the next generation of investment promotion. fdi barometer of globalisation *
TRANSCRIPT
The Next Generation of Investment Promotion
FDI Barometer of Globalisation*
Results
2007 $1.83 trillion
2008 $1.45 trillion
2009 $1.00 trillion
2010 $1.12 trillion
2011 $1.50 trillion
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Growth in FDI by sector in 2011*Sector %change
Renewable Energy +19.9Software and IT Services +18.1Metals +17.8Automotive components +16.9Plastics +14.1Transportation +12.3Business services +10.7Financial services +9.6Food and tobacco +9.5Automotive OEM +8.7Industrial machinery, equipment and tools +7.1
Chemicals +6.6Consumer products +6.6Semiconductors +6.5Communications +4.0
Source: fDi Markets
Sector %change
Coal, oil and natural gas -6.0Real estate -11.6Pharmaceuticals -16.0Electronic components -16.8Hotels and tourism -31.0
Expansions by business function 2011*Business function % of total no of
projects
Extraction 45%Manufacturing 39%Front and back offices 28%Headquarters 22%Research, design and development 21%Logistics, distribution and transportation 18%
ICT and internet infrastructure 15%Business services 11%Sales, marketing and support 7%Electricity 5%Construction 5%Total 19%
Source: fDi Markets
Top 10 destination countries in Europe*Country No of projects
UK 896Germany 551Russia 319France 281Spain 252Poland 227
Ireland 186Netherlands 185Romania 177Czech Republic 136Total 4639
Source: fDi Markets
“Mixed results from Scandinavia”
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Number of greenfield FDI projects*
Country 2010 2011
Denmark 32 29
Norway 27 28
Sweden 59 65
Source: fDi Markets
So what does this mean?
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New Dynamics at all levels
Investors
• Multinationals• Transnationals• Micromultinationals• Entrepreneurs
Places
• Countries• Regions• Cities• Municipalities
Types
• Greenfield• M&A• Joint-ventures• Expansions
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Same Drivers
• Markets and supply chains• Raw materials & natural assets • Costs & taxes• Ease of establishment & operation• Location & logistics• Infrastructure & skills• Incentives & grants• Factor ‘X’
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The good news
• Low asset prices• Industry restructuring• Emerging economies• Rapid expansion of new sectors• Resilience of international companies• Micromultinationals
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Reality
SelectiveInvestors
More competition
Higher expectations Lower budgets
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Achieving more with less*
• Focus on strengths• Create your own model• Momentum is everything• Make it happen !
The harsh reality*Fewer projects
More choice
Strong competitors
Only the flexible survive
Further & Faster*
If you depend on past success you’ll die
If everything feels under control you’re not really trying
If you wait for consensus it may never happen
If you can’t measure your performance you’re not performing
The 3G model*First Generation Second Generation 3G
Driver Jobs Competitiveness Growth
Orientation Institutions Agencies Catalysts
Style Promotion Facilitation Selection
Focus Industries Sectors Niches
Offer Incentives Access Solutions
Targets Multinationals Transnationals MicroMultinationals
The characteristics of 3G*
Transformation Catalysts Investment selection
Competitive value
propositions
Focus on solutions not opportunities
Joined-up action
Customisation Real-time delivery
Competitive Sweden*Effective public
authorities
Competent economic
management
World-class education
Innovation and technology Great companies 0.2% of the world’s
population
2.0% World trade
The Swedish Paradox*
So competitive So inhibited
Jantelagomkonsensus Vive la difference!
What FDI means for Norrbotten*
• New jobs• New supply chains • New skills• New capital
... also a catalyst for growth*
• Competitiveness• Innovation• Knowledge• Internationalisation• Sense of purpose• Feeling of place
Why you will succeed*Great assets
Absolute clarity (what, who, where, how)
Teamwork is everything
Bottom-up approach
Can-do mentality Offer strong value propositions
Focus on solutions and opportunities
Joined-up thinking and action ( PPE)
Continuous renewal
Communication is everything
… you will make it easy for the investor to say “yes” and you will sell it with total passion!!!
Building a winning platform for Norrbotten*
Sell it!!!
2. CRE8
The new strategy
3. FORMUL8
Value Propositions
5. INOV8
Routes to market
6. ACTIV8
Quick start
4. INTGR8
Build the team
7. ACCELER8
Lift off!!Fix the baseline
1. EVALU8
8. COMMUNIC8
Keep it simple*
Outputs
Complexity
Be careful ... past success increases vulnerability
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Good luck to Team Norrbottenand to Sweden!!!
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