DEVELOPMENT OF A SHARED METHODOLOGY TO SUPPORT THE INTERNATIONALIZATION OF SMES AMONG THE PARTICIPATING REGIONS- INTERNATIONALIZATION SUPPPORT
1. INTRODUCTION
The “Internationalization support” is a subproject within the framework of the MODELE project, the subproject arises from the need of change the existing territorial marketing for the attraction invesments policy, based on the price of labour, cheap land, aids and subsidies, that are not useful anymore in some European regions.
The object of the “Internationalization support” are the SMEs companies, who do not have the capacity, resources and possibilities to internationalize their activities, and improve the innovation within the companies.
This “Internationalisation Support” project benefits from the experience from partners from Navarra (ES) and Basilicata (IT), with long experience in foreign investment attraction, and at risk of some big companies to be delocalizated, and from the investment opportunities still remaining in the regions of Kentriki Makedoni (GR), Kozep Dunantuli (HU) and Canarias (ES).
Through the exchange of those experiences and realities, a new methodology on investment attraction will be developed, and a new model of technical structure to support the internationalisation of SMEs will be designed and tested.
The “Internationalization support” is a subproject within the framework of the MODELE project, the subproject arises from the need of change the existing territorial marketing for the attraction invesments policy, based on the price of labour, cheap land, aids and subsidies, that are not useful anymore in some European regions.
The object of the “Internationalization support” are the SMEs companies, who do not have the capacity, resources and possibilities to internationalize their activities, and improve the innovation within the companies.
This “Internationalisation Support” project benefits from the experience from partners from Navarra (ES) and Basilicata (IT), with long experience in foreign investment attraction, and at risk of some big companies to be delocalizated, and from the investment opportunities still remaining in the regions of Kentriki Makedoni (GR), Kozep Dunantuli (HU) and Canarias (ES).
Through the exchange of those experiences and realities, a new methodology on investment attraction will be developed, and a new model of technical structure to support the internationalisation of SMEs will be designed and tested.
After the study of best practises on attracting/generating investments in some of the most excellent regions in Europe, the main conclusion is that the most successful approach is the NETWORKING.
1.1 OBJECTIVES
General objectives:
-. Redirect regional marketing towards attracting sustainable investments that can be maintained in the short and middle term.
-. Develop, test and disseminate, through networking, a new methodology on investment attraction, with the aim of finding innovative tools and policies to be applied in the future.
1.2 WORK PACKAGES
There are 5 different phases in the subproject:
1- Subproject network Implementation and Coordination.
2- Exchange of experience and transfer of best practices.
3- Methodology development
4- Methodology Testing
5- Final compilation and dissemination.
1.3 PARTNERS
The partners of the Internationalization support are:
1- Sodena from Navarra, ( Development Agency of Navarra ) ( Spain )
2- Cabildo Insular de Tenerife from the Canary Islands. ( Spain )
3- Central Transdanubian non profit company from Central Transdanubia ( Hungary )
4- Prefecture of Imathia ( Greece )
5- Sviluppo Italia Basilicata from Basilicata ( Italy )
2. CONTEXT
Until recent years, Southern European regions (Spain, Greece, Italy…) competed in attracting exogenous productive investments. This policy has yielded positive results in terms of economic development, creation of employment and wellbeing.
However, in a context of an increasingly globalised economy, European Union regions must compete with other emerging regions and countries (Eastern European candidate countries, Turkey, China, India, Korea, Brazil...). Competition makes it necessary to identify new attracting features of the territory.
Territorial marketing used to rely in certain factors (the price of labour, cheap land, aids and subsidies) are not useful anymore. Certain regions are undergoing a process where crisis and delocalisation prevail. Additionally, some regions have managed to consolidate new future bound sectors.
Therefore, the objective of regional marketing is now “attracting and/or generating sustainable investments”, based on the rational exploitation of endogenous resources.
Additionally, new EU member countries, such as Hungary, and some other regions such Canary Islands, are today a relevant destination for investments from other EU countries. "
3. NEEDS AND PROBLEMS OF THE REGIONS
1.1 OBJECTIVES
General objectives:
-. Redirect regional marketing towards attracting sustainable investments that can be maintained in the short and middle term.
-. Develop, test and disseminate, through networking, a new methodology on investment attraction, with the aim of finding innovative tools and policies to be applied in the future.
1.2 WORK PACKAGES
There are 5 different phases in the subproject:
1- Subproject network Implementation and Coordination.
2- Exchange of experience and transfer of best practices.
3- Methodology development
4- Methodology Testing
5- Final compilation and dissemination.
1.3 PARTNERS
The partners of the Internationalization support are:
1- Sodena from Navarra, ( Development Agency of Navarra ) ( Spain )
2- Cabildo Insular de Tenerife from the Canary Islands. ( Spain )
3- Central Transdanubian non profit company from Central Transdanubia ( Hungary )
4- Prefecture of Imathia ( Greece )
5- Sviluppo Italia Basilicata from Basilicata ( Italy )
2. CONTEXT
Until recent years, Southern European regions (Spain, Greece, Italy…) competed in attracting exogenous productive investments. This policy has yielded positive results in terms of economic development, creation of employment and wellbeing.
However, in a context of an increasingly globalised economy, European Union regions must compete with other emerging regions and countries (Eastern European candidate countries, Turkey, China, India, Korea, Brazil...). Competition makes it necessary to identify new attracting features of the territory.
Territorial marketing used to rely in certain factors (the price of labour, cheap land, aids and subsidies) are not useful anymore. Certain regions are undergoing a process where crisis and delocalisation prevail. Additionally, some regions have managed to consolidate new future bound sectors.
Therefore, the objective of regional marketing is now “attracting and/or generating sustainable investments”, based on the rational exploitation of endogenous resources.
Additionally, new EU member countries, such as Hungary, and some other regions such Canary Islands, are today a relevant destination for investments from other EU countries. "
3. NEEDS AND PROBLEMS OF THE REGIONS
3.1 Studies
After the study of best practises on attracting/generating investments in some of the most excellent regions in Europe, the main conclusion is that the most successful approach is the NETWORKING.
So, this is the approach that it was used in the implementation of this subproject.
And the concrete subthemes emerging from the studies are the starting point for Workpackage n.2 (exchange of experiences).
And the studies made in Navarra and Greece settled the basis and the needs of the creation of a support providing structure to internationalize SMEs (from Navarra), and the creation of a “One stop office” (in Greece)."
Regions taking part in this subproject have common needs and problems:
In all of them there is a great presence of SMEs and micro enterprises facing problems of competitiveness due to different reasons: peripheral location, small size, dependency on bigger industrial groups, small capitalization, and difficulties to access credit and to innovative instruments, as well as to innovative investments.
The dependency of the territories and of SMEs on big foreign industrial groups makes it difficult for the territories to attract investments able to be integrated with the local socio-economic context. That is one of the reasons of the need of defining innovative politics and tools for investment attraction."
One other problem faced by the regions and territories is that the local and regional public administrations find it difficult to find adequate tools of economic policy: on one hand there is the difficulty of giving
After the study of best practises on attracting/generating investments in some of the most excellent regions in Europe, the main conclusion is that the most successful approach is the NETWORKING.
So, this is the approach that it was used in the implementation of this subproject.
And the concrete subthemes emerging from the studies are the starting point for Workpackage n.2 (exchange of experiences).
And the studies made in Navarra and Greece settled the basis and the needs of the creation of a support providing structure to internationalize SMEs (from Navarra), and the creation of a “One stop office” (in Greece)."
Regions taking part in this subproject have common needs and problems:
In all of them there is a great presence of SMEs and micro enterprises facing problems of competitiveness due to different reasons: peripheral location, small size, dependency on bigger industrial groups, small capitalization, and difficulties to access credit and to innovative instruments, as well as to innovative investments.
The dependency of the territories and of SMEs on big foreign industrial groups makes it difficult for the territories to attract investments able to be integrated with the local socio-economic context. That is one of the reasons of the need of defining innovative politics and tools for investment attraction."
One other problem faced by the regions and territories is that the local and regional public administrations find it difficult to find adequate tools of economic policy: on one hand there is the difficulty of giving
quick answers to emerging problems, and on the other, the difficulty of implementing innovative instruments on investment attraction.
Being those problems common to the territories involved in this subproject, the solution goes through facing them in a common way, through exchanges of experiences and know-how, and through networking.
3.2 USE OF THE STUDIES
The results of studies on Component 3 show that regional marketing and investment attraction policies have to be redirected by the developing of innovative tools (“investment attraction packages”, “dynamization plans”...) based on sustainable models that can be integrated into local production systems from a cultural and environmental viewpoint.
The tools so identified and tested may be incorporated in the near future into the Regional Programmes of the participating regions for their financing either with Structural Funds or with own resources.
The studies also show that innovative main guidelines for the attraction of investments in the participating territories have to be set up.
And the studies also indicate the certain way in which this setting up must be made: THROUGH NETWORKING.
That is why, starting from the analysis carried out in each territory and from the study of the success cases identified in other European territories, conclusions shall be tested. And through this subproject, a new methodology on investment attraction will be developed and tested, in order to find innovative tools and policies to be applied in the future.
Being those problems common to the territories involved in this subproject, the solution goes through facing them in a common way, through exchanges of experiences and know-how, and through networking.
3.2 USE OF THE STUDIES
The results of studies on Component 3 show that regional marketing and investment attraction policies have to be redirected by the developing of innovative tools (“investment attraction packages”, “dynamization plans”...) based on sustainable models that can be integrated into local production systems from a cultural and environmental viewpoint.
The tools so identified and tested may be incorporated in the near future into the Regional Programmes of the participating regions for their financing either with Structural Funds or with own resources.
The studies also show that innovative main guidelines for the attraction of investments in the participating territories have to be set up.
And the studies also indicate the certain way in which this setting up must be made: THROUGH NETWORKING.
That is why, starting from the analysis carried out in each territory and from the study of the success cases identified in other European territories, conclusions shall be tested. And through this subproject, a new methodology on investment attraction will be developed and tested, in order to find innovative tools and policies to be applied in the future.
4. GENERAL OBJECTIVES:
-. Redirect regional marketing towards attracting sustainable investments that can be maintained in the short and middle term.
-. Develop, test and disseminate, through networking, a new methodology on investment attraction, with the aim of finding innovative tools and policies to be applied in the future.
4.1 SPECIFIC OBJECTIVES:
Identification and individualisation of agents (development agencies, promotion entities, etc) directly involved in investment attraction/generation in the territories.
Analyse their evolution during the last years (success and failures) through a benchmarking analysis.
Identification of the best practises susceptible to be transferred among the participant regions.
Compilation of best practises.
Proposal of a new methodology on investment attraction: from the different methodologies and experiences on investment attraction exchanged, one of them or (most likely) a combination of them, will be proposed.
Practical testing of that common proposed methodology of attracting of investment, in order to define a future way of supporting investment attraction in participant regions.
Encouraging interregional and transnational cooperation on investment attraction, specially focused on internationalisation, through the development of stable exchange and experience transfer networks.
-. Redirect regional marketing towards attracting sustainable investments that can be maintained in the short and middle term.
-. Develop, test and disseminate, through networking, a new methodology on investment attraction, with the aim of finding innovative tools and policies to be applied in the future.
4.1 SPECIFIC OBJECTIVES:
Identification and individualisation of agents (development agencies, promotion entities, etc) directly involved in investment attraction/generation in the territories.
Analyse their evolution during the last years (success and failures) through a benchmarking analysis.
Identification of the best practises susceptible to be transferred among the participant regions.
Compilation of best practises.
Proposal of a new methodology on investment attraction: from the different methodologies and experiences on investment attraction exchanged, one of them or (most likely) a combination of them, will be proposed.
Practical testing of that common proposed methodology of attracting of investment, in order to define a future way of supporting investment attraction in participant regions.
Encouraging interregional and transnational cooperation on investment attraction, specially focused on internationalisation, through the development of stable exchange and experience transfer networks.
Encouraging the utmost dissemination of the results of the project at 3 different levels: regional, national and European.
5. METHODOLOGY AND ACTIVITIES:
Main approach of the project is the networking.
Some of the participant regions have a long experience on investment attraction (“experienced regions” from now on), and some others have still some opportunities to attract investments (“host regions” from now on).
The main aim is not to compete among participant regions to attract investments, but to cooperate.
The experienced regions can show their best practises (success and failures) and host regions can learn form this experience.
All the regions envisage that in future all Europe will not be a territory attracting investments, but internationalizing their own SMEs.
That is why these regions, sharing their experience, will develop (and also test) during this project, a common methodology to attract investments, and this methodology will constitute an exercise of internationalisation, being a pilot for future implementation of support structures to hold the internationalising of SMEs from all over Europe.
That is why these regions, sharing their experience, developed (and also test) during this project, a common methodology to attract investments, and this methodology constitute an exercise of internationalisation, being a pilot for future implementation of support structures to hold the internationalising of SMEs from all over Europe.
5. METHODOLOGY AND ACTIVITIES:
Main approach of the project is the networking.
Some of the participant regions have a long experience on investment attraction (“experienced regions” from now on), and some others have still some opportunities to attract investments (“host regions” from now on).
The main aim is not to compete among participant regions to attract investments, but to cooperate.
The experienced regions can show their best practises (success and failures) and host regions can learn form this experience.
All the regions envisage that in future all Europe will not be a territory attracting investments, but internationalizing their own SMEs.
That is why these regions, sharing their experience, will develop (and also test) during this project, a common methodology to attract investments, and this methodology will constitute an exercise of internationalisation, being a pilot for future implementation of support structures to hold the internationalising of SMEs from all over Europe.
That is why these regions, sharing their experience, developed (and also test) during this project, a common methodology to attract investments, and this methodology constitute an exercise of internationalisation, being a pilot for future implementation of support structures to hold the internationalising of SMEs from all over Europe.
Exchange of experiences => develop of common methodology => testing of methodology by a new support structure => Dissemination of results"
5.1 PROJECT MANAGEMENT, NETWORK IMPLEMENTATION AND COORDINATION
Securing the efficient management of the subproject and of its work programme, the adequate running of the partnership and a strict compliance with the functions and tasks laid down in the Cooperation Agreement signed by the subproject partners, in order to achieve the expected results and to obtain results transferable to other European bodies and regions potentially interested.
The approach will be the networking in all the activities of the project.
Action 1.1. Networking and Publicity
Setting up of the network (Intranet, website, other communication tools), in order to establish an efficient context for networking through and enhancing the publicity via Internet
Action 1.2. Coordination and financial issues
Establishment of an “steering committee”, composed by one coordinator of each partner. Communication among the coordinators will be mainly via e-mail, and monthly a tele-conference can be dated to up date the project progress.
Action 1.3. Sub-project steering meetings
The Steering Committee meet in Navarra
three times during the project.
The launch meeting was hold in December 2006.
The second meeting served to strength the partnership and to solve the coordination problems that have appeared, as well as to evaluate the project progress and to discuss on the methodology proposal.
And the third meeting will be at the end of the project (October 2007), to evaluate the final results of it.
5.2 EXCHANGE OF EXPERIENCE AND TRANSFER OF BEST PRACTICES
Identification and individualization of agents (development agencies, promotion entities, etc) directly involved in investment attraction/generation in the territories, to analyse their evolution during the last years (success and failures) through a benchmarking analysis, in order to identify the best practises susceptible to be transferred among the participant regions.
Action 2.1. Regional agents map.
Individualization of actors and entities involved in attracting investments in each region (development agencies, promotion entities, etc).
A questionnaire was designed to compile the data in every territory.
The participation (the involvement) of all those entities in the project was promoted (by the participant partner from each region)
Individualization of regional sectors/companies susceptible of investments in foreign regions
A data base of companies/sectors able to go abroad (p.ex. from Navarra into Kozep Dunantuli, or from Basilicata into Canary Islands) was compiled.
Individualization of companies lately investing in sub-project regions (in order to know what sectors are likely to internationalize into those regions).
Action 2.2. Exchange of experiences.
Benchmarket analysis of data available.
Presentation of different experienced methodologies of investment attraction, analysis and discussion on them.
Definition and proposal of event (diffusion seminar), was held in Pamplona in march of 2007.
Results
Best practises on investment attraction compilation and diffusion.
Individualization of sectors/companies susceptible to go abroad.
Individualization of sectors in “hosting regions” able to accept new companies from other regions.
5.3 METHODOLOGY DEVELOPMENT
From the different methodologies and experiences on investment attraction exchanged in the previous workpackage (WP 2), one of them or (most likely) a combination of them, was proposed as the best one. This proposed methodology was compiled in the present workpackage, and was tested in the next workpackage (WP 4).
An analysis and compilation of the methodologies shared in the previous workpackage will be made, in order to identify a recommended methodology for a regional system for attracting/generating investments.
This new methodology was tested by its implementation
An agreement on a shared common methodology was reached, with the collaboration of external expertises like Jesús Zabalo.
5.4 METHODOLOGY TESTING
Practical testing of the methodology of attracting of investment compiled in previous workpackage, in order to define a future way of supporting investment attraction in participant regions.
5.1 PROJECT MANAGEMENT, NETWORK IMPLEMENTATION AND COORDINATION
Securing the efficient management of the subproject and of its work programme, the adequate running of the partnership and a strict compliance with the functions and tasks laid down in the Cooperation Agreement signed by the subproject partners, in order to achieve the expected results and to obtain results transferable to other European bodies and regions potentially interested.
The approach will be the networking in all the activities of the project.
Action 1.1. Networking and Publicity
Setting up of the network (Intranet, website, other communication tools), in order to establish an efficient context for networking through and enhancing the publicity via Internet
Action 1.2. Coordination and financial issues
Establishment of an “steering committee”, composed by one coordinator of each partner. Communication among the coordinators will be mainly via e-mail, and monthly a tele-conference can be dated to up date the project progress.
Action 1.3. Sub-project steering meetings
The Steering Committee meet in Navarra
three times during the project.
The launch meeting was hold in December 2006.
The second meeting served to strength the partnership and to solve the coordination problems that have appeared, as well as to evaluate the project progress and to discuss on the methodology proposal.
And the third meeting will be at the end of the project (October 2007), to evaluate the final results of it.
5.2 EXCHANGE OF EXPERIENCE AND TRANSFER OF BEST PRACTICES
Identification and individualization of agents (development agencies, promotion entities, etc) directly involved in investment attraction/generation in the territories, to analyse their evolution during the last years (success and failures) through a benchmarking analysis, in order to identify the best practises susceptible to be transferred among the participant regions.
Action 2.1. Regional agents map.
Individualization of actors and entities involved in attracting investments in each region (development agencies, promotion entities, etc).
A questionnaire was designed to compile the data in every territory.
The participation (the involvement) of all those entities in the project was promoted (by the participant partner from each region)
Individualization of regional sectors/companies susceptible of investments in foreign regions
A data base of companies/sectors able to go abroad (p.ex. from Navarra into Kozep Dunantuli, or from Basilicata into Canary Islands) was compiled.
Individualization of companies lately investing in sub-project regions (in order to know what sectors are likely to internationalize into those regions).
Action 2.2. Exchange of experiences.
Benchmarket analysis of data available.
Presentation of different experienced methodologies of investment attraction, analysis and discussion on them.
Definition and proposal of event (diffusion seminar), was held in Pamplona in march of 2007.
Results
Best practises on investment attraction compilation and diffusion.
Individualization of sectors/companies susceptible to go abroad.
Individualization of sectors in “hosting regions” able to accept new companies from other regions.
5.3 METHODOLOGY DEVELOPMENT
From the different methodologies and experiences on investment attraction exchanged in the previous workpackage (WP 2), one of them or (most likely) a combination of them, was proposed as the best one. This proposed methodology was compiled in the present workpackage, and was tested in the next workpackage (WP 4).
An analysis and compilation of the methodologies shared in the previous workpackage will be made, in order to identify a recommended methodology for a regional system for attracting/generating investments.
This new methodology was tested by its implementation
An agreement on a shared common methodology was reached, with the collaboration of external expertises like Jesús Zabalo.
5.4 METHODOLOGY TESTING
Practical testing of the methodology of attracting of investment compiled in previous workpackage, in order to define a future way of supporting investment attraction in participant regions.
Action 4.1. Individualization of regions, sectors and companies.
Individualization of regional sectors/companies (in Navarra, Basilicata, and Kentriki Makedoni) interested in investing in foreign regions.
In WP 2 is studied the availability of sectors/companies to invest in foreign regions, but here the eagerness of those companies to go abroad was checked. A data base of interested companies was compiled.
Individualization of grow sectors in host regions (Kozep Dunantuli and Canary).
A data base of sectors needed of new companies was compiled.
Action 4.2. Support structure definition and implementation.
-. Support structure model definition.
A support structure to provide technical support to companies eager to internationalize was defined (work team definition).
A technical rapport detailing the composition and way or working of this support structure was written.
-. Support structure implementation.
Action 4.3. Support structure testing proposed methodology.
The “internationalisation support structure” pilot the testing of the methodology proposed in workpackage 3, by supporting at least 1 or 2 small companies in their internationalising process (p.ex. from Navarra into Kozep Dunantuli), that was the objective.
This process included these phases:
Selection of companies to be implemented in the host region/s.
Provision of specialised support to the company implementation process.
Testing of the developed methodology of attraction of investments.
Implementation of a web portal on interregional SMEs cooperation, the web site is www.interreg-internationalizationsupport.com
An strategic and operational planning of an infrastructure for the attraction of investors in Imathia was also prepared. Main characteristics of the local area of the intervention, the structure, organisation, activities of the demanded infrastructure will be examined.
The methodology on investment attraction proposed on workpackage 3 was tested by its implementation by a new support structure created to support SMEs eager to internationalize.
5.5 FINAL COMPILATION OF METHODOLOGY AND DISSEMINATION OF RESULTS
Encouraging interregional and transnational cooperation on investment attraction, specially focused on internationalisation, through the development of stable exchange and experience transfer networks. Encouraging the utmost dissemination of the results of the project at 3 different levels: regional, national and European.
The communication actionssecure the utmost dissemination of the results and products of the Project is achieved. And include, among others, the following communication elements:
Action 5.1. Newsletter.
Briefing concerning sub-project objectives, topics, activities, outputs, transnational dimension, expected results, etc.
Action 5.2. Innovative methodology compilation.
Compilation of the innovative methodology tested by the sub-project, written in English.
This document to be disseminated via internet.
Action 5.3 Final Conference.
The final conference will be held in Pamplona in October.
"Maximum dissemination of the results and products of the project, as well as its main aims and objectives (during the initial period).
Dissemination of results will be mainly focused on regional, national and European level."
6. OUTPUTS
Main outputs are the “new methodology of investment attraction” and the “model of internationalization support structure”, but some other outcomes arise, such us:
Website of the project
Financial and progress reports
Agenda, minutes, signatures sheets, compilation of presentations made during the meetings
Questionnaire designed to compile the data
Data base of companies/sectors able to go abroad
Data base of companies eager to intenationalize.
Record of the benchmarket analysis - best practices
Data base of sectors able to accept new companies (in host regions).
Technical rapport on the composition and way of working of the internationalising support structure.
Web portal on interregional SMEs cooperation.
Newsletter
Document compiling the innovative methodology tested by the sub-project, written in English, to be disseminated via internet
Final Conference
7. RESULTS:
Main result will be the definition and testing of a new methodology of investment attraction.
This testing will be pilot by a new support structure, which definition will also be done during the subproject.
8. LONG TERM IMPACTS:
The new methodology of investment attraction, used during the project and, as expected, can continue be using in future in the participant regions.
The model of internationalization support structure defined during the project can also be used in future by the entities taking part in the project, and by any other institution involved in regional development.
