The Hidden Champions Observatory is launched.A platform to support, promote, and showcase our true champions, the Basque txapeldunes.
The Observatory of Hidden Champions is a project driven by Orkestra, the Basque Institute of Competitiveness. It has conducted an in-depth analysis of the characteristics that define these companies, which are immensely valuable to our economy. They serve as a source of inclusive well-being and are fundamental to the advancement and competitiveness of the Basque Country. This project is supported by the BBK Banking Foundation, an entity deeply committed to social development and economic promotion through the support of business projects with strong roots in the region.
The innovative and open nature of both entities aligns perfectly with the DNA of our Hidden Champions. Together, we aim to highlight, promote, and support all these companies.
Hidden champions,
local impact.
The Hidden Champions of the Basque Country are companies that lead international niche markets or highly specialised sectors, also referred to by Orkestra as INML, which stands for International Niche Market Leaders. They are key to understanding the progress of highly competitive economies that stand out for their innovative and open nature, with a high level of economic development and well-being.
Companies that play a pivotal role in both the regional and international economy
They are family-owned or cooperative enterprises; they belong to the manufacturing sector and operate in Business-to-Business (B2B) markets, which makes them largely unknown to the public. They are deeply rooted in the region, with strong economic ties and relationships with other companies, technological centres, and educational institutions. Their success lies in a strong focus on quality, innovation, and internationalisation.
Impact on the territory
In the dynamic business landscape of the Basque Country, known for its industrial tradition and capacity for innovation, these companies are a source of inclusive well-being, fostering the diversity of our economic fabric and contributing to the competitiveness of the Basque Country through:
- Hidden Champions (INMLs) generate stable and high-quality employment opportunities, as they operate in less saturated markets, their supply chains are linked to their own territory and they are at the forefront of their sectors.
- Hidden Champions (INML) employ 15,000 people, and their productivity, in terms of gross value added per employee, is above the 75th percentile (Q1) of manufacturing companies.
- Internationalisation is a natural process for Hidden Champions (INML), as they often do not find sufficient demand in the domestic market. This is evidenced by very high export rates, which substantially contribute to a positive total trade balance. They are at the forefront of the group of companies selling abroad.
- Hidden Champions (INML) export 75% of their sales and have 241 affiliated companies in 39 countries outside of Spain.
- Hidden Champions (INML) have a strong performance in R&D&I because they are specialists competing on differentiation, nurturing an atmosphere of sustained innovation and advancement, and placing the Basque Country on the map of industrial and technological excellence.
- Hidden Champions (INML) allocate 4% of their revenue to R&D&I, double the usual average of similar companies.
- Hidden Champions (INML) foster a sense of belonging in the territory as they are companies committed to their surroundings and encourage the creation of well-being in the areas where they are located.
- Hidden Champions (INML) are primarily Basque-owned companies, with a significant proportion being family-owned businesses (34.21%) and cooperatives (23.68%).
- They are companies that are integrated into local value chains and have stable relationships with suppliers in the territory. They are characterised by working consistently with local knowledge actors, such as technology centres and vocational training institutions.
- More than 75% of the Hidden Champions (INML) carry out their activity in sectors considered key or driving forces for the Basque economy, with strong economic links to the rest of the productive fabric.
- They act as mitigators against the growing population concentration in metropolitan areas, as they are distributed in medium-sized or small urban centres, outside the major cities.
- More than 75% of the Hidden Champions (INML) are located outside the Basque capitals.
How they are identified
Hidden Champions are companies that lead international niche markets and operate in highly specialised sectors, better known as International Niche Market Leaders (INMLs).
They are companies that have their own product, which is a top seller worldwide (flagship product), and are primarily established business projects, with over 10 years of experience and an innovative and committed corporate culture, reinvesting their profits and developing deep economic relationships in the territory.
Their identification is complex, and this observatory was established with the aim of improving methodologies to recognise today’s INMLs as well as to help identify other potential ones.
What are the distinguishing features of an International Niche Market Leader?
Positioning in the market niche
They enjoy recognition and leadership within their operational field, achieving significant market shares with a minimum turnover from their flagship product (equivalent to a Top 1 in Europe or Top 3 worldwide).
Growth dynamics
Their sales evolve at a rate that exceeds the global market.
Highly international character
They have a strong international focus, exporting more than 50% of their revenue.
Get to know them
These are the companies identified so far, but we are still working to identify other potential ones and increase the number of Hidden Champions in the Basque Country.
Publications
Over a decade studying the characteristics and impact of our Hidden Champions (INML) on the economy.
A Project developed by
In collaboration with
