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Recent trends in Foreign Direct Investment in the Region

Recent trends in Foreign Direct Investment in the Region. Objective of Presentation. To clarify what is and what is not FDI To inform delegates about the changing nature of FDI Broaden horizon of possibilities for county marketing strategy and plans. Changing Global Context.

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Recent trends in Foreign Direct Investment in the Region

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  1. Recent trends in Foreign Direct Investment in the Region

    Seminar “Napredni marketinški standard", 22-24. rujna 2010.
  2. Objective of Presentation To clarify what is and what is not FDI To inform delegates about the changing nature of FDI Broaden horizon of possibilities for county marketing strategy and plans
  3. Changing Global Context Basis of social and economic prosperity has changed from land - to capital - to knowledge Science and technology leading to new FDI opportunities Emergence of new economic powers- China, India and an enlarged Europe Academia , research institutes becoming more important in attracting FDI Companies changing into networks of relationships with suppliers, customers, academia. Value chains being dispersed around the world. Countries best at adopting new technologies and business models will benefit most
  4. FDI can take a number of forms Privatisation- Croatian Privatisation Fund Public private partnerships in infrastructure Property and retail development Portfolio equity investment FDI based primarily on supplying export markets – mobile FDI
  5. Mobile FDI is the Target Provides greatest value-added to a country Primarily supplies export markets Manufacturing and international services are the key elements
  6. Manufacturing Information technology Automotive Engineering Consumer products Food, beverages and agribusiness Paper,print and packaging Life sciences Internet and digital media Clean Technology
  7. Manufacturing- Information Technology Communications and networking equipment Semiconductors Computer hardware Electronic contract manufacturing Consumer electronics Electronic components
  8. FDI in Manufacturing in Europe Manufacturing moving from Western Europe to lower cost locations. 75% of FDI manufacturing projects to Europe in 2007 located in CEE and SEE. €25 Billion+ invested in automobile production in CEE and SEE since 1995. Large number of auto component producers have followed. Information and Technology FDI also important in CEE and SEE.
  9. Growth of Services FDI Technology allowing supply chain functions to be located where it makes most strategic sense Restructuring by companies leading to outsourcing and offshoring of support functions Services accounted for 86% of FDI projects to Western Europe in 2007 International Services projects also growing in importance in CEE and SEE- accounted for 26% of projects in 2007
  10. Services FDI Software Development Customer and Technical Support Shared Services Centres Business Process Outsourcing Research and Development Others include regional headquarters, financial services
  11. Software FDI- some projects 2006/07 Logica, Brno, Czech Republic Computer Sciences, Prague, Czech Republic Reuters Ltd., Gdynia, Poland Samsung, Warsaw, Poland SAP, Bucharest, Romania Employment 250 160 250 200 100
  12. Customer and Technical Support Centres HP, Sofia, Bulgaria GE Money, Budapest, Hungary Google, Wroclaw, Poland Deutsche Telecom, Kosice, Slovak Microsoft, Bucharest, Romania Lenovo, Bratislava, Slovakia Employment 1,000 500 300 300 700 580
  13. Shared Services Centres BT, Debrecen, Hungary Vodafone, Budapest, Hungary GlaxoSmithKline,Poznan,Poland Royal Dutch Shell,Krakow,Poland Ericsson, Bucharest, Romania Dell, Bratislava, Slovakia Kraft Foods,Bratislava,Slovakia Employment 200 700 120 800 200 800 200
  14. Business Process Outsourcing IBM,Sofia,Bulgaria Infosys,Brno,Czech Republic HCL, Krakow, Poland KPIT Cummins,Wroclaw,Poland Accenture,Bucharest,Romania HP, Bucharest, Romania Wipro, Bucharest Employment 400 350 250 500 1,000 1,200 260
  15. Research & Development Johnson Controls,Sofia,Bulgaria Mayo Clinic,Brno,Czech Rep Servier,Budapest,Hungary Delphi,Krakow,Poland W.R.Grace,Poznan,Poland Infineon,Bucharest,Romania Autoliv,Timisoara,Romania Employment 460 400 60 180 100 250 100
  16. Recent Investments in Ireland Google, EMEA HQ, Data Centre, Financial SSC, Customer Support, R&D- now employs 1,600 IBM Smarter Cities Technology Centre- €66m investment (200 researchers) Warner Chilcott European Headquarters (150) Merck Sharp & Dohme- EMEA Shared Services Centre (150) Blizzard Entertainment- European Customer Support Centre (500) Coca-Cola €300 million flavour manufacturing and innovation facility
  17. Definition of FDI Direct investment by a foreign company or individual in a greenfield, brownfield, expansion or joint venture manufacturing operation or an international services activity which largely supports export markets
  18. Why are such investments not locating in Croatia?How can Croatia get a larger share of FDI? Seminar "Imovinski standard", 29. i 30. lipnja 2010.
  19. Thanks for your attention and contribution
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