1. Overview of the latest trends in Investment promotion Hugues de Cibon OCO Global, Paris Belgrade, March 2015

2. 2  FDI will not be the same again and neither will the organisations mandated to attract investment –Fragmented market –Sectors, sources and modes of investment are changing –Smaller and specialised projects –Decreased appetite for risk –More intense competition for these projects  EDOs & IPAs need to revisit strategy, targets and ways of engagement in the new landscape Summary

3. 3 Implications FDI Market Specific Competitive Advantages StrategyOrganisationMarketing

4. 4 Segment choice – a strategic step

5. 5 Segments choices have to be based on : Full understanding of the value chain Good knowledge of companies requirements Awarness of my competitive position for each key factor Market potential

6. 6  Objectives –quantity (capex, jobs…) vs. quality (added value, impact…)  Targets –countries – brIC…, –sectors – "hybrid" sectors…, –activities – data centres, training centres, KPO…, –companies – strategic companies, key accounts, start up –Talents, Financing (VC), Support services, "Global References"…  Performance measurement –productivity Strategy

7. 7  Processes – and Services –setting-up: "strategic projects" vs. "fast-track", "soft landing" / “welcome package" –alternative forms of FDI: M&A scientific collaborations  Partnerships –with partners who can provide specialist content and expertise… and who have a stake in the outcomes  Outsourcing Organisation

8. 8  Pipeline qualification and strategic company assessment –business intelligence  Message: –"solutions": tailor made information package, benchmarking, simulations, testimonials, case studies…,  Channels: –social media Marketing

9. 9  Merge with innovation support organisations  Merge with trade organisations  Stronger commitment with local companies and sector organisations  Innovative marketing to face stronger competition  Partnership with local clusters  More attention given to entrepreneurs, talents, … Trends in IPA observed

10. An overview of the Balkan IPOs Albania Bosnia-Herzegovina Bulgaria Croatia Kosovo * (under UN Security Resolution 1244) Former Yugoslav Republic of Macedonia Montenegro Serbia Slovenia

11.  No specific peak in the creation of the investment promotion organisations (IPOs) surveyed  …but some have been restructured and transferred to Governmental bodies/Ministries or merged with other economic development organisations Year of Creation

12. Structure Most of the IPOs have limited budget and human resource in respect to the cost of doing investment promotion internationally and compared to their competitors of other regions

13. Structure  45% of the IPOs dedicate their efforts exclusively to investment promotion  The remaining 55% offer complementary services such as:  Trade (export)  SMEs support  Innovation & Technology transfer  Financing/Public Private Partnership  …following a global trend based on both strategic (synergy between economic development missions and tools) and tactical (budget) considerations

14. Targeting  Most of the IPAs claim to work on:  7 to 10 “strategic” sectors  … which is a high number of projects for agencies which have limited budget and staff  The most common sectors are:  ICT  Automotive  Metals & Machinery  Agri-food  Textile  Logistics  Limited interest for BPO and Pharma

15. Targeting AutoMetal s Agro- food WoodTextil e Phar ma Energ y Logis- tics Electr onics ICTBPO & SSC Tou- rism Other s Slovenia Croatia Serbia Montenegro Bosnia-Herz. Albania Kosovo* FYROM** Bulgaria ** Former Yugoslav Republic of Macedonia * Kosovo (under UN Security Resolution 1244)

16. Structure  Three of the nine IPOs that were researched had offices overseas  Nevertheless, these representations also have multiple functions such as trade and are not 100% focused on FDI.  The countries for international representation remain in the European region  Other countries covered are:  USA  China, Turkey and Russia  The IPA with the largest number of representation abroad is Former Yugoslav Republic of Macedonia  with around 18 points of contact abroad, covering 22 countries

17. Communication  Almost all the agencies provide detailed sector information.  Most of the IPAs include success cases or testimonials as one of their selling strategies  About 45% of the agencies have designed interactive tools for cost/site selection simulation

18. 18 Hugues de Cibon Deputy Director, Paris T: +33 (0)1 43 87 56 40 E: hugues.decibon@ocoglobal.comhugues.decibon@ocoglobal.com OCO Global Ltd (Head office) 6 Citylink Business Park - Durham St. Belfast BT12 4HB, Northern Ireland OCO Global (Europe) 12, Rue de la Chaussée d’Anjou 75009 Paris, France OCO Global (North America) 45 Broadway – 21 st Floor New York, NY 10006, USA OCO Global (UK) 36-38 Whitefriars Street London, EC4Y 8BH, United-Kingdom OCO Global (Asia) East Tower 4th Floor – Otemachi First Square – 1-5-1 Otemachi, Chiyoda-Ku Tokyo 100-0004, Japan

19. 19 « Strategic target company » – UKTI

20. 20 « Proposition » – Kansas City, MO

21. 21 Co-branding – IDA Ireland

22. 22 Welcome package – BIE Bruxelles & Recruiting Package – Berlin Partner

23. 23 BDD & Mapping – ProMexico & UKTI

24. 24 Dedicated incubator (/per geography) – AWEX Wallonia

25. 25 Support services – Invest in Finland

26. 26 EDO/IPA Positioning – ITD Hungary

27. 27 Webinars – SDI Scotland

28. 28 Social media – Enterprise Florida

29. 29 Apps – Berlin Partner