Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational...
Transcript of Global Investment Trends - FT Live · Role of FDI •FDI is the defining feature of a multinational...
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Global Investment Trends fDi Forum
Presentation by Henry Loewendahl, CEO WAVTEQ
September 24, 2015
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What is the role of FDI in the world economy?
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Role of FDI
• FDI is the defining feature of a multinational enterprise
10/13/2015
World GDP
World R&D spending
World Trade
R&D employment (USA)
28%Top 200 MNEs
50%/67%Top 700 MNEs
70%Top 500 MNEs
80%All MNEs
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Is global FDI in growth or decline?
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Greenfield FDI - declining
• FDI expected to be 15% lower than 2014
• FDI down in every region of world
• Most industries down
• Ren. Energy growing (after big declines)
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M&A - Growing
• Global M&A over $3 trillion by end August
• Cross-border M&A 2nd highest ever since 2007
• Record M&A levels in North America, AsiaPac in many sectors including healthcare, tech & telecom
• Driven by:
– Consolidation (semiconductor, telecom)
– Buy or be bought (pharma)
– Technology disruption (media & entertainment)
– Volatility (oil & gas)
• Enabled by cash balances and low interest rates and encouraged by tax structures6
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Overall assessment
• UNCTAD estimates FDI flows will increase by 11% in 2015 to $1.4 trillion
• EIU forecasts FDI to exceed $1.6 trillion in 2015 with 14% growth
=Overall FDI flows to increase in 2015
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The best performing country for Greenfield
FDI in 2015 YTD is?
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INDIA
• Greenfield FDI already 40% up
• Major mfg projects from Sun Edison, POSCO, Cricket, Vedanta, Trina Solar, Toyota, Zhejiang Leo, J&J, etc.
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Country ranking greenfield FDI
20141. China2. US3. UK4. India5. Mexico6. Vietnam7. Malaysia8. Canada9. Brazil 10.Egypt
2015 (Jan-July)1. US2. India3. China4. UK5. Mexico6. Indonesia7. Vietnam8. Australia9. Canada10.Spain
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What % of FDI is R&D?
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Role of R&D
• 2.3% of OECD GDP
• 2.9% of total FDI capital investment
• 5% of total FDI jobs
Since 2008, the number of US patents granted to foreign companies has exceeded the number granted to US companies every year with the gap widening
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What is the leading city in the world for
attracting FDI in R&D?
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City ranking greenfield FDI # projects (location)
20141. Singapore2. Shanghai3. Bangalore4. Dublin5. Beijing6. Hyderabad7. Pune8. Edinburgh9. Montreal10.Belfast/London
2015 (Jan-July)1. Bangalore2. Singapore3. Shanghai4. Pune5. Dublin6. Chennai7. Paris8. London9. Hyderabad10.Wroclaw
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What is the leading city in the world by # home-
grown companies investing overseas in R&D?
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City ranking greenfield FDI # companies (source)
20141. Tokyo2. Paris3. NYC4. London5. Munich 6. Beijing7. San Jose8. Stuttgart9. Seoul10.San Francisco
2015 (Jan-July)1. London2. Tokyo3. NYC4. Paris5. Munich6. Stuttgart7. San Francisco8. Beijing 9. Chicago10.Austin
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What is the best city in the world for biotech R&D?
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Biotech R&D: cost-quality competitiveness
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Biotech R&D: Ranking
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Thank you!
• Dr Henry Loewendahl, Founder & CEO, WAVTEQ Ltd
• E-mail: [email protected]
• Skype: hloewendahl | Linkedin: Henry Loewendahl
• Cell: +447557965393
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