1. INVEST IN BELGIUM Fostering Innovation in Belgium 1 Thomas Castrel, 25-9-2014

2. INVEST IN BELGIUM “The iPhone is a niche product” Nokia CEO Olli — Pekka Kallasvuo, 17 April 2008

3. INVEST IN BELGIUM

4. Belgium At the border of 3 main European cultures 11 million inhabitants Official languages: French, Dutch, German Independent since 1830 Federal state since 1981 Head of state: King Philippe Capital: Brussels 4

5. INVEST IN BELGIUM Belgium connected to Europe 75 % of the EU Market (GDP) 40 % of the consumers 5

6. INVEST IN BELGIUM Belgium is the second most globalised country in the world KOF Index 2014 measures 25 variables indicating degree of integration into world economy KOF stands for Konjunkturforschung (Business cycle research) 6

7. INVEST IN BELGIUM A perfect assessment market Gateway to European market Multi-cultural population European diversity challenge on a small scale Importation 84% GDP Exportation 86% GDP Source : The World Bank 2013 7

8. INVEST IN BELGIUM Successful test in Belgium = successful test in Europe H&M maintains a pilot store in Belgium in order to market-test all its newest clothing collections. The Coca-Cola company has tested over 1,000 products in Belgium, including the well-received Coca-Cola Light Sango cola and Fanta World Mango product in 2006. 8

9. INVEST IN BELGIUM Education & skills University Education For information : India5,17 Russia5,04 China4,26 Brazil3,27 Sources : University Education (IMD World Competitiveness Yearbook 2014) Language Skills For information : India6,25 China4,95 Russia 3,89 Brazil 2,46 Language skills (IMD World Competitiveness Yearbook 2014) 9

10. INVEST IN BELGIUM Best quality for education and schooling Sources : The Global Competitiveness Report World Economic Forum 2013 - 2014 Ranking Primary Education Educational System Math and Sciences Management Schools Belgium2732 Netherlands1012149 Germany25142127 France3543155 UK3126503

11. INVEST IN BELGIUM An unique hotspot for lifelong learning “Best country in the world for academic research” The Scientist, November 2007 16 Outstanding Universities Universities meet the needs of a competitive economy : Belgium ranked 11 th out of 60 (IMD World Competitiveness Yearbook 2014) Strong interaction between teaching and research Management schools ranked 2 nd out of 148 (Global Competitiveness Report World Economic Forum 2013 - 2014) 7 universities are classified in the Academic Ranking of the World Universities 2013 by Shanghai Jiao Tong University. Worldwide renowned Research Centres IMEC: nano-electronics SCK-CEN: peaceful applications of nuclear science ITM: Institute of Tropical Medicine VIB: life sciences Welbio: fundamental life sciences VITO: sustainable technologies Cenaero: high-tech industry, mainly in aeronautics iMinds : Interdisciplinary Institute for Broadband Technology … and many others 11

12. INVEST IN BELGIUM EU innovation performance Source: EU Commission, DG Enterprise, 2013 EU member states’ innovation performance 12

13. INVEST IN BELGIUM Research & Development Ranking (out of 144 countries surveyed) Availability of latest technology Capacity for innovation Quality of scientific research institutions Availability of scientists and engineers Belgium1210430 Netherlands99741 Germany133617 France18161324 UK58323 Source: Global Competitiveness Report World Economic Forum, 2013 - 2014 13

14. INVEST IN BELGIUM Research & Development 2012 EU Industrial R&D Scoreboard (European Commission) Belgium ranks as one of the best hosting nations for high- tech R&D investments. US firms spend ten times more on R&D in the EU than in China and India combined. Belgium is in a particularly good position to receive foreign investments in R&D due to the high quality of its research facilities, in combination with unparalleled R&D incentives. Belgium receives the third highest amount of R&D expenditure by foreign-owned companies. 14

15. INVEST IN BELGIUM Research & Development: incentives 1. Patent income deduction Deduction of 80% of the income from patents from the taxable basis, resulting in an effective tax rate of maximum 6,8% on this income 2. Investment deduction Investment deduction for R&D related investments deduction of 14,5% on the investment value (in one shot) OR 21,5% on the annual depreciation (spread deduction) 3. Exemption from withholding tax on the remunerations of researchers Principle: the salary withholding tax is normally retained on the remunerations paid to the researcher, but only 20% of the retained amount of tax must be paid to the tax administration (= extra financial means for the employer) → 80 % exemption of the withholding tax ! 15

16. INVEST IN BELGIUM Implementation: science parks Louvain-La-Neuve Science Park (health, environment, engeneering) Liège GIGA Gosselies Leuven & Ghent Smart Hub Newton & uno. Brussels Etc…

17. INVEST IN BELGIUM For further information Flanders Investment & Trade Koning Albert II-laan 37- 1030 Brussels www.investinflanders.comwww.investinflanders.com - invest@fitagency.beinvest@fitagency.be T : +32 2 504 87 11 - F : +32 2 504 88 99 Wallonia Export & Investment Agency Office For Foreign Investors Avenue des Dessus de Lives 6 - 5101 Namur-Loyers www.investinwallonia.bewww.investinwallonia.be - welcome@investinwallonia.bewelcome@investinwallonia.be T : +32 81 33 28 50 - F : +32 81 33 28 69 Brussels Invest & Export c/o Ministry of Brussels-Capital Region Avenue Louise 500 - 1050 Brussels www.investinbrussels.comwww.investinbrussels.com – info@investinbrussels.cominfo@investinbrussels.com T : +32 2 800 40 00 - F : + 32 2 800 40 01 17 The Liaison Cel Federal Public Service Economy Contact person: Mrs Colette Vanstraelen Colette.vanstraelen@economie.fgov.be T : +32 2 277 72 82