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Extending the territory where companies are working Internationalization versus delocalization

GRIP-IT Governance of Regionally Integrated Projects using Innovative Tools. Structural funds implementation in an integrated approach International Seminar – Monfalcone, 4° May 2007.

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Extending the territory where companies are working Internationalization versus delocalization

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  1. GRIP-ITGovernance of Regionally Integrated Projects using Innovative Tools. Structural funds implementation in an integrated approachInternational Seminar – Monfalcone, 4° May 2007 “The role of territory in enterprises’ internationalisation process: building European local authorities’ new capacity” Ugo Poli – Informest Vice -President

  2. Extending the territory where companies are working Internationalization versus delocalization • General organization of the SMEs (sectors, cluster, net companies) extends the net of labour division on the trans-national basis • The best result is obtained by reproducing abroad an efficient environment similar to the original one • The companies ask for institutional support (Source: Fondazione Nord Est 2003)

  3. Three Veneto examples • Treviso in Judet of Timis (Rumania) • Venice in Brcko Canton (Bosnia Herzegovina) • Vicenza in Samarin Town (Slovakia) The learned lessons • Criteria of private-public partnership for internationalization • Entrepreneurial cluster target in the expanding phases • Support of institutional authorities and transnational co-operation agreements on institutional basis • Credit system presence at local level

  4. The programme “Mercati Aperti – Open Markets” financed by the Single Programming Document Objective 2 of Friuli Venezia Giulia Autonomous Region • Activities: “implementation of strategies, initiatives and territorial development projects for the internationalization of enterprises and the local economic bodies of the beneficiary areas with the aim of co-operating with the future European regions on a local or regional basis” • Regional Conference Udine, 8th December 2004 • Workshop Gorizia, 25th February 2005 • Conference proceedings in www.mercatiaperti.it

  5. Building the private-public partnership (1) • To know local companies: needs and potential • To organise consultation forum and project sharing • To understand the opportunity of the trading growth (export) and the production capacity (investments) of companies

  6. Building the private-public partnership (2) • To verify the added-value of an inter-municipality approach in the fields of: • marketing, • productive potential, • transnational institutional significance, • access to the national and European financing • To organize the public administration to efficiently manage international relationships (offices, personnel, procedures, information, budget)

  7. Identify the suitable transnational dimension through a SWOT analysis • All the productive systems need not to remain isolated • The local market is not enough: vision shared by municipality, territory and companies • Building external relationship on the basis of the current relationship: which are the strength? • Create a database of the external relationships already existing at the local level • Further development of relations based on strengths identified • When the strength can become weaknesses

  8. The pivotal role of human relations in transnational economic relationship • Directly verify the Local Production System attraction and competitiveness with reference to foreign potential in the fields of:: • Logistic location/ accessibility, • Professional culture, • Certainty of the law • Country risk versus costs competitiveness • Internal growth rate • Other competitive advantages of the territory (environment, research centres, universities, special economic zones, aid system, etc.)

  9. Using the expertise: High-skilled technical assistance • Use system resources to assess markets and identify opportunities by: • One-stop-shop for the internationalization (SPRINT office) • Informest – Service and Documentation Centre for International Economic Co-operation • Chambers of Commerce • Euro Info Centre Network • Use the resources dedicated to internationalization in the Municipalities foreseen by the Single Programming Document Object 2 – Friuli Venezia Giulia Region

  10. Building the transnational partnership among the local production systems (1) • To choose the legal status of the promoter body and to start the activities • To collect enterprises’ acceptance and their financing commitment • To formalize the relationship among the partners by: • Local authorities twinning; • Consortium on private-public-partnership; • Transnational agreement among the partner-organizations 

  11. Building the transnational partnership among the local production systems (2) • to design the development project in co-operation with foreign partners and define the objectives of the common interest • to arrange the conditions for the implementation of the transnational development programme • to verify the national and foreign financing funds for supporting the development programme • to transfer best practices among the partners with reference to the programme (capacity building) • to support personnel exchange for short internships

  12. Creating an environment suitable for the enterprises in the system/territory of the foreign partner (1) • to guarantee the parity between Italy and foreign countries • to obtain advantages dedicated to larger investors thanks to the critical mass obtained by gathering member SMEs • to negotiate credit conditions for enterprises participating in the programme • to assure preferential ways for production settlement (unified negotiation under FDI conditions)

  13. Creating an environment suitable for the enterprises in the system/territory of the foreign partner (2) • to negotiate the measures for the permanent vocational training, including courses of Italian language • to create a local one-stop-shop for administrative interface with the local system • to build a network of local high-skilled experts, specialized in the relationship with Italian enterprises • to negotiate with the local partner tutorship support measures for your own enterprises • to support the programme with other programmes regarding the social and cultural exchanges

  14. The lessons learned from Mercati Aperti programme • the de-localization logic distorts trade data and takes visibility from the enterprises foreign investments • the local administrator fear the impoverishment of the their territories due to departure of local companies • transnational extension of the local production systems within a barrier-free market will strengthen SMEs competitiveness • for SMEs information and institutional support is as important as the financial one.

  15. INFORMEST Centro di Servizi e Documentazione per la Cooperazione Economica Internazionale 34170 Gorizia – Via Cadorna 36 Tel. +39/0481597411 – Fax +39/0481537204 www.informest.it

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