Mr. Gian Angelo BellatiDirector of Unioncamere Veneto

Economic profile of the Region of Veneto: specializations and industrial districts

Treviso, 5th December 2008

Veneto Region

Population: 4.845.832 GDP per-capita: €29.226No. of enterprises per-capita:1/10,45

Source:Veneto 2008– Economic Report

Countries of destination of Foreign Direct Investments of Veneto

companies 2003-2007   Country 2003 2004 2005 2006 2007 Average 2003-

2007

values (in thousands euro)

1 LUSSEMBURGO 619.350 414.949 510.113 473.471 521.798 507.936

2 OLANDA 41.891 23.392 118.216 520.839 380.140 216.896

3 REGNO UNITO 328.544 94.191 104.637 127.640 174.043 165.811

4 FRANCIA 40.330 102.468 51.308 87.009 87.648 73.753

5 AUSTRALIA 282.808 5.176 4.448 1.329 1.145 58.981

6 SVIZZERA 26.647 29.840 100.246 57.737 37.144 50.323

7 STATI UNITI 27.860 27.501 61.642 73.898 54.165 49.013

8 GERMANIA 19.871 42.419 100.980 41.220 39.377 48.773

9 ROMANIA 26.229 24.185 34.169 39.807 50.400 34.958

10 SPAGNA 74.777 15.457 24.919 20.942 19.077 31.034

TOTALE 1.618.449 957.216 1.333.756 1.691.503 1.712.464 1.462.678

Source: elab. Unioncamere del Veneto on data of the Bank of Italy    

• Luxembourg is the first country of destination of direct investments of Veneto companies (FDI). In 2007 they amounted to 521million euro while the 5 year average is 507million euro, conferming a costant trend in the medium term.• Second and third countries of destination of Veneto FDI are The Netherlands and the United Kingdom with 380 and 174 millions euro respectively. •Well below these levels are investments in France (87 million euro), Romania (50 million), Germany (39 million) and Switzerland (37 million).

Investimenti direttti all'estero del Veneto per paese (migliaia di euro). Anno 2007

PAESI Investimenti Disinvestimenti IDE netti

LUSSEMBURGO 521.798 128.360 393.438OLANDA 380.140 136.355 243.785BELGIO 66.243 9.477 56.766ROMANIA 50.400 11.043 39.357FRANCIA E POSSEDIMENTI FRANCESI 87.648 50.608 37.040BRASILE 32.213 2.515 29.698STATI UNITI E ASSIMIL. 54.165 24.730 29.435CROAZIA 29.185 1.638 27.547SVIZZERA 37.144 14.778 22.366PORTOGALLO E ISOLE 22.848 930 21.918AUSTRIA 25.925 8.093 17.832CINA REP.POP. 17.386 543 16.843TURCHIA 13.866 111 13.755CECA, REPUBBLICA 9.138 352 8.786SLOVACCA, REPUBBLICA 8.146 240 7.906NORVEGIA 6.868 98 6.770INDIA 6.429 157 6.272POLONIA 7.856 1.606 6.250EGITTO 6.174 18 6.156SERBIA 6.276 125 6.151MAROCCO 6.059 15 6.044GERMANIA 39.377 33.348 6.029MESSICO 5.908 350 5.558UNGHERIA 8.403 3.297 5.106COREA DEL SUD 4.962 4.962CANADA 4.266 1.345 2.921BULGARIA 4.031 1.335 2.696RUSSIA 3.516 841 2.675HONG KONG 3.464 832 2.632CIPRO 2.779 174 2.605GRECIA 2.598 51 2.547ARGENTINA 2.594 51 2.543TUNISIA 2.593 53 2.540GIAPPONE 2.713 194 2.519DOMINICANA REP. 2.496 2.496EMIRATI ARABI 2.692 549 2.143

To promote a real integrationTo promote a real integration among local enterprisesamong local enterprises

To support the To support the development development of of local productive system & sectorslocal productive system & sectors

To rule the To rule the criteriacriteria on the procedures application on the procedures application to identify the productive Clustersto identify the productive Clusters

Objectives (art. 1)Objectives (art. 1)

Regulation of the Productive Clusters and local industrial policy

Definition (art. 2)Definition (art. 2)

A “Productive Cluster” is defined as:

2.2. a set of a set of institutional actors institutional actors having competencehaving competence

in supporting in supporting local economylocal economy

1.1. an high an high concentration of SMEs,concentration of SMEs,integrated in a relevant integrated in a relevant

productive systemproductive system

Legal frameworkRegional Law n.8

changed the traditional top-down approach moving towards a bottom-up

one

From

CLUSTER as area of industry specialization

toa SYSTEM of enterprises and local institutions to

network and to develop a STRATEGY towards REGIONAL COMPETITIVENESS

The view has changed…

INNOVATIVE LEGISLATION CONTENT

1. Self-promotion of the clusters;2. Common activities shared by enterprises belonging to

a district;3. No grants to single enterprise, grants to jointed

projects; 4. New concept: the “metadistretto” (metacluster);5. No territorial restrictions;6. Enterprises appoint their own leader within the

members of each cluster district;

1. Self Promotion of the cluster1. Self Promotion of the clusterThere is no selection choice of clusters on the basis of statistics and quality parameters. However, the system works on a self-organization pattern of those districts who wish to act as industrial policy-makers. The clusters generally gather up according to their own development project: the “Cluster Pact”. Through the Pact clusters can forward their formal request of admission and empowerment to the Regional Local Government.

Minimum Criteria

The “Pact” must be drawn up according to:

2. Common activities shared by enterprises belonging to a district;2. Common activities shared by enterprises belonging to a district;3. No grants to single enterprise, grants to jointed projects;3. No grants to single enterprise, grants to jointed projects;

Cluster Development “Pact” (art. 5): Cluster Development “Pact” (art. 5):

criteria approved by the criteria approved by the Regional CouncilRegional Council, , and has to be implemented within three yearsand has to be implemented within three years

•involves a minimum number of 100 productive units;• employs at least 1000 workers;• is able to express potential innovative capacities

4. New concept: the “metadistretto” 4. New concept: the “metadistretto” (metacluster)(metacluster)

The “meta-cluster” is a productive cluster whose productive system is spread all over the regional territory, thus becoming relevant for the Region’s economy. Clusters are getting wider and thus more complex and strategic.

5. No territorial restrictions5. No territorial restrictionsnew definition of industrial cluster

unbound to specific areas.

However, each cluster is defined and outlined on the basis of its production range.

6. The “leadership” of the cluster6. The “leadership” of the cluster

Each cluster appoints a contact person. It is the first contact point for the government and the foreign investors. The leader knows the sector and all the companies participating to the cluster activities.

Veneto Region Clusters: 1st reason for success

The Veneto Region recognizes 34 clusters and 10 meta-clusters involving more than 9.246 companies and 292.790 individuals in Veneto.

Veneto Region Clusters: 2nd reason for success

About 85 million Euro have been granted stimulating investments for about 280 million Euro (more than 3 times).

Veneto Region Clusters: 3rd reason for success

A steady dialogue between government, chamber of commerce and private enterprises. It gives to the companies the correct influence on the legislative and planning activities.

Veneto Region Clusters: 4th reason for success

The self-promotion of cluster and the periodical supervision activity to the 3-year project enhances only real and flourishing clusters.

Veneto Region Clusters: 5th reason for success

One-stop shop for foreign partners: the leader of the cluster is the natural contact point for investors and partners. The knowledge of all companies belonging to the cluster is a “facilitator” of partnership and cooperation.

Maps / Distribution of the Clustersin the 7 provinces of the Region Veneto

Province of Belluno

Renewable Energy Cluster (2005) Dolomiti Bellunesi Tourism (2005) Eye-wear (2006)

(the year is given with reference to the cluster establishment and formal admission)

Province of Padova

Farming machines & heavy industry (2005) Biomedicine (2005) Spa & Wellness (2006) Refrigeration & Air Conditioning (2006) Animal husbandry & Livestock meta-cluster (2007) Lighting Systems (2008)

Province of Rovigo

Fishing Industry (2006) Fairground Equipment (2006)

Province of Treviso Sportsystem (2006) Wood furniture meta-cluster (2006) Hotel Equipment (2006) Prosecco Conegliano & Valdobbiadene (2006)

Biobuilding meta-cluster (2006) Bike cluster (2005) Fashion (2007) IT Technology meta-cluster (2007) Dairy Industry (2007) Rubber and plastic materials (2007)

Province of Venice

Murano Art Glass (2006) Ship building (2006) Footwear (2006) Aerospace and Astrophysics (2008) Environment for a sustainable development meta-cluster (2008) Cultural Heritage meta-cluster (2008)

Province of Vicenza

Cimbra Mountain Tourist (2005) Ceramics & Terracotta (2006) Art Furnishing (2006) North East Packaging (2006) Goldsmith & Silver (2006) Tanning (2007) Mechatronics & Mechanical innovative technology meta-cluster (2007)

Province of Verona Graphic & Printing (2006) Logistic meta-cluster (2006) Textile, Clothing industry & Fashion (2006) Marble and Stone (2006) Veronese Footwear (2006) Thermo Mechanics (2006) Classic Furnishing (2006) Wine (2007) Informatics & Technology (2007) Food meta-cluster (2007)

LESSONS LEARNED BY OUR EXPERIENCEa) The efficiency of Institutional cooperation with organisations in the

Balkans on SMEs and Clusters development varies very much from Country to Country and in particular it depends on the level of de-centralization of decision making power and policy;

b) Selectivity in the collaboration and development of systemic action is recommended as it is supportive to trans-regional intercompany collaboration among SMEs and Clusters;

c) The Chambers of Commerce’s role is a leading factor in order to concrete economic collaboration, especially where long term actions are put in place together with reliable counterparts. In Countries where Chambers have not a strong role, the institutional alternative can be found in Regional Development Agencies or SMEs Development Agencies.

LESSONS LEARNED BY OUR EXPERIENCEd) EU funding is in most of the cases necessary to complement self-

funded activities;

e) VII Framework Programme for Research is a valid instrument to promote joint innovation projects with concrete application to industry and related clusters;

f) All inter-institutional cross border cooperation activities need to be fed with concrete activities in support of SMEs such as business matching and brokerage events;

g) Assistance requested from Veneto SMEs with regard to the Balkan countries is gradually shifting from the provision of general information and first assistance to specific support on sectorial issues as well as partners finding support.

Unioncamere Veneto committed to Cluster promotion

What is our role?

Unioncamere Veneto

plays an important role at various levels:

Internal affairs Mainly focused on promotion and spreading of information (i.e. publication of DVDs on Venetian

Clusters)

External  affairs Launching events, trade & business missions abroad in cooperation with the Department for

Veneto District Development of the Veneto Region Local Government: Tunisia, China, Brazil, Cyprus, Russia, United States, Canada, Serbia.

Participation in European Projects on clusters targeted activities.

Activities implemented on the basis of art. 14 - Regional Law on Districts

a) Promotion of “systemic actions”

• reinforcing the day to day cooperation with the Chambers of Commerce (Koper, Rijeka, Split, Plovdiv, Belgrade, Leskovac, Bucharest) and Regional Development Agencies (Pula and Dubrovnik) or by setting up independent antennas such as in Zrenjanin, also placing a detached person into these organizations where possible;

• promoting direct relationships among institutions to foster B2B activities and co-operation among companies;

b) Specific support activities These are activities well defined in their nature and aim, developed by Unioncamere with counterparts in the Balkans and beyond.

Some examples:a) Cooperation in the health care sector with Serbia, together with the

promotion of joint renewable energy projects, under the Veneto-Serbia bilateral cooperation agreement;

b) Support to the participation of Veneto’s companies into Structural Funds tenders in Romania;

c) Organization of “clusters missions” (wood, furniture, nanotech, biotech, mechatronics, and other) in non EU countries with particular regard to Russian Federation, India, USA, Canada and South America;

Further information is available at:

www.distrettidelveneto.itwww.eurosportelloveneto.it

Please, contact us:

ricercainnovazione@regione.veneto.iteuropa@eurosportelloveneto.it

Thank you!

Veneto, your PartnerVeneto, your Partnerfor jointed Development for jointed Development

Starting from Starting from SMESMEss