From a regional perspective, the objective of this project is to examine the specific case of the Valencian Community regarding its different policies to support business investment in knowledge-based assets and their role in helping regions grow. The analysis will be carried out by carefully evaluating the characteristics, strategies and actions carried out by benchmark regions.
The Valencian Community is not a region that stands out for its investments in R&D&I. According to the latest data available from the Spanish National Statistics Institute (INE), two-thirds of the total Spanish R&D investment in 2019 was concentrated mainly in five regions: Madrid, Catalonia, the Valencian Community, the Basque Country and Navarre. However, of these regions, the Valencian Community is the only one with a low R&D expenditure intensity in comparison to its economic size.
The Valencian Community’s trajectory in the last decades regarding income and productivity reveals a gap with the most advanced regions. Thus, it is reasonable to study, both from a short- and long-term perspective, how a region and its businesses are affected when the R&D&I investment rate is below that of dynamic economies.
The Valencian region has been affected by various factors, such as, not only a limited impact of public actions within regional R&D&I plans, but also a general non-favorable evolution of the economy, along with the weak investment strategies deployed by its private sector. All of these issues have slowed down the process of reconciling its income per capita and productivity with the Spanish and EU average. The project will consist of examining benchmark regions, by considering closely their active R&D&I, technological development and entrepreneurship policies, in addition to other factors that may also be relevant in contributing to their success, such as, geographical location, productive specialization, internationalization, endogenous business growth problems, the role of family businesses, institutional development, the role of banking, and political and business leadership, among others.