Developing an Internationalisation Strategy for the Region

1
Northwest Internationalisation Strategy Action
Plan key challenges
Richard Jeffery Head of Internationalisation
Strategy Bill Greenhalgh Cluster Strategy
Manager Economic Development Directorate
2
Englands Northwest
Northwest Regional Development Agency

• 111bn Economy
• larger than 14 EU Countries
• 6.8m population
• 230,000 businesses
• Globally important universities
• International transport hub
• 28 million travelling through airports
• 30 million tonnes going through our ports

• Regional Economic Strategy
• Funding of 462M 2008/9
• 417 staff
• Sponsor Department - BERR
• Private sector led Board, Chair Bryan Gray

3
Internationalisation a regional priority
Regions Vision is global A dynamic,
sustainable international economy which competes
on the basis of knowledge, advanced technology
and an excellent quality of life for all

• Internationalisation Strategy one of 45
  transformational actions
• One of 11 NWDA corporate priorities (25m)
• Opportunity to help close the GVA gap
• Lead role International Business Forum (private
  sector

4
Internationalisation role for the region?

• Potential benefits to UK prosperity
• increased levels of productivity (up to 1/3)
• higher levels of innovation
• knowledge transfer
• higher survival rates
• Market failures create barriers to
  trade/investment
• Social/knowledge network barriers
• Fixed cost barriers
• Capability/management attitudes
• Cost-effective actions the region can take
• For every 1m spent the economy benefits by 16m

5
Region performing well internationally

• Leading trading region
• exports 29.8 billion (8.4m of which is
  services)
• increasing share of GVA (25 to 28 2001 to 2006)
• exports contributed more than half of the
  regions GVA growth
• Leading investment hub outside London/South East
• 2,000 investors
• In 2007/08 156 projects with 14,656 jobs
• Globally important universities
• 26,925 international students at NW HEIs
• International transport hub
• 28 million travelling through airports
• 30 million tonnes going through our ports

6
but challenges ahead

• recent decline in overall trade values
• OECD predicts world trade to contract by 13.2 in
  2009
• NW has greater exposure to more established
  markets
• region/UK underperforming in higher growth
  markets
• higher barriers to entry
• Pressures on exporters
• access to trade credit
• difficulties managing exchange rate risk
• Slow down in global FDI flows
• combined with increasingly sophisticated
  competition
• Innovation networks increasingly global
• harder for SMEs to access, manage cross boarder
  networks

7
International Strategy Priorities
International Vision for the Northwest A
dynamic, sustainable international economy which
competes on the basis of knowledge, advanced
technology and an excellent quality of life for
all.
International Strategic Goals Maximise
opportunities from globalisation Realise
opportunities from international trade Realise
opportunities from inward investment
RESObjectives Reduce GVA Gap
2. Maximising international potential of regions
science, RD and HEI assets
1. Developing Internationally Competitive Sectors
3. Targeting strategically important countries
5. Enhancing exploiting the regions
international connections
4. Promoting the Northwests Assets
Internationally
6. Influencing UK Government and European Policy
8
Focusing international programmes on priority
sectors and aligning with cluster programmes
Attracting inward investors
Helping companies in priority sectors access
international markets
Helping knowledge intensive businesses
internationalise
Objective 5Target priority country markets
Objective 1Developing Internationally
Competitive Sectors
Developing international supply chains
Helping companies access global innovation
Helping sectors to develop an internationally
comparable skills base
9
Northwests Global Network
10
ISAP Targets and monitoring

• For inward investment
• Attract 150 inward investment projects of which
  17 RD (currently 7)25 of jobs with average
  salary level 30k (now 21k)17 from high
  growth markets (now 8)
• For university engagement
• Greater internationalisation of research
• Increase number of international students
• Enhance retention/placement of int. students in
  NW economy
• For trade
• 140m of export sales through regional trade
  support
• 2,000 companies become new exporters/enter new
  markets
• contribute to national UKTI targets

11
What next?

• Monitor impact of economic hurricane
• Implement BRIC market plans
• Continued roll-out of overseas inward programme
• Shanghai Expo 2010
• Internationalisation of clusters, helping firms
  access and benefit from international knowledge
  networks

12
What is a Cluster?
A group of industries and organisations that are
linked together in buying and selling
relationships, or who share the same
infrastructure, customers or skills base and
whose linkages enhance competitive advantage -
Prof. Michael Porter
13
What does a Cluster look like?
Cogent SI
14
NWDA Cluster Development Programme

• Launched March 2000
• Supports the priority sectors in the Northwest
  Regional Economic Strategy
• Delivered through Regional Cluster
  Organisations
• Linked to other NWDA programmes, plus UK Trade
  Investment
• Based on modern theories of cluster development
  (Prof. Michael Porter)
• UK Cluster Strategy (Department for Business,
  Enterprise Regulatory Reform)
• Cluster development successfully used in many
  other regions globally
• Trans-national clusters collaboration is a
  European Commission priority

15
NWDA Cluster Development Programme
Biomedical Energy Environmental
Technologies Advanced Engineering Materials
Chemicals Aerospace Automotive Advanced
Flexible Materials Food Drink Digital
Creative Industries Financial Professional
Services
BioNoW Envirolink NW Chemicals Northwest North
West Aerospace Alliance Northwest Automotive
Alliance NWTexNet Food Northwest Northwest Vision
Media Pro Manchester Professionaliverpool Call
Northwest
16
Further Information
Cluster Organisation
Website
BioNoW EnvirolinkNW Chemicals Northwest North
West Aerospace Alliance Northwest Automotive
Alliance NWTexNet Food Northwest Northwest
Vision Media Pro Manchester Professionaliverpool
Call Northwest
www.bionow.co.uk www.envirolinknorthwest.co.uk ww
w.chemicalsnorthwest.org.uk www.aerospace.co.uk ww
w.nwautoalliance.com www.nwtexnet.com www.foodnw.
co.uk www.northwestvision.co.uk www.pro-mancheste
r.co.uk www.professionaliverpool.com www.callnorth
west.org.uk
17
CLUNET Project fact sheet

• Project Acronym CLUNET Cluster network
• Project coordinator Northwest Regional
  Development Agency
• Consortium 14 Partners and 64 clusters
  identified
• EC contribution 2,022,000
• CLUNET is one of the four cluster development
  projects under the PRO-INNO initiative funded by
  the European Commission (Directorate General
  Enterprise Industry)
• Topics innovation policy on internationalisation
  and incubation

18
CLUNET consortium
19
CLUNET Summary

• Exchange cluster development policy best
  practices sub focus themes on
  internationalisation and incubation. See report
  at
• http//www.proinnoeurope.eu/admin/uploaded_documen
  ts/CLUNET_policy_Guidelines_080108.pdf
• Develop and implement 8 pilot projects, eg for
  Aerospace, Environmental Technologies and Cluster
  Support Infrastructure
• Implement specific project on cooperation between
  industry and research / technology transfer
• Extend the network beyond the CLUNET consortium
  including building on existing linkages (European
  Cluster Alliance)
• CLUNET and the PRO-INNO programme are part of
  European support for clusters (European Cluster
  Policy Group, European Cluster Observatory)

20
Challenges Opportunities

• International cluster co-operation needs clear
  added value, dedicated resource (funds and
  people) and political level support.  
• Trans-national cooperation should be encouraged
    
•     i)  To facilitate access and sharing of
  knowledge, infrastructure, pilot plants and
  academic excellence.
•     ii)  To enable integration into high value
  markets , developing markets, and joint efforts
  for opportunities in BRIC countries.
• Effective trans-national cooperation needs
  information on what is available in EU regions
  and resources to build the links and trust with
  partner regions.
• What are the best ways to achieve effective
  cooperation?

20
21
Northwest Internationalisation Strategy Action
Plan key challenges 12th May 2009
Richard Jeffery Bill Greenhalgh Head of
Internationalisation Strategy Cluster Strategy
Manager Tel [phone] eMail
richard.jeffery_at_nwda.co.uk Bill.Greenhalgh_at_nwda.co
.uk Northwest Regional Development
Agency Renaissance House, PO Box 37, Centre Park,
Warrington, WA1 1XB, UK Web site www.nwda.co.uk