A new industrial revolution?

A new industrial revolution?Madrid is set to invest two million euros in promoting ‘Industry 4.0’ in small and medium sized enterprises – SMEs.

This is a further boost for Madrid with The Community of Madrid recently having helped finance the office of Invest In Madrid to the tune of €1.35 million. It also comes in the wake of claims that Madrid could become a new financial hub of Europe should the UK’s position as a finance leader falter as a result of Brexit. Applications for grants for this particular program, co-financed by the Ministry and the Community of Madrid, closed in mid September of this year.

What is industry 4.0?

Industry 4.0 is a name for the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, cloud computing and cognitive computing to create what has been called a ‘smart factory.’ Within it is the ability to generate a virtual copy of the physical world and make decentralized decisions.

The aim of this plan is to promote the implementation of ‘4.0 industry’ among regional SMEs. It is hoped this will provide innovative business solutions for digital transformation and aid the introduction of digital technology in industry. Together with subsidies granted in recent years, this program will represent more than 81 per cent of the total subsidies planned for this year.

The Director General of Economy and Financial Policy Rosario Rey called the concept a new industrial revolution adding, ‘At the macro level we are talking about a transformation that will involve all the economic areas of a company and of its administrations. I rebel against the idea that says there are sectors in which you cannot innovate. It is an obligation that must be present permanently at all times.’

How the program will work

The percentage of aid granted to each company will vary according to the company’s size and location, as well as the type of project the funds will be earmarked to help. The maximum amount available for small businesses is 300,000 euros while up to 200,000 euros will be made available for each medium-sized enterprise.

The project will also subsidize up to 50 per cent of consultancy costs and up to 10 per cent of investment to medium-sized enterprises, with small enterprises able to accept 20 per cent for planned investment. With the aim of boosting two industrial centers in the Community of Madrid, SMEs located in the area of ​​the Henares Corridor and Metropolitan South had more aid made available to them.

So far, 24 SMEs have benefitted from such grants. Twenty were small and four were medium sized. Eight of these are located in the Henares Corridor and 10 are in the Metropolitan South area. They were been joined by six other companies in other municipalities in the Community of Madrid. Thanks to these grants, the beneficiary companies have since generated an investment of 3.84 euros for each euro invested by the community. This means the total amount of investment seen as a direct result of the program has so far been more than seven million euros.

For more information, please contact corporate law firm Argali Abogados

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