Lessons Learned from PIPE Experience

PIPE

Sto

ry (

1997

– 2

013)

September 2014

PIPE Story

ProgramaIniciaciónPromociónExterior

A SuccessStory

17 YEARS!!!!!

PIPE Program

Starting Goal

2.000 New exporting companies in 4 years (in 1997)

Achieved Goal

7.600 new exporters by year 2013(+400 still in process at that time)

PIPE Main Aspects

Main Ingredients

(Support for the initial export process: Two Years)

1 Process Methodology

2 Consultant + Mentoring help

3 Initial expenses grants

4 Integrated approach

Main early Problem to Solve

Three Main Public Institutions

Public Institutions Coordination

Chambres of Commerce Network

Regional Goverments

CentralGoverments

+ European Funds (Regional Development Founds) only for 10 out of 17 Reg.

Further Objectives

1 Getting the Institutions Closer (to the SMEs)

2 Training Public Bodies Personnel as helping aid for SMEs upgrade

3 Training new Initial Export Professionals

4 Inserting them in Local environments

5 Generate Jobs and wealth in the Region

PIPE outcomes

1 More than 8.000 companies helped in the export process

2 More than 500 Public Institution Technicians trained

3 More than 400 export trade consultants involved in the Program

4 4.000 young trainers as “Helping Hands” in export process

+ 17 years of Institutions Cooperation

Methodology Core Elements

1 “Starting Point” Diagnosis

2 Company Strategy Analysis

3 Export Potential Diagnosis

4 Main Global Choices

5 Export Strategy

6 Export Operation Steps

But….

1 High public cost for the Program

2 Only valid for one off Export effort

3 After Process Export Continuity

4 Lack of sufficient size for many SMEs

5 Program entry conditions not homogeneous

6 Need to design a formula for smaller companies

DIFASS APPROACH

A Sweden (Borlänge Teknikdalen)

B Italy (Regione Autonoma de Sardegna)

Pilot Program

Teknikdalen

Internal Workshop

Export Potential Diagnosis transfer

Pilot Program

Sardegna

Three Steps

1 Internal WorkshopTraining and transfer (export potential diagnosis)

2Pilot Program ConclusionsInstitutional PresentationsExport Program design options

3 European Funds Export Program Proposal (ERDP Funds)

The ProposalFour Years Regional Export Program

(based on European Regional Development Funds)

Main Goals and Obstacles

Agriculture and Tourism SMEs

should be Covered

Reduced Size SMEs

Export Help Private

Infrastructure is very limited

Materials and Methodology to be

AdaptedExport grouping is needed New Professionals

Training + Networking

The Proposal

Three Methodolies to be used (based in PIPE Standards)

Export Potential DiagnosisExport Groups Setting upExport first steps Operating Support (through young trained graduates)

Main Goals

100 Companies assisted (individually)36 Companies assisted in 6 export groupsIndividual Export Grants of 6.000 €/company20 Young Local graduates trained10 Institutional Professionals trained

Total Costs

2 M Euros (after 0,4 M Companies cofinancing)

Of which:

Young Local Graduates ……………………..………….. 880

Local Consultant …………………………………………… 192

Companies Grant …………………………………………… 864

EXPERTISE

+ EXPERIENCE

+ ADAPTATION

= GOOD RESULT WITH MINIMUM RISKS

Thank You!! Jesus Albizu - AVU (Spain)