KB SEEDA presentation

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Keith Blackey

15 Benefits to the UK from Foreign Direct

Investment (FDI)

22 Benefits to Locating in the UK

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15 Benefits to the UK from Foreign Direct Investment (FDI)

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Why FDI

• Nations are increasingly competing against each other to attract strategic global investments that support economic growth & fund economic transformation.

• Competition for Foreign Direct Investment (FDI) is intense & success is increasingly determined by the ability of a country to develop & implement a range of policies, regulations & standards that create a superior business & investment climate.

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UK FDI Benefits

1. Increased capital2. Increased employment3. Infrastructure investment4. Increased productivity

– 1 % rise in output of foreign firms in a particular industry will raise technical progress by 0.53 % in domestic firms in that industry.

• Hubert & Pain (2000), ‘Inward Investment and Technical Progress in the UK Manufacturing Sector’, National Institute of Economic and Social Research. Available at: http://www.niesr.ac.uk/pubs/dps/dp175.pdf

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UK FDI Benefits

5. ‘Clean’—service sector 60 % of FDI

6. Access to ‘Best Practices’– 3/4 of FDI in the UK comes from EU, USA or

Japan

7. Increased local market competition

8. Increased technology transfer.

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UK FDI Benefits

9. Increased employee training

10. Increased corporate tax revenues

11.More stable that FPI– “Bolted down and cannot leave easily at first

sign of trouble.”

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UK FDI Benefits

12.Faster growth– FDI growing faster than world GDP

13. Increased market for SEE products

14.Limits ability of governments to pursue bad policies.

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UK FDI Benefits

15. ‘Fast track’ to priority industries:• ICT• Business Services• Life Sciences (bio/pharma)• Environmental Technology

• Media• Women-owned• High-Tech Engineering:

– Automotive– Aeronautical– Marine.

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22 Benefits to Locating inSouth East England

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SEE Location Benefits

1. Common language

2. Reduced financial risk—diversified lending & investment.

3. Be part of a dynamic business climate• By 2012, SEE will be one of top 15 regions

in the world in terms of labor productivity, competitiveness and employment rates.

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4. European-centric time zone5. Rapid/easy access to EU, Middle East &

African markets• Highest rate for exporting in the UK—£28

billion exported annually• Heathrow (largest traffic volume

international airport in Europe) & Gatwick• Dover, Southampton, Portsmouth• Channel Tunnel.

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6. Reduced manufacturing & distribution risks

7. Access highly skilled, motivated workers• 88% of working age population holds some

form of qualification• 73,000 new graduates per year.

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8. Sell to a thriving local market• 22nd largest economic region in the world• Largest population of any UK region, with

approximately 8 million residents

9. Be part of 2012 Olympic Games festivities & economic boom

10.Access global capital—London is EU financial center

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11. Free, confidential re-/location advice

12. Grow your R&D edge• Partner w/ 24 universities including

Oxford• Region gets 25 % of national R&D

expenditure

13. Take advantage of flexible employment regulations.

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14. Take advantage of Enterprise Hubs & Global Regions programs

15. Low utility costs

16. Attract employees:• Ideal living environment• Moderate living costs• Easy access to London, major towns,

rural and coastal areas.

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17. Connect to the world w/ advanced telecommunications infrastructure

18. Take advantage of attractive business climate• Government-focused economic & social

growth area.

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19. Join industry leaders• ICT: 2nd highest Information &

Communication Technology (HW, SW, e-commerce, telecom, electronics) market growth in Europe

• Lifesciences:• World’s top 12 pharmaceutical companies• 2nd to USA in developing new medication

• Aerospace: 2nd largest in world.

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20. Similar business culture

21. Positive attitude & affinity to US

22. Follow the leaders—UK is largest recipient of US investment in Europe for over 36 years.

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22 Benefits to Locating inSouth East England

Questions?

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Keith Blackey

• 15 Reasons why the UK Benefits from Foreign Direct Investment (FDI)

• 22 Benefits to Locating inSouth East England

KB SEEDA presentation

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