There is Pimentón from Spain. As Kristen pointed out, chile peppers are grown, dried (sometimes over a wood fire to impart a smoky essence) and ground. There are basically three types in Spain, hot, sweet and medium (agridulce). There is also Hungarian paprika, which is a milder form.

http://en.wikipedia.org/wiki/Paprika
This article would explain it better than typing the response out!