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Karin Schwind-Derdak (above, centre) of the winning IPA Austrian Business Agency, with WAIPA president Patricia Frances and fDI editor Brian Caplen. Below, runners up from Ghana Investment Promotion Centre with Ms Frances. (Click 'More') |
A mere 30% of investing companies in the pharmaceuticals, life sciences and medical technology sector can remember the correct name of the investment promotion agency (IPA) that could help with their deal, according to a survey by Oxford Intelligence. The FDI research and information specialist also revealed that only 20% of investing companies bothered to use an agency when making an investment. These startling facts raise questions about whether companies understand the role of IPAs properly and whether agencies are providing the right kind of service.
“Although broad awareness of agencies is relatively high (48%), the usage of development agencies in investment projects (20%) suggests that IPAs need to ask themselves some searching questions about whether they are promoting their countries and regions in the best possible way,” says Francoise Lemagnen, director of Oxford Intelligence,.
Ms Lemagnen was speaking at a seminar on inward investment jointly sponsored by fDI magazine, Oxford Intelligence and location adviser IBM Consulting. The seminar was held to coincide with the eighth annual conference of the World Association of Investment Promotion Agencies (WAIPA) in Geneva in January. The conference was attended by over 250 delegates from 88 countries, 46 of whom were heads of IPAs.
At the seminar, which was introduced by fDI editor Brian Caplen, Ms Lemagnen discussed expected FDI trends in 2003 while Roel Spee, director of IBM business consulting services, plant location international, analysed trends in 2002.
Ms Lemagnen said that, while the trend in most FDI sectors was downward, there were growth areas such as medical technology. The $580bn medical technology industry was being driven by the convergence of technologies – bio-informatics and medical devices and pharmaceuticals – and the demands of an ageing population in the West and untapped demand in Asia, she said. While biotech manufacturing was likely to locate in a developed country, such as western Europe, there were opportunities for eastern Europe to attract pharmaceutical and device manufacturing.
Mr Spee said that developing countries’ share of total FDI reached its highest level ever in December (see graph), suggesting that there were still good opportunities for countries with the right strategy. Sometimes the best investment sources are other developing countries that are beginning to export capital as well as developed countries with a medium-tech FDI structure, said Mr Spee.
FDI projects in developed & developing countries (2002)
Source: IBM-PLI – Global investment locations database
In the main conference, a range of topics were covered, including best practices in investment promotion and the effects of the World Trade Organisation agreement on subsidies and countervailing measures on export processing zones.
WAIPA president Patricia Francis opened the conference. She presented the WAIPA award for Best Advertising by an IPA, which was supported by fDI magazine. The winner was Austria for its campaign using reply cards with different flags. The runners up were Ghana and the Czech Republic.
Excitement is already building for next year’s conference, which is likely to be held in Rio de Janeiro in June 2004. fDI magazine and WAIPA have agreed to work together on a full awards programme to recognise achievement in the industry to be presented at next year’s conference.
Investment plans by business sector 1997-2002
Source: Oxford Intelligence
