The factors of competitiveness and of the city as an attraction for economic activity

At the height of the globalisation era, of e-commerce, of the Age of Information and Knowledge, the emerging role of the city as a focal point for the exchange of financial flows, and flows of population and information, has already been widely recognized. The challenge facing the city in this context is to be able to capture and retain these flows, reinforcing its importance in an international network of cities, or in a smaller network of geographically closer cities. In the case of attracting financial flows, the city has to direct its energy to attracting businesses, new economic activities and the headquarters of large companies or international institutions. It has to create an adequate and attractive environment in which these companies and institutions can develop, as well as the best possible living conditions for their employees.

The study carried out annually since the beginning of the 1990s1 by Cushman & Wakefield Healey & Baker establishes a ranking for European cities based on a survey of the main European companies. The report2 identifies a combination of key factors for businesses when it comes to choosing between locating in one city or another.

These factors, in order of importance given in the latest report, are:

· Availability of qualified personnel.

· Easy access to markets, suppliers and clients.

· Transport connections with other cities and at an international level.

· Telecommunication services.

· The environment created by governments for economic activity and the availability of financial incentives.

· Labour costs.

· Cost of office space.

· Availability of office space.

· Ease of movement within the city.

· Languages spoken.

· Quality of life for employees.

· Environmental quality.

As we will demonstrate in the following chapters, Valencia combines suitable conditions for the reinforcement of its position as a vital economic centre in the European Mediterranean Arc, the area with the highest capacity for economic development in the EC. These factors have not only been coming into existence in the city of Valencia over a period of several years3, they have now been reinforced and are laying foundations which form the basis of many projects that will ensure their existence in the future. Valencia is a city characterised by its dynamism, as much on an economic as on cultural, urban and social levels. The transformation process of recent years has made it a reference point in the international panorama. The most visible evidence for this is the growing number of visitors and tourists who come as proof of and to discover these changes. The Cushman &Wakefield Healey & Baker report itself points out that Valencia is about to become one of the 30 major cities of the European continent, and 11% of the 506 companies consulted have included Valencia in their plans for future expansion (on the 2006 horizon). This puts Valencia ahead of cities such as Seville, Bilbao, Strasburg, Stuttgart, Oporto, Marseilles or Birmingham.

Throughout, Valencia is A City for Investment, for Visiting, and for LIVING IN