Alicante vs Valencia: AVI funding and regional innovation dynamics in 2022

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The Valencia Innovation Agency, a Public Law body tied to the Generalitat, allocated the subsidies planned for the 2022 fiscal year to support R&D efforts within the regional framework. The total budget dedicated to funding innovation projects has surpassed 47 million euros. In this round, the Alicante province will receive 16% more funds than last year. In total, 9.7 million euros will be distributed among companies, universities, research institutions, non-profit associations, and local organizations. This pattern reflects a strategy to strengthen the regional production model through a sustaining organization, overseen by Vice-President Andres Garcia Reche, who is perceived as continuing to favor the Valencia region. In the end, Alicante receives only about one-fifth of the funds available.

AVI 2022 Information

The criticism sparked by the controversial outcome of the 2021 edition, along with perceived attempts by the Director, chaired by Ximo Puig, to boost the volume of projects submitted from Alicante, did not reverse the pattern. The distribution of funds remains markedly unbalanced. Institutions, organizations, and universities based in Valencia receive more than three times the subsidies allocated to the province of Alicante, accounting for 66% of the total budget.

The overall balance is not a novelty, yet this time it unfolds amid a harsher economic climate and an energy crisis that underscores the need to accelerate innovative capacity to drive efficiency-based, sustainable growth. As a result, equal access to opportunities for competition and for advancing research activities remains an aspirational goal for Alicante.

Josefina Bueno: “If adjustments are needed so AVI avoids regional imbalances, they will be made”

An analysis of data on aid programs supported by AVI, based on information from the Generalitat, shows that Alicante province accounts for only 20% of the total funds managed by Garcia Reche for four key programs: strengthening the business value chain, collaboratively evaluating and transferring strategic projects, and disseminating research results to companies. The province receives 9.7 million euros, while Valencia secures more than three times as much. Castellón receives 4.3 million euros.

The figures become even starker when considering the overall pool (about 43.54 million euros) and the fact that only 16.8% of total resources (8.81 million euros) go to projects created in Alicante, compared with 83.2% concentrated in Valencia and Castellón. It is worth noting that the total planned assistance remains higher overall. In 2021, 52.3 million euros were available, while this year’s funding stands at 47 million. Despite the smaller share, Alicante did receive more assistance in this call, though the disparity persists. The data suggest that one in five euros is insufficient to meaningfully impact regional GDP and support SMEs, a pillar of the local economy.

competition compliance

The AVI’s official stance has not changed: project allocation is driven by competitive processes, not by regional quotas. Controversies tied to recent reprimands, which even involved prominent rectors and renowned researchers, prompted the ministry to scrutinize the issue. The lower intake of funds in Alicante has been attributed to fewer project submissions relative to Valencia. In one program, specifically the evaluation and transfer of research results to companies, Alicante’s share was noticeably smaller than what regional proposals would suggest.

To address this, a two-pronged approach was launched: first, disseminating the call through a broad information campaign, meetings with academic institutions and scientific staff, and coaching on how to present projects that align with AVI’s objectives; second, advancing the creation of scientific business innovation units, a framework that connects university research institutes with industry to streamline the transfer of results to the market. At the start of this year, progress was evident, yet the numbers remain stubborn. Four out of every five euros managed by AVI continue to flow outside the province, casting doubt on the overall success.

Innovation invests 25% of the funds in Alicante and 68% in Valencia for scientific transfer

With 47 million euros in subsidies for the year, a total of 215 projects across 163 institutions are being supported. By beneficiary type, companies receive the largest share at 57% of the total; universities account for 20%; and technological institutes and research centers each receive 7%.

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