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The Valencian Community is less prepared to meet the challenges of digitization than other Spanish regions

As seen in previous AVE Focus documents, there are several aspects that hinder the development of the Valencian Community. Labor productivity levels and per capita income in the Valencian Community are below the national average due to a lower level of investment in R&D&I, human capital and infrastructures.  In addition, firms in the Valencian Community are smaller on average than Spanish firms. Despite the evident progress made in recent years by the Valencian region towards the digitization of its economy, it is still behind other Spanish regions that have better infrastructures and digital equipment, and are more developed in terms of digital skills and firms. Compared to Madrid, the percentage of households with high-speed broadband connection in the region is 16.2 percentage points lower and the percentage of people with basic (or slightly higher) computer skills is 11.3 points lower.  Also, the percentage of firms with ten or more employees in Madrid or Catalonia that have an ICT specialist is 5.2 points higher than in the Valencian Community. This situation will determine if the Valencian Community successfully meets the challenge that digitalization presents, and, thus, takes advantage of the development opportunities that it offers, otherwise its employment will face high exposure to automation in the coming decades. Therefore, firms need to adapt a more proactive attitude in the use of new technologies in order to benefit from digitization.