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WOT Analysis

Strengths, Weaknesses, Opportunities and Threats of the Comunitat Valenciana economic model

 

 

WEAKNESSES

STRENGTHS

1.

Low-intensive production specialisation in sophisticated products with a high technological content

1.

Strong economic dynamism 1995-2008, particularly in market services. Tradition of adaptation to change

2.

Productivity problems in terms of levels and rates of improvement: loss of external competitiveness

2.

Great industrial tradition: consolidated Valencian industrial fabric, clusters

3.

Labour-intensive industry and low and medium technological level: de-industrialisation

3.

Powerful tourism sector: quality and diversity of tourist products

4.

Strong sensitivity to the economic cycle (consumption, tourism, construction...): consequences on unemployment

4.

Strong business dynamism with experience in foreign markets (diversification)

5.

Tourism: high national dependency and llow average expenditure per tourist

5.

Existence of a business base in high and medium-high technology sectors

6.

Shortage of large companies. Consequences: difficulties in accessing global markets, export, innovation, financing

6.

Increasing the level of education of entrepreneurs: high level of training for managers

7.

Low use of human capital, high over-qualification and low level of expenditure on R&I

7.

Existence of highly productive companies in practically all sectors

8.

Low level of R&I expenditure compared to more advanced regions

8.

Wide network of R&D centres: technological institutes, research centres and science parks

9.

Insufficient entrepreneurial vocations with scientific and technical training

9.

Abundant supply of human capital

10.

Difficulties in accessing new markets: loss of market share inside and outside Spain

10.

Presence of higher education institutions with growing sensitivity to the impact of their teaching, research and territorial dynamization activities

11.

Low allocations of productive capital per worker: excess of real estate investment

11.

The territory is structured along two types of logistics axes: north-south and inland coastal

12.

Low number of logistical infrastructures per inhabitant and GDP: need for the Mediterranean Corridor

12.

Intermodal logistics capacity: road, rail, maritime and airport

13.

Strong indebtedness of the Valencian public sector: little credit to the private sector and liquidity problems

13.

Existence of regional policies for environmental sustainability: soil, water, energy and biodiversity

14.

Strong growth in greenhouse gas emissions: oil dependence and low use of renewable energy

 

 

 

THREATS

OPPORTUNITIES

1.

Stagnant improvement in regional GDP per capita, a driver of smart specialisation

1.

Large urban areas on a European scale: Valencia-Castellón and Alicante-Elche (advanced services, smart cities)

2.

Spanish regional financing system that does not facilitate stimulating the knowledge economy

2.

Knowledge-intensive industry and services as new drivers of the economy: harnessing existing capacity. Deepening the University/company/ R&D centres relationship

3.

Credit and liquidity restrictions on companies and institutions that do not allow R&I financing

3.

Incorporation of new technologies in mature and strong sectors: I+I under contract

4.

Economy exposed to the cycle and competition from emerging countries with rapid productivity gains

4.

Exploitation of new horizontal technologies by concentration of activity in industrial districts

5.

Increasing difficulty in competing in activities based on cost advantage: risk of offshoring

5.

Growth potential of national and international tourism: AVE, airports and maritime connections

6.

New low-cost international tourist destinations are emerging

6.

Mediterranean Corridor: Comunitat Valenciana as a logistics centre

7.

Prospects for weak growth of traditional activities due to their low technological content

7.

Structuring of the joint offer of institutes and technology centres, science and business parks oriented to industry and advanced tertiary

8.

Limited productive and commercial expansion of companies due to their small size and low cooperation

8.

Incorporation of R&D&I and human capital into the business fabric: productivity improvements

9.

Strong emigration of excellent human capital: brain drain and low returns

9.

Promotion of large companies (Ford, Mercadona...) on the size, professionalism and commercial and export capabilities of Valencian SMEs

10.

Recycling problems of unskilled labour from declining branches: construction, etc.

10.

Campus of international excellence: promotion of the university system, attraction of talent and market orientation

11.

Difficulty attracting foreign investment (more competition)

11.

Environment: key factor for the generation of new activities with high added value

12.

Difficult absorption of the installed overcapacity: warehouses, offices, plants, factories, infrastructures, logistics...

12.

Technologies with industrial development potential in agri-food, energy (renewable) and water, habitat, clothing, logistics, home automation, health and quality of life

13.

Excessive energy consumption, over-exploitation of the territory, fires, erosion, emissions, biodiversity...

13.

Attracting foreign investment to strategic sectors