The LAB Mediterráneo Foundation, the entity sponsored by the Valencian Business Association (AVE) and some of its partners, presented the Observatory of R&D, innovation, technology and entrepreneurshipa database created in collaboration with Ivie, whose main objective is monitor the information available in these areas in order to compare it with other regions and to develop recipes to promote these areas which are essential to economic development.
The Observatory analyzes 50 indicators Linked to four main pillars: R&D, Intangible Assets and Business Innovation, Technology and Digitalization and Entrepreneurship and Human Capital, the report is also accompanied by a qualitative analysis that reflects the perception of Valencian companies regarding the technological talents available in the region.
The first report of the Observatory presented by the president of the LAB Mediterráneo Foundation, Héctor Dominguis, highlights the need to increase the intensity of investments in R&D. Although in recent years the Valencian Community has recovered the investment rate of the beginning of the century, it remains below average. Average R&D expenditure per employee amounts to 66,050 euros, compared to the Spanish average of 86,788, and barely covers the cost of salary.
The document also includes suggestions and recommendations to improve the reality of Valencian companies in the field of innovation.
The first is that public investment in R&D must be stable and planned in the medium and long term (multi-annual budgetary commitments), without fluctuations, and seek to debureaucratise the procedures for managing and evaluating the results of the actions carried out.
To promote the development of R&D activities within companies, even small ones, they should create an R&D&I space, close to the general management, to develop an innovation strategy and take advantage of the Next Generation EU Europeans funds.
Alongside investments in R&D, Valencian companies must invest in other intangible assets that improve productivity: incorporating software into their production processes, having specific human capital (technological profiles, data management specialists, artificial intelligence developers, technologists, etc.), generating the company’s brand through product design and advertising, as well as investing in an organizational structure based on technology and digitalization. Almost 3,000 Valencian companies already carry out innovation activities in their products or processes, but more than 13,000 do not.
It is also necessary to increase the weight of the economic sectors with greater digital intensity, but it is also necessary to increase the presence of digitalization in the rest of the sectors. Only 2% of employment in Valencian companies corresponds to personnel specialized in ICT. The use of this specialized human capital is one of the aspects to be improved by the Valencian economic fabric.
Fifth, he considers that the strong entrepreneurial activity existing in the Valencian Community must be oriented towards companies based on knowledge, technology and the digital economy. Entrepreneurs must conceive it as a company born digital.
Finally, it urges public administrations to ensure that the regulatory environment does not unduly harm business activity or create unnecessary uncertainty or insecurity.
