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
*
Growth in FDI by sector in 2011
Sector
Renewable Energy
Software and IT Services
Metals
Automotive components
Plastics
Transportation
Business services
Financial services
Food and tobacco
Automotive OEM
Industrial machinery, equipment and tools
Chemicals
Consumer products
Semiconductors
Communications
%change
+19.9
+18.1
+17.8
+16.9
+14.1
+12.3
+10.7
+9.6
+9.5
+8.7
+7.1
+6.6
+6.6
+6.5
+4.0
Sector
Coal, oil and natural gas
Real estate
Pharmaceuticals
Electronic components
Hotels and tourism
%change
-6.0
-11.6
-16.0
-16.8
-31.0
Source: fDi Markets
* Expansions by business function 2011
Business function
Extraction
Manufacturing
Front and back offices
Headquarters
Research, design and development
Logistics, distribution and transportation
ICT and internet infrastructure
Business services
Sales, marketing and support
Electricity
Construction
Total
% of total no of
projects
45%
39%
28%
22%
21%
18%
15%
11%
7%
5%
5%
19%
Source: fDi Markets
* Top 10 destination countries in Europe
Country
UK
Germany
Russia
France
Spain
Poland
Ireland
Netherlands
Romania
Czech Republic
Total
No of projects
896
551
319
281
252
227
186
185
177
136
4639
Source: fDi Markets
*
“Mixed results from Scandinavia”
* 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?
*
New Dynamics at all levels
Investors
• Multinationals
• Transnationals
• Micromultinationals
• Entrepreneurs
Places
• Countries
• Regions
• Cities
• Municipalities
Types
• Greenfield
• M&A
• Joint-ventures
• Expansions
*
Same Drivers
•
•
•
•
•
•
•
•
Markets and supply chains
Raw materials & natural assets
Costs & taxes
Ease of establishment & operation
Location & logistics
Infrastructure & skills
Incentives & grants
Factor ‘X’
*
The good news
•
•
•
•
•
•
Low asset prices
Industry restructuring
Emerging economies
Rapid expansion of new sectors
Resilience of international companies
Micromultinationals
*
Reality
Selective
Investors
Higher
expectations
More
competition
Lower budgets
*
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
1.EVALU8
2.CRE8
3.FORMUL8
4.INTGR8
5.INOV8
6.ACTIV8
7.ACCELER8
Fix the
baseline
The new
strategy
Value
Propositions
Build the
team
Routes to
market
Quick start
Lift off!!
8. COMMUNIC8
Sell it!!!
*
Keep it simple
Complexity
Outputs
*
Be careful ... past success increases
vulnerability
*
Good luck to Team Norrbotten
and to Sweden!!!
*
Clive Vokes
Market Scoping International
W: www.marketscoping.com
E: [email protected]