innovate michigan! summit heritage room, msu kellogg center thursday, september 6, 2012
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DESCRIPTIONA Global Review of Innovative Practices in Regional SME Exporting Strategies and Foreign Direct Investment Attraction. Innovate Michigan! Summit Heritage Room, MSU Kellogg Center Thursday, September 6, 2012. Introduction. MSU CCED team conducted research to: - PowerPoint PPT Presentation
Regional Export Infrastructure Assessment
A Global Review of Innovative Practices in Regional SME Exporting Strategies and Foreign Direct Investment AttractionInnovate Michigan! SummitHeritage Room, MSU Kellogg Center
Thursday, September 6, 2012
1IntroductionMSU CCED team conducted research to:Identify innovative practices in regional SME exporting strategies and FDI attraction on a global scale.Answer the following questions:How can regions act strategically to increase SME exporting?What are the ways to increase support for exporting in regions?What outreach strategies can be used by local entities to encourage SMEs to begin exporting?29/6/2012The Nexus Between Exporting and FDICommon goal shared by exporting and Foreign Direct Investment (FDI):Cause additional economic assets to flow into a region from outside that region.
9/6/20123International Review of Innovative Practices in Regional Export StrategiesSingapore, Germany, Canada, South Korea, Japan, Italy, Australia, Estonia, Azores Island (Portugal)
9/6/20125SingaporeSingapore Economic Development Board (EDB), est. 1961, has international reach designed to attract foreign direct investment.Substantial FDI is attracted to Singapore by its open legal framework and transparent policies.The Singapore Ministry of Trade and Industry targets SMEs through SPRING Singapore and the Exporter Development Program.Serving as a trade hub and exporting its trade services, Singapore provides an example for successful exporting strategies.Using its geographic advantages, Singapore has become a multi-modal transportation hub/gateway to SE Asia.
International Review of Innovative Practices in Regional Export StrategiesGermany SME ExportingSMEs account for 98% of German exportersTransportation and manufacturing are biggest exporters.Exporting 47-50% of German GDP since 2007 (World Bank).Each region has a development bank that enables SMEs to access business development loans.Regional cluster internationalization strategies.Regional cross-border trade program between German North Rhine-Westphalia and Netherlands called INTER-NED.International Review of Innovative Practices in Regional Export Strategies
69/6/2012US exporting % of GDP is 13%6Germany Regional ClustersExtensive utilization of clusters pushes Germanys strong export performance.Clusters provide a means by which smaller companies can attain a global reach.Cluster Objectives:Pool regional competencies.Initiate collaborative technology development. Carry out mutual networking.Learn from like clusters.Conduct training and educational activities for companies within the clusters.Generate international business.
International Review of Innovative Practices in Regional Export Strategies
79/6/2012Germany FDI Attraction8International Review of Innovative Practices in Regional Export StrategiesGermany Trade and InvestMission: Promote Germany as an investment location and identify investors.
Advises and supports foreign investors.
Assists German companies seeking foreign markets.
Provides client-specific information and consultancy services.
9/6/2012CanadaExport Development CanadaProvides export insurance and intelligence on market trends and export strategies.Team Canada, Inc.Helps SMEs develop export plans, identify target markets, and plan export financing.Trade Team B.C. (Regional)Provides one-on-one coaching and foreign market contacts for SMEs.Helps SMEs prepare to enter the export market.International Review of Innovative Practices in Regional Export Strategies99/6/2012
10International Review of Innovative Practices in Regional Export Strategies9/6/2012FDI attraction and export promotion in South Korea centers around the use of Foreign Trade Zones.Free Economic Zones within the FTZs provide incentives for foreign investments and advanced physical infrastructure, Also streamline customs procedures and export regulations for foreign companies.Invest Korea works with foreign investors as a one-stop service to establish foreign businesses in Korea, promoting regions to investors.South Korea
11JapanInternational Review of Innovative Practices in Regional Export StrategiesJapan External Trade Organization (JETRO) offers companies a business matching database, Enables companies to search/find business partners online.
JETRO works with regional governments to:Attract foreign investment. Develop business incentive programs. Promote the region overseas. Identify foreign investors. Train regional government personnel in investment-promotion.9/6/2012
ItalyItaly aims to improve SMEs position in foreign markets By designating 3 regions and developing 8 regionally-focused support programs.
Piedmont region (northwest Italy) is powerhouse performer.Home to 200 R&D centers and 12 locally-supported innovative clusters.Contributes 41% of all Italian exports and 32% of the national GDP.12International Review of Innovative Practices in Regional Export Strategies
AustraliaTradeStart network assists export innovation in rural regions where: Exporters are growing at 3X the rate of their metropolitan counterparts and Exports account for one in four of all jobs.13International Review of Innovative Practices in Regional Export Strategies9/6/2012SME development is hinged on regional development. Specific support measures are provided for each of the 13 regions.Estonian Exporters Database enables Estonian companies to provide foreign buyers information on the products the company offers.Foreign companies can use the database to pursue Estonian partners and joint ventures.Estonia
136/14/201214Azores Islands, PortugalSmall chain of islands 1,000 miles off the coast of Portugal.Provides insights into the key drivers of internationalization for SMEs based in remote or isolated areas. Illustrates the importance of using a network of social ties supporting exports.Through communication between native SMEs and its emigrant communities.
International Review of Innovative Practices in Regional Export StrategiesReview of Innovative Practices in Regional Export Strategies in the United States
159/6/2012National Export Initiative (NEI)Announced by President Obama in 2010. NEI aims at doubling exports by the end of 2014.2011 National Export Strategy was developed by the federal Trade Promotion Coordinating Committee with 70 recommendations in 80 priority areas.Only 1 of the 70 recommendations involves a regional approach.Four SME priority areas:Identify SMEs that can begin/expand exporting.Prepare SMEs to export successfully.Connect SMEs to export opportunities.Support SMEs once they find export opportunities.
169/6/2012National Export Initiative (cont.)In preparing SMEs, it is recommended that export opportunities be promoted among competitive industry clusters.U.S. Small Business Administration (SBA) has provided 20 contracts to support SME counseling through regional innovation clusters.
Next StepIdentify clusters interested in follow-up engagement with export service providers.
179/6/2012SelectUSACreated to showcase the U.S. as the worlds premier business location a year ago (June 15, 2011).Provides easy access to federal-level programs and services related to business investments.Works with EDOs and stakeholders to help regions attract investments.Offers cluster analysis to regions and helps companies maintain their competitive advantage.Michigan Success StoryIn a collaboration with Michigan Economic Development Corporation (MEDC) and local agencies, attracted Canada-based bumper mfr. AGS Automotives investment of $20 million in its Sterling Heights facility.Retained 50 jobs and will create 100 new jobs. 189/6/2012U.S. International Trade Commission (ITC)Published 3 major reports in 2010 on role of SMEs in exporting and comparative analysis of exporting activities & barriers faced by U.S. and European SMEs.Small and Medium-sized Enterprises: Overview of Participation in U.S. Exports. http://www.usitc.gov/publications/332/pub4125.pdfSmall and Medium-sized Enterprises: Characteristics and Performance. http://www.usitc.gov/publications/332/pub4189.pdfSmall and Medium-sized Enterprises: U.S. and EU Export Activities, and Barriers and Opportunities Experienced by U.S. Firms. http://www.usitc.gov/publications/332/pub4169.pdf9/6/201219Brookings Institute U.S. Regional Strategies Minneapolis- St. Paul209/6/2012Export initiatives coordinated by a network of export service providers, including: Universities, chambers of commerce, local EDOs, private consultants, finance and legal advisors, logistics experts.Minneapolis-St. Paul marketing focuses on advantages in health and wellness sectors.Proximity to Medtronic, 3M, St. Jude Medical, and the Mayo Clinic.Brookings Institute U.S. Regional Strategies CenterState, NY (Syracuse area)Regional marketing efforts will be concentrated first on boosting exports to Canada."Tag-a-long" program to link strong exporters with growing SMEs. One-stop, streamlined export assistance service. Build export awareness through marketing.
219/6/2012Brookings Institute U.S. Regional StrategiesGreater Portland, ORExport initiatives coordinated by: Portland Development Commission; Metro Regional Government; Port of Portland; Portland State University; Columbia River Economic Development Council; Portland Business Alliance.
We Build Green Cities Marketing strategy targeting strong green technology sector for exports.229/6/2012Brookings Institute U.S. Regional Strategies Los AngelesEstablished the Los Angeles Regional Export Council (LARExC).
Linking new exporters to old in one-on-one programs.
One-stop website for regional export assistance: Los Angeles Region Exports.239/6/2012Trade Development Alliance o