HBH - PLI presentation for London Event March 2017...Source:(IBM,PLI(GLT(February(2017...
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IBMPlant Location International Helsinki Business Hub Business case for Asian companies
Transcript of HBH - PLI presentation for London Event March 2017...Source:(IBM,PLI(GLT(February(2017...
IBM-‐Plant Location International
Helsinki Business Hub Business case for Asian companies
§ IBM’s global Center of Competence forglobal location strategies and economicdevelopment
§ Analyzing international businesslocations to understand the locations’competitiveness from an investorperspective
§ Across all geographies, industries, andbusiness functions
§ Thought leader in understandingglobalization, investment flows andindustry trends
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Introduction to IBM-‐Plant Location International
Global Location Trends databaseproviding insights into the latest trends incorporate location selection
Projects from Asian companies into Europe have been steadily increasing
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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150
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Jobs ProjectsJobsProjects
Source: IBM-‐PLI GLT February 2017
5 countries generate 90% of FDI jobs from Asia into EuropeChinese & Indian more predominant in past 5 years
4 Source: IBM-‐PLI GLT February 2017
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2015 2015
Main Asian investors into Europe(by estimated job creation 2003 – 2015)
OtherTaiwanIndiaChinaSouth KoreaJapan
Smarter Cities discussion
0 200 400 600 800 1 000 1 200
United KingdomGermany
NetherlandsFrance
BelgiumRussiaTurkeySpain
DenmarkCzech Republic
PolandHungarySwedenFinland
RomaniaSlovakia
SwitzerlandItaly
IrelandSerbia
Top destinations of FDI from Asia Pacific into Europe(by FDI projects 2011 – H1 2016)
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Next to large markets, Finland also is among the top 20
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Source: IBM-‐PLI GLT February 2017
Smarter Cities discussion 6
Value of jobs created in Finland is high
Source: IBM-‐PLI GLT February 2017
6,15,7 5,6 5,5 5,3
5,1 5,1 5,1 5,0 4,9 4,8 4,8 4,6 4,6 4,5
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Top ranking countries in Western Europe by average job value of investment projects
(2003 – H1 2016)
4.8World average
Note: Countries with less than 30 projects were not assessed because of sample size
Smarter Cities discussion 7
Helsinki is a key destination for ICT related R&D activities
From Greater China From India From South Korea
1 Istanbul London Paris2 Paris Budapest London3 Stockholm Madrid Warsaw4 Koln-‐Dusseldorf Dublin Koln-‐Dusseldorf5 London A’dam-‐Rotterdam Helsinki6 Minsk Frankfurt Moscow7 Vilnius Tallinn Dortmund-‐Duisburg8 Berlin Helsinki Kiev9 Helsinki Munich Frankfurt10 Budapest Koln-‐Dusseldorf Brussels-‐Antwerp
Top European destinations for Asian FDI in ICT related R&D
(by jobs, 2003-‐2015)
Source: IBM-‐PLI GLT February 2016
Smarter Cities discussion 8
Helsinki’s competitive position for digital innovationExample case: High-‐end ICT R&D from Greater China
IBM-‐PLI’s benchmarking approach § simulates corporate location selection§ assesses the trade-‐off between cost and quality
§ project specific§ determines overall value proposition and pros and cons
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Profile of realistic investment project
Smarter Cities discussion 9
Key drivers for investmentExample case: High-‐end ICT R&D from Greater China
§ Critical location drivers:– market access– relevant skills– industry presence– technology gains
§ Other factors that influence investment decisions of companies from Greater China:– strategic / acquisition partners– synergies– track record
§ Elements that relate to the living environment:– Chinese community– educational opportunities– work and residence permits
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Key location drivers
Main outcomes of competitive positioningExample case: High-‐end ICT R&D from Greater China
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Best value proposition
Helsinki’s value proposition
Compelling proposition to attract high-‐end ICT related R&D activities, combining a matureand specialized R&D cluster in a strong overall operating environment at cost levels that are competitive within the Northern European context
Suitability of overall operating environment High score = best
Net Present Value of operating costs of running a high-‐end ICT R&D center, discounted over a 10-‐year period. Low NPV = low operating cost = more financially attractive
Confirmed strengths
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Main competitive strengths
§ Skill concentration in high-‐tech sectors, ICT, research, engineering § Specialized & innovative R&D base§ Strong patenting activity§ Focus on IP protection
§ High share of engineering students§ Well reputed science and math education§ Acceptable competition for similar skill profiles
§ Well developed highly reliable IT & telco§ Appealing and safe living environment § Good direct air connections to major Greater Chinese cities § Growing interest from Chinese travelers§ In process of improving visa policies for Chinese travelers
§ Cost saving potential compared to Northwestern European cities§ Relatively low corporate income tax rate
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IBM -‐ Plant Location International (PLI)Global Location StrategiesA service of IBM Global Business Services Web-‐site: www.ibm.com/gbs/pli
Patsy VAN HOVESenior Manager+32 475 91 57 [email protected]
