1. 1 Business, Investment and Technology Services EU-UNIDO Dialogue on Industrial and SME Policy Implementation Nilgün Taş Unit Chief and Deputy to the Director, BIT Vienna, 6 May 2014

2. 2 Outline  Inclusive and sustainable industrial development (ISID)  Common goals for industries and SMEs  Implementing industrial and SME policies for greater market access and partnerships INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

3. 3 ISID aims  Creating shared prosperity  Safeguarding the environment  Multi-stakeholder partnerships  Addressing diversified needs of UNIDO Member States INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

4. 4 Common goals UNIDOEU Improve business environments for SMEs Reduce regulatory burdens; Think Small First/updated SBA Upgrade SMEs to integrate into domestic, regional and global value chains-IUMP, 3ADI,…. COSME, Horizon 2020, innovation, skills instruments Develop clusters and business linkages to improve market access of SMEs- export and origin consortia, sustainable supply chain development CSR/Sustainable Sourcing Enterprise Europe Networks Missions for Growth/SME Envoys European Cluster Alliance/Observatory Innova Cluster Innovation Platform EU CSR Strategy/EU Retail Forum Promote entrepreneurship and an entrepreneurial culture Entrepreneurship 2020 Action Plan Matching market access needs of European SMEs with foreign investment needs of developing Member States INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

5. 5 PRIORITY AREAS INVESTMENT AND TECHNOLOGY PROMOTION IMPROVING COMPETITIVENESS AND UPGRADING PROMOTING CLUSTERS AND BUSINESS LINKAGES Investment Policy and Strategy Advice Investment Promotion Institutions To mobilize investments and forming regional networks Industrial Partnerships through UNIDO’s ITPO and SPX networks Business Environment Policy for competitive productive industrial activities Capacity Building in monitoring of industrial performance, technology foresight, cluster & export consortia Industrial Upgrading and Modernization Policy Creation and Development of Enterprises through special programs EDIP, ICT services Upgrading & Restructuring pilot projects and building national consulting capabilities Tools and Services Investment planning, technological upgrading and innovation Fostering Inter-Firm Partnerships and Cooperation Public Private and Business Partnerships link local industries to global value chains Clusters, Business Linkages and Export Consortia Creation/Strengthening of Support Institutions BMOs, BDS, technical centers, upgrading offices Transfer of Knowledge and Methodologies technology foresight, CSR principles, etc. Innovation Systems policy and initiation of public- private innovation networks Investment promotion through IPAs MICRO UNIDO’s MULTI-DIMENSIONAL APPROACH MESO MACRO INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

6. 6 Improve business environments for SMEs  Reducing regulatory burdens on SMEs  Company registration reduced from 15 days to 3.5 days in Viet Nam; SME savings on new and amendment registrations per annum: ~US$ 8 million per annum since 2010; on-line registration at www.businessregistration.gov.vn (funded by Norway and Switzerland)www.businessregistration.gov.vn  New phase to enable registration of “Foreign Invested Enterprises”, under similar circumstances  Market entry and transparency improved with on-line access to records of over 830,000 enterprises, including annual financial statements (160,000)  SME Development Plan created 320,000 new enterprises INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

7. 7 ISID through Industrial Upgrading and Modernization (IUMP) INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

8. 8 Cameroon IUMP UPGRADINGQUALITY and STANDARDS Institutional and regulatory review and competitive positioning studies for priority sectors; agro-food and business services Awareness raising on quality of 1000 individuals from public and private sectors and development and validation of a national quality plan Training of 80 national consultants on the UNIDO upgrading methodologies Training of 40 national consultants as lead auditors to support companies in international certification Diagnostic studies and upgrading plans for 15 enterprises Support the creation and capacity building of the National Standards Body (ANOR) Technical assistance to 15 enterprises to implement upgrading plans Accreditation of three laboratories Establishment of a Subcontracting and Partnership Exchange Centre (SPX) Certification of 13 companies in ISO 9001, 14000 and 22000 standards EU financed pilot and follow up phases at € 3.6m and € 10m Results achieved in the pilot phase INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

9. 9  At the enterprise level, diagnostics studies for 116 firms and provision of technical support to 99 firms in management and production improvements  For €6 millions of firm level technical assistance, firms invested over €21 millions on new technologies and equipment.  Second phase– €12 million will support 800 SMEs in the areas of quality, production processes, management and market access.  EU-UNIDO on regional IUMP for CEMAC at €6 million in design Investments in technology and equipment Estimated Amount (EUR) % of total Investment Production equipment and Maintenance processes 14,101,147 66.6% Laboratory equipment910,4074.3% Rolling material313,8371.5% Hardware212,1171.0% Reducing impact on environment76,2080.4% Energy saving equipment831,8913.9% Other-management improving tools 4,744,679 22.4% TOTAL21,190,286100.0% Technical assistance to the companies Number of Actions Estimated Amount (EUR) % Management68670,26311% Finance/Accounting83956,17016% Software501,016,22017% Marketing69954,34416% Technical ( production processes)1201,238,71921% Quality881,158,21519% Total4785,993,931100% UEMOA Regional IUMP INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

10. 10 Local production of essential medicines Policy AUC PMPA Business Plan implementation in partnership with WHO, UNAIDS and the private sector Public-private dialogue on sector strategy development (e.g. Ghana, Kenya, Viet Nam, Zimbabwe) Institutions Specialized courses in industrial pharmacy, support to business membership organizations, medicines regulatory authorities, and quality control laboratories Enterprise Assessing feasibility of local production, technical advice and training INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

11. 11 C2C, Sustainable Supplier Development and Business Linkages  Inclusive  Sustainable/CSR-focus  Pro-Poor  Ethical/Human Rights  Gender-balanced  Market Integration (North-South)  Inclusive  Sustainable/CSR-focus  Pro-Poor  Ethical/Human Rights  Gender-balanced  Market Integration (North-South) Cluster development for ISID – Collective efficiency and Innovation – Market Access, Profitability, quality/safety/sustainability – Linking buyers and suppliers (manufacturers & retailers) – Cluster-to-cluster partnerships – Export/quality Consortia – Formal industrial sectors (Competitiveness/market access/Sourcing) – Micro enterprises/farms (Pro-poor income generating approach including youth/women empowerment) Development objectives – improving income, jobs and food security – Diversification – Value addition and integration – Consumer protection – Social, Economic and Environmental Sustainability (CSR) and Human Rights INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

12. 12 1 Cluster to Cluster and Buyers/Suppliers Business Linkages Creative Industry Clusters - EU/South Mediterranean countries (Habitat…) 2 Cluster-to-cluster and Sustainable Suppliers Development Automotive industry - Slovenia/Russia- Serbia-Belarus 3 Sustainable Suppliers Development and cluster development Food Clusters - METRO AG Germany/Egypt-Russia-India Illy Coffee/Ethiopia 4 Cluster policy and development and Cluster-to-cluster Furniture Clusters - Italy/Vietnam (Livenza district/confindustria) 5 Sustainable Suppliers Development/CSR Textile clusters - H&M/Turkey…….. C2C, Sustainable Supplier Development and Business Linkages A few examples INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

13. 13 CULTURAL AND CREATIVE INDUSTRY CLUSTERS IN THE SOUTHERN MEDITERRANEAN REGION* Partner Countries: Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine, Syria and Tunisia. Currently, EU cooperation with Syrian authorities (government entities) is suspended INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

14. 14  EU-funded (EUR5 million) and UNIDO/Italy (EUR600K)  Foster entrepreneurial cooperation in Cultural and Creative Industries (CCI) through the promotion of promising CCI pilot initiatives, demonstrating contribution to inclusive growth  Establish business linkages between South Mediterranean and EU clusters and support institutions and between international buyers and local suppliers (Already with French Habitat)  Demonstrate the benefit of adopting a cluster approach, and promote new employment opportunities and inclusive growth in the region  CCI Clusters will be encouraged to adopt values and practices related to social inclusion, fair trade, sustainable development OBJECTIVE INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

15. 15 Investment, Technology, Innovation and Entrepreneurship Services and Networks for Business Partnerships for ISID  Entrepreneurship Development programs for women and youth employment  Access to finance for enterprise creation  Investment Promotion Fora ( e.g. Africa –EU business Forum 2014)  Network of Investment Promotion Agencies (IPAs), AfripaNet  Investment and Technology Promotion Offices (ITPOs)  International Technology Centers (ITCs)  Subcontracting and Partnership Exchanges (SPX) INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

16. 16 UNIDO Investment Monitoring Platform INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

17. 17 Investment and Technology Promotion Offices (ITPO) Beijing and Shanghai - People’s Republic of China Manama - Bahrain Moscow - Russian Federation Rome - Italy Seoul - Republic of Korea Tokyo - Japan Yerevan - Armenia ITPOs broker investment and technology agreements between developed, developing countries and with economies in transition ITPOs assist investors and technology suppliers in the ITPO host countries to find potential partners aboard and offers unique services to entrepreneurs and institutions. INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

18. 18 A growing global network INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT PROGRAMME COMPONENTS: I.SPX enterprise profiling & benchmarking II.SPX buyer engagement & opportunity development III.Supplier development & policy advocacy

19. 19 In summary, UNIDO-EU collaboration on SMEs address diverse needs by:  Creating favorable business environments for investments, technology transfer and innovation in third countries  Enable global SME partnerships by closer linkages between UNIDO and EU programs on:  Industrial Upgrading and Cluster development  ITPOs, ITCs, SPXs and networks of IPAs  Enterprise Europe Networks  Missions for Gro wth  SME Envoys INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

20. 20 Thank you for your attention Contact n.tas@unido.org +43-1-26026-3474 INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

21. 21 The UNIDO Approach to Cluster Development REAP: UNIDO’s CSR Programme – Reaching out to SMEs Worldwide Adding Value to Traditional Products of Regional Origin: A Guide to Create a Quality Consortium ITPO Highlights, Investment promotion advocacy publication The UNIDO Approach to Sustainable Supplier Development (Upgraded) Computer Model for Feasibility Analysis and Reporting (COMFAR) Promoting PPPs: An Innovative Business Model to Foster Pro-Poor Growth through ITC Global Value Chains, Local Clusters and Corporate Social Responsibility Training Manual for Export Consortia Promoters Investment Monitoring Platform (IMP) Methodological Guide on Restructuring, upgrading and industrial competitiveness Industrial Upgrading and Modernization Programme (IUMP), Communication Tool UNIDO Methodologies and Tools-a Sample INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

22. 22 ISID through Industrial Upgrading and Modernization (IUMP)  IUMP acts on three interrelated levels: helping formulate policies to create a conducive business environment, developing support institutions and markets for services and upgrading enterprises  IUMP focuses on upgrading industrial sectors based on domestic comparative advantage to sustain existing jobs and create new employment for women and men for shared prosperity  IUMP helps upgrade technologies and implement innovative solutions, while ensuring compliance with international standards on quality, quantity and safety to access markets INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

23. 23 ISID through Industrial Upgrading and Modernization (IUMP)  IUMP works to replace environmentally unsustainable production patterns with smart solutions to ensure efficient resource management, reduction of waste and pollution and improved industrial energy efficiency  IUMP builds up partnerships and strengthens industrial governance by aligning domestic and foreign private sector, institutions, the financial sector, academia, civil society and other development partners along a clear and unified goal INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

24. 24 Survey of Enterprises in Selected ACP Regions UNIDO Africa Investment Promotion Agency Network (AfrIPANet)  The programme (2008-2012) was supported by the African, Caribbean and Pacific Group of States (ACP) and European Union Commission and funded through the 9 th European Development Fund (EDF).  Long term objective “to support African countries to maximize the impact of foreign and domestic investment on sustainable and equitable growth and poverty reduction; to enhance competitiveness of the manufacturing and services sectors in order to capture export markets and achieve greater integration with global value chains and regional economic markets.”  Results:  Capacity building for national counterparts, including Investment Promotion Agencies (IPAs);  Production of the Investment Monitoring Platform (IMP) (7000 companies in data bank);  Publication of 2 Investment Reports (2011, 2013)  Regional harmonization of investment strategies through relevant bodies. INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

25. 25 PROGRAMME COMPONENTS: I.SPX enterprise profiling & benchmarking II.SPX buyer engagement & opportunity development III.Supplier development & policy advocacy INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

26. 26 ITPO Services Information Fast Lane  On screened bankable industrial business opportunities in developing countries  On legal and economic environment  On investment financing and technology supply sources Industrial Partnership Promotion  Establishing/maintaining contacts with host country institutions and business community  Advisory services at each stage of the investment cycle  Targeted investment/technology promotion events (investment fora, technology exhibitions)  Facilitating business contacts between project sponsors and potential foreign investors Investment/Technology Promotion Delegate programme  On the job training in investment promotion techniques for Delegates from developing countries  Assistance in promotion of a portfolio of screened investment/technology projects  Business negotiations and follow-up as a contact point Business negotiations  One-to-one meetings  Tours of project sponsors and of potential investors  Country presentation tours Global Forum  ITPO Network meets periodically to exchange views, lessons learnt, exchange opportunities for cooperation on sectoral and geographic programmes, projects and investment and technology opportunities INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

27. 27 What is the IMP?  Global web-based tool to analyse, research, and share investment data  Data and knowledge sharing for the public and private sector  Initially launched for 19 African countries  Hosts in-depth data on almost 7,000 companies in the target countries Burkina Faso Burundi Cameroon Cape Verde Ethiopia Ghana Kenya Lesotho Madagascar Malawi Mali Mozambique Niger Nigeria Rwanda Senegal Tanzania Uganda Zambia INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT