The pharmaceutical and biotechnology industry in Spain has developed into one of the most vibrant and competitive in Europe. Overall, more than 400 pharmaceutical companies are present in Spain, of which around 60 per cent are from overseas.
The pharmaceutical industry employs approximately 49,000 people which places Spain 4th in Europe after Germany, France, and the UK according to the European Federation of Pharmaceutical Industries and Associations. The medical technology industry employs about 29,000 people, which places Spain 7th in Europe after Germany, Italy, the UK, France, Switzerland and Ireland, according to MedTech Europe.
One of the reasons for the growing success of the life sciences industry resides in the favourable legal framework for R&D activities. Spanish law permits a deduction of up to 42 per cent for R&D investment and up to 12 per cent for innovation. Moreover, there exists 40 per cent deduction in social security contributions for R&D employees.
