After several years of economic revival, Spanish industry faces two major problems, having a common cause. The first is the stagnation of the number of active industrial companies, despite the recovery in production capacity. Increases in demand have not led to the creation of new enterprises on any large scale. The second problem is the low technological level of Spanish enterprise and its dependence on external technology. The Spanish technological balance of payments has shown a deficit in excess of Pts 100 billion. The problems stem from the same cause: poor diffusion of technology between the centres of technology creation and the technology users. This situation requires careful analysis, and technology managers in both the public and private sectors must pay special attention to the conclusions.