Internationalization of Territories & SME · 2019-07-02 · • Italian Embassy - Investment &...

Internationalization of Territories & SMEHow to find the right balance

FDI Excellence Series

SMEs and Territories attractiveness and competitiveness: which strategies and policies?, MARCH 13, 2019

© FDI CONSULTING SERVICES GMBH (UNLESS OTHERWISE ATTRIBUTED)

NICE TO MEET YOU – Luigi Mercuri

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• Active in the Trade Promotion and FDI attraction field since 2010

• Languages: English, German, French, Spanish and Italian

• Lived in: Italy, USA, Belgium, Germany and South Korea

Corporate Business Development & Strategy:

• Central Financial Risk Agency – CRIF, Groupon Worldwide, MES Group

Investment & Trade – relevant past organizations:

• Italian Embassy - Investment & Trade Attraction Agency (ITA) - Berlin, Germany

• German/Korean Chamber of Commerce KGCCI - Seoul, South Korea

• Italian Institute for the Mediterranean, Middle East and Asia, ISIAMED – Rome, Italy

Selection of relevant FDI attraction clients and references:

• US State of North Carolina

• Governmental Business Parks in China

• Belgium

• EU Commission

Practice areas:

• FDI and Investment attraction strategy

• Lead generation & business development

• Market entry and site selection

• Corporate & Institutional relations



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Korean German Chamber of

Commerce - KGCCI

Italian Trade & Promotion

Agency - ITA

Italian Institute for Asia & the

Mediterranean - ISIAMED

Conway – FDI & Corporate

Expansion


Foreign Direct Investment Center

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Key Competences


F D I C E N T E R :

FDI Center is a specialized advisory firm in the field of foreign direct investment. We are entirely focused on helping governments, investment promotion agencies and industrial parks to

attract investment. We work with countries, regions, cities, special economic zones and industrial parks from around the world to develop and implement successful strategies and

approaches for attracting and retaining investment.

We know how intensely locations compete to attract investment and we understand what makes a location attractive for foreign investors and the important role that investment promotion

agencies play in this competitive environment.

We focus on the practical aspects of investment attraction that directly impact our clients’ day-to-day activities and performance. Our support addresses the most important activities of

investment promotion agencies and helps our clients to attract investment more efficiently and successfully.

Founded in 2017 in Berlin, FDI Center is rapidly becoming one of the main sources of practical knowledge and advice related to FDI. FDI Center’s founder Andreas Dressler is one of the most

experienced advisors in the field of direct investment. We continue to add experienced professionals to our team to provide the highest level of service and help our clients successfully

attract investment. Based in Berlin, Germany, we work with investment promotion and economic development agencies from around the world. The following pages provide an overview of

some of our team’s recent experience.


W E C A N H E L P YO U BY:

• Developing comprehensive and practical strategies for investment attraction, aftercare and facilitation;

• Assessing the performance of your agency and benchmarking with competitors and best practices;

• Developing and implementing marketing and promotional initiatives;

• Creating the optimal structure and processes for establishing a new investment promotion agency or restructuring an existing agency;

• Providing practical training, capacity development and coaching to your organization’s team and partners;

• Determining staff profiles and requirements and helping to recruit qualified personnel.


FDI CENTER

STRATEGY

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FDI CENTER EXPERIENCE © FDI CONSULTING SERVICES GMBH

BENCHMARKING

TRAINING

ORGANIZATION

MARKETINGRECRUITING

The FDI Center provides practical support with key aspects of foreign

investment attraction. We can help you improve your performance and

achieve results in the following areas:

© FDI CONSULTING SERVICES GMBH (UNLESS OTHERWISE ATTRIBUTED) 8

BACKGROUND & COMPETENCES: WHO WE INTERACT WITH

BUSINESS PARKS & FREE TRADE ZONES

Business, Industry & Research Parks and Free Trade Zones distributed worldwide

INVESTMENT ATTRACTION & PROMOTION AGENCIES

On a local, municipal, regional and national level, worldwide

CORPORATES & SMEs

Companies active in a wide selection of segments, belonging to the manufacturing,

R&D and service sectors

INTERNATIONAL & MULTILATERAL ORGANIZATIONS

Economic Development Banks, Global Institutions, UN Agencies, EU Institutions,

Trade Organizations and Associations

INVESTORS & FUNDS

Investment and financial players active in the field of M&A operations and FDI

NATIONAL INSTITUTIONS

Economic Development and Trade Ministries, Ministries of Foreign Affairs, National

Committees, Industrial Policy Institutions, National Banks and Governments


PORTFOLIO & PARTNERS

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Clients & Past Projects


INVESTMENT ATTRACTION STRATEGY and RELATED PROJECTS –EXAMPLES IN EUROPE

10FDI CENTER EXPERIENCE © FDI CONSULTING SERVICES GMBH


INVESTMENT ATTRACTION STRATEGY and RELATED PROJECTS –EXAMPLES WORDWIDE

11FDI CENTER EXPERIENCE © FDI CONSULTING SERVICES GMBH


INVESTMENT ATTRACTION STRATEGY and RELATED PROJECTS –EXAMPLES

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DATE* CLIENT DESCRIPTION

Ongoing Amsterdam inbusiness (Netherlands) Developing a new investment attraction strategy for the Amsterdam area

2018 Landsvirkjun (national power company of Iceland) Development of a strategy for attracting energy-intensive investment to Iceland

2018 NSW Department of Industry (Australia)Analysis of the potential for applying existing training and workforce development

programs in NSW to investment attraction

2018 Business Finland Assessment of alternatives for a new investment attraction office in the US

2018 Business Finland Evaluation of the agency’s role in attracting high value investment to Finland

2016 Landsvirkjun (national power company of Iceland) Development of a strategy for attracting investment related to geothermal energy

2015 State Government of Victoria (Australia) Review of worldwide investment attraction agency best practices

2015 North Dakota Department of Commerce (USA) Development of a foreign direct investment attraction strategy for North Dakota

2015 Invest Canberra (Australia) Development of an investment facilitation framework for Invest Canberra

2014 Copenhagen Capacity (Denmark) Development of a new approach for attracting foreign investment to Copenhagen

2014 Panama Pacifico Development of an investment attraction strategy for Latin America’s largest FTZ

2013/14 Catalonia Trade & Investment (Spain) Development of a new investment attraction strategy for the region of Catalonia


*Projects prior to 2018 were conducted by Andreas Dressler with his previous company. Following his sale of this company, Andreas Dressler was unable to work in 2017 due to a non-compete agreement.


TRAINING EXPERIENCE – RECENT EXAMPLES

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DATE CLIENT LOCATION DESCRIPTION

Dec 2018 Innovation Quarter (IPA for West Holland) The Hague 1-day workshop on investor development and aftercare

Nov 2018 New South Wales Department of Industry Sydney 2-day investment attraction training

Nov 2018 New South Wales Office of Regional Economic Development Sydney1½-day investment fundamentals training for local

councils

Nov 2018 Western Sydney Investment Attraction Office Sydney 1-day investment attraction training

June 2018 State Government of Victoria – Americas team New York 2-day investment attraction training

May 2018 State Government of Victoria Melbourne 1-day workshop on investor development and aftercare

May 2018 Austrade Brisbane 4-day “Winning Investment for Australia” training

May 2018 NSW Trade & Investment Sydney 1½-day investment attraction training

May 2018Western Australia Department of Primary Industries and

Regional DevelopmentPerth 2-day investment attraction training

April 2018 Hungarian Investment Promotion Agency Budapest 2 full-day investment attraction workshops

Feb 2018 Invest in Sharjah, UAE Sharjah 1-day training on FDI attraction and trends

Dec 2017 Investment Attraction South Australia Adelaide 3-day investment attraction training

Dec 2017 Invest Victoria Melbourne 1-day investor development training

Dec 2017 Austrade Melbourne 4-day “Winning Investment for Australia” training

Oct 2017 Dubai FDI Dubai1-day investment attraction workshop for staff and

partners



TOPICS

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• Current FDI trends

• Cooperation initiatives across regions & territories

• Supporting SMEs in their internationalization processes


CURRENT FDI TRENDS

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GLOBAL FDI FLOWS ARE FALLING

0

500 000

1 000 000

1 500 000

2 000 000

2 500 000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

16

Global FDI flows (billions of US Dollars)

Source: UNCTAD


GLOBAL FDI FLOWS ARE FALLING

17

Global FDI flows 2005-2018 (billions of US Dollars)

Source: UNCTAD

0

500000

1000000

1500000

2000000

2500000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 proj.

World Developed economies Developing economies


THE US WAS THE TOP DESTINATION FOR FDI

18

FDI inflows 2017 (billions of US Dollars)

Source: UNCTAD

0 50 100 150 200 250 300

US

China

Hong Kong (China)

Brazil

Singapore

Netherlands

France

Australia

Switzerland

India


THE US REMAINS THE LARGEST SOURCE OF FDI

19

FDI outflows 2017 (billions of US Dollars), % change since 2007

Source: UNCTAD

0 50 100 150 200 250 300 350 400

US

Japan

China

UK

Hong Kong (China)

Germany

Canada

France

Spain

Russia

-13%

118%

370%

-70%

29%

-51%

19%

-47%

-70%

-18%


THE NUMBER OF GREENFIELD PROJECTS IS STABLE

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Estimated number of greenfield projects 2005-2017

Source: UNCTAD based on fDi Markets

-

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

20 000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

World Developed economies Developing economies


BUSINESS SERVICES PROJECTS HAVE INCREASED

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Top sectors by estimated number of greenfield projects in 2007 and 2017


0 500 1000 1500 2000 2500 3000 3500 4000 4500

Business services

Textiles, clothing and leather

Motor vehicles and other transport equipment

Trade

Electrical and electronic equipment

Machinery and equipment

Transport, storage and communications

Finance

Chemicals and chemical products

Food, beverages and tobacco

2017 2007


PROJECTS IN DEVELOPING COUNTRIES ARE GETTING LARGER

22

Average investment per project, 2005-2017 (millions of US Dollars) and linear trend


0

20

40

60

80

100

120

140

160

180

200

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

World Developed economies Developing economies Linear (World) Linear (Developed economies) Linear (Developing economies)


INVESTMENT DRIVERS

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“BAD NEWS” IS INCREASING

GM Offers Buyouts to 18,000 Workers, Months After Warning About Layoffs

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October 31, 2018

Daimler Drops to Five-Year Low After Second 2018 Profit Warning October 19 2018

Pfizer announces worldwide job cuts as part of restructure October 18, 2018

Ford Prepares for Mass Layoffs After Losing $1 Billion to Trump's Trade Tariffs October 10, 2018

GE chief executive departs amid profit warning October 1, 2018

Campbell Soup Co CEO resigns as company posts profit warning May 18, 2018

Lego reports first sales fall in 13 years, saying 'there is no quick fix' March 6, 2018


COMPANIES ARE REINVENTING THEMSELVES

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“The BMW Group's Autonomous Driving Campus

outside of Munich is a ground-breaking

development facility that showcases the BMW

Group’s transformation into a tech company.”



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“This digital transformation is in full swing at

Mercedes-Benz. We are transitioning from car

manufacturer to networked mobility service

provider…”



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“The Wal-Mart brand is at the center of a new

ecosystem which integrates shopping, services,

health and wellness, and first party and marketplace

e-comm…”


TECHNOLOGY IS CHANGING HOW GOODS ARE SOLD…

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To bolster e-commerce push, Walmart increases investment in logistics

September 11, 2018

Walmart is making a major push to boost its logistics network as it grows

its e-commerce and delivery capabilities.

The company reportedly will double its spending on attracting new truck

drivers, a move to ensure quick movement of items from distribution

centers to physical stores that serve in-person as well as e-commerce

customers.

Walmart has been making major investments in improving its supply chain

through its acquisition of last-mile delivery company Parcel last year and

e-commerce startup Jet.com the year before. Last week, it began an in-

house last-mile delivery pilot. Building up driver capacity helps the

company build up its logistics arsenal to more effectively compete with

Amazon...

Walmart's grocery warehouse worker of the future will have a STEM background

October 18, 2018

As the grocery arms race in the U.S. continues to heat up, Walmart

(WMT), the world’s largest retailer, is betting on a new high-tech

distribution center that will rely on STEM workers and tech systems to

move more product to store shelves.

Walmart will soon break ground on a distribution center in Shafter,

California, that will deploy Witron technology. This technology uses

automation to store and retrieve grocery items such as produce, eggs,

dairy, and frozen goods to build pallets while associates work alongside the

system. The facility will begin operating in the fall of 2020 and will

support 200 stores.

Chinese ecommerce giant shows off its first ever ‘robot warehouse’

September 6, 2017

A Chinese tech giant has opened its first fully automated sorting center

where robots and machines handle 9,000 online shopping orders per hour –

with hardly a human in sight.

The brand-new facility, run by Alibaba arch-rival JD, does the work that

would normally be done by 180 human sorters.

JD, which differentiates itself from Alibaba, China’s top ecommerce

company, by being more like Amazon in supplying and handling many of

its orders, employs 17,540 people at its other warehouses.


…AND IS CHANGING HOW GOODS ARE PRODUCED

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Bosch plans smart plant for electronic components

April 17, 2018

Bosch, a leading global provider of technology and services, is investing

100 million euros (120 million U.S. dollars) in a new plant in Celaya. The

company plans to build a new smart factory for electronic components in

the central Mexican city by 2020.

“We are planning to make the new manufacturing facility in Celaya a

smart factory with state-of-the-art, intelligent production lines,” Hartung

said. For example, the plant will employ a manufacturing execution system

(MES), which automatically collects data and shares production

information in real time. This makes possible both preventive maintenance

of machinery and higher product quality. The system also digitally

connects the plant to the Bosch Group’s global manufacturing network.

“By mid-2019, manufacturing at nearly all Bosch plants in Mexico will be

equipped with our intelligent control system,” said René Schlegel,

president of the Bosch Group in Mexico.

Siemens to invest £27m in new 3D-printing factory

March 19, 2018

The new building, set to open in September 2018, will enable it to increase

its fleet of 3D printing machines from 15 to 50 over the next five years.

It represents a major investment by Siemens in this rapidly advancing and

innovative technology. The new factory will be fully powered by Siemens

Digital Enterprise technologies solutions, an end-to-end portfolio

comprising software-based systems and automation components which

cover every conceivable requirement arising along the industrial value

chain and therefore harness the potential of digitalisation.

The expansion of the business is also expected to support the creation of

around 55 high quality new jobs, increasing Materials Solutions’ team of

world class engineers, metallurgists and manufacturing specialists to 80 –

and making it a global centre of excellence within the Additive

Manufacturing sector.

Industrial robot plant starts production in East China

January 22, 2018

Estun Automation, a leading Chinese manufacturer of automation

products, has started production of industrial robots in its new plant in the

eastern Chinese city of Nanjing.

It is estimated that the new plant will have an annual production capacity

of 9,000 industrial robots and pieces of equipment.

The plant, co-designed by Estun and German manufacturer Bosch Rexroth,

is a cooperation project between China and Germany on smart

manufacturing, according to Estun.

The robot industry has been listed as a key development area in the

country's "Made in China 2025" strategy, which aims to upgrade the

country's manufacturing sector.

China is the biggest market for industrial robots in the world, accounting

for about one-third of the global demand.

Foxconn plots $4bn automation push as labor costs bite

February 24, 2018

The world's largest contract electronics manufacturer, better known as

Foxconn Technology Group, has been hit hard by production cuts and

other issues surrounding Apple's iPhone X as well as surging labor costs,

imperiling prospects for a seventh straight year of record profits.

"If we can't change, we'll be left behind," Chairman Terry Gou warned at a

celebration Sunday marking the end of the lunar year. "The next three

years will be decisive. Our old formula for success will be shaken up."

These investments include plans to set up a network for controlling

unmanned production facilities and a processing center for manufacturing

data at Foxconn's main hub in Shenzhen. Six plants across China that are

already fully automated will be expanded and upgraded.


DEMAND FOR NEW DATA CENTERS CONTINUES TO GROW

30

Number of hyperscale datacenters worldwide, 2015-2021

Source: Synergy Research Group

338

386

448

509

570

628

2016 2017 2018 2019 2020 2021


CHINA HAS TRIGGERED A GLOBAL ELECTRIC VEHICLE BOOM

31

16 Volkswagen Plants to Produce Electric Cars by 2022

March 14, 2018

Since the diesel-engine scandal that shook the automotive industry in

September 2015, the Volkswagen has been steadily moving towards

greater electrification of its fleet. In fact, the company is in what amounts

to a fight to the finish with several competitors to become the industry

leader in electric mobility.

The details VW provided this week concerning its ambitious electrification

plan is an integral part of that fight. The auto giant announced it plans to

refurbish no fewer than 16 of its assembly plants around the world to

render them capable of producing electric vehicles by 2022.

Currently, the Volkswagen Group produces electric vehicles at three of its

plants. The first phase of the Roadmap E plan calls for the refurbishing of

nine facilities to permit assembly of electric models; work on this phase is

set to be completed by 2020.

China's CATL to build its first European EV battery factory in Germany

July 9, 2018

Chinese battery maker Contemporary Amperex Technology Ltd (CATL)

will build its first production site in Europe in Germany, agreeing a major

contract with BMW to supply lithium-ion batteries.

A contract to build the new plant was signed on Monday during a visit to

Germany by China’s Premier Li Keqiang.

Around 240 million euros ($280 million) will be invested in the first phase

of the project, Wolfgang Tiefensee, Thuringia’s minister of economic

affairs, told journalists.

Australia on cusp of new mining boom, driven by electric vehicles

May 22, 2018

Australia might be in the slow lane on electric vehicle uptake, but it is in

pole position to capitalise on the new mining boom in lithium and other

high value metals and minerals that is being driven by the global shift to

EVs.

A new report from Bloomberg New Energy Finance has forecast that

demand for copper, high-purity nickel, cobalt and lithium used in the

manufacture of EV battery packs is forecast to rise 31 times, 42 times, 19

times and 29 times respectively to 2030, as sales of EVs soar to 30 million

by 2030.

“Australia sits on top of vast reserves of almost all these metals, so there is

a huge opportunity for our resources sector.


TECHNOLOGY IS TRANSFORMING AGRICULTURE…

32

Bosch Australia teams with Monash University to create ag-tech facility

November 30, 2017

ELECTRONICS giant Bosch Australia will team up with Monash

University to establish an ag-tech facility in Melbourne’s southeast.

The centre will occupy one hectare at Bosch’s headquarters in Clayton and

will operate as an ag-tech launch pad and development centre.

The centre will house a prototypical “smart farm” to include cropping

trials and early-stage prototype development, enabling the use of artificial

intelligence, automation, robotics and advanced sensor technology.

Inocucor closes Series B round at $50.9 mln, opens Denver HQ

January 8, 2018

Inocucor Corp, a developer of biological inputs for high-value produce and

row crops, has raised an additional $12.1 million (US$9.5 million) for its

Series B financing.

It brings the total value of the round, initially closed last year, to $50.9

million (US$38.5 million). Founded in 2007 in Montréal, Inocucor has

with the Series B opened a new headquarters in Denver, Colorado. It will

use the funds raised for the opening, a new production facility,

commercialization of two biostimulants, and development of biocontrol

products.

Mahindra to establish an Ag Tech Center at Virginia Tech Corporate Research Center

May 1, 2018

Mahindra & Mahindra, the world’s largest tractor manufacturer, by

volume, today announced plans to set-up a Mahindra Ag Tech Center in

the United States at Virginia Tech Corporate Research Center. This

research facility will focus on creating breakthrough technology products

for the North American agriculture market.

Mahindra & Mahindra’s Farm Equipment Sector intends to tap into the

U.S. technology ecosystem at Virginia Tech in two ways. The first is to

establish a hi-tech R&D facility at Virginia Tech Corporate Research

Center (VTCRC). The second collaboration with Virginia Tech researchers

is focused on technology projects to develop new generation farm

equipment and work on the latest in technology that envisions grape-

picking robots and tractors that communicate with GPS systems and repair

shops.


…AND THE FOOD WE CONSUME

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USD 105 million raise for sustainable feed firm

June 4, 2018

FLY-FARMER and waste-to-nutrient pioneer AgriProtein, named as one of

the UK’s 10 most disruptive businesses, has raised a further USD 105

million in funding, marking a new high in investor appetite for the insect

protein sector.

The record raise by AgriProtein Holdings UK, together with additional

local project finance for a series of factory builds in Africa, the Middle

East and Asia, puts AgriProtein on track to deliver its ambitious factory

roll-out plans.

Beyond Meat Triples Production Footprint: Increased Capacity for Growing Demand

June 28, 2018

Beyond Meat is opening a second production facility in Columbia,

Missouri to serve sustained and rapidly climbing demand

Demand for Beyond Meat's innovative plant-based products continues to

skyrocket. To serve this rapidly increasing demand, Beyond Meat has more

than tripled its manufacturing footprint from 30,000 to 100,000 sq. ft.

Located in Columbia, Missouri, the new facility will generate more than

250 new jobs in 2018.

Vegan Oat Milk Brand Oatly Opens Factory to Meet US Demand

October 15, 2018

Swedish vegan brand Oatly recently began construction on its first

production facility in the United States in Millville, NJ. The company’s

new 19,000-square-foot facility will increase its production capacity

eightfold, allowing it to maintain a constant supply to retailers and

coffeehouses nationwide.


NEW MATERIALS ARE BEING USED IN A RANGE OF INDUSTRIES

34

Teijin Breaks Ground for Carbon Fiber Facility in South Carolina

June 4, 2018

“We look forward to this new chapter of Teijin’s expansion in the U.S.,”

said Yukito Miyajima, President of TCF. “We are strengthening its global

upstream-to-downstream carbon fiber business. In particular, we have been

leveraging research and development to expand carbon fiber business in

the aircraft and automotive fields.” “Throughout this process, we looked at

multiple locations, but ultimately, with the support of Greenwood local and

state government officials, we chose Greenwood as the ideal location for

our new U.S. carbon fiber facility.”

The TCF facility is expected to create some 220 jobs with USD 600

million worth of investment around 2030. This is the largest initial capital

investment that a company has ever created in Greenwood.

Hexcel opens new carbon fiber plant in France

October 2, 2018

The new 37-acre plant is devoted to the manufacture of carbon fiber and

PAN precursor. The new site will operate in synergy with Hexcel’s

existing sites in the Auvergne-Rhone-Alpes region: Les Avenieres, the

largest carbon fiber weaving plant in Europe, and Dagneux, manufacturer

of prepreg fabrics and carbon fibers. Hexcel’s goal is to “create a global

ecosystem for the high-performance composite materials sector” covering

the entire production chain from carbon fiber to prepreg.

Hexcel has invested €200 million in the plant, which will reportedly

generate 120 direct jobs and 250 indirect positions. Hexcel’s workforce in

France has now risen to 1,200 people with more than 1,000 employees

located in the Auvergne- Rhone-Alpes region.


DEMAND FOR SKILLS IS LEADING TO SHORTAGES

35

“Spotify is pouring money into machine learning to

build algorithms tailoring music suggestions to

people’s tastes, as it tries to distinguish itself from

rivals Apple and Amazon. The company employs

more than 4,000 people globally, and research and

development currently accounts for about 40 per

cent of its new hires.”


SKILLS SHORTAGES ARE DRIVING INVESTMENT

Qualcomm sets up multimedia and AI R&D centers in Taiwan

36

September 26, 2018

Weibo launches North American AI research centre in Silicon Valley April 23, 2018

Samsung to build its third-biggest AI R&D center in Paris March 29, 2018

Continental opens center for deep machine learning in Budapest January 30, 2018

Microsoft to recruit 200 people for a new AI R&D center in Taiwan January 11, 2018

Amazon to open machine learning R&D hub in Barcelona September 7, 2017

Facebook to open new artificial intelligence lab in Montreal September 15, 2017


SKILLS SHORTAGES ARE DRIVING INVESTMENT

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Source: (ISC)² Cybersecurity Workforce Study, 2018

Forcepoint opens new center in Bengaluru, to create 200 cybersecurity jobs

November 1, 2018

Global cybersecurity firm Forcepoint has launched a new Center of

Excellence for Customer Success in Bengaluru. The all-new facility

provides Forcepoint enterprise customers with 24/7 support services

worldwide that help solve complex security challenges while accelerating

the adoption of behavior-based cybersecurity to support their business

growth and digital transformation.

The around-the-clock support operations ensure that the Bengaluru staff

can work alongside their counterparts in different regions as one virtual

team, regardless of the time of the day. This allows Forcepoint to scale up

the global support operations and allows the teams to collaborate in real

time to support customers anywhere in the world.

Acronis Opens New Office in Bulgaria, Establishing European R&D Center for Cyber Protection, AI and Blockchain

October 16, 2018

Acronis, a global leader in cyber protection and hybrid cloud solutions

currently celebrating its 15-year anniversary, has launched a new European

office and R&D center in Sofia, Bulgaria, following its earlier

announcement to invest $50 million and create 300 high-tech jobs during

the next three years. Acronis also plans to engage in joint education

projects with local universities and the local community through the

Acronis Foundation.

Honeywell inaugurates its first Asian Industrial Cybersecurity Centre in Singapore

April 26, 2018

Honeywell has opened its first industrial cyber security center of

excellence (CoE) in Asia. The center was developed with the support of

the Singapore Economic Development Board (EDB) and designed to help

defend the region’s industrial manufacturers against evolving cyber

security threats.


KEY IPA FUNCTIONS

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PROMOTION – building awareness and recognition of the location

ATTRACTION – establishing direct contact to potential investors

FACILITATION – providing support and services for potential investors

AFTERCARE – building relationships with and supporting existing investors

ADVOCACY & PRODUCT DEVELOPMENT – enhancing the quality of the location


Location marketing messages

• Economic strength

• Supportive government

policies

• An educated workforce

• Developed

infrastructure

• Vibrant business

environment

• Quality of life

• Competitive labor

costs

• Ease of operation

• Access to major

markets

• Legal certainty

• Strategic location

• Operating costs

• Infrastructure

• Natural resources

• Macroeconomic

stability

• Cultural power

• Macroeconomic

stability

• Excellent

infrastructure

• Growing FDI

• Foreign trade

• Trade agreements

• Labor market

• Land of nature –

cradle of culture

• Cost competitiveness

• Strong and stable

macroeconomic

performances

• Free trade access to

one billion consumers

• World class

infrastructure

• Qualified labor force

• Sectorial plans

• Constantly improving

business climate

Are these countries so similar?


REASONS TO INVEST

40

• Vast pool of talent

• Dynamic and

diversified economy

• Centrally located

• Outstanding quality

of life

• Regional government

open to business

• Leading-edge

universities and

research centres

• Competitive costs

• Political stability

• Business friendly

Government

• World class

infrastructure

• Effective and

efficient supply chain

• Availability of highly

skilled, multi-lingual

labour force

• Quality lifestyle

• Strategic location

• Connectivity

• World class port

• Industry clusters

• Space availability

• Workforce

• Services for

investors

• Unique position

• High quality transport

and logistics

infrastructure

• Wide selection of sites

• Opportunities for

cooperation

• Progressive

government team

• Region where it is

nice to live

• Labour quality and

availability


COOPERATION INITIATIVES – REGIONS & TERRITORIES

41

How to create synergies



42



43


Financial Multipliers

• Corporate Banks

• Internationalization Funds and Insurances

• Angel Investors, Private Equity Funds, VCs, Family Offices

Business Networks Multipliers

• Local, national and international Chambers of Commerce (unilateral, bilateral or multilateral)

• Local or national Trade Associations

Advocacy Network Multipliers

• Local or national Industry Associations

• Lobbies

• Corporate Advocacy stakeholders

Governmental Multipliers

• Embassies

• Consulates

• Ministries of Economics & Commerce (National and/or Local)

Event Managers Multipliers

• Trade Shows

• Conferences

• Summits

Industrial / R&D Multipliers

• Industry Clusters

• R&D Clusters / Associations

• Business Parks / Larger companies / Logistics Providers

Logistics Multipliers

• Air Freight Carriers

• Shipping companies

• Ports / Logistics Providers


The Triple Helix “is a model for capitalizing knowledge in order to pursue innovation.” Knowledge, particularly the kindgenerated at universities and national labs, and the processes, networks and resources that transform it into useful,commercializeable innovation are at the heart of the Triple Helix model:

The powerful combination of Academia, Industry, and Government. The premise of the Triple Helix model is that thesethree entities can and should work together to make sure ideas and knowledge generated in research institutions (many ofthem publicly funded) end up in the marketplace and drive innovation.

R&D COOPERATION – CAPTURING THE TRIPLE HELIX


Typically, corporate banking is a specialized division of a commercial bank that offers various banking solutions, such ascredit management, asset management, cash management, and underwriting to large corporations as well as to small andmedium-sized enterprises (SMEs). Commercial banks focus on business banking as it is one of their major sources of profitand assign specialized finance professionals, able to assist companies to meet their business objectives.

FINANCIAL COOPERATION

https://www.myaccountingcourse.com/accounting-dictionary/asset-management

https://www.myaccountingcourse.com/accounting-dictionary/cash-management


COOPERATION OPTIONS ACROSS REGIONS AND TERRITORIES

International region-to-region cooperation is an effective means for bringing dynamism to regional economy by internationalizingactivities of local entities, including small and medium-sized enterprises (SMEs). Forms of regional cooperation are well diversified, covering wide range of activities such as export-import of commodities, trade in services, investment, business partnerships (B2Bs), collaboration in research, technology development and innovation, and promotion of people mobility.

- Educational & Vocational exchange

- Cluster and Industrial partnerships

- Shared R&D programs

- Infrastructural projects

- M&A facilitation

- Lobbying & Advocacy

- Supply Chain matchmaking

- Creating or supporting bilateral / multilateral business platforms or events

- Financial tools and facilitation

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To help European small and medium-sized enterprises (SMEs) export and invest beyond the EU, the European Commission provides information on access to markets, protection of intellectual property rights or matchmaking opportunities.

Market access information:

Guidebooks for SMES

Guidebook on SME Internationalisation: Supporting the Internationalisation of SMEs

Guidebook series for SMEs - see SME regional policies.

More support tools:

Enterprise Europe Network

Business Centres in China and Thailand

EU-Japan Centre for Industrial Cooperation

Market Access Database

Export Helpdesk (helpdesk and market access information for import into the EU)

Intellectual property rights (IPR)

IPR helpdesks (China, South-East Asia, Latin America)

Matchmaking

Enterprise Europe Network

Cluster internationalisation

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INTERNATIONALIZATION OF SMEs ALSO BEYOND EUROPE

https://ec.europa.eu/growth/smes/business-friendly-environment/regional-policies_en

https://ec.europa.eu/growth/smes/business-friendly-environment/regional-policies_en

http://een.ec.europa.eu/

http://www.eusmecentre.org.cn/

http://www.eabc-thailand.eu/

http://www.eu-japan.eu/

http://madb.europa.eu/madb/indexPubli.htm

http://exporthelp.europa.eu/thdapp/index.htm

https://ec.europa.eu/growth/industry/intellectual-property/smes_en

http://www.china-iprhelpdesk.eu/

http://www.southeastasia-iprhelpdesk.eu/

http://www.latinamerica-ipr-helpdesk.eu/

http://een.ec.europa.eu/

http://www.clustercollaboration.eu/



Few small businesses in Europe export beyond the EU. Increasing the internationalisation of small and

medium-sized enterprises (SMEs) and helping them access third markets is crucial for Europe’s

competitiveness, economic growth and innovation.

Benefits of internationalisation - Why should SMEs expand their business beyond the EU?

1) An estimated 90% of global growth will originate outside the EU in the coming years

2) Developing and emerging markets are expected to account for 60% of world GDP by 2030

3) Given increased market integration, SMEs can play an important role in global value chains

4) International SMEs also create more jobs and are more innovative than national SMEs.

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SUPPORTING SMEs IN THEIR INTERNATIONALIZATION

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Nurturing your ecosystem


AN EXAMPLE CLOSE TO YOUR ECOSYSTEM


KEY IPA FUNCTIONS

• Not all IPAs can conduct all functions

• Depends on IPAs mandate, priorities and resources

• Basic IPA functions have remained the same over time

• Emphasis and nature of individual functions is changing

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PROMOTION

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© FDI CONSULTING SERVICES GMBH (UNLESS OTHERWISE ATTRIBUTED)© FDI CONSULTING SERVICES GMBH (UNLESS OTHERWISE ATTRIBUTED)

PROMOTION

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• IPAs are becoming more focused on specific target groups and are using targeted channels to promote themselves

TRADITIONAL APPROACH

• High-level promotion

• Generic location arguments

• Traditional channels

INNOVATIVE APPROACH

• Clearly defined target groups

• Specific value propositions

• Targeted channels


EXAMPLE – SOCIAL MEDIA

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• Social media allows targeting focused target groups

(e.g. individuals with specific job titles)

• Cost effective but requires dedicated resources to

manage and ensure leads are captured and pursued

https://invest.great.gov.uk/int/industries/financial-services/asset-management/?utm_source=LinkedIn&utm_medium=Social&utm_content=LinkedIn_Multi_Alumni_Finance_v1&utm_campaign=IIGBQ3Q41718

https://www.edb.gov.sg/content/edb/de.html


EXAMPLE – ADVERTISING

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• Targeted advertising can be effective

• Specialized media can provide access to a distinct

audience

• Requires tailored content to be credible

https://agfundernews.com/how-the-uk-is-becoming-a-global-leader-in-agritech.html/


ATTRACTION

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• IPAs are trying to reach individual decision makers directly through the most appropriate channels


• Broad-based attraction efforts

• Sales-oriented approach

• Conventional methods

INNOVATIVE APPROACH

• Focused on specific target groups

• Consultative approach

• Contemporary (digital) methods


EXAMPLE – EVENTS

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• Specialized events can appeal to a specific audience

• Focus is on quantity over quality

• Requires useful content to provide value to participants

• More effective when organized with partners

https://www.wur.nl/upload_mm/a/c/8/7530ee2d-13a1-4db3-ac33-22cab0b2e196_Programme%20-%20Dialogue%20on%20Sustainable%20Food%20and%20Agriculture_FINAL.pdf


EXAMPLE – DIGITAL MARKETING

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Screening leads

Qualified leads

Meetings/Interviews

Leads

Search engines

Job sites

Online community sites

Social media

Campaign site

Conversion to leads through

automated dialogue

Retargeting – based

on user behaviour


FACILITATION

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• IPAs are evolving from providers of simple services to partners to investors and initiators of complex solutions


• Generic service offering

• Responsive

• Limited added value

INNOVATIVE APPROACH

• Customized support

• Proactive

• Significant opportunities and value


EXAMPLE – IPA SERVICES

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• Almost all IPAs offer the same types of support

• This support no longer serves as a differentiator or

competitive advantage

• IPAs assume this support is valuable to investors


EXAMPLE - ENHANCED IPA SERVICES

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https://www.helsinkibusinesshub.fi/services/


EXAMPLE – BUSINESS CASE

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• Investors require a clear business case on which to

base their investments

• This makes supposed “market opportunities” more

realistic and attainable

https://www.dha.gov.ae/Asset%20Library/01112018/DHIG-ES-Eng-011118-LowRes.pdf


EXAMPLE – MARKET OPPORTUNITIES

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http://www.dubaifuture.gov.ae/our-initiatives/dubai-3d-printing-strategy/


AFTERCARE

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• IPAs are using aftercare (or “investor development”) to help companies enhance the quality and scope of their existing

investments in the location


• Limited focus

• Reactive and ad hoc

• Problem-solving

INNOVATIVE APPROACH

• Increased resources

• Systematic

• Solution providing


“EVOLUTION” OF INVESTMENT PROMOTION AGENCIES

• IPAs are evolving from reactive, generalist service providers

• New investment opportunities are often not standard greenfield investments

• The companies making the investments are different too

• New technologies require new types of knowledge

• IPAs will need to become faster, more responsive, more connected and more flexible

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CONCLUSION

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GRAZIE PER L’ATTENZIONE

LUIGI MERCURI

FDI Center

Marburger Str. 5

10789 Berlin, Germany

+49-176-978 528 14

[email protected]

Internationalization of Territories & SME · 2019-07-02 · • Italian Embassy - Investment &...

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