciences, biology, and have to ensure the well-being of society, because we the key strategies to have a successful health system botanics at the Autonomous University of Barcelona and have to provide the best medical service to our cit- is to find the right roads of collaboration between was previously secretary of izens. Research and development are bringing new the public and private sectors. We also have to reach public health of the Department products, but they are more expensive. Thus, we agreements. We have to listen to others, close deals, of Health of the Generalitat de Catalunya. He sits on the board have to bring together everything that science found and establish agreements that are successful. The of directors of several bodies. and introduce it in our daily practice without putting 22@ initiative was born to bring information and ICT He is also president of the the health system at risk. All the innovation in the companies by re-utilizing the ground where factories Municipal Council of Barcelona. He has also worked as a pharma sector is connected to personalized medi- were, which we have achieved. counselor for the environment cine. The challenge is to have a personalized pharma and urban services of the City product so that there are lower risks to our health. What are your goals for 2020? Council of Barcelona and was The question is how do we pay for this? The most log- First, we want to provide better services for the citi- president of the Urban Ecology Agency of Barcelona, president ical idea is to ensure that the economy grows to col- zens of Ciutat Vella and Sant Martí, who are our pa- of the local Energy Agency of lect larger resources and increase public spending. tients. Second, we have to raise funds to finance the Barcelona, provincial deputy of But we need to experience a demographic growth to second stage of the hospital expansion. And third, we the Diputació de Barcelona, and delegate for the environment ensure that. Public pensions, education, and health need to find more partners in the 22@ to reach new and natural areas. in Catalonia are financed through public resources. agreements. ✖ Health & Medtech 103

The former Hospital de la Santa Creu i Sant Pau, part of a UNESCO World Heritage Site, in Barcelona Image: Federico Fermeglia Image: Federico 104 Barcelona Special Report INTERVIEW

Josep M. Ramírez Ribas GENERAL DIRECTOR, GUTTMAN INSTITUTE retraining THE BRAIN

An international reference center for neurorehabilitation, the Guttmann Institute is also looking to nip neurological diseases in the bud.

How has the Guttmann Institute evolved since its origins in treatments and research? “Today, we have the best clinical The institute was founded in 1965, being the first neuropsychology team in Spain, and we are center in Spain to specialize in spinal cord injury and one of the first centers in Europe to follow the pioneers internationally in neuropsychological postulates of Dr. Ludwig Guttmann. We are a pri- rehabilitation through telemedicine systems.” vate entity, which enables us to adapt quickly to social changes and to innovate in our practices. We are an interdisciplinary organization dedicated entirely to neurorehabilitation, which, beyond trying habilitation must face is to obtain more scientific to practice the best specialized rehabilitation in the evidence in its therapeutic procedures. To move world today, wants to accompany people along the forward, we need to demonstrate the effective- process of rehabilitation and social reintegration. ness of the procedures and try to detect those that We attend to about 5,000 people with neurological have a significant impact on the patient's future injuries or diseases every year, and they motivate prognosis, both in terms of their functionality and us to look for new procedures or technologies to quality of life. The second challenge, in addition to improve their quality of life. About 30 years ago, we optimizing the efficacy and efficiency of neurore- started on the path of research and changed the way habilitation, is to offer holistic programs that also we worked, introducing a work methodology based improve the health of people with neurological dis- on protocols and good practice guidelines, the eases by combining cutting-edge knowledge and structured and systematic monitoring of all our pa- technology and personalized programs to promote tients, both in the rehabilitation process and later in healthy lifestyles that optimize the resilience of our the years following their discharge, and the evalua- brain. tion of results obtained and the comparison of them with those of the best hospitals around the world. How will you promote the new Brain Health Institute This has led us to establish a large number of alli- (BHI)? ances with care centers and knowledge institutions The purpose of BHI is to promote neurological around the world. We work with hospitals world- health while providing early diagnosis of neuro- wide and with IT and robotics companies. Today, logical and neuropsychiatric disorders. We held a we have the best clinical neuropsychology team in press conference for its launch and will promote it Spain and are pioneers internationally in neuropsy- on social media, though we will not advertise it. We chological rehabilitation through telemedicine sys- must not create higher expectations than we can tems. Now, our challenge is to prevent people from absorb. Rehabilitation is not exclusively a clinical suffering from neurological injuries or diseases or procedure; it is a process whereby a person who helping them overcome them when they do. This is has suffered a neurological pathology and suffers why we launched the Guttmann Brain Health Insti- a certain functional deficit needs to gain, in addi- tute (BHI) in Barcelona. tion to as much autonomy as possible, self-esteem, self-confidence, and understanding of everything Can you tell us about the current public health challenges? he is capable of doing with the capacity he still has. For years now, we have been working in line with In rehabilitation, false hopes should never be giv- BIO the World Health Organization (WHO), and one of en, but we must always strive for self-improvement Josep M. Ramírez Ribas has been the General Director of our concerns is that by 2050, if things do not change and the possibility of people being restored. The the Guttman Institute since and the level of development of new products and brain has to find a way to solve the new situation, 1990. He is a doctor and services continues to be above the economic pos- and neurorehabilitation must help it to re-learn holds a bachelor’s in hospital management from ESADE. He sibilities of states, most healthcare systems will be how to do things as it did before, or for the affected was general director at ICASS unsustainable. One of the challenges that neurore- person to lead their own life again. ✖ from 1994 to 1997. Health & Medtech 105 INTERVIEW regenerative MEDICINE A great team, a strong approach to innovation, and a focus on quality management enable Clínica Vertebra to provide effective solutions that extend the human lifespan.

Ricardo Ruiz López FORMER PRESIDENT & FOUNDER, CLÍNICA VERTEBRA AND WORLD INSTITUTE OF PAIN (WIP)

Can you briefly summarize the medical envi- new procedures and new ways of safe- ment; this is one of the most remarkable ronment that gave rise to Clínica Vertebra and ly treating patients. Our first site was in areas of social advancement. Our clinic WIP? Budapest, and we later added operations has contributed significantly at interna- In the last few decades, surgery has in Miami and Texas. We also moved to tional forums in advancing the state of changed significantly mainly been due Taipei and will start providing Manda- the field. We have engaged with thou- to advancements in both optics and rin-based education in 2020. We are also sands of practitioners interested in learn- the control of imaging inside operating planning to expand into Istanbul. We lat- ing. We have given many local symposia rooms. Additionally, doctors are seek- er plan to move from Istanbul to Central and forums. ing less aggressive surgical practices. In Asian and Middle Eastern countries and parallel, there was the development of the Gulf. Our most important concern is Can you give us an example of new techniques two new specialties: interventional pain the alleviation of pain and suffering for in operating rooms? specialty and a minimally invasive ap- our patients. There are many. We are working on re- proach to spine surgery. Furthermore, generative medicine with the introduc- the development of anesthesia played a What percentage of Clínica Vertebra’s patients tion of stem cells in the spine. We are major role. It gave us an opportunity to is international, and how do you attract them? also working on a new technique that change classical surgery by shortening Over 10% is international, which is rea- utilizes LR-PRP, and we are among the the duration of operations. At the same sonable. We can provide them with spe- first in the world to use it. We are pub- time, many older surgical approaches cial services such as hosting and personal lishing the first open, double blind, and were not acceptable for an aging popu- assistance. We are a multi-lingual team. randomized controlled trial on the appli- lation because of the complication rate, Usually, our patients refer other patients cation for complex derivative pain con- the severity of the surgery, and the risk to us. For now, we are focusing on quality ditions. limitations. We have been providing new over growth. surgical approaches with minimally in- What are your goals for 2020? vasive attitudes and approaches, includ- How many patients do you receive per year? The main objective is to be as effective ing endoscopy. These solutions made We see over 2,000 new patients per as possible and to relieve disability for the population much less dependent on year. All our patients receive extremely our patients. We want to keep people as pharmacology and helped avoid issues high-quality and reliable service. This is healthy and whole as possible for as long like the prescription opioid epidemic. the most important thing for us, starting as possible. We have a moral obligation from the first meeting with the patient all to provide effective, costless solutions Can you tell us more about your international the way until their trip back home. that extend the human lifespan. We are operations? at the beginning of a new era of regenera- WIP is a global organization. We provide Who are your main competitors? tive medicine. It has and will continue to our colleagues an opportunity to learn We compete with ourselves. Through be a major advancement in medicine. ✖ self-criticism, we are always working to improve our services, quality, and the outcomes we produce. We have a great “We are publishing team, a strong approach to innovation, BIO and a focus on quality management. It is Ricardo Ruiz López is the founder and the first open, double former President of WIP. He is also the not easy for a company to persevere for founder of European Federation of IASP blind, and randomized decades. This is especially true in a space Chapters, president of II Congress such as ours, where change and innova- Pain in Europe, founder of the Spanish controlled trial on Pain Society, founding president of tion happen rapidly. the Catalan Pain Society, and founder the application for of International Spine Societies. He Do you see a disparity between university cur- has been promoting the WIP FIPP complex derivative pain Examination for the Americas and the ricula and the needs of the medical field? foundation of the FIPP Examination into conditions.” We need to support scientific advance- Mandarin and English. 106 Barcelona Special Report FOCUS Biotech Image: Laura Pl Image: Laura

ENGINEERING HEALTH Catalonia’s commitment to expanding its biotechnology sector makes perfect sense, with the sector contributing 7.2% to Catalonia’s GDP. Growth in the sector is expected to boost life sciences, health, and pharmaceutical research already happening in the region.

BIOTECHNOLOGY IS A SECTOR THAT FOCUSES how effective it is in minimizing the effects of par- ON NEW DRUG DISCOVERIES as well as repurpos- ticular diseases. Progress regarding health and ing existing ones. In this regard, their potential to regulation has increased the threshold of quality, disrupt the health sector, specifically large phar- efficacy, and safety required to get a new technol- maceutical companies, is huge. The expansion of ogy passed. Third, the region is well-known for its Barcelona’s biotech sector promises to make it not research in science, technology and innovation only a hotspot for life science research and devel- (STI), seeing that research centers have developed opment, but also an international hub for health. over 780 active research groups that are working In 2019, the sector made up 7.2% of Catalonia’s on projects in areas of bioinformatics, genetics, GDP and now the life science industry generates and nanotechnology, among others. A commit- an impressive EUR31.09 billion annually for the ment to research equips Catalonia with the tools region. and facilities to drive innovation in the field of bio- The foundations from which the rise of Barcelo- technology. na’s biotech sector emerged are widespread. First, Biocat, the region’s organization for promoting the Catalan region’s health sector is well-respect- BioRegion—the Catalan healthcare and lifescienc- ed on the international stage and ranked eighth es sector—both at home and abroad, has been in the world, according to the Healthcare Access particularly useful in creating an international and Quality Index (HAQ). Second, Spain is one presence in the field of biotech. Every year, it cre- of the first in Europe to get clinical trials written ates an annual report to highlight achievements, into law. These highly regulated tests ensure that what these achievements mean in light of the fu- a future drug or treatment is safe and evaluates ture, and assess the success of their work. Biocat Health & Medtech 107

CEO Jordi Naval, in a TBY inteview, cited the fact utation over recent years for their lack of ethical that more than 60% of new, breakthrough thera- conduct surrounding this issue. pies were not originally invented within the phar- On a wider scale, this opens up discussion about maceuticals sector, but rather in academia. For how the future of health in the age of technology him, Barcelona’s great conditions coupled with will change. With as many as 40,000 people a year their large pool of talent, both home-bred and in- dying from adverse drug side effects in the US, ternational, mean the region is able to play in the the pressure to achieve personalized medicine is same league as Belgium or Denmark in terms of growing. This is likely to accentuate the imbalance research output. between rare and common diseases and the atten- However, a big challenge in the sector is prof- tion they receive respectively. The biotech indus- itability, due to how long it takes for clinical trials try has huge potential to disrupt pharmaceuticals to be performed. To guarantee the safety of an by reusing existing drugs to target less common emerging therapy or technology, it can take up to diseases. This is particularly true for smaller com- a decade to make a drug publicly available, and panies in Catalonia, armed with the right talent it must overcome an 85-95% chance of failing to and technologies to innovate the sector. Ironical- gain approval. Another issue is priority levels for ly, however, their findings are often bought by the each disease based on companies’ business mod- bigger pharmaceuticals who are also turning their els and the ensuing ethical controversies around attention to biotech’s ability to transform the sec- this. In order to generate a profit, a new drug must tor. serve sufficient numbers of people with the dis- In spite of these uncertainties, one certainty is ease. Hence, pharmaceutical companies are less that in Europe, Barcelona is one of the first places likely to invest in developing a drug tailored to a to look to understand how biotech will evolve and rarer disease. As a result, many have gained a rep- continue impacting the wider world of health. ✖ 108 Barcelona Special Report FORUM PHARMACEUTICALS With a thriving ecosystem, Barcelona has proven to the best location for pharmaceutical companies to not only continue to innovate but expand globally.

Staffan Schüberg Xavier Martí Joan Carles Font Ignasi Biosca CEO, MANAGING DIRECTOR FOUNDER & GENERAL CEO, ESTEVE SPAIN AND PORTUGAL, DIRECTOR, REIG JOFRE LUNDBECK MESOESTETIC PHARMA GROUP

SINCE 1929, our focus has been THE SPANISH MARKET is one WE EXPORT 85% of our pro- THE COMPANY WAS FOUND- to provide solutions for unmet of our five most-important in duction to 92 countries in the ED in 1929. Even though we medical needs. Today, we are a Europe. Lundbeck Spain has world and have around 900- are 90 years old, I see us as a privately-owned international spearheaded the launch of the 1,000 distribution points. We fast-moving, dynamic, and company with headquarters company’s innovative prod- are the first company autho- flexible company. Historical- in Barcelona. Our business ucts in the last 10 years. The rized in Spain to manufacture ly, we have focused on three model covers the entire phar- strategy of internationalization implant materials and medical product areas: dermatological maceutical value chain, of- was carried out through the devices. We are also the only products such as creams and fering a wide and innovative launch of innovative products company in Spain that has its ointments, genealogical prod- portfolio. The ability to gener- in the field of depression and own manufacturing and the ucts, and joint health and pain. ate alliances has been one of schizophrenia. 25 years ago, we most extensive rage of intra- Instead of manufacturing di- the engines of Esteve’s growth launched Citalopram in Spain dermal solutions for a person- verse pharmaceutical prod- and expansion, and today, the as the first antidepressant in alized treatment, a family of ucts such as tablets, syrups, group incorporates different the country. Our expertise in 13 products with CE marking or capsules, we concentrate types of businesses within the the central nervous system in the form of a class-III inject- on specific technologies. One health area. This includes Es- has helped us to build key re- able medical device. In sani- is injectable products that di- teve Pharmaceuticals; ISDIN, a lationships with experts in the tary regulation, it is qualified at rectly enter the bloodstream, skincare alliance between ES- field of depression research. the maximum level of require- usually within a hospital en- TEVE and the Puig Group; and We are currently in the third ment of the Ministry of Health. vironment. Our technology Esteve Teijin Healthcare (ETH) generation of antidepressants We are one of only eight division is particularly inter- in the field of home respirato- with Vortioxetine. We have companies in the world that national because we work with ry therapy with Teijin Pharma. partners at the development, manufactures these products distributors worldwide in over Our current team consists of research, and marketing levels. internally. The rest are man- 70 countries with over 130 more than 2,300 people, with We have alliances with other ufactured under licenses with partners. The other half of our a turnover close to EUR800 companies in the early stages third-party manufacturing. We business, specialty products, million, of which 73% comes of product development and also manufacture medicines, prescription products, and from international markets. partnerships with universities anesthetics, dermatological consumer healthcare, is more Barcelona is at the forefront of in the preclinical and clinical creams, and all product lines of a B2C business. We current- innovation in many different phases and research partners that fall within the range of ly have teams in Spain, France, fields. In healthcare, we are with whom we can look for in- cosmetics. The purpose is to Sweden, Belgium, Portugal, privileged to have an ecosys- novative molecules in the field treat different stetopathies. the UK, and Singapore, where tem that works at the highest of Alzheimer’s disease, Parkin- We do not compare ourselves we have a small operation with level. The hospital and univer- son’s disease, schizophrenia, to other companies because a local partner to enter South- sity infrastructures, together and depression. we do not look like any other east Asian markets. Today, with the availability of talent company. In the end, we get around 40% of our business is and an entrepreneurial cul- a mix of products that satisfy in Spain and the rest interna- ture, make our chances of suc- doctors, estheticians, and end tional. cess extremely high. users. Health & Medtech 109 INTERVIEW

JEWEL in the crown

Biocat was founded by the Catalan government to promote and attract Jordi Naval foreign investment in its health CEO, industry. BIOCAT

Can you give us an introduction to Biocat and how it has but today we have more than 50. They are profes- evolved? sional investors who could invest anywhere but Catalonia in The goal of Biocat is to champion the healthcare chose here because they really see the opportu- the same league and life sciences ecosystem in Catalonia, which nity. includes a huge cluster in health technologies as Belgium, such as medical devices, diagnosis, and digital What is Biocat’s strategy to continue attracting such in- Denmark, and health, amongst others. Biocat was founded by vestment? Sweden in terms the Catalan government in 2006 with two main We put ourselves in the mindset of potential in- goals. The first is to help streamline the transfer vestors and try to address the key concerns, issues, of quality of of technologies into startups or end solutions for and opportunities from their perspective. The first research output patient use in the health system locally and glob- question they have is: is the science good? Then ally. The second is to promote and attract foreign they ask if they can find opportunities, and the investment in Catalonia’s health industry. answer is yes. At the first contact level, they do not want to understand all the universities, institutes, Number of What differentiates the Catalan healthcare system and research centers, and hospitals. They want to see foreign investors its research? Barcelona as a whole so they need somebody who in BioRegion of It is not only healthcare; Barcelona is a top-five is partial and can provide them with a portfolio of Catalonia has European innovation hub. There are a number of potential opportunities. Biocat acts as a one-stop reasons for this, beginning with the city’s values shop to provide them with a comprehensive list gone from 0 to 50 and its openness, which attracts foreigners from of potential investable projects according to their many different cultures. Historically, the Catalan needs, be they research institutes, universities, or people have been entrepreneurial. Now, Barcelo- hospitals. For them, it is convenient, as Barcelona na is growing as an innovation hub for all kinds has many projects and they can choose the proj- of technologies as well as healthcare including ect they like most according to their needs and digital, internet, IoT, AI, and the mobile industry. interests as an investor. So far, 30 out of 50 inter- Over the past two years, a growing number of mul- national investors in Catalan healthcare start-ups tinational companies have been setting up their come from the US, and the rest from Europe. innovation hubs in Barcelona, including HP, Am- azon, Nestlé, and Siemens, mainly due to the level Why is Barcelona is so attractive for biotech invest- of our fundamental research. In terms of quality, ments? BIO the research output of Catalonia is comparable Investors come because they see the talent and re- Jordi Naval has experience to countries such as Belgium, Denmark, or Swe- search coming from this region. We have a whole both as an entrepreneur in the biotech sector and in den. This is as a result of both excellent science universe of regulatory experts, manufacturers, dynamizing entrepreneurial and certain policies implemented by the Catalan and excellent hospitals in which to conduct clin- ecosystems. Among others, government, specifically a program called ICREA ical trials. On top of that, everything in the city is he has founded biotechnology companies Aelix Therapeutics that has attracted a lot of scientific talent from within walking distance. The use of capital in Bar- and Anaxomics. In terms of around the world. Other cities and countries did celona is several times more efficient than putting entrepreneurship, he was head not make this bet on attracting talent 20 years ago the same project in the UK, Germany, or France, of the technology transfer office when the program started. As well as this, we have for example, as operating costs, salaries, and at the University of Barcelona. Currently, he is CEO of Biocat, a solid pool of Barcelona-based global investors start-up costs are much more reasonable. This is the organization that promotes that have been extremely smart and professional why investors are not only looking at the science the healthcare and life sciences in investing both here and in Europe and attract- but also how to execute the project from here and ecosystem in Catalonia and is working to transform science ing foreign investors into the city. In 2013, we had scale companies up in Barcelona before making and technology into regional five international investors investing in biotech, them global. ✖ growth and social impact. 110 Barcelona Special Report FORUM PRIVATE HEALTHCARE These successful healthcare companies in Barcelona were able to address gaps in the market while capitalizing on the facilities, findings, and research available.

Marta Antich Ramón Berra de Unamuno Benjamí Guix FOUNDER & SCIENTIFIC GENERAL DIRECTOR, DIRECTOR, DIRECTOR, MIRANZA INSTITUTO IMOR FERTILAB

FERTILAB STARTED 23 YEARS AGO with OPHTHALMOLOGY is a peculiar medical IMOR TREATS ALL kinds of patients and an idea I had of setting up a laboratory specialty and is intensive in technology cancer pathologies, mainly through that provides a service to all gynecolo- and particularly innovative. The company medical and radiation oncology. We gists that want to work in assisted repro- started in April 2019 with the acquisition have state-of-the-art equipment, and duction. In 1996, I was associated with a of IMO in Barcelona, Begitek in San Se- we tend to patients in a clinical context gynecologist, and we had a small labo- bastian, IOA in Madrid, Virgen de Luján in while also doing research and teaching ratory, though everything that involved Seville, and Oculsur in Cadiz and Jerez. In in universities. Some of the doctors at an operating room was done externally. August, we acquired the Vissumcenters in IMOR are on the boards of internation- After four years, we decided to open a Alicante, Albacete, Muiños (Tenerife), IBO al medical societies, like the American clinic with an operating room. In 2001, (Palma de Mallorca), and Mirasierra (Ma- Society for Therapeutic Radiology and the place already had everything, but drid). We mainly attend to ophthalmo- Oncology. Oncology is evolving rapidly, the gynecologists kept coming from out- logical pathologies of mid and high-level and every year there are new treatments side. Eventually, we decided to expand complexity. These are clinics in large cit- and protocols that give better results the space and hold the consultations ies that carry out complex ophthalmic with less toxicity, so we work to incor- elsewhere. Every year, we see less than care and are led by important doctors at porate these new protocols as quickly as 1,000 patients, as our work philosophy a local level. We seek mid and high level possible. More treatments are coming is to do things well and in a personal- of ophthalmologic complexity, with ex- online, such as SVRT, which gives high ized way. Our philosophy has always cellent facilities, operating rooms, prac- doses of radiation in small and localized been for the same professional to take tices, and quality of service and are led places in the body. This treatment is use- care of them the whole way. We also try by a well-known doctor. Within ophthal- ful in treating small cancer nodes in the to provide the same nurse every time. mology, nearly 15 years ago many of those lungs, for example. In medical oncology, There is more to giving treatments than professionals left their respective general immunotherapy is now another one of the statistics of success it generates for hospitals and established their own clin- the main topics of evolution. It can be the center; although this is an important ics. That is why many clinics can be part used on both patients who have no oth- reference, one cannot base everything of the group. We want to ensure the pa- er choice for treatment as well as those on that. What sets us apart is the per- tients understand Miranza is the umbrella in the first stages of the disease. Preven- sonalized treatment and guidance we brand under which the best ophthalmol- tion is extremely important. There are give patients. We do not yet know what ogists operate. Spanish ophthalmology is three ways of reducing cancer mortality: the repercussions will be in the following well-known worldwide. Professionals are avoid carcinogenic agents; diagnose tu- generations so our goal is to ensure that highly trained, and the country has cut- mors at an earlier stage, for example, via not only is the child born healthy, but ting-edge technology. We have a strong mammography and other methods; and also that they will be able to have chil- ophthalmology practice in Spain, partic- increase the effectiveness of treatments. dren and grandchildren. The impact of ularly around the region of Catalonia and This is done with radiotherapy, better assisted reproduction at the health level Barcelona. The IMO clinic in Barcelona treatment administration, and detecting is still unknown. has extensive experience working with in- mutations of tumors more precisely to ternational patients; about 20% of its pa- identify the best treatment for each kind tients are foreigners, whereas for the clinic of cancer. in Alicante,15% are foreigners. Health & Medtech 111

Gabriel Masfurroll Lacambra Alberto Porciani Raúl Insa PRESIDENT, CEO, PRESIDENT & CEO, MI TRES TORRES TOP DOCTORS SOM BIOTECH

ALTHOUGH WE OFFER SERVICES RELAT- MY WIFE AND I ARE THE FOUNDERS OF TOP SOM BIOTECH was founded nine years ED TO MOST SPECIALTIES, we particularly DOCTORS. We both have a pharmaceu- ago as a drug discovery company that focus on orthopedics, children’s orthope- tical background. We realized that pa- develops products. The idea behind the dics, sport traumatology, surgery, women’s tients had trouble finding the right doc- business came when I was working in the healthcare, urology, otolaryngology, and tor for their symptoms or condition and pharmaceutical industry and became neurosurgery, among others. We are also thus set about building the best virtual aware of AI software that was under de- involved in oncology, and we are working hospital in the world, which today has velopment by a start-up at the Universi- with the IMOR Institute in this field. With become Top Doctors. We also wanted ty of Barcelona. We acquired the IP, and our seven operating theaters and state-of- to help doctors adopt new technologies it is now called SOMAI Pro. We use this the-art technologies, we are among a se- in the management of their practices. In platform to identify the activity of our lect group of hospitals that can treat some 2013, we discovered a company founded drugs for authentications. Initially, we extremely severe and rare conditions. Un- 25 years ago that was engaged in a similar did not focus on orphan drugs but on all doubtedly, a good hospital should have a business activity: Castle Connolly Ameri- types of indications. The pharmaceutical solid internal medicine department, which cas’ Top Doctors. We contacted the com- market in general is growing by 4-6% an- we certainly do. Even though we are fo- pany to explain we wanted to do some- nually, while orphan indications are in- cused on the delivery of our medical ser- thing similar, but in Europe and Latin creasing by 10-11% annually. One-third vices and treating the patients as people America, and proposed a collaboration. of the drugs approved by FDA are re-pur- rather than patients, we also care about the It later decided to invest in the first seed posed drugs, and 25% of pharmaceuti- design and decor of the hospital in order to capital to the tune of USD500,000. At cal revenues comes from re-purposed reduce stress and create a feeling of com- that time, we had about 60 doctors on drugs, namely drugs that already exist, fort and make people feel at home. We also our platform, and at present, we have which is our scope. Big pharma has not use a system called the Net Promoter Score, more than 24,000. Our mission is to focused on orphans because the preva- developed by Opinat, that monitors the build the best virtual clinic in the world, lence of related diseases is low; however, feelings and feedback of our customers in which is why we want to have a presence the prices are high, so they are becom- a real-time manner. This will tell us about in all countries. To date, we are present ing increasingly interested in this field. our strengths and weaknesses, and we will in seven markets: Italy, Spain, the UK, By using this technology, we have gone be able to serve our patients more effec- Mexico, Colombia, Chile, and Argentina. from running 25 projects to 52 current- tively. We are not a huge hospital, and our Our latest expansion was Saudi Arabia ly. Of those, 16 were orphan indications, size makes it manageable for us to satisfy in 2019. We have different platforms to and of these, two have arrived at Phase II most of our patients. Now, we are opening help doctors manage communication in the clinics, a 12% success rate of that our doors to patients from other countries, with patients and for patients to connect technology in bringing drugs into clin- though we are not doing this in all special- with the right doctor, including an online ics. This is why we seek to increase the ties. We want to develop unique healthcare booking platform to manage face-to- production of projects up to 20 a year in services and techniques which are export- face visits, remote consultations using order to have one or two products in the able to the rest of the world. our telemedicine feature, as well as a ser- pipeline to be developed every year. vice to manage prescriptions. 112 Barcelona Special Report B2B

CS Technology is transforming healthcare. Digitalization has evolved by itself and the capabilities that we have in the digital world to improve the healthcare sector are enormous. Spain is one of the oldest countries in the world and has the highest life expectancy after Japan. An older population means more illness. An hour in an intensive care unit is extremely expensive and one hour in surgery even more so. Thus, efficient technologies can help decrease both time and related costs. For example, digitalization enables a patient Vicenç J. Calduch Carlos Sisternas to have a medical consultancy from home PRESIDENT, DIRECTOR OF CATALONIA, through telemedicine which revolutioniz- FEDEFARMA SPANISH FEDERATION OF es the provision of healthcare. HEALTHCARE TECHNOLOGY COMPANIES (FENIN) What are your objectives for 2020?

VC In 2019, Fedefarma was the distributor that grew the most in its area of influence, Catalonia and Valencia, where the market HEALTH ASSOCIATIONS grew 3.29%, while Fedefarma grew more than 7%. This placed us as leaders in all the By bringing like-minded businesses together, Fedefarma and FENIN provinces of Catalonia and in Castellón, are driving the healthcare sector forward and helping it grow and with growth in the rest of the Comu- nidad Valenciana. For 2020, we want to professionally. continue with our growth line. To respond to this growth trend and to offer the best service to our partners, we are building a new logistics center of 19,000sqm in Palau Solità i Plegamans with a EUR40-million How has the association evolved since its found- with the government. Today, we represent investment; it will be one of the most in- ing? around 80% of the market. We also deliver novative in Europe. The goal is not growth legal, compliance, and regulatory services, in itself but consolidating as a reference in VICENÇ J. CALDUCH Fedefarma was found- among others as initially envisaged by the service, profitability, and value contribu- ed in 1928 by a group of pharmacists from original FENIN incarnation. tion to the pharmacy. In this sense, in 2020 Barcelona to face the threat of drugstores we will continue developing new services at the time when pharmaceutical special- How do you ensure that technological advance- and initiatives that add value to pharma- ties began to be commercialized. We thus ments and big data benefit the sector? cies. wanted to ensure distribution and dispen- sation was guaranteed to citizens through VC In Fedefarma, innovation is one of our CS Health will cost around 30% of every the pharmaceutical channel. Under this core values, and we help the pharmacy region’s budget. One of the objectives for premise, Fedefarma evolved from the dis- take on the challenge of digitalization. We 2020 is to analyze the value of technology, tribution of medicines to the provision of have digital management tools such as its life cycle, and its potential to reduce services to the pharmacy; currently, it is an IOfnet or IOfwin, a business intelligence costs. We cannot assess and forecast the integral partner that develops value-added service such as BIsualfarma and an online health industry based on an annual bud- projects and transfers them to pharmacies training campus, Fedefarma campus. To- get, but in minimum five-year periods. to strengthen its sanitary role, at the same day, health, and the consumer in general, The second priority is medical device time being a more profitable business. is omnichannel, and for this reason we re- regulation and in-vitro regulation, due cently launched new services in this area. to be introduced in May 2020. The third CARLOS SISTERNAS FENIN was established We also have Farmaoffice go, a platform for priority is market access, as new regula- in 1977 as a way to bring companies to- the development of the digital image and tions must enable innovation to reach the gether in response to a perceived lack of online communication of the pharmacy. It marketplace in a timely manner to avoid representation, despite numerous prob- is a personalized platform, consistent with obsolescence; the country currently has lems faced, especially with payment de- the image of pharmacies from which each among the highest obsolescence levels in lays that could reach as much as 400 days. pharmacy can work on its website, image, the world. For example, the sector lags in Our actual DSO average is around 80 days and online communication, manage its magnetic resistance and X-rays technol- while law marks a maximum of 30 days. services and activities agenda, and create ogy. FENIN is developing publication on FENIN proved to be highly successful from and publish content by sharing them in the comparative level of this problem in the outset, and we enjoyed firm relations RRSS and communicate promotions. Europe and the wider world. ✖ Health & Medtech 113 Image: ImagineerInc 114 Barcelona Special Report

11 Education

BARCELEARNER

he crown jewel of Barcelona’s education placed emphasis on the critical role played by T system is its reputation in business edu- teachers, as well as an initiative to revoke the cur- cation. It is the only city with two of the rent imbalance in labor demands in the sectors of top-eight business schools in the world, IESE and science and technology starting even before high- ESADE. For this reason, Barcelona attracts a huge er education, as outlined by the 2017 STEM plan. number of foreign students annually from a wide In order to bridge the gap between education and range of countries, giving the education sector an the world of science and technology, they aim inevitably global atmosphere. to incorporate the teaching of digital technology Aside from major business schools, this chap- in schools, new perspectives in science devel- ter features interviews with the most important opment, and the promotion of careers in these universities in Catalonia, including Universitat fields. Collectively, these innovations in the edu- Pompeu Fabra, Universitat Autònoma de Barce- cational sector will achieve an educational model lona, Universitat de Barcelona, and Universitat in Catalonia that is modern, relevant, and highly Politècnica de Catalunya, amongst many others. applicable to any future career. All these aforementioned universities highlighted The importance of digital tools in education, the importance of investing in research as well as coupled with the need for agility throughout pro- teaching, and working to bridge the gap between fessional careers today, has given rise to the trend the education sector and the demands of indus- of life-long learning, where people are going back try. to education time and again throughout their ca- In this sense, many universities’ teaching struc- reers in order to gain further qualifications. This ture is outdated for today’s labor market, where inevitably gives rise to the need for universities to the need to combine knowledge of various topics be able to cater to a wider range of students that is necessary for success. The specialization taught will not be confined to 18-year-old undergraduate at universities and the lack of interdisciplinary students. A clear vision for the future, an innova- study is a concern in terms of educating the labor tive approach, and investment in education will force of the future. be pivotal if Barcelona is to maintain its reputa- To this end, the regional government has tion as an education hub of the future. ✖ ChapterEducation Name 115

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mi, cullabor a sitatem ea sit, officidis reptus. Quis et landit placest atqui ducidita invelestrum ra. Image: AWP76 116 Barcelona Special Report INTERVIEW

lifelong SUCCESS

Given the rapidly changing nature of education, the Department of Education is looking at giving students everything they need to continue to pursue lifelong learning.

Josep Bargalló i Valls MINISTER, DEPARTMENT OF EDUCATION (CATALONIA)

You took office at the Department of Educa- salary in a company related to the pro- What are the Department of Education’s ob- tion in 2018. What steps has the current gov- fessional family they study at the insti- jectives for 2020? ernment taken in the education sector so far? tute, while studying the training cycle in The Department of Education is about to The main steps taken since our arriv- the educational center. This fact allows pass a decree that regulates the admis- al in government were designed to the company to also be involved in the sion of students, whose main objective is achieve the educational success of all training of our students, who in turn can the fight against segregation in schools. students and to work for equity and learn firsthand what it means to work It is an important decree because we against student segregation. Accord- on what is related to what you study. have worked extensively with the Cata- ingly, measures have been introduced We especially seek the involvement of lan Ombudsman, and it gives important to avoid school segregation that will be companies—not only large companies, tools to make the centers more equitable reflected in the decree of admission of but especially medium and small com- and push for equality instead of having students that the department is about to panies—linked to the territory in which centers with a high concentration of stu- approve. they are located. For example, if an in- dents with special educational needs. stitute offers a vocational training cycle We truly believe that the less segregated What is the government doing to increase in the oil and wine production sector, it and more equitable education centers Catalan education’s visibility internationally, is possible that they can do the practi- are, the greater the success of all our stu- and what is the role of collaborations to con- cal part of dual vocational training in a dents. ✖ tinue to attract talent? company producing wines or oils in the The department works to offer students area near the educational center. This sufficient preparation to face a global- allows closer ties between the training ized world at the level of new technolo- centers and the productive centers of gies in the classrooms, knowledge of the the territory. maximum number of foreign languages, and new forms of learning such as How will the digitalization of higher education in project, team or collaborative works. continue to impact the sector, and how is the Our goal in professional training is not current government tackling this change? to attract talent, but to create our own The Department of Education be- BIO talent, in our students, to ensure they lieves strongly in the training of people Josep Bargalló i Valls has a degree in can be competent in today’s world and throughout life. Therefore, we are work- Catalan philology from the University of Barcelona and a master’s in advanced they can have academic, personal, and ing on a future decree that should regu- studies of Catalan language, literature, professional success wherever they go. late the distance training sector that we and culture from the Rovira i Virgili offer through l’Institut Obert de Catalu- University. He was a Member of the Parliament of Catalonia from 1992 to How are you working to bridge the gap be- nya (IOC). The department is commit- 2003. In the last legislature, he was the tween what the industry needs and what edu- ted to giving people the best tools for attached spokesman for the Esquerra cational institutions provide? distance learning, so that they can take group. He was also a counselor The Department of Education is work- what they want and be able to reconcile of education from 2003 to 2004, when he was appointed chief adviser, a position ing in the field of vocational training to it with their work. But we are aware that he held until 2006. At the local level, work closely with companies, especially this requires adapting to digitalization, he was the first deputy mayor of the in the field of technology and industry. and we are working on that. We have al- Torredembarra Town Hall (1999-2003) and, during the second half of 2003, This is the case of dual FP, which allows ready taken important steps but there is vice-president of the Council Comarcal students to work with a contract and a still a long way to go. del Tarragonès. Education 117 INTERVIEW

emblem OF EDUCATION Despite limited funding, UB has become one of the leading educational institutions in Spain and Latin America because of its commitment to quality research.

Joan Elias García RECTOR, UNIVERSITY OF BARCELONA (UB)

UB is an emblem of education in the region UB engages in a considerable number of in- have a number of areas of focus. These and ranks highly in the Academic Ranking of ternational projects. How does the university areas are biomedicine (including clin- World Universities, QS World University Rank- grow its visibility abroad? ical practice), neurosciences, archae- ings, and Best Global Universities, among One of UB’s biggest challenges in Eu- ology, digital humanities, pharmacy, others. Can you tell us about the university’s rope is carrying out the coordination and nutrition, marine sciences, water and origins and evolution? leadership of the alliance with CHARM environment, complex systems, phys- UB is one of the leading educational in- European University (CHARM-EU). The ics and astrophysics, bioengineering, stitutions in Spain and Latin America. objective of CHARM-EU is to create a and biochemistry. We give priority to This is a result of the university’s strength European university with a focus on con- sustainability and areas where we can as an institution and its research capabil- flict resolution, the UN’s Sustainable De- play a leading role. We participate as a ities. Of all the scientific publications by velopment Goals (SDGs), and the theme partner in several joint institutes, mostly Spanish researchers, 11.3% correspond ‘Reconciling Humanity with the Planet.’ focused on biomedicine. The university to UB authors and 32.3% to all Catalan The idea is to create an inclusive and has identified some areas which are ex- authors. Our position is especially strong diverse university with research-based periencing a decline, partly due the rein the fields of life sciences, biomedicine, methodologies. Among the actions we tirement of key personnel, but also due neurosciences, and natural sciences, as have in mind is the creation of the Uni- to insufficient funding. Two such key well as in scientific areas of humanities versity Internationalization Hub in col- areas are genetics and materials science such as philosophy, archaeology, and laboration with the European University and nanoscience. Moving forward, our social sciences. The university’s commit- Foundation (EUF). The hub will promote priority is to promote research in these ment to society is not strictly limited to initiatives aimed at the modernization fields. Notably, given the size and scope academic training for professionals and of the higher education space in Europe, of our university, there is much to gain experts; our strategic goal has always carrying out projects that influence the from transversal and truly cross-disci- been to become a research-intensive policies of the new EU Erasmus pro- plinary lines of research. So far, we have university. We are one of the pioneers gram. Moreover, within the Erasmus identified three such areas, namely AI, in southern Europe when it comes to mobility framework outside the EU, we climate and environment, and science evaluating research in all our centers, designed a new mobility policy based on and politics. ✖ departments, and units, and introducing UB’s commitment to SDGs in countries systems of indicators and international such as Senegal, India, and Vietnam. models that have an impact on management and decision-making. Apart from Central to the university’s success is its com- the general research evaluating process- mitment to research, with over EUR133,000 es in Spain, we have our own evaluation invested in research and technology transfer. system that follows international stan- How is research and innovation fostered at BIO dards. The synergy between the quality UB? Joan Elias García has been Rector of UB since 2016. He is also a professor of our researchers and our research pol- The university is strongly committed to of mathematics at UB. He has also icy has always been the differentiating research and it is by far the leading uni- been editor in chief of the Royal factor. The university is committed to versity in Spain and possibly in the en- Mathematical Society and member of the publications committee of the European the valuation of its teaching and research tire Iberian and Latin American regions. Mathematical Society. In the field of staff and the recruitment of top PhD stu- This is particularly remarkable as we are management, he has been dean of the dents. We are proud to maintain this a university that offers a wide range of faculty of mathematics and computer science, vice-rector of UB, and general position despite having a weak funding subjects, from the Sumerian language to secretary of the University Council of system. micro satellite design. Despite that, we Catalonia. 118 Barcelona Special Report B2B

more time to plan because we ask administration for plans that allow us to re- new professors, administrative staff, and equipment in advance. We do this with private funds, but this obviously detracts from our competitiveness.

How can UAB take advantage of its strategic business axis position and enhance relations with the private sector?

MA The evolution of markets indicates there is a change in the work model. If Francesc Torres Margarita Arboix our university wants to serve society, it RECTOR, RECTOR, is essential that we look for ways to ap- UNIVERSITAT POLITÈCNICA UNIVERSITAT AUTÒNOMA proach the market and understand the DE CATALUNYA (UPC) DE BARCELONA (UAB) challenges that the market poses. It is not easy for our researchers because they tend to make decisions based on what they find most interesting, not what companies need. We bring researchers PUBLIC and companies together through themed brunches where a company’s challenge is presented and discussed. More than HIGHER EDUCATION 20 companies have been created thanks to this collaboration. We have also set up an information system, which is a Public universities in Barcelona are at the top of the European network where our researchers indicate what they do and is classified by Europe- research game, but they hope to bring their innovative research an terminology. Companies sign up and capabilities to markets. Digitalization and greater collaboration can follow our progress, while the uni- between public and private actors will bring about this versity monitors preferential topics from successful union. time to time. The system informs companies of the progress of scientific elements they have asked us for. The pilot part will comprise of a platform where companies give us challenges, with feedback from specialists. Can you tell us about the university? had the same problem. The objectives of the autonomous university were to be What role is digitalization playing in the uni- FRANCESC TORRES We consider our- autonomous in deciding their curricu- versity? selves the leading technological univer- la, hiring professors, and building their sity in Catalonia. We have between 5,000 structures. FT At UPC, the most important thing in and 6,000 graduates a year in the fields terms of digitalization is to first have a of engineering, architecture, sciences, Many public universities cite the public admin- deep knowledge of the trade. As students and technology, representing 70% of istration’s changing regulations and cuts to advance in their careers in architecture, the offer in these fields in Catalonia. Our university budgets, a serious challenge. What engineering, or computer science, we campuses are distributed across six cities is your opinion on this? ensure they are involved with transver- that include Barcelona, Manresa, Ter- sal projects around health, mobility, and rassa, Castelldefels, Vilanova i la Geltrú, FT Our annual budget is EUR300 million. food, areas where more new technologies and Sant Cugat del Vallès. This spread Since 2010, Spanish public universities must be incorporated. Digitalization, big of campuses allows us to have a direct have suffered a 30% cut that has not yet data, and AI are all elements that can be connection with the industrial network been rectified. This has forced us to be- applied to specific sectors where we have of Catalonia. come more efficient in other areas. The experience and contacts in. good part is that we remain competi- MARGARITA ARBOIX Previously, the Com- tive at a European level with a fraction MA Technology is the biggest challenge plutense University of Madrid and the of the budget of other universities. We of all, and for universities in particular. University of Barcelona were overcrowd- are among the 30-best European uni- The digitalization of all our activities is ed and could not expand, so there was a versities in practically 12 to 13 areas of a fundamental challenge because it im- need for additional universities. Tangent the most prestigious lists, like Shanghai plies a change in mentality and the ways to the government’s proposal for the cre- Ranking Consultancy or the QS World of working. We must guarantee the safety ation of the Autonomous University of University rankings; however, we need a and quality of what we post online. We Madrid, minister José Luis Villar Palasí stable government and a medium-term will automate all processes but this has a proposed creating an autonomous uni- financing commitment in order to have cost. Electronic signature exists, but you versity in Barcelona because Barcelona medium-term policies. Universities need still have to sign on paper. ✖ Education 119 INTERVIEW learning CURVES

With its EUR42-million research budget, UPF is working hard to improve the position of Barcelona as a Jaume Casals RECTOR, research center and meeting point for UNIVERSITAT POMPEU FABRA - international scientists. BARCELONA (UPF)

UPF is recognized as a school of innovation and re- ments at the city council level that have tried to Ranked in Times’ search and has ranked in the Times’ Higher Education expand Barcelona since the Olympic Games, to Higher Education Top Top 150 universities for three years running. What is the make it not just a city of tourism and fairs, but university’s strategic plan to maintain this reputation? also a city of science. The goal of the university, We believe in our faculty. We try to select our fac- the city council, and the Catalan government is 150 ulty, often against the legal system of selection to have a center of research at our main campus. universities that we have. This means that we cannot really This will serve to complement our hospital, the have a tenure-track system because we are in the Barcelona Biomedical Research Park (PRBB), and public domain, and we have to open every call to excellent social sciences departments. Barcelona Around everyone. Additionally, because we want to be is already well-known as a scientific hub, but it selective about permanent members, we have a needs more development to improve its collabo- small number of full-time professors. There are ration system before demonstrating this strength 300 around 300 professors, and around 50 members to the world. permanent professors from the Catalan Institution for Research and Ad- employed vanced Studies (ICREA). We are working with half There seems to be many changes in the education sec- the staff of a normal Catalan university, which tor, like the growth of life-long learning. How should uni- complicates our finances. The public system’s versities change to keep up with these new demands? funding is ultimately based on size, which means Life-long learning has become a topic at uni- around 10,000 undergraduates for us. We receive versities, but here, they are not answering this 40% of postgraduate around EUR65 million from the government, question profoundly. The current model of life- students from abroad though our budget is EUR150 million. Moreover, long learning means older people or those who we have a rigid legal framework due to our public no longer are a part of the job market attending nature, which limits our prices and the number courses in a typical lecture format. This is not a of students we can accept. Thus, we have difficul- good model. We have worked with some com- ty accepting applicants from outside the EU. We panies in Barcelona to create a business school would like to become a real international univer- called UPF Barcelona School of Management. It sity in postgraduate and undergraduate studies, has been fairly successful, as we are seeing a lot of BIO Jaume Casals has been Rector and we would like to finance ourselves, like other movement. However, we want to develop a sys- of UPF since 2013. He is also research universities globally, with tuition fees tem of teaching and learning that is quite different a professor of philosophy and from people who want to study at a prestigious than the other business schools in Barcelona. We a senior fellow of the Institute for Catalan Studies. His main university. do not want to continue with the same standards, lines of research include the but instead allow participants to be their own Greek genesis of modern In terms of research, where do you focus, and how masters in an attempt to establish an education and contemporary thought, philosophy, and literature. He much do you invest? open for everyone at any stage of life. has translated and edited works In 2014, we raised EUR34 million for research. by Montaigne, Montesquieu, Now, we raise around EUR42 million, depending What is your main objective for 2020? Berkeley, and Bergson, and on our number of projects. That is the competi- At the moment, my main objective is Mercat del is the author of more than 40 articles and books. He tive cost in the EU and the national plan in Spain. Peix project, through which we hope to open a has previously held various We differ in terms of the number of researchers. center for R&D and push the idea of Barcelona as positions at UPF, including vice- We are working hard to improve the position of a city of knowledge. We currently have something rector for teaching staff and for postgraduate and doctoral Barcelona as a research center and an interna- in the works. The wheels are turning, and we can studies, as well as dean of the tional meeting point. We have had active govern- only look forward. ✖ humanities faculty. 120 Barcelona Special Report Education 121 INTERVIEW embracing DIGITALIZATION

A job portal that uses AI algorithms to aggregate job offers from more than 180 countries for specific sectors is one example of how GBSB is using Antonio Rodríguez Engelmann technology to create a unique university MANAGING DIRECTOR, experience. GBSB GLOBAL BUSINESS SCHOOL

How did the GBSB Global Business School start? school that does this in Spain. At GBSB, all interac- Innovation The school was founded by Olga Ivanova, who tions between faculty members and students are in business holds a master’s degree and PhD in education. A managed by a Microsoft application called Micro- key quality the market is expecting from graduates soft Teams for Education. This includes mobile and education nowadays is a capacity to innovate and propose cre- desktop apps which can be used to upload teaching ative solutions. Olga is a pioneer in defining ways to materials, hold discussions, upload assignments, ensure that students graduating from a business and access real-time information about classes and school acquire such competencies. She developed grades. This represents one of the major steps we Meeting her own teaching methodology, which focuses on took for the implementation of new digital process- changing market enhancing the innovation capacity of business stu- es. dents and finding ways to measure the impact of demands this methodology. In 2018, Olga received a presti- What is the future of Spain’s education sector? gious award for her research from the Universitat One of the key criticisms that institutions receive is Autònoma de Barcelona. Building this methodol- the lack of pace in adapting to the demands of the ogy required studying different teaching methods labor market. Three years ago, we did not have dig- and approaches, which in itself was innovative. Her ital-related programs, and today we have programs research forms the basis of GBSB Global Business for digital business, digital marketing, and even fin- School’s philosophy. tech. It is vital to have these skills today as most students will launch a digital business rather than an How do you define global education? industrial, traditional one. It is also becoming more We have students from more than 85 countries and necessary to provide students with access to cap- faculty members from around 30 countries. This sule trainings and mock training. Distance learning diversity is one of our core values. It is also some- is also a common and growing trend. Our online thing our students appreciate as it allows them to programs have been growing at a high rate as stu- learn from each other and build a valuable global dent bodies are becoming diversified and life-long network. learning is becoming a norm.

What does the partnership with Microsoft mean for the What are your main objectives for 2020? BIO school? Our main objective is to generate opportunities for Antonio Rodríguez Engelmann has been the Managing I have worked my whole life as a strategic consultant our students. For example, we have a job portal with Director of GBSB Global specialized in technology. When I joined three years offers from more than 180 countries. It uses AI al- Business School since 2016, ago, the first thing we did was improve the digital gorithms to aggregate job offers for specific sectors. an international institution with campuses in Barcelona and experience. We partnered with Microsoft because In 2018, we founded the G-Accelerator program for Madrid. He holds an executive of its worldwide educational division, which pro- students who have an entrepreneurial idea. As part digital business master and is vided us with the possibility to implement digital of this program, students are provided with an infra- currently pursuing a master’s technologies. If you meet certain requirements, you structure and mentoring services to start their own degree in quality management and evaluation in higher can become a Microsoft Showcase School, which is business. The main objective is to develop the proj- education. His expertise in what we are. What Microsoft offers is an ecosystem ect within six months so that it’s mature enough to technological strategy, after that makes students' lives easier. Every student is be pitched to investors. We started with one project more than 10 years working as a strategic advisor in the provided with not only an email account, but with in January 2019, which turned out to be a great suc- field, has brought GBSB Global a Windows 10 license and Microsoft Office pack. cess. So far, we have partnered with different local to the vanguard of a digital We encourage students to receive Microsoft Office and international partners like Crowdcube, Enpact, higher education experience, leveraging its institutional certifications. There are two levels of certifications: APTKI, and Marinel-lo. The networking connec- partnership with Microsoft. specialist and expert. We are the only business tions we provide are crucial. ✖ 122 Barcelona Special Report INTERVIEW

LEARNING by heart Although already a top school, ESADE has its eyes set on reaching new heights in digitalization and internationalization.

Koldo Echebarria DIRECTOR, ESADE

A fundamental aspect of ESADE is its commitment to are recruited by top companies in other countries, innovative teaching methods. What is the strategic plan such as Germany, the UK, or Switzerland. Besides, Envisages total for continued expansion, and how does ESADE foster the ESADE Law School is widening its offer for in- investment of innovation in its students? ternational students, with a new undergraduate Innovation is one of ESADE’s key principles. We program taught entirely in English. Some 57% of the EUR42 million have just developed a new strategy for 2019-2023 students in the bachelor’s program in global gover- that will consolidate ESADE’s position at the cutting nance, economics, and legal order came from out- edge of education and deepen our sense of identity side of Spain. International and mission. The strategy, called “Do Good. Do Bet- ter,” consists of two distinct parts: a plan that covers How will digitalization impact the sector? students account the most important challenges facing the institution We could identify four main waves of changes. First, for 97% of MBA and an agenda that will allow ESADE to prototype digital disruption and the democratization of access degree students disruptive and emerging initiatives dynamically and to knowledge are already redefining the educational on an ongoing basis. For this plan, ESADE envisag- arena. Second, the job market is evolving faster than es a total investment of EUR42 million over the next the education system: today’s context demands pro- four years. Our current challenge is to reimagine the files with new multidisciplinary, tech-oriented com- programs, methodologies, and processes to enhance petencies that combine business knowledge with the transformational power of our educational ex- technical and analytical capabilities. At the same periences. We are also increasing our commitment time, students are seeking educational experiences to digital formats. ESADE Executive Education has that are different from traditional business educa- developed master’s degrees that offer subjects and tion. Finally, we cannot forget the inexorable process services in a combination of online and face-to-face of globalization in our sector, with the emergence of formats. ESADE also fosters innovation through its new players with different rules and new geogra- BIO recently launched Rambla of Innovation, a 2,100- phies, especially Asia, as well as greater international Koldo Echebarria has been sqm learning ecosystem in our international campus mobility amongst students. Director General of ESADE in Sant Cugat. Its seven laboratories combine edu- Business & Law School since 2018. He holds a PhD in law cation with innovation and experimentation, going What are ESADE’s objectives for 2020? and a diploma in European from the conception of a new idea to researching Our priorities will be to invest in talent and digital studies from the University of and testing the feasibility of the idea, manufacturing knowledge, enhance our social impact, and intensify Deusto, and has spent much of his career at the Inter- prototypes, defining a business model, and estab- our internationalization efforts. Our goal is to con- American Development Bank lishing a company. solidate ESADE’s position at the forefront of edu- (IDB) in Washington, D.C. He cational transformation and the recognition of our served as general manager and head of development The international presence of ESADE is significant, with academic excellence, innovative methodology, and effectiveness at IDB and as a wide range of international collaborations, as well as impact on society. Our goal is to award three times country representative in Chile almost 4,000 international students from 104 countries. more scholarships than we do now and to promote twice. More recently, he served as head of the IDB-financed Why is this a priority for ESADE? equal opportunities for many talented young people reconstruction programs in Students from all over the world enjoy ESADE’s in- who do not have the resources to study at our school. Haiti. Echebarria has been a novative academic and technology ecosystem in “Do Good. Do Better” is our new global brand posi- professor at ESADE Business Barcelona. International students account for 97% of tioning that highlights our commitment to creating a School since 1992, where he co-founded the EsadeGov- MBA degree students, 90% of MSc degree students, fairer and more prosperous society, while also invit- Center for Public Governance. and 42% of BBA degree students. International job ing us to develop our full potential as people and as Prior to that, he was also a placement is another strength at ESADE: nine out of school. In our mind, social commitment and innova- lecturer and researcher at the European Institute of Public 10 ESADE students get a job after three months of tion are not mutually exclusive, but rather mutually Administration (EIPA) in graduation, and 80% of our MBA and MSc students reinforcing. ✖ Maastricht. Education 123 B2B

and 65 were relatively static but working life has been extended, and this will be accompanied by additional educational experiences. The education sector's role in peoples' lives will actually grow and diversify. Education will become more flexible and lifelong learning will become a need and a reality. This is a great opportunity for the education sector, because it is there to meet these kinds of needs.

TGM Our challenge is to continue being Franz Heukamp Teresa Garcia-Milà attractive to an international public that DEAN, DIRECTOR, has more choices in education. Keeping IESE BUSINESS SCHOOL BARCELONA GRADUATE SCHOOL up with high research standards that OF ECONOMICS support our master’s offer is another challenge. We are always exploring new ideas because education is going in different directions, and society needs change. We revise our program’s con- BUSINESS SCHOOLS tent annually and are always thinking of new possibilities in master’s or short courses. We have lengthened our summer school and continuously add new Attracting international students and researchers is the main goal of courses. Through summer schools, you Barcelona’s business schools, as they seek to improve their rankings can try new markets in a short period. on international lists and increase their global research reach. When launching a master’s program, you have to be quite sure, as the risk is much higher, and it takes a long time to obtain the official degree and introduce it into the market. When we started offering data science, it was a completely How do you promote your visibility interna- They have international connections different market than the one we were tionally? with other professors from top univer- used to, so we had to think carefully sities. Additionally, our alumni are great about how to approach the market. FRANZ HEUKAMP Our Asian offices defi- ambassadors of our programs through nitely play a role. With a constant pres- their jobs worldwide. We also promote What are some objectives for 2019-2020? ence and with people on the ground in our master’s programs through online the market, you can better explain ser- marketing. Furthermore, we get support FH We are involved in an important vices to students in these countries. Our from our 30-member scientific council, expansion of IESE Business School's MBA program is international, which 11 of whom are Nobel laureates. The physical footprint in Madrid. When that is attractive to prospective students. Calvó-Armengol prize, in memory of a is completed in 2020, it will double our These students are people who want to young Barcelona GSE researcher who level of activities in Madrid. In 2020, we have an international business career, passed away, also gives us visibility; the will start our new master’s in manage- and they want to interact with people first recipient in 2010 was Esther Duflo, ment program and offer more educa- from many countries. They are also in- who received the Nobel Prize in 2019. tional programs online. terested in coming to a school that em- phasizes entrepreneurship. Through What challenges and opportunities do you TGM Research is at the top of our pri- our programs, we provide students op- see? ority list. We are an institution that, in portunities to start their own business- economics, is considered within the top es. Students are also interested in the FH Technology is bringing changes in five in Europe and top 20 in the world. strong emphasis we put on purpose and the workplace environment, with new This reputation is the basis of our suc- values. From the beginning, IESE Busi- companies and business models being cess because it is an indicator of our fac- ness School has had a clear purpose and built. One of the clear trends for the ed- ulty’s quality. Furthermore, our model important role to play in society. We be- ucation sector is that people will need links research to education. Our pro- lieve that business leaders need to un- to educate themselves even more than grams are research-led and always up- derstand what their responsibilities are. in the past, but this may be in different to-date on frontier research, so staying formats. There is a need to accompa- at the top of the research ranking is vital TERESA GARCIA-MILÀ The faculty has ny people as they go up from their first for our credibility. Subsequently, our a great deal to do with it, as they come undergraduate and work experience second priority is to be one of the top from 31 different countries, with some through life, career, and position chang- choices in post-graduate education for 80% having PhDs from outside Spain. es. It used to be that the ages between 25 potential students. ✖ 124 Barcelona Special Report FORUM PRIVATE UNIVERSITIES Research is the cornerstone of any good university, and private universities are no different. Unique organizational infrastructure gives these universities a leg up in terms of new academic initiatives and programs.

Xavier Gil Mur Josep Baños Diez Josep Maria Garrell i Guiu RECTOR, RECTOR, RECTOR, UNIVERSITAT INTERNACIONAL UNIVERSITAT DE VIC - RAMON LLULL UNIVERSITY DE CATALUNYA (UIC) UNIVERSITAT CENTRAL (URL) DE CATALUNYA (UVIC-UCC)

UIC’S IDEOLOGY IS BASED ON CHRISTIAN THE PRESENT UNIVERSITY WAS CREATED IN URL IS A PRIVATE, NON-FOR-PROFIT UNI- HUMANISM; it focuses on respecting aca- 1997, though it is much older: it began by VERSITY that promotes a public service. demic freedom and puts an emphasis on providing higher education for monks and We have no clients or shareholders, only research. In Catalan, all private universi- priests in the 10th century. UVic-UCC is students and a board of trustees. Thanks ties are not-for-profit. The Catalan Family a unique university in Catalonia, because to the university’s “federal” makeup, URL Foundation is still the university’s main it was started by the mayor of Vic. In this institutions have the autonomy to devel- owner, though there is a separation be- sense, it was begun by a public body. But, op their own initiatives, while still having tween the academic board and the foun- since we are not owned by the govern- a common unifying framework. A new dation as a guarantor of the university’s ment, we are a private university. We have center or faculty with a new academic ini- economic viability. We have approximate- a strong commitment to our community tiative must be approved by the universi- ly 16 degrees and more than 60 master’s as a public service organization. However, ty’s governing bodies. After approval, it is and post-graduate programs. The uni- our direction and management is based processed by the Catalan administration versity has two campuses: the Sant Cugat on a private model. In the middle of the and then the administration of the state. campus with around 4,000 students and recent Spanish economic crisis, there was In this way, both management and initia- the Barcelona campus with 4,000 students. a strategic effort to change our traditional tives are usually more agile than top-down We are not interested in growing more but philosophy during which we decided to decisions. Research is in our genetics. One consolidating and doing better in terms start research efforts. We started from zero of URL’s missions is to conduct quality of teaching and research. What makes us and have built up a good reputation in a research and provide professors with the different is that we offer personalized sup- short period. The Knowledge and Develop- freedom to do research. However, we are port for students to find their professional ment Foundation (CyD) rankings recently constricted by our financing, as private vocation. For us, the connection between ranked us as the fastest-growing university universities in Spain do not receive direct education and professional life is crucial, in Spain in terms of research over the last public funding for research, although we which is why all our degrees include in- five years. BETA Technology Center is our can compete for competitive research ternships. Our students have a 90% em- research center that has recently tried to funds. Therefore, we transfer the full cost ployment rate. We organize a forum for transform animal farm waste into biofer- of education and research to our students each faculty where companies can interact tilizers. This is an important scientific and and families. The cost of research is with- with students in their last year. We have economic topic, as this waste is a constant out doubt a public service, as we seek to agreements with around 3,500 companies. threat to the region’s waterways. BETA re- promote knowledge. On the other hand, The biggest challenge is continuing to be ceived a European award of EUR8 million it will be difficult in the medium term for a great research university compared to to carry out this specific project. While this universities to be equally competitive with other research centers. Research will lead is an important area of research, it is hardly research centers in specific topics, as cen- to excellent teaching practices and knowl- the only one. We have people working in ters have the capability of dedicating all edge transfer, further improving our rep- biotechnology, social sciences, and edu- their efforts to research. To this end, it is utation in the future. We also want to use cation. Since the beginning of our bach- fundamental to create partnerships be- digitalization better as an instrument to elor’s in medicine, several groups in dif- tween universities and research centers reach more people, facilitate different me- ferent biomedical fields have added their and to collaborate instead of competing. dia, and be a university of the 21st century. research competences to UVic-UCC’s research groups. Education 125 FOCUS Digitalization

THE DIGITAL REVOLUTION

DIGITALIZATION IS HERE TO including data base management, 3D printing, STAY, BRINGING WITH IT A WIDE online marketing strategies, graphic design, and RANGE OF CHALLENGES AS WELL website creation, to name a few. The aim of this AS OPPORTUNITIES. BARCELONA’S platform is to give digital skills to all citizens and promote life-long learning, essential in a rapidly EDUCATIONAL INSTITUTIONS ARE changing world and work environment. LEADING THE CHARGE FORWARD BY Not only does digital education teach digital BRINGING EDUCATION TO ALL WITH skills, but it also allows for the education of those THE HELP OF DIGITAL PLATFORMS. who would not be able to attend courses in-person. As Fèlix Ortega, CEO at Barcelona Activa, said in his interview with TBY, Cibernàrium has given entrepreneurs and shop owners who are willing to learn but cannot leave their work to attend a course the opportunity to be trained in useful skills and enrich their personal careers. In TBY’s interviews with universities, digitaliza- IN EDUCATION, TECHNOLOGIES ARE BRINGING tion is also on top of the agenda, not only to en- FRESH BLOOD TO LEARNING PROCESSES for hance the learning experience of young students those in childhood and adulthood. In higher edu- but also to allow adults and seniors to continue cation, Catalan universities are increasingly using their formation. Universitat Oberta de Catalunya digital platforms to manage their teaching plans, (UOC) is a fully online university with great pop- submissions, content, and contact with students. ularity among people who want to combine work Home schooling is also becoming popular, as digi- and studies. Universitat Internacional de Catalu- tal courses have opened the door to easily accessi- nya (UIC) already offers courses that rely on on- ble, life-long learning tools. line campuses and has put in place its “Campus The public sector is rightly reacting to this new de l’Experiència” (Experience Campus) through trend to capture the opportunities of digitaliza- which it offers the flexibility of life-long learning to tion. In the Catalan government, the regional Min- the elderly by offering part-time courses. UIC sees istry of Digital Policy and Public Administration digitalization as an instrument to reach more peo- was created in 2013 to place the digital revolution ple and an indispensable tool to become a univer- on the political agenda. As Minister Jordi Puigneró sity of the 21st century. The same has been done stated in his TBY interview, the Ministry of Digital at Universitat de Barcelona (UB) with the creation Policy is working on five lines of action. The first of its Universitat de l’Experiència (Experience Uni- step is giving all citizens quality internet access versity) to promote learning among a sector of the by incentivizing private operators to provide net- population traditionally disconnected from uni- works to rural areas and small villages. Second is versity campuses: retired citizens. through defining a “digital citizenship.” Third is to Important to note, several universities also ensure that public administration becomes digital, highlight that the opportunities of new technol- while fourth will be an increased focus on cyberse- ogies go hand in hand with their challenges. Uni- curity. The last will be to help support digital talent versitat Autònoma de Barcelona (UAB) under- through nurturing digital innovation as the motor lines in its TBY interview that the “digitalization of the new economy. of all their activities is a fundamental challenge This, of course, paves the way for the develop- because it implies a change in mentality in the ment of educational initiatives aimed at adults ways of working.” Nevertheless, others such as who either want to gain digital skills or access to the Global Business School in Barcelona (GBSB) multi-sectoral courses through a digital platform. have already set up a partnership with Micro- A successful initiative by Barcelona Activa is the soft to become a Microsoft Showcase School and Cibernàrium, now celebrating its 20-year anniver- capture all the possibilities of new technologies, sary. Cibernàrium is a visionary digital formation from encouraging students to get Microsoft Of- platform offering a wide array of courses from fice certifications, to using online applications for basic IT skills to technological capacitation, and assignment submission or team work. ✖ www.firabarcelona.com #firabarcelona IDEAS, BUSINESS, PEOPLE UPCOMING EVENTS 2020

MARCH EXPO ANTAD & RETAIL&BRAND ENERGÍAS OCTOBER NOVEMBER ALIMENTARIA EXPERIENCE RENOVABLES EXPO SPORTS MÉXICO WORLD CUBA ESMRMB BARCELONA 13 - 15/03 31/03 - 02/04 10 - 12/06 Outdoor Sports Fair CONGRESS CONGRESS MEETING POINT International Food and 12 - 14/05 International Renewable 01 - 03/10 04 - 07/11 Beverage Fair Energies Exhibition Annual meeting of the International Real Estate INFORMÁTICA ALIMENTOS CUBA European Society for Show CUBA IN COSMETICS 19 - 21/05 PISCINA & Magnetic Resonance in 16 - 20/03 31/03 - 02/04 International Exhibition of Medicine and Biology Cuba International Global Business Platform Machinery, Packaging WELLNESS CONGRESO AVEPA for Personal Care 05 - 07/11 Informatics Fair and Food Technology MÉXICO AVEPA National Ingredients 10 - 12/06 BAUM FESTIVAL / International Swimming BARCELONA Congress - Southern PAINT & BFORPLANET Pool, Wellness and European Veterinary 26 - 28/05 TATTOO EXPO Conference COATINGS APRIL Global Event for the Aquatic Facilities 02 - 04/10 18 - 19/03 Implementation of the Exhibition International Festival of Forum of the Paint Sustainable Art and Urban Movement EXPOMINER Industry PHOTO FORUM 13 - 15/11 Development Goals SÓNAR / Barcelona International Minerals, Fossils and FEST 18 - 20/06 Tattoo Exhibition 15 - 17/04 Barcelona's International Jewellery International SALÓ DE European Photography INNOVATE4CLIMATE Festival of Advanced Exhibition Festival 26 - 28/05 L’ENSENYAMENT Exhibition and Music and New Media ALIMENTARIA 18 - 22/03 Art FOODTECH SMART CITY EXPO Education Exhibition ALIMENTARIA Conference on Financing 06 - 09/10 20 - 23/04 and Innovation against WORLD Climate Change SMART CITY EXPO International Food and SALÓ DE International Food and Beverage Machinery, CONGRESS Beverage Fair LATAM 17 - 19/11 L’OCUPACIÓ Technology, Process and SMART CITY EXPO CONGRESS Ingredients Exhibition International Summit on JUVENIL HOSTELCO SANTIAGO DE 23 - 25/06 Smart Cities 19 - 20/03 20 - 23/04 Latin American Congress Youth Employement Fair International Restaurant, CHILE LIBER 26 - 27/05 on Smart Cities (Mérida, 07 - 09/10 SMART MOBILITY Hotels and Community Mexico) International Book Fair FUTURA Equipment Exhibition Chile Congress on Smart CONGRESS 20 - 21/03 Cities 17 - 19/11 Masters and SALÓN NÁUTICO Smart Mobility Trade Fair Postgraduate Exhibition VALMONT BIZBARCELONA JULY INTERNACIONAL and Congress BARCELONA 27 - 28/05 Solutions for SMEs and CUBAINDUSTRIA DE BARCELONA SMART CITY BRIDAL FASHION Entrepreneurship 07 - 10/07 07 - 12/10 NICEONE WEEK International Industry Fair Barcelona International BARCELONA (N1B) EXPO CURITIBA Boat Show 26 - 29/11 26 - 27/03 20 - 26/04 ESA CONGRESS Curitiba Congress on Bridal Fashion Catwalks 30/05 - 01/06 Gaming and Digital Smart Cities (Brazil) and Trade show European SEPTEMBER COSMETORIUM Experiences Festival Anaesthesiology 14 - 15/10 B-TRAVEL FECONS CUBA Congress AUTOMOBILE Exhibition and OCASIÓN 27 - 29/03 21 - 24/04 Conference for the 27/11 - 06/12 Travel and Tourism Show International MÉXICO Development of Second Hand Construction Fair 09 - 13/09 Cosmetic Products Guaranteed Vehicles JUNE Trade Fair ONLY TATTOO EAIE - ANNUAL EUROTROPHEX BARCELONA EXPOQUIMIA 23 - 24/10 27 - 29/03 MAY 02 - 05/06 CONFERENCE Trophy, Awards, Barcelona International International Chemistry &EXHIBITION Engraving and DECEMBER Tattoo Expo COMIC Trade Show 15 - 18/09 Europe's International Personalisation Industry IBTM WORLD BARCELONA Show 01 - 03/12 08 - 10/05 EQUIPLAST Higher Education COSMOBEAUTY 02 - 06/06 Exhibition for the 28 - 30/03 International Comic Conference and Incentive, Business International Beauty and Show International Plastics and Exhibition IOT SOLUTIONS Rubber Exhibition Travel and Meeting Hairstyling Fair WORLD Industry HANDMADE EXPOHOGAR CONGRESS EUROSURFAS 27 - 29/10 EACVI CONGRESS e-SHOW / FESTIVAL 02 - 05/06 BCNJOYA Industrial IoT event International Surface 18 - 21/09 09 - 12/12 TECHNOLOGY FOR BARCELONA International Decoration, European Association of 08 - 10/05 Treatment Exhibition MARKETING A Unique DIY Experience Gifts, Fashion Jewellery AVIATION WEEK Cardiovascular Imaging 31/03 - 01/04 and Jewellery Trade Congress E-commerce and Digital S.I.L. Show. MRO EUROPE Marketing Expo & FERIA BEBÉ 09 - 11/06 27 - 29/10 Congress 09 - 10/05 International Logistics Aviation Maintenance LA CIUTAT DELS Baby and new Families and Material Handling TRANSPORTE & Industry Exhibition and SOMNIS Show Exhibition LOGÍSTICA CUBA Conference 27/12/20 - 04/01/21 22 - 24/09 The New Children's SMART CITY EXPO Cuba International MANGA Festival ATLANTA Exhibition of BARCELONA 10 - 11/06 Transportation and 29/10 - 01/11 Atlanta Congress on Logistics Barcelona Manga and Smart Cities (USA) Anime Convention

Consult all information and a complete list of exhibitions in: www.firabarcelona.com - +34 932 332 000 - [email protected] Image: Xxx 12 THE BEACH BEYOND marketing planaims “tobroadenourtourismof Simon, Director ofCatalanTourismAgency,this such as the Penedes. According to David Font i celona’s associationwithwinetasting inregions bring. Oneexampleofthisisstrengthening Bar the touriststhemselvesand wealththey the Catalanregionandbetterdistributing both brand ofBarcelonatoencompass otherpartsof ment ofovercrowdedspaces. commodation, tourist mobility,andthemanage Its initiativesarefocusedonareassuchasac plex andheterogeneouscitysuchasBarcelona. it compatiblewiththeneedsofamultiple,com to managingthetouristcity”aswell“making portance ofboth“managingtourisminthecity tainable PlanforTourismin2020,citingtheim the BarcelonaCityHallrecentlypublishedaSus influx oftouristsmoresustainable.Tothisend, of thesectortodayisneedtomakehuge B One centralfocusoftheplanis expanding the Tourism &Sports highest figureonrecord.Amajorfocus celona reported8.1millionvisitors,the etween JanuaryandAugustof2019,Bar ------lona. Joan Fontserè,Director oftheCircuitdeBarce Barcelona President Josep MariaBartomeu and tion today.Intermsofsports,it alsofeaturesFC Batlló, thecity’smostprofitable touristattrac cluding GaryGautier,director of Gaudí’sCasa Barcelona’s mostpopulartourist attractionsin- features interviewswiththeleaders ofsome as ahubforsuchvisitors. in popularity, so too does Barcelona’s reputation City Expo and the WorldMobile Congress grow ber ofinternationalcongressessuchastheSmart role asahubforbusinesstourism.Asthenum in termsofinvestmentstopromoteBarcelona’s visit. TheMICEsector,forexample,isgrowing gion aswelldiversifyingtheareaswhichthey diversify both the kinds of tourists visiting the re and manymoreexperiences.” including gastronomy,mountains,sports,wine, us special,wehavemanyothertourismproducts fering to more than the beach; although it makes Aside from tourist agencies, this chapter also Another wayto make tourism sustainable is to ✖ Tourism &Sports - - - - 127 128 Barcelona Special Report INTERVIEW

THE ROAD less traveled Barcelona and Catalonia will need to expand their tourism offerings past the well-known beaches to create a path toward more sustainable tourism for the region.

David Font i Simon DIRECTOR, CATALAN TOURISM AGENCY (ACT)

What are the agency’s objectives? tainable tourism for the future, not only environmen- Tourism creates The objective of the agency is two-fold: to guarantee tally, but also to ensure that tourism is distributed the continued growth of the important tourism sec- throughout the territory. We have a network of 12 of- tor, which accounts for 14% of jobs, and guarantee fices around the world, including seven in Europe and 14% international marketing of the sector and the Catalan one each in Russia, New York, São Paulo, Singapore, of jobs brand by working with both the public and private and Beijing. We also have relationships with interna- sectors. We establish governance roles in partnership tional travel agencies, media outlets, and influencers. with Barcelona, Costa Brava, Costa Dorada, Lleida, This network allows us to be the first tourism desti- Network of and all the territorial entities whose mission is to nation in Spain and the one with the highest tourist project the destination to the world. The agency was expenditure. Next, we want to better align with the founded in 2010, though previously there was a con- private sector; one of the greatest challenges in this is 12 sortium that executed similar functions. We currently continuing with the private-public strategy approved offices globally have a budget of around EUR23-25 million. by all stakeholders. For example, we have a mission in South Korea and Japan, where we will go with 15 Could you tell us more about the strategic tourism plan companies. We did this in Australia, Argentina, Chile, for 2018-2022? and Brazil; in 2020, we will go to the US and Mexico. The strategic plan was approved by the regional government, and it was approved by consensus with pri- How do you target corporate tourists? vate and public sectors. The plan has 20 concrete ini- Business tourism comes due to opportunities in Cat- tiatives. With marketing, we aim to position Catalonia alonia’s industrial and business sectors, and has been as one of the first destinations of the Mediterranean growing through the Catalonia Convention Bureau, arch. We also want to broaden our tourism offering among others. As one of our branches, it works with to more than the beach; we have many other tourism the private sector to bring conferences, events, and products including gastronomy, mountains, sports, business meetings to Barcelona. These efforts have wine, and many more experiences. We want to offer resulted in the city becoming the first in the ICTA marketing that benefits both the private and public rankings in number of conference participants. Our BIO sectors. We also want to guarantee that tourists not program called the ambassadors allows us to work David Font i Simon has been Director of ACT since only come in the high season of July to August but with high-level executives who work or organize 2018. He has a degree in also over a longer period of time. We want to expand events in Catalonia to encourage them to organize business administration and tourism across the whole territory, because Barcelo- their events here. management from Pompeu Fabra University (UPF). He na is currently the main brand and city that attracts studied financial products international tourists. We will do segmented market- What are your main objectives for 2020? advice and leadership and local ing to achieve this; for example, we are launching a 2020 will be the year of sports tourism for many rea- governance. He also completed the Vicens Vives d’ESADE global sports tourism campaign for 2020. We need to sons. First, it is an Olympic year in Japan, which fits program on leadership and be positioned digitally because most travel reserva- with two of our focuses. Second, we are working on social commitment. He tions are done online today. winning the Olympic bid for Pirineus 2030. Third, developed his professional we were recognized as the best sport destination in career in the banking world, serving as business director. Can you tell us more about your international collabora- 2017. Finally, we have been working on sports tour- In the public sector, Font has tions and how you promote the Catalan brand interna- ism since 2003 with companies and teams. There is been mayor of Gironella since tionally? a good amount of people who plan vacations around 2011 and was also president of the Berguedà Regional Council Our mission is to attract a certain type of tourist who sports events. Sports also allows us to receive tourism and the Berguedà Development will be loyal to us. We want to create a model of sus- in other seasons apart from summer. ✖ Agency. Tourism & Sports 129 INTERVIEW

Barcelona seeks to alleviate the A SOLID problems associated with heavy tourism by marketing the entire region and seeking greater collaboration strategy between public and private entities.

Joan Torrella FORMER MANAGING DIRECTOR, BARCELONA TURISME

What are the current tourism measures in place? started in 2008-2010, but it grew rapidly over the Budget of The municipal department of tourism, alongside next few years, going from 2,000 tourist apart- Barcelona Turisme, has aimed to boost and co- ments to more than 9,000 in the span of one EUR15 ordinate the actions in different municipal areas year. As such, the city council developed the mln in relation to tourism policies. This innovative Tourist Accommodation Urban Plan to stop any approach has allowed Barcelona to be certified other projects, while allowing for slow growth in as a Biosphere Destination, which led other mu- other zones around the city center. In general, From 2,000 tourists nicipal areas and city organizations to identify regulation leads to the need for enforcement. apartments to themselves as actors in tourism activity and cre- Beyond that, agreements need to be reached be- ated more collaboration in policy. More recently, tween platforms to establish rules for a healthy in 2016, the City Council introduced the Tourism co-existence. Cities cannot control the capacity 9,000 Strategic Plan 2020, which defined different sec- of platforms that exist; therefore, platforms and in 1 year toral strategies such as tourism mobility, tourist cities need to help one another. In Barcelona, a accommodation, management of overcrowd- roundtable with the main internet platforms was Barcelona sees around ed spaces, and improving the coordination be- created; we agreed to stop advertisements for tween promotional and management policies in tourist apartments without licenses. However, the city. Marketing is a tool for management in this regulation does not yet cover room rentals. 18 MLN this regard, and we are currently completing our This is an important question not only for Barce- tourists per year Tourist Marketing Strategy of Barcelona’s Desti- lona but Europe in general. nation that will provide the framework for future policies. In terms of promotion and manage- How do you balance Barcelona residents’ happiness ment, we need to consider the land of Barcelona and encouraging tourism to boost the economy? beyond the municipality. Since the 2010 agree- The question is not about attracting more tour- ment with the provincial government to coor- ists but being more selective about who we tar- dinate promotion strategies, different tourist get: we want people who like the features of Bar- brands have been created, like Barcelona Coast, celona and its variety of offers. Our agenda is to Barcelona Landscapes, and Barcelona Pyrenees, select and boost several different markets and along with the brand “Barcelona is much more.” profiles. Policies being deployed include facili- BIO It is a challenge to include attractions not phys- tating mobility between attractions, expanding Joan Torrella has a degree in ically in Barcelona but strongly linked to its sur- Barcelona’s image, and increasing attractions philosophy and literature from rounding areas in the Barcelona brand. These associated with the city and convincing cruise the Autonomous University of Barcelona (UAB) and a attractions are wine tourism, golf, skiing, and lines to increase the selection included in their master’s in managerial function so on. With this strategy, the city wins because excursions. In addition to Sagrada Familia, in public administration from it means spreading out the annual influx of travelers can go to Penedes and take wine-tast- ESADE. He has worked in the public administration tourists, as well as the accompanying economic ing tours. Barcelona receives around 18 million since 1983, taking on various rewards; the counties also win because they re- tourists annually, including people staying one management posts in the ceive visitors thanks to the Barcelona brand. night for work, study, research, or sightseeing. fields of social services and territorial management, human resource management, and One of Barcelona’s main problems is overcrowding and What are your main objectives for 2020? cultural areas. He participated the use of space. What role should the regional govern- After 26 years in operation, we are at the start of as a member of the work team ment play in this challenge? an important change in our organization; we will of the Tourism Strategic Plan of the City of Barcelona 2010- Urban tourism impacts cities in many ways, es- adapt everything, including our name possibly, 2015 and the Tourism Strategic pecially in accommodations and public spaces. and redefine our organization’s values. Recently, Plan of the City of Barcelona These aspects are where conflicts with residents tourism has been associated with a problem and 2017- 2020, which contributed to the positioning of Barcelona can become more problematic. In Barcelona, not a solution. We want to be part of the solu- as a leading tourist sustainable housing used as tourist accommodations only tion. ✖ destination. 130 Barcelona Special Report INTERVIEW where everything HAPPENS

Constantí Serrallonga GENERAL MANAGER, FIRA DE BARCELONA

Founded as a consortium between the government of Catalonia and the chamber of commerce, Fira de Barcelona has successfully positioned Barcelona as an important player in the global MICE industry.

After incorporating CCIB, Fira de Barcelona was founded in 1932 as a consortium important venues in Europe. Since CCIB has about Fira de Barcelona will between the government of Catalonia and the chamber of 100,000sqm, collectively, all the venues managed by manage commerce. What was the idea behind its inception? Fira will boast around 500,000sqm. The idea was to bring together different institutions 500k that collectively intended to position Barcelona as How do you manage to attract companies to hold their cor- sqm of space an important player in the global MICE industry. At porate events and congresses in your venues? present, we manage Fira as a private company since If we can organize the Mobile World Congress, as we have a board comprised of businesspeople. In we have done, we can host any event. We are an Expected 2020 turnover: 2000, politicians chose a model of management organization with the experience and capacity to based on private companies. Fira’s shareholders are host large conventions. In 2021, we will host ISE, EUR220 the Barcelona City Council, the government of Cat- the most important event in Europe focused on the million alonia, and the Barcelona Chamber of Commerce, audiovisual industry. We have been in talks with ISE which together constitute the assembly that ap- for a decade to get it to relocate to Barcelona. Our points nine board members. commercial team explains the city, the venue, and our capacity to manage everything they need. What improvements can be made to further consolidate Barecelona’s position as a leader in the global MICE in- How do you make yourselves known in other markets? dustry? We hold events abroad for different reasons. One There is always room for improvement. We will start of our most successfully events was the Smart City managing the CCIB from 2021 onward, which is an Expo. After seeing its success, other cities asked us to important venue owned by the city council. Besides, hold similar events. This strengthens our corporate we are enlarging our Gran Via Venue. As result, we brand while supporting the Barcelona brand. Sec- will manage the three largest venues in Barcelona ond, the logic of being abroad responds to commer- and its metropolitan area: Gran Via in L’Hospitalet, cial opportunities. For example, we will organize a the historical Montjuïc in Barcelona’s city center, swimming pool industry event in Mexico in 2020. and CCIB in the new economic area near the Besòs. Third, when organizing events in Cuba for example, we are attracting companies from Europe to Cuba. Fira de Barcelona now manages 400,000sqm. With the ad- Catalanian, Spanish, and European companies can dition of CCIB and incorporation of its spaces in 2021, what seek opportunities in Cuba through the events that are your goals and targets? we host there. Those venues are complementary. Gran Via hosts BIO Constantí Serrallonga has corporate events that are customized to the needs of What are your main challenges and opportunities for been the General Manager clients. For example, a large SAP event will be held 2020? of Fira de Barcelona since there. Gran Via targets big companies that need We will once again host the Mobile World Congress. 2015. He counts upon years of experience in high-level large spaces tailored to their needs. Montjuïc is the Furthermore, we will launch new events such as the management both in the historical venue where we host B2B and B2C events Barcelona Wine Week. Each year, we identify sectors public and private sectors. He such as the Manga Barcelona comic convention, which can get a boost from hosting an event. We will was general director of the educational fairs, and the Valmont Barcelona Bridal also host the Alimentaria event in April, one of the Hospital General de Manresa and delegate for Transports Fashion Week. CCIB is different; it is perfect for con- leading events in Europe for the food and beverage Metropolitans de Barcelona gresses and corporate events. Beyond that, we are industry. In 2021, we will also host ISE and Seafood. and for the Grup Agora-Invest- now planning to expand the Gran Via venue. We will In 2015, the turnover of FIRA was EUR150 million, Tradisa. He graduated in economics from the University build a new hall by 2024 that will offer an addition- but in 2019 it was more than EUR215 million. Our of Barcelona, ESADE, and IESE. al 60,000sqm. It will then become one of the most goal for 2020 is to consolidate this growth. ✖ Tourism & Sports 131 B2B

astery also sees numerous weddings of foreigner visitors. However, Barcelona is in danger of focusing too heavily on the MICE segment. Quality tourism is not solely defined as the one that generates the greatest revenue. It must also promote museums and wider culture. The MICE sector is important, but so are the people who come to go to museums, or to attend business school. Another aspect we cater to is live music. Poble Espanyol is known by the people of Barcelona for having staged the concerts of Bob Dylan, Anton Vidal Gary Gautier Eric Clapton, Janet Jackson, and Jamiro- GENERAL DIRECTOR, CEO, quai, among others. It is important for a POBLE ESPANYOL CASA BATLLÓ social impact, as we are not a theme park. We are a cultural space; one of our pledges is to promote local handicrafts. In Po- ble Espanyol, artisans have workshops and a shop, and despite interest from TOURIST major brands we have resisted becoming a shopping center. Rather, we are a cultural space with shops, restaurants, ATTRACTIONS discos, and a contemporary art museum.

Tourists constantly flock to Barcelona for its mild weather, tasty What is the process of becoming a UNESCO wine, and beautiful beaches. But these two architectural delights world heritage site, and what is your relationship with UNESCO on a daily operational ba- offer something out of the ordinary for pleasure-seekers. sis?

GG In the past few decades, we have in- Can you tell us about your history? my grandfather’s business, Chupa Ch- vested large sums of money to restore ups, became a shareholder of the insur- the building and bring back its shine. We ANTON VIDAL Poble Espanyol was built ance company, and when Iberia Seguros have never received external financing or in 1929 for the World’s Fair of Barcelona went bankrupt, my grandfather decided support. In 2004, we were awarded the along with a pavilion, to present Spain to to personally acquire Casa Batlló. At that prize for best European Restoration by the international audience. At that time time in the 1980s, Casa Batlló was not Europa Nostra, and shortly afterwards, in Spain, 85% of the population was ru- what we know today—no one would stop in 2005, we were included by UNESCO ral. The intention of the Poble Espanyol on the street to look at it. My mother, a in the prestigious World Heritage list was to show a Spanish town, and the newly licensed interior designer, was as part of the works of Gaudí. Our rela- task of three architects was to create a asked to bring the building back to life. tionship with UNESCO is now becoming main square, a monastery, a church, She started a restoration master plan more consolidated. In 2018, we created and a museum. Initially, Poble Espanyol that took over a decade. During that a department focused on fulfilling UN- was scheduled for demolition after the time, events financed all the restoration ESCO-related goals. In 2019, Casa Bat- 1929 fair, but it was subsequently de- expenses. By 2002, Daniel Giralt-Miracle lló became the first site in the history of cided not to do so. It was not until 1986 convinced her to open Casa Batlló to the Spain accepted on the World Heritage that the plans of Poble Espanyol began public in honor of Gaudí’s international Volunteers Program. We are also ap- to experience an important change. The year celebration. We had no idea how to plying the UNESCO operational guide- City Council issued a public tender for run that business but learned as we went lines, the sustainable development goals its management, and Poble Espanyol de along and have never closed the doors (SDG), including sustainable tourism. Montjuïc entered the equation. We in- since. We are also implementing our Manage- vest around EUR700,000 annually to pre- ment Plan 2020-2025, which will mark serve this heritage. At Poble Espanyol, what efforts do you make the path for the years to come, following to encourage MICE tourism? UNESCO criteria. All these initiatives are GARY GAUTIER Casa Batlló is a living or- reported directly to heritage institutions ganism designed and built by Antoni AV MICE is a significant line—we rent at local and international levels, and we Gaudí. Much later, an insurance com- spaces for congresses, host business din- will attend several meetings at the UNES- pany called Iberia Seguros bought the ners, and product presentations. We also CO headquarters in Paris to follow up our building from the Batlló family. Later, cater to large weddings. A small mon- projects. ✖ 132 Barcelona Special Report INTERVIEW

Pascal Billard DIRECTOR GENERAL, MAJESTIC HOTEL & SPA BARCELONA

What is the hotel’s background to the hotel “We manage the and evolution since its establishment? The Majestic Hotel & Spa Barcelona was business by focusing founded in 1918. The hotel previously had 150 rooms but increased its capacity on the long-term after a purchase of additional buildings plan and not solely and extension by the owners (the Sol- devila-Casals family). Most of the owners short-term profits.” were born in the hotel. This “emotional” connection made and still makes the hotel stand out in Barcelona, especially tangible improvements that add value to compared to most hotels owned by fam- a luxury hotel. One of the trends in this ilies that are treated simply as real estate business is being “multicultural-friend- ON THE properties. A great step for Barcelona ly.” In our hotel, 95% of guests staying was the 1992 Olympic Games, which re- are not from the domestic market. To ally put the city on the map. Around the stay on top, we must adapt to the needs lap of time of the Olympics, we saw many in- and desires of different markets. We are ternational hotel chains arriving, bring- working closely to improve our capacity ing more high-end products and luxury to “hyper-personalize” our experiences luxury along with international professionals to and respect every client’s needs. the sector. Majestic followed that path, with major renovations in 1993-1994, What other hotels in Barcelona do you com- With a very personal family taking the hotel from 4-star to a 5-star pete with? history, luxury suites and an Gran Luxury, with our latest renovation We cater to two different concepts: or- award-winning terrace, Majestic between 2009-2013. Today’s challenge is ganizing events and groups clients from Hotel offers much more than to maintain our reputation and position- the MICE sector, where we compete ing both in leisure and business tourism, with hotels like the W and Fairmont Rey your average hotel. while competing with major cities and Juan Carlos, as well as the leisure sector, European capitals. where we compete with Mandarin Ori- ental, El Palace, Hotel Arts, and Cotton What makes a hotel a luxury hotel? House. We are lucky to benefit from Barcelona’s greatest location, a key element of a lux- How does disruption impact your operations ury experience. There are some tangible and the sector directly? and intangible aspects that help describe External factors, such as the terrorist at- our hotel. Our rich history helps. We tacks in August 2017, and the political have received heads of state, celebrities, situation in Catalonia certainly affect- and artists, and lasted throughout the ed us. However, we also benefited in Spanish Civil War. This, coupled with terms of tourists between 2013 and 2017, multi-generational employees work- thanks to tourists staying away from ing in the hotel and our loyal clients, countries in North Africa and the Middle have contributed to make Majestic Ho- East. But these areas did reopen in 2018, tel & Spa more than a hotel. It is a true thus displacing part of the tourism busi- “icon” in Barcelona, which is an intan- ness outside of Spain. In addition, con-

BIO gible strength for a luxury property. We sidering that airport traffic data shows Pascal Billard joined Majestic Hotel & manage the business by focusing on the a constant increase to our regions, the Spa Barcelona as General Manager in long-term plan and not solely short-term Airbnb factor and increase of short-term 2013 to reposition the property in the profits. We continue to invest in renovat- apartment rentals (that are not always luxury market. After he graduated from Jean Drouant Hospitality School in Paris, ing and maintaining the property every well-controlled) definitely makes for sig- Billard began his career at Sofitel Miami year. We created an exceptional suite nificant competition. We as a hotel have as busboy, moving up through several called the Majestic Royal Penthouse. It a strict monitoring of licenses, labor, and management food & beverage positions in Europe, including the famous Hotel is the largest suite three-bedroom suite health and safety regulations that we de Crillon in Paris as Director of F&B, in Barcelona with fantastic views, a pri- must comply with, which the guest does before moving again with Ian Schrager vate jacuzzi, and terraces, as well as a not always consider when comparing the Hotels and China Grill Management from butler service and the best amenities cost of a hotel room with an apartment London and New York to Miami. After an entrepreneurship experience with and technology to match guests’ high rental with almost no rules. So, it is not Novecento, he returned to his original expectations. We also recently renovat- a fair business, but it is a reality that un- passion, as Resident Manager of the ed our rooftop terrace, which recently dermines our industry. It is our ongoing famous Hotel Plaza Athénée from the Dorchester Collection in Paris before won “Best Hotel Terrace in Europe” at challenge to showcase our differences moving to Barcelona. the “Prix Villégiature awards. These are and keep improving our services. ✖ Tourism & Sports 133 INTERVIEW

Jordi Mestre PRESIDENT, GREMI D’HOTELS DE BARCELONA

What is the main role of Gremi d’Hotels de Barce- consequences that seriously impact the indus- lona? try. It is important for regulations to be ahead Gremi d’Hotels de Barcelona is a network of of the problems of accountability among op- around 450 hotels and hotel chains mostly erators and apartments illegally listed as tour- represented by owners of the properties. Our istic residences. We have seen thousands of purpose is to lobby on behalf of all the mem- cases of tax evasion, poor working conditions, bers and the hospitality sector in general to and more in Barcelona. For us, it is a matter of public institutions, media, and the public as a regulating the scheme, so we all operate at the BIO whole. We also assist, assess, and support our same level, complying with standardization Jordi Mestre studied business members in their daily operations when need- and regulations, as well as sharing the same management at IESE and has a master’s in management from EADA. ed. We have created a wide variety of CSR pro- fiscal obligations. We always work to promote He is President of Selenta Hospitality grams that include providing food that would fair rules between all the stakeholders in the Group, which, among other hotel otherwise be wasted to shelters and helping hospitality sector. establishments, owns the Hotel Sofía de Barcelona, Hotel Nobu Barcelona, Expo refugees find jobs within the sector. Valencia, Expo Barcelona, Mare Nostrum What would you say is the biggest challenge for Resort, and Hotel Don Carlos. He is also The age of technology has seen a rise of new players Gremi today? president of the Barcelona Hotels Guild, such as Airbnb. How do you maximize the represen- We need to be more selective with our tourism member of the executive committee of Barcelona Tourism, and patron of tation of your members’ interests? so that our tourism promotion strategy targets the Escola Superior d’Hostaleria de There are many sides to this story. The collab- high-value touristic activities. Be it MICE or Barcelona (ESHOB). He is also a partner orative economy in the hospitality sector has medical tourism, we need to make sure we are of the Exceltur and Barcelona Sport Cultura entities and was vice president of turned into an opportunity for those who use attracting the kind of tourism that better con- FC Barcelona between 2010 and 2019. it to get new incomes. There have been some tributes to our industry and our city. ✖ 134 Barcelona Special Report

Palau de la Música Catalana concert hall is a UNESCO World Heritage Site in Barcelona Image: Marco Rubino Tourism & Sports 135 FOCUS Olympic legacy

BLAST FROM THE PAST

THE OLYMPICS AND OTHER SPORTING within the city and cope with the influx of par- EVENTS OF THE SAME STATURE ARE ticipants and attendees. The area that was once OFTEN SEEN AS A REVITALIZERS OF A known as ‘Catalonia’s Manchester’ is now a popular place for the youth to live and is well-known CITY’S PROSPERITY. IN THE CASE OF for being a technological hub that is also home to a BARCELONA, THE 1992 GAMES’ LEGACY vibrant art and gastronomical scene. STILL LIVES ON TODAY, MOSTLY FOR The changes made to the city in the run-up to THE BETTER. the games were not always purely functional; some even had aesthetic and were specifically designed to make the city more attractive as a destination. The city beach, now an emblem for locals and tourists alike, was one such by-product. Lead- ing up to the games, the government demolished industrial buildings and imported sand from Egypt to create the 3-km beach front. Aside from preparations for the Olympics, some of its most long-lasting consequences were un- THE 1992 OLYMPICS PUT BARCELONA ON THE anticipated. Specifically, it unleashed a torrent of MAP, consolidating its position as a great Europe- sportsmanship in Spain, with 22 medals being won an city while it was still in its democratic infancy. by Spanish athletes, 13 of which were gold. Since The improvements brought on by the prepara- 1992, Spain’s reputation as a contender in sports tions for the games, coupled with their after ef- especially in tennis and football has grown dra- fects, are still in full swing more than 25 years later. matically. Real Madrid and Barcelona FC are now Aside from the more tangible impacts, the effect it two of the most successful sports clubs of all time. has had on local morale was valuable in encour- Perhaps the most well-known—and controver- aging Spaniards and Catalans alike to look toward sial—result of the Olympics is that it opened the the future and finally emerge from their relatively floodgates for tourism, not only by putting Bar- recent dictatorial past. celona on the map per se, but also by attracting The city’s budget to prepare for the games was visitors thanks to good transport links, City Beach, 154 billion Spanish pesetas, the equivalent of and the green spaces that were put in place for EUR925 million today. Approximately 95% of this the Olympic games. In 1990, the city received 1.7 budget was invested into the city’s transport links million tourists, with the figure growing YoY to and infrastructure. Perhaps the best example of reach 9 million in 2017. Although this means a flur- this is the design of Barcelona’s rondas, ring roads ry of economic activity in the city, where tourism that were implemented to limit congestion com- accounts for 12% of the region’s GDP, it also has ing into the city. detrimental effects on residents of the city. Rising In recent years, Barcelona has gained interna- rent prices and increased traffic and pollution are tional recognition for its approach to urban plan- but some of the issues now affecting the city on a ning, most notably Salvador Rueda’s initiative to daily basis. introduce superblocks that limit traffic, air, and The 1992 Olympic games are still considered noise pollution. The foundations of this innovative one of the greatest in history, not least because of approach can also be traced back to 1992. When the geopolitical climate of the time that saw newly faced with the problem of finding space for Olym- independent countries including former Yugosla- pic pools in the city, the administration looked to vian and Soviet Union states participating. The Montjuïc, an area outside of central Barcelona. game’s success surpassed even the most optimis- Today, this area remains a popular destination tic forecasts, a testament to Barcelona’s ability to amongst tourists and locals alike, for its impressive harmoniously bring together these nations. Mean- views of the city against the backdrop of the sea. while, for residents, the evolution of their city is Poblenou, a traditionally industrial area, was divided into two periods: the ‘before’ and ‘after’ of also restored in an attempt to maximize space the 1992 games. ✖ 136 Barcelona Special Report B2B FC BARCELONA

With the football aspect of Barcelona and FC Barcelona’s relationship solidified by multiple championships, Barça is looking to expand its fame across other sports.

What has been the role of FC Barcelona (Barça) son, which have allowed us to match our Josep Maria Bartomeu i Floreta in promoting the Barcelona and Catalonia previous combined record. Among them, PRESIDENT, brand internationally? we have won the Copa del Rey in basket- FC BARCELONA ball, six handball titles, the five obtained JOSEP MARIA BARTOMEU I FLORETA Barça by our hockey team, and the four futsal stands out for being local and universal trophies. Each of our teams are ambas- at the same time. Our origins and identi- sadors of the Barça philosophy, which is ty are linked to the city of Barcelona and built on the values of humility, effort, am- Catalonia, both their values and their bition, respect, and teamwork. Likewise, culture; however, since its founding, the in the commercial field, the entity main- club has been open to the world, consol- tains its commitment to seeking the best idating itself as a meeting point between possible sponsorship agreements in each different people, cultures, and countries, category, which allows us to continue be- an entity of global character and impact. ing a point of reference worldwide and to It is a responsibility that we assume with continue consolidating the Barça proj- pride. Barça and Barcelona collaborate ect and bringing the club closer to fans on different projects to boost their pres- worldwide. ence around the world and strengthen Barcelona’s recognition as one of the ref- Beyond a football player, you are also an entre- erence cities in fields such as technology, preneur and founder of Kosmos and eFootball. Gerard Piqué i Bernabéu sports, innovation, and lifestyle. Exam- pro. How did these two projects come to be? FOUNDER, ples include the tribute paid by the team’s KOSMOS AND EFOOTBALL.PRO equipment to the city and the club’s sup- GPIB Kosmos was established in 2017 to port for events such as the Mobile World invest in projects related to sports, media, Congress. and entertainment innovation. In 2018, we created the first league for eFootball. GERARD PIQUÉ I BERNABÉU Barça has pro. During the last season, six teams took played a role of paramount importance in part in it, namely FC Barcelona, AS Mona- promoting Barcelona and Catalonia. It is co, Celtic FC, FC Nantes, Schalke 04, and one of the most important football clubs Boavista FC. That number has increased worldwide and has filled up stadiums in to 10 in 2019, with Manchester, Bayern every country it has played. This, in part, Munich, Juventus, and Arsenal coming has been achieved because international on board. I also had an idea with a friend footballers have played on the team, and to transform the Davis Cup, an idea I had they are icons in their respective coun- in mind since the 2010 FIFA World Cup in tries and worldwide. The name of the South Africa. We spoke with the Interna- team, Barça, is directly linked to Barcelo- tional Tennis Federation (ITF), and after na and has contributed to the city’s and several rounds of meetings, we managed the region’s standing on the international to change the format of the Davis Cup, stage. We are talking about a club that is which was approved in August 2018. Since more than 100 years old and whose histo- then, everything has been fast-tracked. A ry is intertwined with the city it belongs to. team was created within Kosmos Tennis to manage the project. The team is made While football is the core of FC Barcelona, up of experienced people from the tennis Barça has many other sport teams. How do you world, such as Galo Blanco, director of work to diversify the field and ensure that other competition, and Albert Costa, director sports gain visibility? of the tournament. We also have people that have been working in other sports, JMBIF As is well known, Barça is “Més which is what distinguishes our organi- que un club,” and an essential part of the zation. The first edition was celebrated meaning of that is our commitment to in November 2019 in Madrid, and it was multiple sports. We compete at the top a success. We are aware there is room for level of each professional sport, as con- more improvement, and we will focus on veyed by the 19 trophies we won last sea- that in the next edition. ✖ Tourism & Sports 137

Performers from Colla Sant Cugat build a traditional human tower at Tarragona Image: Jose Arcos Aguilar 138 Barcelona Special Report INTERVIEW wheels of FORTUNE

Though the Circuit de Barcelona- Catalunya is known for Formula One events, it has expanded its reach by opening its doors to bike endurance courses and car launching events.

Joan Fontserè DIRECTOR, CIRCUIT DE BARCELONA-CATALUNYA

What triggered the creation of the circuit in 1991? good. We are also well-connected to Europe and the Hosting 4 world It was a demand from motorsport and motorcycle fans airport which is only 30 minutes away. championships who wanted a facility where they could see the best riders in the world and enjoy the sport. At that time, How did you come up with the idea of BiCircuit for cycling? of motorsports in it was Sito Pons, Joan Garriga, and Carlos Cardus who Part of the team that worked at the circuit 10 years ago 2020 were competing and winning world championships. cycled around the track for exercise. At the same time, Fans were asking the authorities where they could see when I was working in another company, I proposed the big names competing. In that decade, there was an to the circuit’s general manager and the sports sec- accident near the Derbi factory when a rider was test- retary to host an event similar to the Sea Otter Event, ing his bike in the industrial area. These two reasons which is held at the Laguna circuit in Monterey. The pushed the Catalan government together with the BiCircuit is split into two programs: every Tuesday Royal Catalan Automobile Club (RACC) to create the and Thursday we open the track for bicyclers to train circuit. The Catalan government owns 80%, and RACC for triathlons or road cycling. And the BiCircuit Fes- has a 14% stake, while the remainder is held by the City tival, which became a reality when I arrived at the Council of Montmeló. circuit as a general manager, is a 24-hour endurance event. Through BiCircuit private tests, we host over How often is the circuit used for races? 6,000 individual users annually. In operational terms, there are 16 races, which represent 25% of business. The remaining business comes How do you plan to do be sustainable in motorsports? from renting the track and facilities to various private We host 8-9% electric vehicles at our rental track. In entities such as different category teams or commer- October 2019, we hosted the Porsche launch of the cial brands. Recently, for example, Porsche rented the Taycan model, with more than 8,000 people visiting BIO track to test its commercial vehicles. We will have the from all over the world testing the technical aspects Joan Fontserè has a degree Formula One in May 2020, and Moto GP in June of the of its charging capabilities and the value of its electri- in business science and same year. We will have the rallycross world cham- cal engine. We are moving the electric vehicle model, marketing. He started his professional career in the pionship in April 2020 and a new comer is the World while ensuring that our electrical resources are 100% world of motors, carrying out Superbikes Championship in September. We are a renewable. As a public facility, we need to fulfill that commercial tasks at TopFun. unique circuit because no one else hosts four world platform model; we have a maximum of 40 vehicles From 2000 to 2011, he was head of the motor circuit and championships in addition to having the Formula One running on a 120-acre track. The CO2 that we are later head of new business at winter test. emitting is not too high. During the Grand Prix, we the multi-national company promote sustainable transport with the train compa- Octagon Esedos. In 2011, Why is Circuit of Catalunya attractive to rent, and how do he became manager of the ny by increasing train frequency to the venue. Funni- High Performance Centre you attract clients? ly enough, our lowest point regarding sustainability Sant Cugat, a task he carried The Barcelona circuit is attractive because of its 30- is during the Grand Prix, as the audience wants to out until his appointment as year history and impressive performance pedigree. We come with their own vehicles. But we are promoting General Manager of Circuit de Barcelona-Catalunya in 2015. host four world championships, including Formula alternatives with more frequent trains. We have been Since 2011, he has also been One, Moto GP, Rallycross, and Superbikes. The circuit working to get the authorization for a train platform councilor at the Town Council itself has long and short straights, along with fast and that would be like an underground station next to the of Sant Feliu de Codines, a position he already held from short turns, which gives many options to analyze data. Circuit. From here to Plaça Catalunya, it would take 1999 to 2003. Weather conditions during the whole year are usually 18 minutes. ✖ Tourism & Sports 139 B2B

What are your strategies to improve the club?

CEP The strategic plan is to promote and support our five sports, based on the size and number of people who play these sports. Everything related to horses is important to us, but the number of people able to ride a horse is not as much as those playing tennis. Currently, we have 250 people enrolled in the entire horse section, with only 25 who play polo. Nor- mally, the majority practice horse jumping. In terms of members, the main draw Curro Espinós de Pascual Jordi Cambra Sánchez is tennis, as we have the largest school in PRESIDENT, PRESIDENT, Spain. Overall, we have 10,800 members. REAL CLUB DE POLO REAL CLUB DE TENNIS Concerning polo, we have one of the DE BARCELONA BARCELONA - 1899 oldest competitions in Europe. In horse jumping, we have the oldest international competition in Spain. We also have the Longines FEI Nations Cup Final, the most important international show jumping event after the Olympics. These competitions are run throughout the year in Asia, the Americas, and Europe, and the final is being held in Barcelona SPORTS CLUBS for the seventh year in a row.

A sporty population can be a point of national pride and the mark JCS There are only two tournaments in of a healthy society. To this end, Barcelona’s sports clubs play private clubs that players love to attend. For many years, we have taken good care a salient role. of players and have built a strong reputation. The prestige of our tennis tournament, Conde de Godó, is important because it is old (there have been 67 editions already). In tennis, golf, and horse What were the origins of Real Club de Polo de What values is the Real Club of Tennis Barce- racing, traditions are important. Inter- Barcelona, and how has it evolved since 1897? lona trying to promote in society? nationally, our reputation is not bad, but we have to improve it with a new CURRO ESPINÓS DE PASCUAL At the end JORDI CAMBRA SÁNCHEZ The Real Club strategy. We will soon finish a contract of the 1890s, Enrique de Iberdrola went de Tennis Barcelona must be an instru- with IMG, which has been our partner to London where he discovered polo. He ment to help all its members be happier for the last 30 years. Six companies are brought the idea to Barcelona and, with and healthier. It is more than a sports now bidding to organize the tournament a group of friends, organized the first club; it a social meeting place for mem- with us. No matter our partner, we want polo matches in Barcelona. After sever- bers who meet both as strangers and as to improve the tournament in all areas, al months of practicing, they founded friends through activity. Friendship and particularly in business hospitality, so the Polo Jockey Club, which they started sport are two values that are extremely VIP people come and do multiple activi- in 1897. After that, through polo, they important to us. Besides this, the club ties in Barcelona. While coming for three started to follow other sports related to also has some influence on life in Bar- or four days to the tournament, they can horses, including horse jumping. The celona, which we do by teaching people go to a museum, a Barça game, the Palau club will celebrate the 108th edition of about tennis. That is why we created our de la Música, or Liceu to watch an opera the club’s first international show jump- foundation: to help people from Barce- or concert. They can have dinner at a ing event in Spain. In the early 1900s, we lona who, for economic or medical rea- four-star restaurant or visit the wineries launched the other two main sports of sons, cannot play the sport. Tennis is an outside Barcelona. We want to make the the club: tennis and field hockey. These educational way of living because it is a tournament a fulfilling and well-round- four sports have been the main sports sport where one can fight until the last ed experience. We are not the only ones in our club, and in 1994, we were one of point, and improve their physical condi- doing this; all the tournaments are mov- the first clubs to play paddle tennis. Our tion, through motivation, fitness, educa- ing their focus away from concentrating club is the only one with all five of these tion, and respect along the way—many only on tennis and toward something sports, which is what truly sets us apart. rules that also apply in real life. more. ✖ Image: Ivan Marc Image: Xxx 13 THERAPY RETAIL in thesector,particularly insouthernEurope. in e-commerce, such asPrivalia,takecenterstage talized consumer world.Accordingly,companies egies thataccommodateanincreasingly digi companies mustintroducenew marketing strat- of buyingconstantlyundergoing change,retail tor sustainable.Withconsumer habitsinterms for innovationandtheabilityto makethesec- of theindustryreliesalmostentirely onaquest history withaninnovativetechsector.Thefuture ingredients for success, combining a strong retail the retailsector? the drivingfactorsforimpressivegrowthof at 28.6%and15.1%,respectively.Whathavebeen and underwearrepresentedthebulkofexports, and Turkey.Overthe2014-2018period,outer its mainimportpartnersareChina,Bangladesh, partners beingFrance,Italy,andPortugal,while and fashionsector,withthemaincommercial of thetotalCatalanexportsarefromtextile nies includingMangoandDesigual.Some6.6% giving risetointernationallyrenownedcompa always hadadominanttextileandretailsector, O Perhaps unsurprisingly, Barcelona has allthe Retail &E-commerce from Cataloniaalone.has ports in textile and fashion have come ver the lastdecade,30% of Spanish ex - - - director ofthereselling fashionapp,Privalia.✖ the GlòriesShopping Mall,andAlbertSerrano, shopping villages, NinaKavaliova,managerof tive directorofValueRetail,which offersspecial interviews withMichaelGoldenberg, theexecu represents various players in the sector, featuring and all-encompassingindustry. Thischapter physical retailstores,creatinga morecomplete in gettingtherightbalancebetween onlineand business modelbyopeningupphysicalshops. Amazon or Alibaba are complementing their even purelyonline-establishedcompanieslike er behaviorandthedecisionstheymake.Hence, retail productswillalwaysplayaroleinconsum ing onproducts.Thesematerialinteractionswith namely theexperienceofseeing,feeling,andtry offer adimensionthatthedigitalspacecannot, continues toberoomforphysicalretail,itmust the physicalexperience.”Inordertoensurethere experience thebrandbecauseyoucannotreplace need toopenstoresinorderallowpeople brands thatonlysellonlinearefindingthey an alternativeview:“Manyofthedigitalnative retail, ValueRetail’sMichaelGoldenbergoffered e-commerce willresultinthedeathofphysical This maysuggestthatthefutureofretaillies Despite thewidespreadassumptionthat Retail &E-commerce - - - 141 142 Barcelona Special Report INTERVIEW

Alba Tous CHAIRWOMAN, TOUS

TOUS will celebrate 100 years in 2020. Can “TOUS has become you explain its origin and evolution? My grandfather was a watchmaker ap- a global reference in prentice who opened his own business. the field of jewelry by It was my father, his son, and mother’s marriage, that made TOUS what it conceiving unique pieces is today. My mother built a workshop capable of adapting to where she made jewels to be worn every day, as most jewelry was only worn on the tastes and needs special occasions at that time. She was of its customers and a pioneer who created a new language that democratized jewelry. And we have clients.” followed this spirit since then. All of the shine ON children are involved in the company businesses. Since one store was too small for all of us to work in, we started opening other stores. Around 1997, we TOUS’ interesting family history had a network of stores in Spain, and we has imbued the company with a partnered with other companies, lead- The TOUS Jewelry & Artisans School is another ing to rapid growth. In 1998, we started differentiating feature of the brand. How did this vision that goes beyond profits. making leather bags featuring silver. In initiative start? 2000, we began fragrance lines. From We wanted to carry out a social endeav- there, we started the internationaliza- or linked to our company. Our post-sale tion process. service is one of our specialties. This area requires a great deal of quality control, An important aspect of your brand is sustain- though there are few artisans today. We ability, with 85% of your gold and silver being decided to create a project that can train recycled. Why is this so important? artisans, teaching them how to make a We want to do things right; we are com- jewel not only for our benefit but also soci- promising Earth, and we need to reduce ety’s benefit. We collaborated with existing our impact on the environment. One of jewelry schools, to have students learn res- the advantages of gold and silver is that toration and our production techniques. they are recyclable. Gold can be purified 2018 was the first year, and it was a great and repurposed up to 18 carats. In our success. We currently have six schools in workshops, the artisans recover all met- Spain, two in Mexico, and one in Portugal. al monthly. By the end of the year, we We want to this project to last and open recover around 4-5kg of metal. it in other countries. Schools from other companies are already contacting us. The What is the role of innovation and collabora- program is mutually beneficial because tion for TOUS? our brand can bring visibility to these In TOUS, innovation is not a depart- schools. We also provide job opportunities ment; it is an attitude. TOUS has be- for young people by building their skills. come a global reference in the field of jewelry by conceiving unique pieces Can you elaborate on your objectives and chal- capable of adapting to the tastes and lenges for 2020 and the future? needs of its customers and clients. While We want to continue growing in all our my mother was and continues to be the markets to become the most successful soul of the brand through her creation affordable luxury brand in the world. Asia of a new language with these pieces, is one of the markets in which we hope my father contributed a business vision to experience more pronounced growth BIO Alba Tous has been Chairwoman of that transformed the sector and inter- in the next three to five years, although TOUS since 2008. She joined the family nationalized the company. In terms of other geographies that are already im- business in 1986, assuming the general design, we have managed to adapt to portant, such as the Middle East, the US, management of the company in 2002, times and trends. We have made design and Eastern Europe, will also be relevant. until she took over as president in 2008. She has studied jewelry management and technology our hallmarks. We have TOUS will always nurture its passion for at the Institut CFH of Laussane, been a pioneer in the way of using elec- the client, creativity, commitment, team- Switzerland, and studied complementary troforming, a technique that allows us to work, and globalism. Above all, we want to courses at the Gemological Institute of America, located in California, and at the produce pieces of considerable size but keep sharing the tenderness all around the IESE’s PDD program. lightweight. world through our pieces. ✖ Retail & E-commerce 143 B2B

presence in Spain. All our shopping centers have periodical renovations, usually every four to six years. We do partial or total renovations to adapt the center. For example, we recently created incredible terraces for people to enhance their din- ing experience and create a family experience as well as a traditional shopping experience.

What do you do when working on brands in your shopping Villages to ensure that they provide great experiences to tourists? Nina Kavaliova Michael Goldenberg GENERAL MANAGER, EXECUTIVE DIRECTOR, MG It starts with the customer journey. GLÒRIES VALUE RETAIL We have over 300 people who work in the tourism part of our business, connecting with different partners, tour operators, and airlines to explain The Bicester Vil- lage Shopping Collection proposition. SHOPPING The Village experience encompasses everything from multilingual hosts to re- gionally resonant landscaping, which is EXPERIENCE done by a florist rather than a landscape architect. We work closely with our brand partners to ensure their Village installa- There is something to be said for the physical experience tions are of the highest quality. Then, we of shopping in the age of the internet, and these brands equip front-of-house staff with the right training, knowledge and language skills are taking advantage of their physical locations, along and combine this with the training we with Barcelona’s ability to attract tourists. provide to the boutique assistants.

What are your main objectives for 2020?

NK We want to continue to innovate. How do you view e-commerce? equity. Digital-native brands are in- We were recently certified by Barcelona creasingly finding that they need to open Sustainable Tourism, as Barcelona’s first NINA KAVALIOVA Although the use of stores to allow customers to physically shopping center with this certification. e-commerce is not that high in Spain experience their offering. However, it has We have an incredible program called when we look at the global figures, tech- to be of the highest quality. The future of Work at Glòries that we perform at each nology has changed the world, and all flagship retail will continue to succeed shopping center in partnership with the retailers have to adapt. We have a chan- in places like Terminal 5 at Heathrow, McKinsey Group, in which we interview nel that allows for online purchasing and or the great department stores of Galer- and select ESO graduates that are unem- returns. We are going through a social ies Lafayette and Harrods, or the won- ployed. We do this in collaboration with market revolution that has pushed some derful shopping streets such as Vittorio our retailers. Our focus has always been major names such as Kodak out of the Emanuele in Milan. We ensure we are to go that extra mile for our customers, market. New players have replaced old part of that flagship physical retail expe- collaborate with artists, and deepen ones. Nonetheless, all companies need rience and that traveling luxury consum- our collaboration with local communi- showrooms. Even pure online players ers from Dubai, China, and Russia who ties. We want to empower the collective like Amazon and Alibaba experience 40% come to Barcelona, Madrid, London, or force. increase in online sales when they open Paris include our Villages as part of their a physical store. We are in contact with must-visit itineraries. MG In Barcelona, we are working to fin- different online players to show them ish remodeling La Roca Village. In Ma- how they can establish a physical pres- How do you foster innovation and stay adapt- drid, our biggest goal for the year is to ence, which is new and interesting in the able? consolidate ourselves as the location of market. At the end of the day, we are a choice for Latin American guests. There company that rents spaces, so we want NK We do many collaborations. For ex- is an influx of people from Venezuela, to find the correct match for our clients. ample, we collaborated with Disney for Colombia, and Mexico; we need to en- the screening of Frozen 2. We also work sure the Village meets the expectations MICHAEL GOLDENBERG E-commerce is all alongside the Urban Art Project, an asso- of these high-spending international about efficiency and the seamless, fast ciation of urban artists in Barcelona. We guests through an exceptionally curated sale of products. Then, there is what we have an innovation team that promotes environment. In a digital world, the dif- do—flagship physical retail—which is start-ups in Europe. We are working with ference between online and physical re- all about experience and building brand brands to innovate and expand their tail is all about quality and experience. ✖

Retail & E-commerce 145 INTERVIEW DIAMOND in the rough

CIRCA’s steady expansion throughout the globe shows that even jewelry can Rosa Tomàs have a second chance, with increasing DIRECTOR OF BARCELONA, interest in vintage pieces. CIRCA

Can you give us some background into the origins and of sale to the police on a weekly basis. The jewelry evolution of the company? cannot leave the safe as we always must be ready CIRCA was established in 2000 after identifying the for surprise inspections. After the 15-day holding 80% need in the market for a high-quality jeweler. Peo- period has passed, we ship the pieces either to New of clients are repeat ple needed a location where they could sell their York or Hong Kong. This is a difficult procedure due and referral luxury watches and jewelry discreetly. With gem- to the high value of the goods being moved. There, ologists and experienced people in the market, we the piece is processed by our teams. Since we have started to focus on improving customer experience. clients for every type of jewelry, we can resell quick- Aims to raise purchase We wanted people to have a sense of privacy and ly. The second-hand market is strong, but there rate by around confidentiality. The company saw immediate suc- are not many companies engaged in this business. cess, and we then expanded into the US and Hong Clients often look for collectible items, and we have Kong. Later, we started to expand our presence in many important collectors amongst our clients. We 25% Europe, opening in Barcelona and Madrid in 2013. know what our clients are interested in, which al- We used our operations in Spain as a base to serve lows us to keep an eye on everything that enters the clients from France, the UK, and Italy. Notably, market. around 60% of our clients are repeat clients or refer- rals. We have a close relationship with our clientele What is the importance of the Spanish market in the con- and are committed to educating our clients about text of your global operations? gemology. We do not just give people a price; rath- Spain underwent a difficult period in the 20th cen- er, we advise people across numerous areas and act tury, during which people realized that storing as advisors. Clients who come to us after approach- wealth in jewelry made it much easier to leave the ing Christie’s or Sotheby’s feel that those brands do country quickly. This trend remained embedded in not offer the same service. the culture into the late 20th century; however, the generations that followed have increasingly sold How does e-commerce factor into your operations? their jewelry. The newer generations believe wealth There is a growing need to establish a strong online should be kept in other forms. As a result, more presence to reach our target markets. Our focus is jewelry has entered the marketplace. At present, the to ensure people can access our service in the most trend is shifting again as people are looking to buy efficient and user-friendly way. With our e-com- different things. merce offering, clients can send their jewelry using a secure carrier, which also enables us to evaluate What is your main objective for 2020? and assess their jewelry most efficiently. We want My main objective is to raise our purchase rate by to drive the entire process. There are not many around 25% and implement the CIRCA mailing e-commerce platforms in the market that handle buying process. We are trying to find the clients BIO the same level of jewelry that we do. As a unique that own unique pieces. The bigger and unique the Rosa Tomàs joined the service, our aim is to continue being the leaders in piece, the more interested we are. We are exception- CIRCA team in 2011 and this space. People know we are a trustworthy or- ally knowledgeable about our business line thanks is currently the Director of ✖ CIRCA Barcelona. Before ganization, which makes it easier for us to lead the to our experienced teams across the world. joining CIRCA, Tomàs already market. had more than 25 years of experience in the jewelry What is the process after you buy a piece of jewelry from industry, working in different “We have a close relationship facets of the business, from a client? production to the import and We have an inventory team that stocks the items with our clientele and are export of diamonds. Tomàs in a safe that must be accounted for daily for insur- graduated from the School of committed to educating our Gemology at the University of ance purposes. We must stock a piece of jewelry Barcelona where she trained as for 15 days. We provide buyers’ IDs and contracts clients about gemology.” a diamond specialist. 146 Barcelona Special Report FOCUS E-commerce and retail in Catalonia

STAYING FRESH

PHYSICAL RETAIL IS NOW AT THE with a product and a salesman’s skills to promote MERCY OF E-COMMERCE, WITH 2.14 it, these factors are irrelevant in online retail. The BILLION DIGITAL BUYERS PROJECTED contrast demonstrates how dramatically custom- BY 2021. HOWEVER, TO STAY AHEAD, er preferences have shifted with time to prioritize convenience. Although a growth trend in e-com- E-COMMERCE WILL NEED TO KEEP merce has created employment in the sector, it UP WITH CUSTOMER DEMANDS LIKE has also reduced jobs in department stores and SUSTAINABILITY AND BETTER MOBILE other aspects of traditional retail. ACCESS OPTIONS. Spain is one of the largest e-commerce markets in the EU, with 63% of the population engaging in online shopping. Even in light of a financial crisis, the ongoing advancement in e-commerce skyrocketed, reaching an impressive 26.2 million at the end of last year. Though most people buy on foreign sites like Amazon, many Spanish com- E-COMMERCE HAS REVOLUTIONIZED THE WAY panies like El Corte Inglés are either expanding CONSUMERS SHOP by transforming physical re- into e-commerce territory or establishing pure- tail into digitalized retail, in response to the driv- ly e-commerce businesses. Either way, they are ing force of tech innovation. Since 1969, when the experiencing significant success. However, the first major e-commerce business Compuserve pressure for digitalization has also reinforced was established and following the emergence competition in the retail industry. At this stage of Amazon and Ebay in 1995, the growth in the in the evolution of retail, the key to surviving as sector has been huge. By integrating an array of a business is to remain flexible and adaptable to tools, products and services can be bought and change and ensure that retail continues in paral- sold online, creating flexible business models in lel with technology. Physical retail is under pres- the B2B, B2C, and C2C areas. The major market sure to provide a better shopping experience so shift has influenced the retail sector both posi- as to secure its existence in the face of growth in tively and negatively. e-commerce sales. Nowadays, for most people, buying online is The latest technological adoption in retail has their first choice because it is not limited by space been mobile e-commerce. Companies have inte- or time. The fundamental convenience that on- grated the use of 4G and social media to design line retail represents can allow a company to ex- mobile apps for their brands, thus making buy- pand its reach and access a wider audience on a ing even easier. Though it is still in its embryon- global scale. Having a digital presence not only ic stages, the impact is already widespread and serves as an instrument for online marketing, but looks set to continue with the advent of 5G tech- it is also useful in overseeing sales activities to nology. measure growth. Given the technological advan- Though online retail sites may not completely tages, the global impact of e-commerce, especial- replace physical shops, having an e-commerce ly in China, has been major. Forbes reported in presence will become increasingly necessary in 2016 that 57% of people surveyed in 24 countries promoting and complementing conventional across six continents had purchased something shopping. In the future, we can expect AI and online in the last six months. A study by eMarket- the implementation of cryptocurrency to further er expects this rise to continue, reaching 2.14 bil- scale up innovation and optimization of e-com- lion digital buyers globally by 2021, the majority merce. In this coming decade, rather than focus- of these represented by millennials who belong ing on the design of new products, businesses to the generation of e-commerce. should instead prioritize making these online Nonetheless, e-commerce also has its limita- processes more seamless. Achieving this requires tions. Due to its online nature, companies have targeting supply chains and ethical controversies minimal interaction with their customers. While to ensure e-commerce is responding to the global physical retail involves a customer’s interaction call for a sustainable economy. ✖ Retail & E-commerce 147 VOICES FROM THE SECTOR

Albert Serrano DIRECTOR, Rob Cassedy PRIVALIA CEO, WALLAPOP Can you explain how your business model works? The basic model is simple. Basically, every brand experiences prob- In May 2019, you launched your first event alongside an influencer in lems with leftovers. We are the best channel for a brand to promote Seville. What other innovations are in the pipeline to ensure Wallapop the products they cannot sell at the pace that they expect. Com- stays at the forefront of today? panies use Veepee, our French e-commerce company, and Privalia We have seen three “revolutions” in classifieds to commerce (C2C) to acquire new customers and maximize the return of their stock. trading, and Wallapop has led two of them. The first was offline to We only buy what we sell, which is fantastic in that we do not hold online, namely replicating the traditional newspaper experience stock. This ensures that we solve the stock problem of others with- as a website, as the case of Craigslist in the US. This, coupled with out creating stock problems of our own. By using our services, the free business model, opened the doors for many more users to companies do not have to invest as much in improving their lo- trade more. The second was the move from online to mobile. Wall- gistics capabilities. Undoubtedly, the logistics sector has evolved apop was a leader of this revolution, using the power of smartphones immensely over the last five years. One such development is drop (through the camera, geo-location, and accessibility) to make trad- shipping, which reduced the time it takes to ship the product from ing accessible to even more people and occasions. The third is C2C. the supplier to our customers. Furthermore, our business model is In the traditional classifieds model, the platform’s role is limited app-friendly, as we add new content every day. The visitor rate per to connecting the buyer and seller. This model works well for local month has been growing more than 10 times monthly. At present, trading, where there is large inventory for people who like to trade 75% of our sales are through the app. in person and for people who want to spend time trading. The third revolution offers a more intermediate option by incorporating in- What is your focus area in terms of future growth? tegrated shipping on top of the traditional option. This opens all of When you take a look at the fashion retail industry, you realize that Wallapop’s unique inventory to buyers across Spain and gives sellers physical retail is suffering worldwide for different reasons. Mean- access to the 15-million user base. By breaking down barriers, we are while, e-commerce, as well as the off-price full-price value prop- making online trading even more accessible. Following on its history osition, is booming. Veepee and Privalia are in the middle of these of innovation, Wallapop is at the forefront of this revolution globally value propositions that are growing the most. Fashion and shoes as the first major horizontal classifieds player to move in this direc- are the fastest-growing categories within our value proposition, but tion. We are also innovating in how we interact with our customers. there are other smaller categories also growing fast. Depending on In July 2019, we partnered with famous designer Maria Escote to the country, children, travel, and sports are three categories that launch the first-ever “green fashion” event at Madrid Fashion Week. will grow the most in the next few years. The event exclusively featured second-hand clothing found on Wal- lapop and increased awareness of the need for sustainability in the What is unique about the fashion industry in Spain? fashion industry. The event was highly rated by customers and the Perspective is everything sometimes. Spain is a fashion power- media alike and fit well with our purpose of driving more sustainable house. Inditex, the biggest group in the global fashion indus- consumption. Additionally, we created a documentary that has been try, is from Spain. Italy and France are also home to a number of viewed more than 500,000 times on YouTube. Events like the Seville high-quality, popular brands, but Spain has something for every- event and the green fashion event are a great way for us to connect body. Therefore, Spanish brands enjoy great success in the inter- with users, and we plan to do more of these in 2020 and beyond. national market.