overview of the latest trends in investment promotion hugues de cibon oco global, paris belgrade,...
TRANSCRIPT
Overview of the
latest trends in
Investment promotion
Hugues de Cibon
OCO Global, Paris
Belgrade, March 2015
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FDI will not be the same again andneither will the organisationsmandated to attract investment– Fragmented market
– Sectors, sources and modes ofinvestment are changing
– Smaller and specialised projects
– Decreased appetite for risk
– More intense competition forthese projects
EDOs & IPAs need to revisit strategy, targets and ways of engagement in the new landscape
Summary
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Implications
FDI
Market
Specific
Competitive
Advantages
Strategy Organisation Marketing
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Segment choice – a strategic step
Automotive Energy Agrofood ICT …
HQ / Regional HQ
R&D ?
Design
Components manufacturing ?
Systems manufacturing ?
Integration / Assembly ? ?
Logistic
Service centers
Back-offi ces
…
Sectors
Functions
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Segments choices have to be based on :
Full understanding of the value chain
Good knowledge of companies requirements
Awarness of my competitive position for each key factor
Market potential
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Objectives– quantity (capex, jobs…) vs.
quality (added value, impact…)
Targets– countries – brIC…,
– sectors – "hybrid" sectors…,
– activities – data centres, training centres, KPO…,
– companies – strategic companies, key accounts, start up
– Talents, Financing (VC), Support services,"Global References"…
Performance measurement– productivity
Strategy
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Processes – and Services– setting-up:
• "strategic projects" vs. "fast-track",
• "soft landing" / “welcome package"
– alternative forms of FDI:
• M&A
• scientific collaborations
Partnerships – with partners who can provide specialist content and expertise…
and who have a stake in the outcomes
Outsourcing
Organisation
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Pipeline qualification andstrategic company assessment– business intelligence
Message:– "solutions":
• tailor made information package, benchmarking, simulations, testimonials, case studies…,
Channels:– social media
Marketing
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Merge with innovation support organisations Merge with trade organisations Stronger commitment with local companies and sector
organisations Innovative marketing to face stronger competition Partnership with local clusters More attention given to entrepreneurs, talents, …
Trends in IPA observed
An overview of the Balkan IPOs
• Albania• Bosnia-Herzegovina • Bulgaria• Croatia• Kosovo * (under UN Security
Resolution 1244) • Former Yugoslav Republic of
Macedonia• Montenegro• Serbia• Slovenia
1995-2000 2001-2005 2006-2010 No information
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3
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Year of Creation
Years
N° o
f IPA
s cr
eate
d
No specific peak in the creation of the investment promotion organisations (IPOs) surveyed
…but some have been restructured and transferred to Governmental bodies/Ministries or merged with other economic development organisations
Year of Creation
11%
22%
33%
33%
Budget
Less than €500,000
Between €500,000 and €1M
Between €1M and €5M
No information
Structure
Most of the IPOs have limited budget and human resource in respect to the cost of doing investment promotion internationally and compared to their competitors of other regions
Public89%
Public-Private11%
Funding
Structure
FDI44%
FDI+Trade22%
FDI+Trade+SMEs
11%
FDI+Trade+SMEs+Innovation
22%
Type of Missions 45% of the IPOs dedicate their efforts
exclusively to investment promotion
The remaining 55% offer complementary services such as:
Trade (export) SMEs support Innovation & Technology transfer Financing/Public Private Partnership
…following a global trend based on both strategic (synergy between economic development missions and tools) and tactical (budget) considerations
Targeting
Most of the IPAs claim to work on: 7 to 10 “strategic” sectors … which is a high number of projects for
agencies which have limited budget and staff
The most common sectors are: ICT Automotive Metals & Machinery Agri-food Textile Logistics
Limited interest for BPO and Pharma
No information11%
1 to 4 sectors11%
5 to 9 sectors56%
10 and more22%
Sectors Targeting
Targeting
Auto Metals
Agro-food
Wood Textile
Pharma
Energy
Logis-tics
Electronics
ICT BPO & SSC
Tou-rism
Others
Slovenia
Croatia
Serbia
Montenegro
Bosnia-Herz.
Albania
Kosovo*
FYROM**
Bulgaria
** Former Yugoslav Republic of Macedonia* Kosovo (under UN Security Resolution 1244)
Structure
Three of the nine IPOs that were researched had offices overseas
Nevertheless, these representations also have multiple functions such as trade and are not 100% focused on FDI.
The countries for international representation remain in the European region
Other countries covered are: USA China, Turkey and Russia
The IPA with the largest number of representation abroad is Former Yugoslav Republic of Macedonia
with around 18 points of contact abroad, covering 22 countries
Yes33%
No67%
International Offices
Communication
Almost all the agencies provide detailed sector information.
Most of the IPAs include success cases or testimonials as one of their selling strategies
About 45% of the agencies have designed interactive tools for cost/site selection simulation
Sucess cases Interactive tools Detailed sector info.
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Website Information
Yes Partial No
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Hugues de Cibon
Deputy Director,Paris
T: +33 (0)1 43 87 56 40
OCO Global Ltd (Head office)
6 Citylink Business Park - Durham St.
Belfast BT12 4HB, Northern Ireland
OCO Global (Europe)
12, Rue de la Chaussée d’Anjou
75009 Paris, France
OCO Global (North America)
45 Broadway – 21st FloorNew York, NY 10006, USA
OCO Global (UK)
36-38 Whitefriars Street
London, EC4Y 8BH, United-Kingdom
OCO Global (Asia)
East Tower 4th Floor – Otemachi First Square – 1-5-1 Otemachi, Chiyoda-KuTokyo 100-0004, Japan
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« Strategic target company » – UKTI
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« Proposition » – Kansas City, MO
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Co-branding – IDA Ireland
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Welcome package – BIE Bruxelles &Recruiting Package – Berlin Partner
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BDD & Mapping – ProMexico & UKTI
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Dedicated incubator (/per geography) –AWEX Wallonia
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Support services – Invest in Finland
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EDO/IPA Positioning – ITD Hungary
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Webinars – SDI Scotland
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Social media – Enterprise Florida
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Apps – Berlin Partner