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Capital productivity of firms in the Valencian Community is 9% higher than the national average

The type of investments a firm makes is an important factor that determines an economy’s potential to reach higher levels of productivity.  Thus, investing more in information and communication technologies and equipment will increase a firm’s productivity level. Consequently, it is important to analyze what firms invest in and whether they are increasing their use of knowledge-intensive assets in a growing competitive context as the one existing in today’s world. This analysis indicates that companies in the Valencian Community have increased their investment efforts, gearing them towards assets that have a greater capacity to generate value added. Since 2007, Valencian firms have increased by 10 percentage points their investments in knowledge-intensive assets. In addition, their capital productivity is higher, since the generated value added is 9% higher than the national average.