1. Michel Martinez, Journées de l’IDATE, European Enlargement and ICT, 24 novembre 2004 1 R E X E C O D E European Enlargement and ICT Industrial Issues, Offshoring/location trends Michel Martinez R E X E C O D E

2. Michel Martinez, Journées de l’IDATE, European Enlargement and ICT, 24 novembre 2004 2 R E X E C O D E Since 2 years, FDI flows slumped Where we stand

3. Michel Martinez, Journées de l’IDATE, European Enlargement and ICT, 24 novembre 2004 3 R E X E C O D E But the amount of international debt securities increased by 60 % since 2000 Where we stand

4. Michel Martinez, Journées de l’IDATE, European Enlargement and ICT, 24 novembre 2004 4 R E X E C O D E But the foreign claims were multiplied by two since 2000 Where we stand

5. Michel Martinez, Journées de l’IDATE, European Enlargement and ICT, 24 novembre 2004 5 R E X E C O D E High level of foreign claims in new new members countries (40% to 60 % of GDP) Where we stand

6. Michel Martinez, Journées de l’IDATE, European Enlargement and ICT, 24 novembre 2004 6 R E X E C O D E Eastern European countries have high level of ICT production ICT production

7. Michel Martinez, Journées de l’IDATE, European Enlargement and ICT, 24 novembre 2004 7 R E X E C O D E Eastern European countries have high level of Telecommunication production ICT production

8. Michel Martinez, Journées de l’IDATE, European Enlargement and ICT, 24 novembre 2004 8 R E X E C O D E The Eastern European countries are less better ranked in IT production ICT production

9. Michel Martinez, Journées de l’IDATE, European Enlargement and ICT, 24 novembre 2004 9 R E X E C O D E But they are very well placed in the production of components and scientific instrument ICT production

10. Michel Martinez, Journées de l’IDATE, European Enlargement and ICT, 24 novembre 2004 10 R E X E C O D E Two aspects for Offshoring/location trends 1. Access to (new) markets 2. Competitiveness Improvement

11. Michel Martinez, Journées de l’IDATE, European Enlargement and ICT, 24 novembre 2004 11 R E X E C O D E 1. Access to (new) markets: reasons for locating activities ICT marketing ICT services need to get closer the customers some ICT services are produced when and where they are consumed. ICT products costly to transport (??) 1. Access to markets which is the size of ICT markets of CEE countries and which will be their growth?

12. Michel Martinez, Journées de l’IDATE, European Enlargement and ICT, 24 novembre 2004 12 R E X E C O D E The 10 new members represent already a larger share of ICT market than of GDP ICT production

13. Michel Martinez, Journées de l’IDATE, European Enlargement and ICT, 24 novembre 2004 13 R E X E C O D E This is particularly the case on the Telecommunication market, not on the IT market ICT production

14. Michel Martinez, Journées de l’IDATE, European Enlargement and ICT, 24 novembre 2004 14 R E X E C O D E Trends of economic growth: better prospects 2004-2010 for new members as during the last 10 years 1. Access to markets

15. Michel Martinez, Journées de l’IDATE, European Enlargement and ICT, 24 novembre 2004 15 R E X E C O D E Trends of ICT markets 1. Access to markets IT: Low penetration rate and high needs of investments Telecommunication Which impact of deregulation? ?

16. Michel Martinez, Journées de l’IDATE, European Enlargement and ICT, 24 novembre 2004 16 R E X E C O D E 2. Competitiveness Improvement : reasons for locating activities wages costs taxes on benefits infrastructures innovation and R&D 2. Competitiveness Improvement

17. Michel Martinez, Journées de l’IDATE, European Enlargement and ICT, 24 novembre 2004 17 R E X E C O D E Eastern european countries have, with Ireland, the lower profit taxes 2. Competitiveness Improvement

18. Michel Martinez, Journées de l’IDATE, European Enlargement and ICT, 24 novembre 2004 18 R E X E C O D E Eastern european countries have the lower hourly wage costs 2. Competitiveness Improvement

19. Michel Martinez, Journées de l’IDATE, European Enlargement and ICT, 24 novembre 2004 19 R E X E C O D E Conclusion Low hourly wage cost Low profit tax EU subsidies highly skilled workforce High growth rate of domestic It market Conclusion attractive locations for FDI