The Basque Country is an attractive territory for investment in cybersecurity.

Euskadi emerges as a hub of attraction for investments in the field of cybersecurity, supported by joint initiatives between the public and private sectors, as well as benefiting from a favorable tax environment. This is one of the main conclusions of the third edition of the White Paper on Cybersecurity in Euskadi, presented today in Bilbao during the event “Euskadi Digital segura: un ecosistema referente en Europa” (Safe Digital Euskadi: a leading ecosystem in Europe). The event, organized by the Association of Knowledge and Technology Industries (GAIA), Cybasque (the Association of cybersecurity companies in Euskadi), and the Department of Economic Development, Sustainability and Environment through SPRI, highlights the promising outlook for industrial cybersecurity in the region.

According to the report, the future of industrial cybersecurity in Euskadi is “promising”, and its consolidation is based on maintaining a solid and collaborative commitment between public and private entities. These joint efforts are vital for Euskadi to establish itself as a hub of international renown in industrial cybersecurity.

Euskadi has a robust ecosystem supporting companies, where cybersecurity and its companies play a leading role. Institutional support in specific areas such as research and development (R&D), innovation, entrepreneurship, internationalization, and access to financing is key to the growth and strengthening of the cybersecurity sector in the region.

The Department of Economic Development, Sustainability, and Environment, through SPRI, plans to continue its strategy to increase and improve cybersecurity in the Basque business fabric. To this end, at least 3.5 million euros will be allocated this year through specific programs.

At a press conference prior to the event, Estíbaliz Hernáez, Vice-Minister for Technology, Innovation, and Digital Transformation of the Government, along with Xabier Mitxelena, President of Cybasque, analyzed the current situation of corporate cybersecurity in Euskadi. This analysis reinforces Euskadi’s position as a leader in the promotion and development of cybersecurity solutions, not only at the national level but also with aspirations to become a European and international reference in this critical area for the modern digital economy.

Main Conclusions of the White Paper:

Among other conclusions of the White Paper, with respect to the cybersecurity ecosystem of the territory, Euskadi significantly surpasses the number of cybersecurity companies per million inhabitants compared to both Spain and Europe. Specifically, Euskadi exceeds 79 cybersecurity companies per million inhabitants, while in the case of Spain and Europe, this figure stands at 28 and 22.8 companies per million inhabitants, respectively. This places Euskadi as one of the regions of the European Union with the highest concentration of cybersecurity companies, positioning it as one of the most active in Europe within this sector.

Regarding the startup sector, the total number of emerging companies dedicated to cybersecurity exceeds fifty (59), and they are oriented towards different areas such as Cloud, data protection, identity and access management, infrastructures, among others.

In addition, the cybersecurity ecosystem of Euskadi stands out for its diversity, having a wide range of specialized agents, making it a very heterogeneous environment. This makes Euskadi an autonomous territory to be able to address cybersecurity projects comprehensively. Euskadi has, among others, Technological Centers, Universities, Integrators/Consultants, distributors/wholesalers, or local manufacturers, allowing it to cover all the different links in the value chain of the cybersecurity sector.

On a different note, the report highlights a considerable gap between the supply and demand for professionals in the sector and, despite a growing number of professionals, this is not growing fast enough to meet the industry’s needs.

Efforts to promote specialized talent focus on the educational field, where different universities in Euskadi are trying year after year to adapt, improve, and include new studies. Additionally, in the business field, there is training for workers to redirect their careers towards cybersecurity, by providing them with new skills and competencies, and the attraction of talent from outside the Basque Country, thanks to evidence of Euskadi as a country with notable strength in the sector.

Report: Characterization of the cybersecurity sector in Euskadi:

This morning, the report “Characterization of the cybersecurity sector in Euskadi” was also presented, which analyzes the current and future situation of the sector in order to identify the employment and qualification needs of Basque companies.

As emphasized by Cybasque President Xabier Mitxelena, “cybersecurity is one of the sectors with the greatest professional projection, and while Euskadi positions itself at the forefront of European cybersecurity in terms of infrastructure and personnel, we have an increasingly present challenge: the talent gap. In this regard, understanding the state of the sector is essential to take the necessary measures, including investment, innovation, and cultural change.”

Some of the conclusions of the Cybasque report highlight the following:

The objective of the “Euskadi 2025 Digital Transformation Strategy” is to reach 300 new companies specialized in cybersecurity, AI, quantum computing, computer vision, blockchain, IoT, augmented reality, big data, robotics, etc., which implies the need for professionals in the field.

Despite the growth of ICT users, the number of ICT specialists decreased by 5% in 2022. Therefore, it is necessary to focus on the shortage of advanced digital experts as it hinders the country’s growth prospects.

According to hiring forecasts in the private sector of Euskadi, the demand for profiles with higher education predominates over other profiles. While all universities in Euskadi are aligned with the cybersecurity needs and offer different master’s degrees in this field and even a Bachelor’s degree, the breadth of the sector and the necessary knowledge will require other alternatives.

Thus, in the case of the professional gap in the cybersecurity sector, companies will have to seek or retrain internal talent for those positions, or hire professionals who do not have higher education but fit into teams in terms of experience and qualifications. In this sense, Cybasque emphasizes that FP in Euskadi is also aligned with the existing needs.

On the other hand, the report notes that a sector with qualified professionals and experts in the field is sought after. Therefore, the focus should be on creating and retaining profiles with higher education, as well as certifying professionals. It is also noted that there are capacities that are not being fully capitalized on by the productive fabric.

Xabier Mitxelena emphasized that “we have to be very clear that in the digital world we will coexist with cyberattacks permanently. Cybercrime is the third largest economy in the world and is expected to reach 10.5 trillion dollars by 2025, or even earlier. More than 1,000 automated data hijacking cyberattacks occur every minute.”

In this regard, he recalled that Cybasque was born with the goal of establishing a public-private collaboration that helps companies, and society, to build resilient infrastructures, products, and services, “that are competitive and can overcome the impact of cyberattacks. Together we are stronger, and our initiatives are aimed at creating a cutting-edge digital future and being a reference at the European level. To achieve this – he concluded – in addition to investing in cybersecurity services and tools, we must work together to meet the employment and qualification needs of Basque companies by creating and retaining the necessary professional profiles. With this report, we have taken a ‘snapshot’ of where we are. Now it is time to continue working to adopt the necessary measures,” he concluded.

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