Overview of the

latest trends in

Investment promotion

Hugues de Cibon

OCO Global, Paris

Belgrade, March 2015

2

FDI will not be the same again and

neither will the organisations

mandated to attract investment

– Fragmented market

– Sectors, sources and modes of

investment are changing

– Smaller and specialised projects

– Decreased appetite for risk

– More intense competition for

these projects

EDOs & IPAs need to revisit strategy, targets and ways of

engagement in the new landscape

Summary

3

Implications

FDI

Market

Specific

Competitive

Advantages

Strategy Organisation Marketing

4

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-offices

…

Sectors

F

u

n

c

t

i

o

n

s

5

Segments choices have to be based on :

Full understanding

of the value chainGood knowledge of

companies requirements

Awarness of my

competitive position for

each key factor

Market potential

6

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

7

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

8

Pipeline qualification and

strategic company assessment

– business intelligence

Message:

– "solutions":

• tailor made information package, benchmarking, simulations,

testimonials, case studies…,

Channels:

– social media

Marketing

9

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

2

3

2 2

1995-2000 2001-2005 2006-2010 No information

N°

of

IPA

s cr

eate

d

Years

Year of Creation

No specific peak in the creation ofthe investment promotionorganisations (IPOs) surveyed

…but some have been restructuredand transferred to Governmentalbodies/Ministries or merged withother economic developmentorganisations

Year of Creation

11%

22%

34%

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 doinginvestment promotion internationally and compared to their competitors of other regions

Public89%

Public-Private

11%

Funding

Structure

FDI45%

FDI+Trade22%

FDI+Trade+SMEs11%

FDI+Trade+SMEs+Innovation

22%

Type of Missions 45% of the IPOs dedicate their efforts

exclusively to investment promotion

The remaining 55% offer complementaryservices such as: Trade (export) SMEs support Innovation & Technology transfer Financing/Public Private Partnership

…following a global trend based on bothstrategic (synergy between economicdevelopment 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 andstaff

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 researchedhad offices overseas

Nevertheless, these representations also havemultiple functions such as trade and are not100% focused on FDI.

The countries for international representationremain in the European region

Other countries covered are: USA China, Turkey and Russia

The IPA with the largest number ofrepresentation abroad is Former YugoslavRepublic of Macedonia

with around 18 points of contact abroad,covering 22 countries

Yes33%

No67%

International Offices

Communication

Almost all the agencies provide detailedsector information.

Most of the IPAs include success cases ortestimonials as one of their selling strategies

About 45% of the agencies have designedinteractive tools for cost/site selectionsimulation

6

4

8

3

2

7

1

Sucess cases Interactive tools Detailed sector info.

Website Information

Yes Partial No

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Hugues de Cibon

Deputy Director,

Paris

T: +33 (0)1 43 87 56 40

E: hugues.decibon@ocoglobal.com

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 Floor

New 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-Ku

Tokyo 100-0004, Japan

mailto:hugues.decibon@ocoglobal.com

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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