Assessing the economic relevance of International Niche Market Leaders: empirical indicators and strategic reflections from the Basque Country

This article provides an updated account on international niche market leaders (INMLs) from Euskadi and its surroundings. It shows how the ‘hidden champions’ phenomenon is in no way a Germanic affair and that many niche players from Spain also display typical hidden champion-features. Similarly, it shows how the Basque Country forms an epicenter of this kind of firms. The paper also demonstrates the macro-economic relevance of INMLs. I.e., how they are instrumental in view of policy aims to base 20% of territorial GDP on industrial activities, to strengthen the Middle Market segment and to develop the foreign trade activities of economies. The paper also provides evidence for the argument that economies that count with above-average INML densities perform better in this regard. Finally, the paper depicts a series of challenges that INMLs face and puts these into perspective.