FDI in the Region- Competitor Analysis

Objective of Presentation To clarify what is and what is not FDI To inform delegates about the changing nature of FDI To outline some recent investments in Central and South East European countries Seminar "Imovinski standard", 29. i 30. lipnja 2010.

Changing Global Context 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 Seminar "Imovinski standard", 29. i 30. lipnja 2010.

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 Seminar "Imovinski standard", 29. i 30. lipnja 2010.

Mobile FDI is the Target Provides greatest value-added to a country Primarily supplies export markets Manufacturing and international services are the key elements Seminar "Imovinski standard", 29. i 30. lipnja

Manufacturing Information technology Automotive Engineering Consumer products Food, beverages and agribusiness Paper,print and packaging Life sciences Internet and digital media Clean Technology Seminar "Imovinski standard", 29. i 30. lipnja 2010.

Manufacturing- Information Technology Communications and networking equipment Semiconductors Computer hardware Electronic contract manufacturing Consumer electronics Electronic components Seminar "Imovinski standard", 29. i 30. lipnja 2010.

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 Large number of auto component producers have followed. Information and Technology FDI also important in CEE and SEE. Seminar "Imovinski standard", 29. i 30. lipnja 2010.

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 Seminar "Imovinski standard", 29. i 30. lipnja 2010.

Services FDI Software Development Customer and Technical Support Shared Services Centres Business Process Outsourcing Research and Development Others include regional headquarters, financial services Seminar "Imovinski standard", 29. i 30. lipnja 2010.

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 Seminar "Imovinski standard", 29. i 30. lipnja 2010.

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, Seminvinski standard", 29. i 30. lip

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 Seminar "Imovinski standard", 29. i 30. lipnja 2010.

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 ,000 1, Seminar "Imovinski standard", 29. i 30. lipnja 2010.

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 Seminar "Imovinski standard", 29. i 30. lipnja 2010.

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 Seminar "Imovinski standard", 29. i 30. lipnja 2010.

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 Seminar "Imovinski standard", 29. i 30. lipnja 2010.

Thanks for your attention Seminar "Imovinski standard", 29. i 30. lipnja 2010.