The Next Generation of Investment Promotion

FDI Barometer of Globalisation*

Results

2007 $1.83 trillion

2008 $1.45 trillion

2009 $1.00 trillion

2010 $1.12 trillion

2011 $1.50 trillion

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Growth in FDI by sector in 2011*Sector %change

Renewable Energy +19.9Software and IT Services +18.1Metals +17.8Automotive components +16.9Plastics +14.1Transportation +12.3Business services +10.7Financial services +9.6Food and tobacco +9.5Automotive OEM +8.7Industrial machinery, equipment and tools +7.1

Chemicals +6.6Consumer products +6.6Semiconductors +6.5Communications +4.0

Source: fDi Markets

Sector %change

Coal, oil and natural gas -6.0Real estate -11.6Pharmaceuticals -16.0Electronic components -16.8Hotels and tourism -31.0

Expansions by business function 2011*Business function % of total no of

projects

Extraction 45%Manufacturing 39%Front and back offices 28%Headquarters 22%Research, design and development 21%Logistics, distribution and transportation 18%

ICT and internet infrastructure 15%Business services 11%Sales, marketing and support 7%Electricity 5%Construction 5%Total 19%

Source: fDi Markets

Top 10 destination countries in Europe*Country No of projects

UK 896Germany 551Russia 319France 281Spain 252Poland 227

Ireland 186Netherlands 185Romania 177Czech Republic 136Total 4639

Source: fDi Markets

“Mixed results from Scandinavia”

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Number of greenfield FDI projects*

Country 2010 2011

Denmark 32 29

Norway 27 28

Sweden 59 65

Source: fDi Markets

So what does this mean?

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New Dynamics at all levels

Investors

• Multinationals• Transnationals• Micromultinationals• Entrepreneurs

Places

• Countries• Regions• Cities• Municipalities

Types

• Greenfield• M&A• Joint-ventures• Expansions

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Same Drivers

• Markets and supply chains• Raw materials & natural assets • Costs & taxes• Ease of establishment & operation• Location & logistics• Infrastructure & skills• Incentives & grants• Factor ‘X’

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The good news

• Low asset prices• Industry restructuring• Emerging economies• Rapid expansion of new sectors• Resilience of international companies• Micromultinationals

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Reality

SelectiveInvestors

More competition

Higher expectations Lower budgets

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Achieving more with less*

• Focus on strengths• Create your own model• Momentum is everything• Make it happen !

The harsh reality*Fewer projects

More choice

Strong competitors

Only the flexible survive

Further & Faster*

If you depend on past success you’ll die

If everything feels under control you’re not really trying

If you wait for consensus it may never happen

If you can’t measure your performance you’re not performing

The 3G model*First Generation Second Generation 3G

Driver Jobs Competitiveness Growth

Orientation Institutions Agencies Catalysts

Style Promotion Facilitation Selection

Focus Industries Sectors Niches

Offer Incentives Access Solutions

Targets Multinationals Transnationals MicroMultinationals

The characteristics of 3G*

Transformation Catalysts Investment selection

Competitive value

propositions

Focus on solutions not opportunities

Joined-up action

Customisation Real-time delivery

Competitive Sweden*Effective public

authorities

Competent economic

management

World-class education

Innovation and technology Great companies 0.2% of the world’s

population

2.0% World trade

The Swedish Paradox*

So competitive So inhibited

Jantelagomkonsensus Vive la difference!

What FDI means for Norrbotten*

• New jobs• New supply chains • New skills• New capital

... also a catalyst for growth*

• Competitiveness• Innovation• Knowledge• Internationalisation• Sense of purpose• Feeling of place

Why you will succeed*Great assets

Absolute clarity (what, who, where, how)

Teamwork is everything

Bottom-up approach

Can-do mentality Offer strong value propositions

Focus on solutions and opportunities

Joined-up thinking and action ( PPE)

Continuous renewal

Communication is everything

… you will make it easy for the investor to say “yes” and you will sell it with total passion!!!

Building a winning platform for Norrbotten*

Sell it!!!

2. CRE8

The new strategy

3. FORMUL8

Value Propositions

5. INOV8

Routes to market

6. ACTIV8

Quick start

4. INTGR8

Build the team

7. ACCELER8

Lift off!!Fix the baseline

1. EVALU8

8. COMMUNIC8

Keep it simple*

Outputs

Complexity

Be careful ... past success increases vulnerability

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Good luck to Team Norrbottenand to Sweden!!!

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Clive VokesMarket Scoping International

W: www.marketscoping.comE: clive@marketscoping.com