Valencia and knowledge

Valencia city of knowledge

Valencia: city of knowledge

What attractions does Valencia offer to its people, its businesses and its institutions?

What are the Valencia’s advantages compared to other cities?

Why is Valencia a reflection of knowledge, innovation and creativity?

This document was produced by the Valencian Institute of Economic Research (Ivie) commissioned by the InnDEA Valencia Foundation

Valencia: city of knowledge

1

Presentation of the city

5

2

Strengths of Valencia

6

Valencia, geostrategic privileged position

6

Valencia, entrepreneur dynamism

7

Valencia, oriented to the advanced services

8

Valencia, competitive costs for business activity

9

Valencia, incubator of talent

10

Valencia, site of human capital

11

Valencia, source of innovation and knowledge

12

Valencia, connected and open to the world

13

Valencia, a highly internationalized economy

14

Valencia, international centre for tourism business

15

Valencia, a bet for ict

16

Valencia, international model of health supply

17

3

Twelve attractive things of Valencia

18

4

An oriented economy to...

20

5

Success innovative cases

22

6

Valencia in figures: indicators

24

Valencia: city of knowledge

Valencia: city of knowledge

VALENCIA, INNOVATIVE CITY, OPENED TO THE WORLD THROUGH KNOWLEDGE Valencia, with over twenty centuries of history, is reinvented again. It has been and continues to be agricultural, commercial, traditional, industrial, financial and touristic, and today it has opened its doors to knowledge because it is the new gateway to the cultural and commercial world with which it has always had a very close relationship.

Turia Park, the Albufera, the Mediterranean Sea and the Huerta reflect the identity of the city

Valencia offers twelve powerful attractions, which are summarized herein; twelve pillars on which the city will see the arrival of the XXII century. Valencia enjoys an excellent strategic position in relation to the main national and European markets; it has tradition, dynamism and entrepreneurial potential; it focuses its activity on advanced services to companies and institutions; it is clearly competitive in terms of the price of productive factors critical to companies (land, offices, salaries, housing, transport, etc. ); it is a breeding ground of talent in arts, sciences and technology with institutions of great international prestige; it represents a source of human capital with a high potential for employability; it is a city of innovation and scientific-technical knowledge; its people and products are well connected with the main decision centres and national and international markets; it was international long before being international became an essential strategy in the globalized world; it is perfectly equipped for business tourism; it invested heavily in the implementation of ICT; and it has a range of leading international health services.

identity: Turia park, which culture flows through from west to east, along a city artery over 11 km in length, considered by the Valencian people as the new main square of their city; the Albufera (Lagoon), in the south, much esteemed as a nature reserve, a green area very close to the city centre; the sea, whose ports and beaches connect the city with the rest of the world; and the Huerta (irrigated area used for cultivation), with its constant rotation of crops, an example of productivity and the diligence of its farmers and proximity of production to market.

Always looking to the future, Valencia’s urban space contains four ecosystems that give it a strong personality and its own

All this range of sophisticated services in a traditional setting, not only has a high quality comparable to that of any other European city of similar size, but achieves it at much more competitive prices.

In the coming months, this document will be followed by sectorial reports on Health and Biotechnology, Energy and Sustainability, ICT, Creative Industry, Agrifood, Logistics and Mobility, and Education, potential leading sectors for the economy of the city.

Valencia: city of knowledge

VALENCIA, PRIVILEGED GEOSTRATEGIC POSITION Valencia is Spain’s third city in terms of population and economic importance.

The city has a population of nearly 800,000. This figure exceeds one and a half million when its metropolitan area is included, representing 30% of the population the Region of Valencia.

Area of influence of Valencia *

Barcelona 2 hours

Madrid

Valencia has a large area of influence.

The transport infrastructure and its geographic location allow this mediumsized city quick access to a broad market.

In just 2 hours by land, Valencia has access to 27% of the Spanish population.

The city is just an hour and a half from the Spanish capital thanks to its highspeed rail link.

3 hours

1 hour Valencia

30 min

*Area of influence calculated in terms of access by car or rail

From a European perspective, the city, located halfway down the east coast of Spain and at the centre of the Mediterranean corridor, enjoys a privileged position. Its excellent transport infrastructure allows access to both European and Mediterranean

In less than two hours by car or train a market of 13.2 million people can be reached

markets, forming the gateway to southern Europe and the bridge between Latin America and Spain.

Main European intermediate cities **

! ! !

Stockholm

With 800,000 inhabitants, Valencia competes in the league of important cities like Munich, Milan, Brussels, Birmingham, Marseille and Frankfurt

Leeds

! ! ! !

Brimingham !

!

Amsterdam !Cologne !

Brussels! !! ! !Frankfurt Prague ! ! !

Stuttgart ! ! ! !Munich !

!

!

!

!

!

!

Milan ! !! !

Genoa !

Marseilles ! ! !

Turin!

!

!

!

Saragossa !

! ! ! !

Valencia ! **European cities with a population of 600,000 to 1,500,000 6

Seville !

! !

Naples !

! !

Palermo ! ! !

Athens !

! !

Valencia: city of knowledge

VALENCIA, ENTREPRENEURIAL DYNAMISM Valencia is a dynamic and entrepreneurial city. After Madrid and Barcelona, it is the Spanish city with highest economic activity. One out of three companies in the province of Valencia is located in the capital.

Its productive network is characterized by the high importance of SMEs and micro-enterprises which has provided great flexibility to Valencian entrepreneurship, which has managed to adapt to the circumstances of the moment.

In addition, big businesses and multinationals are also present in Valencia. Two of the most important food chains in Spain are based in the metropolitan area of Valencia and many foreign companies have chosen to establish themselves in Valencia (Ford, Ikea, Hewlett-Packard, Plug and Play, Apple, Mediterranean Shipping Company, etc.).

The Region of Valencia is a magnet for foreign firms. In 2011, over 400 foreign companies are located in the Region; the number has grown by 19% since 2008 and their turnover by 16%.

The province of Valencia is characterized by a greater focus on services and industry than the Spanish average. Three out of four workers are employed in the service sector and more than 14 % in industry. Specialization in services is even greater if we focus on the city of Valencia, where over 80 % of employees work in the tertiary sector.

entrepreneurial spirit. About 180,000 of employed people in Valencia are entrepreneurs with employees, freelancers or managers; i.e. 2 out of 10 workers are entrepreneurs. This rate of entrepreneurship is higher than that of Madrid or Barcelona (18%) and Seville or Zaragoza (17%).

Weight of entrepreneurs in the employed population. 2012 Percentage Valencia Murcia Barcelona Malaga Madrid

Tools like the valenciaemprende.com website, the online One-Stop Shop of the Valencia Chamber of Commerce, the Geoemprende application and the Innovative Entrepreneurs Network (VIT Emprende) are proof of the firm commitment of Valencia for entrepreneurship as a strategic hub for economic and social development.

Valencian business has a high capacity to successfully adopt and implement new ideas, thanks to the workers’ active role in this process (intrapreneurship).

This, combined with a clear customer focus, proper talent management, efficient use of ICT and a high level of export proactivity, make Valencian businesses very competitive.

Saragossa Biscay Seville 05

10

15

20

Source: Labour Force Survey (INE)

19% of employed people in Valencia are entrepreneurs Three out of four workers are employed in the service sector

Fabric of Valencia. 2012 Agriculture and fishing 0.9%

+170,000

945,000

enterprises*

Industrial 10.1%

employed

Construction 5.7%

19%

Services 83.3%

entrepreneurs*

The business sector in Valencia has always been known for its

*Enterprises and entrepreneurs refer to Province of Valencia in the absence of city data.

Source: Central Business Directory and Labour Force Survey (INE)

7

Valencia: city of knowledge

VALENCIA, FOCUSED ON ADVANCED SERVICES In the last decade, the service sector has increased its employment from 65% to 75% in the province. This process has been more intense in the city, where eight out of ten workers are employed in the tertiary sector.

corporate and individual business deposit accounts in the Mercantile Registry, shows that 36% of tertiary companies in the city offer knowledgeintensive services and more than half of these businesses in the province are located in the capital.

The information available in the Iberian Balance Analysis System (SABI) about

In addition, these companies are located mostly in the city centre. The districts of Ciutat Vella, Extramurs and Eixample are the focus of economic activity of the city and are home to 52% of the advanced services of Valencia. The intensity of advanced services in other districts is also high. Three rings are identified according to the intensity of

More than a third of service companies are knowledge intensive.

Weight of advanced services in the tertiary sector Valencia metropolitan area. 2010 Valencia and its metropolitan area.

% of knowledge-intensive service companies

15% - 25% 25% - 35% Over 35%

Paterna Districts Valencia

Burjassot

17 17

Mislata Valencia 17

17

Torrent

18

15

16

14

5

4 3

7

6

1 2

Ciutat Vella L'Eixample Extramurs Campanar La Saïdia El Pla del Real L'Olivereta Patraix Jesús Quatre Carreres

Source: Bureau van Dijk. SABI

8

11.

12.

13.

14.

15.

16.

17.

18.

19.

11 9

Poblats Marítims Camins al Grau Algirós Benimaclet Rascanya Benicalap Pobles del Nord Pobles de l'Oest Pobles del Sud

13 12

8

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

these companies. In the central districts, these companies account for over 35% of the total, in the surrounding districts one in four companies offers advanced services, and in the suburbs the intensity exceeds 15%.

Regarding the specialization of these advanced services, half the companies in the city provide services to companies

90% of service companies dedicated to R and D in the province are located in the metropolitan area of Valencia

5% - 15%

Puçol

Districts of the city of Valencia

Three out of four advanced service companies in the province are located in the metropolitan area

10

19 19

and the healthcare sector: legal and accounting activities; technical services in architecture and engineering; technical testing and analysis; professional, scientific and technical activities; and health activities.

These knowledge intensive activities employ 32% of the province and two out of three employees with university studies work in advanced services related activities.

Valencia: city of knowledge

VALENCIA, COMPETITIVE COSTS FOR BUSINESS ACTIVITY The costs businesses face in their foundation are one of the deciding factors in the city’s level of competitiveness. Valencia, among cities of similar population size and major European capitals, offers the lowest annual rental price of “Prime” offices, being 165 Euros/m2 cheaper than in the Spanish capital, as well as greater flexibility in the duration of contracts.

The annual occupancy cost per m2 of an office in the forefront of business in Valencia is 50% lower than in Madrid and 28% lower than in Barcelona. The structure of real estate stock is in line with the largest Spanish cities.

The industrial land in the metropolitan area has an optimum capacity and infrastructure to accommodate new Office Rental Rate “Prime”. 2013 Euro/m2 per year Valencia

132

Malaga

144

Barcelona Prague

252 270

Berlin

270

Athens

276

Brussels

285

Madrid

297

Leeds

306

Amsterdam

businesses in the area. Valencia has established itself as a suitable region for the development of business thanks to the extensive surface area and a price from 30% to 40% lower than Madrid and Catalonia. Fuente del Jarro Industrial Park, one of the most important in Spain and Europe, is an industry benchmark in the metropolitan area, with an area of 2.5 million m2 and more than 500 companies.

The cost of labour in Valencia is 24% lower than in the Basque Country and Madrid

VALENCIA Aragon +2%

378

Frankfurt

456

Milan

All these elements together with the transport infrastructure that Valencia offers –which allows easy domestic and international connectivity-, the focus on e-administration -to streamline the management of different procedures-, a tax burden 7 points lower than the European average, and high incentives for R&D make Valencia an attractive city for investment.

Differences in the average monthly cost per worker. 2013 Percentage increase over the cost in Valencia

340

Munich

The cost of hiring labour in Valencia is lower than the national average. Thus the average cost of human resources is 24% lower than in Madrid or the Basque Country and 16% lower than in Catalonia. This competitive labour cost persists in the case of more skilled human capital: hiring a graduate in Valencia is cheaper than in Madrid or Catalonia (17% per year on average).

Committed to innovation and new technologies, the Marina Real Juan Carlos I offers 10,042 m2 of land and a building area of 23,024 m2, within its new action plan for the development of these kinds of businesses and also training centers.

213

Marseilles

33.9 million m2 of industrial land equipped for business activity

Spain +9%

500

Stockholm

527

London

Catalonia +16%

700

Paris

Basque Country +24%

830 0

150 300 450 600 750 900

Source: Prime office occupancy costs, CBRE

Madrid +24%

Source: Quarterly Labour Cost Survey, INE

9

Valencia: city of knowledge

VALENCIA, INCUBATOR OF TALENT In Valencia, there is a wide university offer: it hosts two of the ten largest Spanish universities: the University of Valencia (UV) and the Polytechnic University of Valencia (UPV). These are supplemented by three private universities (CEU, UCSV and EU), the open universities, UNED and VIU, the UIMP and affiliated centres such as Florida University or ESIC. The city has business schools such as EDEM, very popular among the business community.

Also worthy of mention are the 45 centres offering advanced vocational training and various institutions for higher artistic education such as the Valencia School of Art and Design (EASD) and the Berklee College of Music.

Valencia is notable for the concentration of undergraduates. 8% of the degree or

Over 100,000 university students study in Valencia and 1 in 10 Spanish graduates in health have obtained their title in the city

masters students in Spain study at one of the city’s five universities and 7% are qualified in their classrooms. In addition, health-related careers or engineering and architecture are particularly relevant, since about 9% of Spanish students choose one of these branches in a Valencian university and one in ten health graduates obtain their qualification in the city.

The University of Valencia is the 2nd European destination for Erasmus students, following the University of Granada. In the five universities of Valencia 5.6% of undergraduate students

Second European city destination for students: more than 3,200 Erasmus choose Valencia are foreigners, well above the 3.5% of the Spanish average. The Polytechnic University of Valencia is the Spanish public university with the highest proportion of foreign students and, after the Complutense University of Madrid, the one which attracts most foreigners.

Top ten Spanish public universities by volume of results (ISSUE-V Ranking)

10

Institutions at the top of university rankings

The two public universities in Valencia are among the first 500 positions of the most prestigious international rankings, positions only achieved by eleven Spanish universities. The University of Valencia and the Polytechnic are positioned among the eight most outstanding universities in terms of both volume of results and productivity, according to the U-Ranking which analyses the Spanish public system. The first stands out especially in teaching, the second in innovation and technological development, and both stand out in research.

By volume, the University of Valencia is the third Spanish university in global terms and in teaching and research activities.

Meanwhile, the Polytechnic stands out especially in innovation, ranking second in volume and leading Spanish innovation in terms of productivity.

Valencia: city of knowledge

VALENCIA, SITE OF HUMAN CAPITAL The presence of excellent universities and their diversified educational offer means Valencia has a human capital with a high level of education and specialization.

Around 16,800 university students obtain their degree at universities in the city every year.

Valencia has a skilled workforce. The progress of human capital has been remarkable: in a decade, the proportion of employees with higher education increased from 25% to 35 %.

The professionalization of its workforce is even greater if we focus on the working population: in 2012 four out of ten workers have higher education.

Highly educated working population*. Valencia Province. 2002-2012 Thousands of people 50 0 450 40 0 350 30 0 250 20 0 150 100 50 0 20 02

20 04

20 05

20 06

20 07

University level training courses

20 08

20 09

2010

2011

2012

Degree

Source: Labour Force Survey (INE)

Employed population by level of education*.

Valencia Province. 2002-2012 9%

39%

Graduated employees work mainly in activities related to education, health, commercial and professional activities, scientific and technical activities aimed at providing services to the business sector and manufacturing industry.

In Valencia, the sectors employing most graduates are education, professional, scientific and technical, activities related to information and communications, health and financial activities. However, the intensity of employment of this human capital is generally somewhat lower than the Spanish average. This fact, coupled with the availability of graduates, represents a great opportunity for businesses, for which the city offers a site of untapped human capital.

20 03

26%

2012

18% 28%

2002 20%

63% of qualified employment is concentrated in advanced services

36%

24%

Up to primary Mandatory Secondary post-compulsory Higher

Nearly half a million people with higher education make up the human capital of Valencia

Source: Labour Force Survey (INE)

Intensity of university employment by activity sectors*. Valencia Province. 2012 Percentage of the total employed university students SECTOR

Education Professional , scientific and technical activities Information and communications Health and social services Finance and insurance Public Administration and defence Artistic, entertainment and recreation activities Real estate activities Manufactures Other services Electricity, gas, steam and air conditioning Administ rative and support service Activities Commerce Water, sanitation and waste manageme nt Hospitality Construction Household activities Transport and storage Agricultur e and livestock

79.4 67.9 62.6 57.7 50.6 42.3 37.4 36.7 19.1 18.2 17.7 17.0 14.2 13.9 13.6 12.8 12.1 12.0 5.8

Source: Labour Force Survey (INE) * Data refer to the province of Valencia; however, it should be noted that the intensity of human capital is higher in the city.

11

Valencia: city of knowledge

VALENCIA, SOURCE OF INNOVATION AND KNOWLEDGE Valencia bears the title of “City of Science and Innovation”, which recognizes it as a leading city in generating competitive advantages thanks to the presence of a large intellectual capital together with advanced equipment for the implementation of scientific and technological activities. Through the Local Covenant for Innovation, support and coordination are guaranteed among major corporate agents, scientists and university, which together with public institutions, tools such as the Map of Innovation and major infrastructures –such as the two European Space Agency laboratoriesposition Valencia as an international benchmark in R&D + i.

Along with the excellent research work done at college campuses and scientific parks, it is worth noting the transfer of the knowledge generated to the business network, the R&D projects, consultancy and services performed by universities for businesses amounting to more than 29 million Euro.

Valencia also has a Network of Technological Institutes (REDIT), unique in Spain, which can respond immediately to the needs of business in R&D. Since 2008 REDIT has facilitated the implementation of more than 1,000 projects a year, which has led to the incorporation of new technologies and innovative activities in companies from various sectors: textiles, footwear, toys, metallurgic, plastics, logistics, optical, energy, ICT, ceramics, furniture, agrifood and biomechanics.

Map of infrastructure support for R&D PARC CIENTÍFIC TECHNOLOGY PARK Size: 1,138,292 m 2 Technological Institutes: 8 Companies: 450

4

SPACES FOR ENTREPRENEURS

Area: 200,000 m 2 Research centres: 8 Technology companies: 75 Areas: Nanotechnology, Robotics, ICT, Biotechnology, Advanced Services, Energy, and Environment

1 9 10

Business Resource Centre (CREIX) Las Naves (Space for contemporary creation) 3 Valencia Chamber of Commerce 4 CEEI Valencia

1 2

1112 3

5

Area: 140,000 m 2 Research centres: 41 Technology companies: 22 Areas: Agribusiness, Engineering, Design, Water, Energy, Health, ICT, Transport and Materials.

8 2 7

INCUBATORS AND ACCELERATORS Plug and Play Business Booster 7 La Harinera 8 Momentum

5

PRINCE FELIPE RESEARCH CENTRE

6

6

Researchers: 158 (94 doctors) Spin-off created 3 Technical R & D: 46 Publications: 105 (90 JCR) Areas: Health and Biomedicine

PUBLIC AGENTS Regional Ministry of Economy and Industry Valencian Institute of Competitiveness (IVACE) 11 Instituto Valenciano de Finanzas (IVF) 12 Higher Council for Scientific Research (CSIC-CV) 9

10

The Local Covenant for Innovation and the InnDEA Foundation promote R&D as the engine of economic and social progress in Valencia

The Polytechnic University of Valencia is the second Spanish university in scientific output in engineering and new technologies, while the University of Valencia is the fourth in Medicine and Experimental Sciences Activity Institutes of Technology. Annual average. 2010-2012 Number of R&D

R&D Projects undertaken

Business Number of Investment R&D active patents

Consumer goods

160

163

15.651

39

Advanced manufacturing

243

240

10.368

7

Advanced fabrication

229

167

6.748

5

Habitat

267

168

8.310

24

Feeding

238

238

11.551

32

1.137

976

52.628

108

Total Technological Institutes

Billing to companies in respect of R&D projects (thousands of Euros).

Source: REDIT and authors.

12

POLYTECHNIC CITY OF INNOVATION

Valencia: city of knowledge

VALENCIA, CONNECTED AND OPEN TO THE WORLD The Port of Valencia, a benchmark in the Mediterranean, plays an important role in the economic development of the city, and is the first Spanish port in container traffic. Its excellent location allows convenient, streamlined trade with both Mediterranean countries and other countries with high growth potential (China, Qatar, Egypt, Saudi Arabia, Turkey, India, Brazil, etc.), which, together with the high degree of intermodality, favours the competitiveness of the business environment.

Meanwhile, about 50 million people have visited the airport of Valencia in the last ten years, with a particularly high increase in international passengers, who now account for 66% of the total. The renovated airport facilities allow the city

track for freight transport, expediting trade relations with the major European capitals. The Mediterranean Corridor significantly reduces commuting times, joining Valencia-Alicante in an hour and Valencia-Barcelona in just over two hours.

Also, the implementation of high-speed rail between Madrid and Valencia, with trains running more than 24 times a day, promotes trade and business exchange between these cities, generating significant business opportunities for entrepreneurs and investors.

The high-speed train connects Madrid and Valencia in just 95 minutes to receive 15 million passengers a year, showing the capacity and ambition of the city to continue growing by opening up internationally.

Container traffic at major Spanish ports Thousands of TEUs 5.000

Valencia is a strategic location within the European transport network, being the beginning of the axis connecting northern, central and southern Europe.

The completion of the Mediterranean Corridor, planned for 2015, will allow the opening of a European gauge rail

4.000 3.000 2.000 1.000

Container traffic from the Port of Valencia exceeds the sum of Barcelona, Bilbao, Malaga, Seville, Balearic Islands, Alicante and Castellon Cork !

Network of logistic connections of the city of Valencia

London !

Paris

2002

2007

Maritime routes

Geneva

High Speed Train Madrid-Valencia

Kiev !

Prague !

!

Munich

!

Zurich !

Venice Milan ! !

Bologna Genoa !

Asturias ! ! Santiago Bilbao

AMERICA

Timisoara !

!

Cluj Bucharest

!

!

!

2012

Source: Ministry of Development

!

Great freight railway axis

Canada EE. UU. Panama Venezuela Colombia Chile

1997

Amsterdam Rotterdam ! ! Eindhoven ! !

D端sseldorf Brussels ! ! Frankfurt Stuttgart !

Regular flights

0 1992

!

Pisa

Sofia !

Rome !

Istanbul ! !

Madrid

WEST AFRICA Senegal Ivory Coast Nigeria Congo

!

Seville ! Malaga !

Casablanca

ASIA India Egypt United ArabEmirates Malaysia China Singapore

Source: AENA, Port of Valencia and authors

13

Valencia: city of knowledge

VALENCIA, A HIGHLY INTERNATIONALIZED ECONOMY The expansion process that the economy of Valencia has experienced in the XXI century is reflected in a significant increase in foreign trade (exports and imports grew by 37%). At the same time, exporting firms have increased by about 6,000 since 2000.

The nearly 13,000 Valencian companies operating abroad export highly diversified products, including products with a high technological component (industrial machinery, chemical components, capital goods, automotive industry and ICT equipment), traditional and artisanal products (textiles and furniture) and agrifood products (vegetable raw materials, animals, fruit and legumes), thus reflecting the high level of competitiveness of products manufactured in Valencia.

Euros at the beginning of the century to 11,500 million in 2012, with almost half of them related to technology products, particularly automobiles, electrical machinery and mechanical equipment.

The importance of foreign trade is such that exports account for around 20% of GDP, a high figure compared to Madrid (11%), Seville (10 %) and Malaga (5%).

In 2000 the EU27 countries monopolized the destination of Valencian exports (74% of total exports). However, Valencia is undergoing a process of diversification

Valencia is the intermediate city in volume of exports, well above Seville, Zaragoza and Malaga

This increased international business has caused the volume of exports from Valencia to increase from 8,350 million

The competitiveness of Valencian products has allowed target markets to be expanded to countries with growth potential into new geographic areas, gaining presence in Africa (6.7%) and North America (8.1%). The countries where Valencian exports have grown most are certain European (Ukraine and Turkey), African (Equatorial Guinea, Algeria, Ghana and Nigeria), Latin American (Mexico, Brazil, Colombia, Peru and Ecuador) and Asian (China, India and Thailand) countries. The vision of the world is changing and Valencia is ready to compete globally and face these new challenges.

EUROPEAN UNION

67.1% NORTH AMERICA 918.5 M € United States: 69.5% Mexico: 19.5% Canada: 11.0%

7,590.4 M € France: 25.2% Germany: 20.3% Italy: 13.4% UK: 11.0%

REST OF EUROPE 746.7 M € Russia: 34.0% Turkey: 29.1% Switzerland: 16.5% Ukraine: 6.3%

8.1%

6.6%

ASIA

Destination of Valencian exports.

2012

AFRICA LATIN AMERICA 396.6 M € Argentina: 19.2% Brazil: 18.7% Cuba: 15.6% Chile: 7.7%

3,5%

Source: Ministry of Economy and Competitiveness and own calculations

14

6,7%

759.5 M € Morocco: 28.4% Algelia: 19.3% Equatorial Guinea: 8.2% Tunisia: 7.6%

838.0 M € China: 27.5% Saudi Arabia: 9.8% Israel: 9.2% United Arab Emirates: 8.7%

7.4%

OCEANIA

0.5%

54.7 M € Australia: 85.2% New Zealand: 9.8% New Caledonia: 3.2% French Polynesia: 1.3%

Valencia: city of knowledge

VALENCIA, INTERNATIONAL CENTRE FOR BUSINESS TOURISM Over 1.5 million visitors to the city of Valencia generated 3.8 million overnight stays in the last year. This influx is due to the number of hotels, with 131 establishments and about 17,333 beds (61% of total beds in 4 * and 5 * hotels), the business events, the cuisine and the cultural offer combining the contemporary with historical heritage.

The facilities of the City of Arts and Sciences, Palau de la Música, hotels, universities, Congress Centre (elected in 2010 as the World’s Best Congress Centre by the International Association of Congress Centres) and Feria Valencia, the last two being the great benchmarks of Valencian business tourism, have helped position the city as a leading centre for business and trade fairs.

The city of Valencia is the fifth in number of cruise passengers with more than 480,000 visitors a year, with the fastest development occurring since 2005. Since 2009, cruise tourism has grown exponentially, far more than in Barcelona. Given the importance of this type of tourism in the city, the Mediterranean Shipping Company (MSC) has set up its headquarters in the port of Valencia. Companies like Costa Cruises and Iberocruceros, MSC, Pullmantur and Royal Caribbean rely increasingly on Valencia as the Mediterranean port of departure.

The competitive advantages of the Valencian capital compared to other Spanish cities lie in the quality of the hotels, the public transport system information in different languages, the possibility of having an intermodal pass for tourist visits (Valencia Tourist Card),

Congresses and fairs. 2012

740 events 181,544 participants

Congress Palace 123 events 104,452 participants

Valencia Trade Fair 32 contests 5,027 exhibitors 607,192 visitors

Source: Bureau of Statistics, Valencia City Council.

Valencia, fifth non-capital European city and third Spanish city in number of international events

the availability of a public bicycle service, the importance of tourism in municipal activity and the major commercial component of the city tourist portal.

With over 200 cruises and an average of 2,354 passengers, the city reached its record in 2012 Ranking of European cities by number of international events. 2012 non-capital cities Position

City

No. of meetings

1

Barcelona

154

2

Istanbul

128

3

Munich

78

4

Zurich

70

5

Valencia

49

5

Geneva

49

6

Oporto

42

7

Lyon

41

8

Krakow

39

9

Milan

39

Source: International Congress and Convention Association, ICCA

15

Valencia: city of knowledge

VALENCIA, COMMITMENT TO ICT A city that efficiently integrates different areas of its reality is a Smart City. Valencia is one of them: an intelligent and dynamic city. Two elements distinguish it from the rest: the Geographic Information System (GIS) considered the most complete nationwide, with 230 layers, 3,429 information points and e-Government, which facilitates the relationship of citizens and businesses with the public administration and offers, as an aspect that makes it almost unique, electronic representation.

Comprehensive Security and Emergency Centre) and appValencia with multiple information accesses.

This technology provides the city’s three control centres (1. Traffic Control Room; 2. Comprehensive management of the sanitary system and the sewerage information system; and 3.

The city promotes innovation, sustainability and environmental quality through the Local Covenant for Innovation and the Valencia Strategy 2020, and demonstrates it by being

Valencia is an accessible city and promotes mobility. The high-speed rail connectivity complemented by the suburban rail network, Metrovalencia, bus lines with green vehicles and the bike lane make up the sustainable and integrated transport system of the city of Valencia. In conclusion, Valencia stands out for smart mobility.

Innovation and infrastructures at the service of a smart city

Innovation SIG

Lower cost of management

Info. panels bus stops Geoemprende

e-Govenrment

Intelligent irrigation Traffic system Management ComCenter Local prehensive Government water websit control app MOBILIS iCAM Tourism Valencia emprende Website Valencia app YA Valenbisi Wifi network app Metrovalencia

app vlcmuseums

SMART CITY

137 km Bike lane 2,750 bikes Valenbisi

6 lines Suburban train network High Speed Train networ 5 lines Metrovalencia

Mobility 16

Integration EMT Metro 63 lines Local Transport.

Company

Higher quality of life

app Local Transp.

Company

Valencia is a smart city that focuses on ICT in order to improve the quality of life of its citizens

founder of the Spanish Network for Smart Cities (RECI) and City of Science and Innovation of the Innpulso Network and actively participating in the AENOR technical committees on smart cities .

Valencia is a member of the EuroMediterranean Network of Sustainable Cities and the Spanish Network of Cities for Climate. Its commitment to the environment is reflected in the more efficient use of resources by the population shown by the reduced consumption of drinking water and electricity even though the number of subscribers continues to grow. The existence of areas such as the Albufera National Park and the Turia Gardens enhances this smart sustainability.

The use of ICT tools permits the integration of information systems in the city to improve the quality of services offered and reduce operating costs, the essence of a Smart City. In the case of the city of Valencia the integration of services occurs in the framework of GIS and Electronic Office.

Valencia: city of knowledge

VALENCIA, INTERNATIONAL LEADER IN HEALTH SERVICES The health infrastructure network combined with the dynamic teaching and university activity in this field results in a full range of primary and specialized care. Health in the city of Valencia is at the forefront of medical activity due to the presence of leading international bodies.

Fifteen hospitals, eight of them public, and 1,750 establishments including

Valencia, a leader in food safety, biomedicine and social-health care

centres, laboratories, clinics and medical units make up the city’s network of health establishments.

More than 13,700 people work in public hospitals, 23% being medical staff, allowing care to be given to more than 4,000 patients a day in outpatient visits and an average of about 2,000 patients a day in the emergency department.

Teaching and research activity takes place not only in the universities of the city, where one in ten health science students in Spain obtain their degree , but a major part also occurs in hospitals and research institutes.

in assisted reproduction (IVI) with over 23 clinics in 8 countries, offering both traditional treatments and innovative techniques, and a leading oncology centre (IVO) with 40 years’ experience in the diagnosis and treatment of cancer.

Numerous research projects on cancer, food safety, biomechanics and biomedicine take place in the city through an extensive and diversified health research network consisting of hospitals, university departments and research institutes.

Valencia’s health research centers are leaders in techniques and diagnostics.

The health institutions include a pioneer

Health network of the city of Valencia 15 hospitals 1,750

centres laboratories clinics medical units

Health infrastructure

2,229 graduates per year in health sciences

Training programmes and grants in hospitals and research

905 scientific articles published on medicine and pharmacology by the Valencian universities

Research Foundation of the Universitary General Hospital La Fe Health Research Institute (IIS) Research Foundation of the Clinical Hospital of Valencia (INCLIVA)

Teaching and research

Valencian Institute of Oncology (IVO)

Research centres and institutes

Others Research Institutes and universitary centres

Valencia Infertility Institute (IVI) Príncipe Felipe Research Centre (CIPF) Higher School of Public Health Research (CSISP) Mediterranean Ophthalmological Foundation (FOM)

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Valencia: city of knowledge

Valencia, gateway to southern Europe

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Located halfway down the eastern coast of Spain and at the centre of the Mediterranean corridor, thanks to its excellent transport infrastructure it has direct access to European and Mediterranean markets, forming the gateway to southern Europe and the bridge between Latin America and Spain.

Valencia is a 95 minute train journey away from the capital of Spain.

Valencia, Spain’s third business centre

2

Characterized by a highly dynamic business sector, in which two out of ten workers are entrepreneurs, Valencia is Spain’s third most important city in terms of economic activity. The city’s business system allows the coexistence of small companies and large multinational businesses

Valencia, centre of advanced services

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More than a third of the city’s service companies are dedicated to knowledge-intensive activities, there being a clear specialization towards services to businesses and health activities. Valencia has a balanced urban model with the presence of advanced services in all areas of the city.

Valencia, competitive costs for business activity

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Valencia’s competitive advantage in costs (land, offices, human capital), reinforced by its large capacity and infrastructure for the development of business and industrial activity, place the city in an advantageous position compared to other cities.

Valencia, incubator of talent

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Two of the largest public universities in Spain, five private universities, business schools, more than 45 institutions of higher education and vocational training, and various artistic and creative education centres make the city a true incubator of talent, where over a hundred thousand undergraduates study every year.

Valencia, site of human capital With about half a million active people with higher education, Valencia has a highly skilled labour force. The high employability potential of this human capital , coupled with the availability of graduates, represents a great opportunity for businesses, which the city offers a site of untapped human capital.

Valencia: city of knowledge

Valencia, headquarters to 2,000 of the regions innovating businesses The presence of abundant intellectual capital, the location of leading universities in scientific production and the existence of major R & D support infrastructures make the city an ideal place for the development of innovative, technological and creative knowledge-based activities.

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Valencia, major national container port The port of Valencia -benchmark of Mediterranean maritime trade-, the modern airport facilities -capable of receiving fifteen million passengers a year- and the implementation of high-speed rail provide the city with fast, direct contact with the rest of the world.

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Valencia, 13,000 businesses operating abroad The high level of competitiveness of products manufactured in Valencia has permitted a fast trade liberalization process towards new markets with high growth potential, reflecting the ability of Valencia to compete in a global economy.

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Valencia, among Europe’s five best business cities The city of Valencia is positioned as the fifth non-capital European city in number of international events. The more than 700 events attracting over 180,000 participants demonstrate the importance of business tourism in the city. The easy international and domestic connectivity, along with the quality of hotel accommodation and services to visitors, help promote this type of tourism.

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Valencia, a commitment to ICT The implementation and use of ICT tools in the city through the Geographic Information System (GIS) and e-Government offers citizens access to quality information and services, resulting in a reduction in management costs and an improvement in quality of life. Valencia is defined as a Smart City: an intelligent and dynamic city.

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Valencia, international leader in health services Valencia’s health activity is based on the available infrastructure -fifteen hospitals and more than thirteen thousand people working in public hospitals-, teaching and research activity -carried out at universities and health research centres- and the activity of the latter– being leaders in projects on cancer, assisted reproduction, food safety, biomechanics and biomedical research.

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Valencia: city of knowledge

VALENCIA, AN ECONOMY FOCUSED ON...

Health and Biotechnology Health activity in Valencia allows fusion and interaction between classical medical activities and teaching and cutting-edge research in specialized centres and universities.

Not only consolidated research segments such as cancer and assisted reproduction provide important results, but also emerging areas such as biotechnology aimed at both human health and the agri-food field. The development of different techniques and diagnostics makes it a highly innovative sector with a high capacity for knowledge transfer, based on a highly skilled human capital, resulting in a sector for the present and future that directly affects Valencian citizens’ quality of life.

Energy and sustainability The proper use of energy and natural resources is crucial to the stable supply thereof to society, which combined with effective waste management implies the development of an environmentally sustainable economy. It is here where the strategic nature of the sector is to be found. The city of Valencia has made a strong commitment to the development of the renewable energies, biofuel and solar energy, two two rapidly progressing areas in Spain, as well as investments in information systems for efficient water management. This scenario provides the companies engaged in these important technologies opportunities to develop their economic activity in the city.

Information Technology and Communication The development of the ICT sector is such that Valencian society is becoming a digital society where new technologies are highly integrated in daily life. The rise of social networks, smart mobile devices and the emergence of cloud computing are some of the products that make ICT a leading activity that encompasses the other sectors of the city. The concentration of these activities in Valencia is now a reality, with a significant presence of the computer industry, digital publishing, interactive entertainment and e-management tools that facilitate relationships between institutions, citizens and businesses.

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Valencia: city of knowledge

Creative industry The creative economy is an interaction of economy, technology and culture whose production of tangible goods involves intangible elements such as artistic and intellectual talent. The creative industry is ICT-intensive and consists of a group of knowledge-based activities whose primary input is the capacity of its human capital. In recent years, the city of Valencia has developed a powerful digital interactive entertainment industry (games, animation),which will continue growing thanks to the specific training provided

by Valencian higher education and the dynamism in the international trade of this type of industries.

Agrifood The concept of the Mediterranean diet means Valencian products are projected to the rest of the world as healthy food and generators of quality of life. The innovative nature of the sector is reflected in Valencian farming (introduction of new products with higher profitability along with the fresh vegetable product), manufacturing (intelligent use of resources and reduced food waste) and marketing through major distribution companies.

The extensive scientific and technological structure consolidated in the city provides the most advanced knowledge for the implementation of R & D activities aimed at food production with higher added value and at the needs of the population.

Logistics and Mobility The evolution of Valencia towards being a Smart City and low-carbon city is generating significant opportunities for creating new businesses focused on a more sustainable, economic and environment-friendly mobility, such as intermodality, real-time management of the transport systems, improved public transport, electric vehicles, or the use of “apps� related to mobility.

The presence in the city of leading companies in the development of logistics infrastructure, a pioneering position in implementing new technologies for public transport services and the importance of the port logistics cluster in the Mediterranean show the importance of this sector in the development of the city.

Education The presence of internationally renowned universities, the extensive offer of higher education centres and institutions aimed at the generation of knowledge, coupled with the range of additional services, culture and recreation make Valencia an ideal place to train, carry out complementary activities to education and attract national and international students. Education is a source of development for the city, not only because of its ability to create human capital, but also due to the significant generation of the services required to meet the demands of its agents.

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Valencia: city of knowledge

CASES OF INNOVATIVE SUCCESS

Plug and Play Spain, the step from idea to business success Subsidiary of the American accelerator, Plug and Play Tech Center (Silicon Valley), one of the largest incubator networks in the world, it focuses on helping, funding and accelerating the growth of promising new technology companies. Valencia is the European headquarters of this company which helps technological start-ups Mercadona, an innovative model of to develop their business by providing training, advice and distribution access to an established network of investors and businesses, through its Plug and Play Accelerator technology program.

Model company in the distribution sector in Spain whose origin and headquarters are located in Valencia. With a workforce of 74,000 employees and more than 1,400 supermarkets, gathers 13.8 % of the national market share in total food area. The base of its business is differentiation through cross presence of innovation in their own production processes and its intersuppliers in order to ensure sustainable food chain and provide more value-added products as well as adapted to the needs of their customers.

Vossloh Spain, technological centre of transport Vossloh Spain is in the 21st century, what its predecessor Macosa was in 20th century: a reference in the sector of railway equipment. In its technological centre in Albuixech (Valencia), innovative diesel-electric locomotives are designed and produced.

They also manufacture trains for passengers and goods, what develops a new concept of sustainable, faster and more efficient transport.

Thanks to the work of more than a hundred researchers, engineers and experts, this firm analyses the future needs in this sector and provides competitive products for the national market and for countries not only from the European Union but also for United States, South Africa and South America.

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Valencia: city of knowledge

IM2 solar energy, commitment to cleaner energy A Valencian company engaged, since 2003, in the implementation of investment projects in solar energy for increased sustainability and energy savings. Specialized in rooftop photovoltaic installations, IM2 has positioned itself as a leading company in the industry, being the first company to develop this kind of solar park in Spain.

The opening of new national delegations together with the expansion to Europe and the Americas are part of its growth plan to implement its business model overseas.

Yeeply, the online marketplace for mobile applications Valencian start-up connecting, from an online platform, supply and demand in the market for mobile application development, which allows businesses and individuals to have their own mobile app developed by professionals (freelance developers) offering their services through this company. Yeeply currently has more than 3,600 registered developers and 140 ongoing projects, which, coupled with the many awards received, confirms this company as a leader in Valencian technological entrepreneurship.

BiOncoTech Therapeutics, science for human health Headquartered in the Science Park of the University of Valencia, this spin-off biopharmaceutical, originating at the National Cancer Research Centre is dedicated to research and development of drugs and focused cancer treatments, especially in the more aggressive pathologies . Its aim is to develop biotechnological innovation drugs with fewer side effects thus supporting the relationship between science and the health of people. Born in Valencia in 2010 and has offices in Madrid, Cambridge and Massachusetts.

Ford Espa単a, smart car: thinking ahead The car company, Ford, located in Valencia since 1976, is a true reflection of the industrial potential of Valencian business, technology and human capital, being able to compete with the best globally. Its strategy based on technological innovation and energy efficiency has enabled it to increase its production levels -over 300,000 vehicles are expected in 2014- and the added value of increasingly sustainable and smart cars. Currently the Valencia factory is considered a reference for this multinational in Europe.

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Valencia: city of knowledge

VALENCIA IN FIGURES: INDICATORS Population

797,028

Year 2012

13.4%

Year 2012

1.

Foreign population (% of total population)

LOCATION AND POPULATION

Average age of population

42.1

Year 2012

Area (km2)

137

Year 2012

5,832

Year 2012

18.7ºC

Year 2012

173,008

Year 2012

18.9%

Year 2012

297,675

Year 2012

Employed in the services sector (% of total employed)

83.3%

Year 2012

Employed in knowledge-intensive services (% of total employed)

46.2%

Year 2012

Knowledge-intensive services companies (% of service companies)

35.5%

Year 2012

Price saving in “Prime” offices compared to Madrid (Euros/m2 year)

165

Year 2013

Savings in total cost of occupancy compared to Madrid (Euros/m2 year)

213

Year 2013

Industrial land (million m2) *

34.0

Year 2013

23,024

Year 2013

2,249

Year 2013

692

Year 2013

Population density (inhabitants / km ²) Average temperature (° C)

Number of firms **

2.

ECONOMIC AND BUSINESS ACTIVITY

3.

BUSINESS FACILITY

Relevance of entrepreneurs (% of total employed) ** Employed Population

Built area available for Technological cluster (m2) Average labour cost per employee (Euros / month) *** Average savings in labour cost per employee in Madrid (USD / month) ***

Active population with higher education **

4.

TALENT AND HUMAN CAPITAL

448,596

Year 2012

38,5%

Year 2012t

101,124

Year 11/12

Number of college students in relation to the population (% of population)

12.8%

Year 11/12

Number of university graduates

16,776

Year 11/12

1,970

Course 11/12

Employed population with higher education (% of total employed) ** Number of college students (Degree and official Master)

Graduates related to entrepreneurial materials (Economics, Business Administration and Finance)

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Valencia: city of knowledge

R&D staff in Technological Institutes (full time equivalent)

5.

KNOWLEDGE AND INNOVATION NETWORK

1,038

Year 2012

981

Year 2012

Scientific production developed from universities (publications)

4,081

Year 2011

Scientific production in Architecture and Engineering (% of national total)

9.7%

Year 2012

97

Year 2012

70,599

Year 2012

65,688.750

Year 2012

31.9%

Year 2012

4,734,555

Year 2012

65.9%

Year 2012

Number of passengers on Madrid-Valencia High Speed Train (AVE)

1,744,782

Year 2012

Number of passengers in the Mediterranean railway corridor

1,121,022

Year 2012

11,498,179

Year 2012

45.5%

Year 2012

743,167

Year 2012

740

Year 2012

181,544

Year 2012

24%

Year 2012

R&D projects conducted from Technological Institutes

Number of technology firms in Scientific Parks R & D carried out by universities and Technology Institutes for businesses (thousands of Euros)

Port traffic of goods (tonnes)

6.

INFRASTRUCTURE AND COMMUNICATIONS

Port traffic of containers (% of national total) Airport traffic of passengers (people) Airport traffic of international passengers (% of total passengers)

Volume of goods exports (thousands of Euros) **

7.

INTERNATIONALIZATION

Technology products exports (% of total exports) ** Number of foreign visitors Number of events (congresses, conferences and conventions) Number of participants in events (congresses, conferences and conventions) Foreign exhibitors at the Valencia Trade Fair (% of total exhibitors)

8.

SUSTAINABILITY AND HEALTH

Accumulated savings in domestic water consumption per capita and day (%)

12.1%

2005-2012

Sustainable travel –bicycle, walking and public transport- (% of total)

76.4%

Year 2012

Trips of the Local Transport Company (EMT) ecological fleet ( trips/1,000 inhabitants)

3,823

Year 2011

3.9

Year 2011

2,229

2011-2012

905

Year 2011

Installed beds in public hospitals (beds/1,000 inhabitants) Number of graduates in Health Sciences Scientific university output in Medicine and Pharmacology (publications) * Metropolitan Area / ** Province / *** Valencia Region

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