Dual-use, one purpose: Galicia’s role in Europe’s defence future

1. CONTEXT
Commencing in 2014, the Government of Galicia (Xunta de Galicia) has been developing a policy to support the space sector, thereby establishing its preeminence among the community's high-technology sectors. This policy materialized in 2015 in the Galician Space Hub, located in Castro de Rei (Lugo), a pioneering structure in Europe for attracting investment to the civil drone sector and promoting innovative solutions with unmanned vehicles.

Through the so-called Civil UAVs Initiative, the Aerospace Hub convened more than 50 entities through public-private collaboration, jointly developing more than 100 R&D&I projects with the participation of more than 3,000 highly qualified professionals. The Government of Galicia demonstrated pioneering use of instruments such as Public Procurement for Innovation (PPI), a model that served as a reference for other regions.

In parallel, Galicia's Smart Specialization Strategy (RIS3) 2021-2027 identifies the aerospace field as a priority, focusing efforts on dual-use technology activities that leverage civil and military synergies.

2. THE SECURITY, DEFENCE, AND SPACE SECTORS IN GALICIA

2.1. Space

The Galician aerospace sector currently consists of more than 140 entities, many small or medium-sized but possessing important technological capabilities (e.g. unmanned systems). Alongside these, several large companies have the capacity to act as drivers for SMEs. Many of these entities have developed their own high-value technologies and are successfully marketing them internationally.

Between 2015 and 2022, the Galician space sector experienced notable growth:

 +59% in employment, reaching 4 267 jobs.

 +21.4% in turnover, being the region with the highest sector growth in Spain.

 Exports multiplied by 43.

 Positive trade balance in 2021 and 2023.

2.2. Security and defence

In the field of security and defence, with 115 specialized workplaces, Galicia stands out for its capacity to build complete naval systems and advanced ground systems, with two leading companies located in the region: Navantia and Urovesa.

In the field of communication technologies and cybersecurity, the participation of Galician companies and centres in the Strategic Initiative for Cybersecurity through Public Procurement for Innovation (IECPEI) of the National Cybersecurity Institute (INCIBE) stands out, where more than 13% of the funds finance Galician projects.

Likewise, Galicia is one of the few regions with demonstrated capabilities in building unmanned aerial, ground and naval systems. Alongside technological capabilities, it is worth highlighting management capabilities, with the presence of large companies (e.g. Navantia, Urovesa and Indra), some participating in large international cooperation programmes and protagonists of significant export operations.

3. GALICIAN STRATEGY FOR 2025-2030

3.1. Purpose

The Galician Strategy 2025-2030 was born with the ambition to capitalize on the opportunities that the new European context offers to Galician entities, creating professional opportunities and turning these sectors into a fundamental pillar for economic growth and improvement of living conditions in the region.

The Galician Regional Ministry for Industry approved this strategy as an instrument of Galician industrial policy to support the Galician security, defence and space sector. The strategy maintains the continuity of the policies initiated a decade ago and establishes the Government of Galicia's framework for action for medium and long-term support.

3.2. Objectives

The Strategy establishes five major objectives for the next five years:

1) Boost the growth of the business ecosystem: the imperative is not solely to support the current ecosystem, but to expand it significantly with the incorporation and creation of new companies that maintain, as they grow, their technological and productive base in the territory. Business growth will necessarily mean the growth of skilled and quality employment.

2) Promote business diversification: business diversification is to be fostered, encouraging the participation of companies from other strategic Galician sectors in the security, defence, and space sector is promote.

3) Materialize new industrial investments: the shifting context of industrial policy facilitates the transcendence of innovation policies and consider these not as an end but as one more productive capacity. Thus, all actions are designed with a focus on industrialization, with the aim of materializing industrial investments in the territory (factories, design centres, testing and validation facilities). These investments will receive support throughout their entire life cycle.

4) Strengthen territorial productive capacities, which are paramount to the sector's enduring growth. Through investment in capabilities, companies are expected to find in Galicia everything they need to face their growth:

 Capital that allows companies to invest and grow.

 Infrastructure that allows experimentation and creation of high-technology products.

 Knowledge generated by centres and universities to facilitate technology transfer.

 Qualified employees.

 Necessary support to continue innovating and creating disruptive products.

5) Lead new industrial policies at the national level, creating the necessary instruments to consolidate public-private collaboration as an essential formula for economic growth and the creation of quality employment. This objective will materialize in the exploration, together with companies, of all their needs and all existing possibilities to support them from Galicia. The Government of Galicia presents itself as a strategic and technological partner of companies, offering specific tailor-made plans for each of them.

3.3. Governance framework

The governance of the Galician strategy contemplates the following actions:

 Annual technical forum and expert group: sharing the accumulated knowledge of the sector is considered a key aspect to maximize the results, effects and impacts of the Galician Strategy. Annually, a technical forum will be organized where the results of the financed projects will be presented and shared, as well as other technical results that companies and centres wish to communicate. In addition, a working group of experts from industry, public administrations and knowledge centres will be created, who can guide decision-making by the Government of Galicia and discuss new formulations to keep the strategy in continuous evolution.

 Observatory of the security, defence, and space sector: specific studies will be financed that allow decision-making based on data. An intermediate and a final evaluation of the results, effects and impacts of the strategy will also be carried out.

 Strategic dialogue: this constitutes a formal communication between the sector and public administration to learn about needs, challenges, projects and investments in the short, medium and long term. The Strategic Dialogue, whose main objective is to align entities with the instruments that make up this strategy, constitutes an innovative instrument, given that it is the first time in Spain that it is applied to industrial policies, in line with what has already been done by the EU in other sectors (e.g. automotive sector).

3.4. Budget

The total budget for this strategy amounts to €183 million for the period 2025-2030, distributed among the three programmes:

 Ecosystem

o Objective: foster public-private collaboration
o Budget: €84 million
o Movilized investment: €621 million

 Support for incorporation and consolidation

o Objective: achieve the transformation of the existing business fabric through two routes: helping companies from other sectors or new companies to join and consolidating existing companies.
o Budget: €34 million
o Movilized investment: €62 million

 Dual investments

o Objective: Accompany the nascent Galician sector in the growth phase of companies, favouring investment in Galicia and permanence in the territory.
o Budget: €65 million
o Movilized investment: €203 million

This investment effort expects to mobilize investments from other public entities and the private sector to reach a total investment in Galicia close to €900 million. That is, each euro of investment from the Government of Galicia aspires to mobilize €3.9 of investment from other public and private actors.

In the Government of Galicia, the management of the programmes will be in charge of:

 Directorate General for Industrial Strategy and Business Land of the Regional Ministry for Industry.

 Galician Regional Development Agency (IGAPE).

 Galician Innovation Agency (GAIN).

 Management Company for Closed-End Investment Entities (XESGALICIA).