Secrets of Spanish business success that I've learned from living in Málaga: David Richards

Spain’s economy grew at 3.2 per cent last year, outpacing not just its Eurozone peers but challenging American growth figures. This remarkable performance reflects the energy I encountered daily in the cafés of Málaga, where digital nomads have replaced traditional tourists just as cutting-edge startups have supplanted legacy industries. The renaissance unfolding along Spain’s shores is no historical accident but rather the culmination of deliberate structural reforms, labour market modernisation, and a strategic embrace of globalisation.

Like many European nations whose industrial heritage once defined their global significance, Spain has rewoven its economic fabric. Where once shipyards and factories dominated, innovation hubs now thrive. Wandering through Málaga’s reimagined port – transformed from industrial shipping terminal to a gleaming promenade reminiscent of Monaco – I witnessed the physical manifestation of economic metamorphosis that rivals the industrial transformations of previous centuries.

A clear signal of this renaissance was when Google acquired Málaga-based VirusTotal in 2012. Established in 2004 as a subsidiary of Spanish security provider Hispasec Sistemas, this cybersecurity company has become as much a part of the region’s fabric as traditional industries were to Europe’s factory cities. The subsequent establishment of the Google Safety Engineering Centre in Málaga parallels how industrial pioneers once opened factories that transformed entire regions, sparking economic ecosystems that extended far beyond their original purpose.

Spain’s ultimate success lies in balancing technological progress with a steadfast dedication to people-cantered well-being. While I instinctively grabbed 30-minute lunches and coffees ‘para llevar’ (to go), I noticed the locals savouring slow meals and taking relaxed breaks.

This calibrated pace reflects not inefficiency but rather an intuitive understanding that sustainable innovation requires human connection – a wisdom that Europe’s most successful industrial regions have always understood.

Spain has established a setting that not only draws foreign talent but stimulates domestic innovation, laying the foundations for long-term growth through investment in infrastructure, entrepreneurship, and cultural openness. This framework positions Spain at the vanguard of Europe’s economic future.

There are still challenges to overcome - inflation pressures, housing affordability concerns, and public sector modernisation needs mirror issues confronting all European economies. However, Spain’s experience shows how apparently unfavourable circumstances can be turned into competitive strengths through creative adaptation.

Whereas the rest of Europe is struggling with slowing growth and a shrinking population, the Spanish experience offers a possible escape route. It underscores the imperative of embracing immigration as an energy source rather than as a threat, highlights the strategic benefit of a quality-of-life strategy, and shows the necessity of responding to evolving work habits.

In next week’s column I will explore how Yorkshire and the North can learn from Spain’s success.

David Richards MBE is a co-founder and managing partner of Yorkshire AI Labs