La importancia de la industria - Cátedra Política Industrial UPM

THE IMPORTANCE OF INDUSTRY

The level of industrialisation of a country is identified with its economic development because it implies an increase in income levels. In Spain, the added value of the industrial sector (1) represents approximately 16% of the total. Despite its small proportion, it is a source of wealth for the Spanish economy as it accounts for almost 50% of business investment in R&D and more than 90% of exported goods. In addition, and on average, the industrial sector pays wages close to twice those paid in other sectors of the economy such as hotels and accommodation.

In the other countries of the European Union (EU-26), the industrial sector represents on average about 20% of the total and more than 60% of business investment in R&D.

Over the last two decades, both in Spain and the EU-26, the industrial sector has been losing importance as a result of laissez faire and exclusively transversal policies, while in other countries such as South Korea or China, where industry represents around 30% of their economies, it has been a source of economic growth, investment in R&D and employment growth. Within Europe, Germany is a special case, as industry still accounts for 25% of its economy and remains one of the pillars of its economic success.

Within the industrial sector, manufacturing industry accounts for the vast majority of total industrial value added. Thus, in recent years, in Spain it has been around 12.5%, in the EU-26 around 17% and in Germany around 22%.

It has been empirically proven that large countries with a higher share of manufacturing in their total economy grow more, export more and create more employment than those where manufacturing is less relevant. Given that Spain lags significantly behind the other countries, there is a clear opportunity to foster Spanish economic and employment growth through the promotion of manufacturing industry as most large countries, both Asian and Western, are currently doing.

According to the national classification of economic activities (CNAE), the industrial sector is made up of sections B (mining and quarrying), C (manufacturing industry), D (electricity, gas, steam and air conditioning supply) and E (water supply, sewerage, waste management and remediation activities). Section C (manufacturing industry) usually accounts for about 80% of the total industrial sector.