EXPORT PROMOTION SERVICES IN EMILIA-ROMAGNA INTERNATIONALIZATION POLICIES WITHIN

EXPORT PROMOTION SERVICES IN EMILIA-ROMAGNA INTERNATIONALIZATION POLICIES WITHIN A EUROPEAN CONTEXT Speaker: Gian Luca Baldoni Cairo, April 15 th 2009

EMILIA-ROMAGNA BRIEF DESCRIPTION Location: Capital: Provinces: North-Est Bologna, Ferrara, Forlì - Cesena, Modena, Parma, Piacenza, Ravenna, Reggio Emilia, Rimini Population: Unemployment rate: > 4. 2 GDP: GDP per capita: Export (value): 134 billion Euro (2007) 32, 000 Euro (2007) 45 billion Euro (2008) ENTERPRISES Total: < 20 employees: Manufacturing: EXP manufacturing: milions (gen. 08) < 3 % (2008) > 450, 000 97% 67, 000 13% out of national EXP (2° italian region) 2

EMILIA-ROMAGNA BRIEF DESCRIPTION 3

EMILIA-ROMAGNA AND THE DEVOLUTION PROCESS • Republican Constitution became effective in 1948. It already provided for the establishment of Regions • Only from the 1970 s Regions were actually established although with very limited powers • In 2001 constitutional changes and new powers were devolved to Regions. The main innovations of the Constitution were: Ø a closed list of matters on which State has exclusive legislative power Ø a closed list of matters subject to concurrent legislation of both the state and regions (in matters of concurrent legislation, the regions have legislative power except for fundamental principles which are reserved to state law) Ø Regions have exclusive legislative power with respect to any matters not expressly reserved to state law 4

EMILIA-ROMAGNA AND THE DEVOLUTION PROCESS Subdivision of legislative powers with respect to internationalisation issues Exclusive legislative power of the State • Defence Concurrent legislative power between State and Regions • Foreign policy and international relations of the state; relations of the state with the European Union • International and EU relations of the Regions • Money, protection of savings, financial markets; protection of competition; currency system; state taxation system and accounting; equalization of regional financial resources • Health • Education • Foreign trade • Customs • Weights, units of measurement and time standards; coordination of the informative, statistical and information-technology aspects of the data of the state, regional and local administrations; intellectual property 5

NORMATIVE AND LEGAL CONTEX OF SPRINT-ER Administrative competence Legislative decree n° 112 of 1998 Devolution of administrative competence on Regions Emilia-Romagna Regional Law n° 3, of 1999 Reorganisation of the administrative competence E-R 3 - year Programme for economic activities Axe 5 support to the internationalisation of the economic system Institutional agreement with the Italian Ministry for Foreign Trade 6

LEGISLATIVE DECREE N. 112 OF 1998 Devolution of administrative competence on Regions Article 19 Article 48 Transfers administrative competence to Regions on matters related to incentives and financial support to SMEs and handcraft, internationalisation, trade fairs. Specifies in which fields of internationalisation Regions has administrative competence: • support to the participation of companies to international fairs and events aimed at increasing the export shares • promotion of the regional productive systems • facilitation and financial support of export consortia In order to fulfil these administrative tasks Regions can avail themselves of the Italian Trade Commission and of the Chambers of Commerce 7

3 -YEAR PROGRAMME FOR PRODUCTIVE ACTIVITIES EMILIA-ROMAGNA REGIONAL LAW n. 3/99 Axis 1 Financing companies development and support to projects for the innovation investments Axis 2 Regional Quality Plan Axis 3 Programme for industrial research, technology transfer and innovation Axis 4 New entrepreneurship and employment Axis 5 Support to the internationalisation of the economic system Axis 6 Territorial development Axis 7 Support to the creation of a network of services 8

3 -YEAR PROGRAMME FOR PRODUCTIVE ACTIVITIES: AXIS 5 Measure 5. 1 • Promotional Programme supporting export and internationalisation of the Regional economy: • Promotional projects implemented directly or in partnership • Sprint-er (one-stop-shop) • Support to the internationalisation of the regional fair system • Support to the internationalisation of the regional R&D system Measure 5. 2 Support to internationalisation strategies of the regional companies: • Action A Regional participation to a guarantee fund meant to facilitate companies’ access to credit for market penetration (outside UE) • Action B Regional participation to a guarantee fund meant to facilitate companies’ access to credit foreign investments (outside UE) • Action C Support to Export Consortia (grants) • Action D Support to temporary groups of SMEs (grants) Measure 5. 3 Territorial marketing 9

SPRINT-ER UNIT: AIMS Emilia-Romagna is an internationally oriented region characterized by a strong export vocation SPRINT-ER UNIT Ad hoc tool dedicated to internationalization policies AIMS Supporting the growth of exports and international markets shares Increasing the level of internationalization and competitiveness of regional enterprises 10

SPRINT-ER UNIT: GENESIS Program agreement Region/Min Foreign Trade in 1996 Promotional Program • Region SPRINT-ER • ICE • Third parties 1. Understanding MINCOMES, RER, ICE, SACE, SIMEST (2000) 2. Operational cooperation agreement RER - Unioncamere (2005) 1. Country projects for SMEs 3. Identification of a unified program RER- Chamber System 2. Participation to governmental missions 4. Operational Protocol (2006) 5. Program agreement 2007 between RER and MINCOMES New Emilia-Romagna Regional Unit for SMEs internationalization with territorial desks 3. Internationalization of the industrial research network 4. Training initiatives: Master ICE Emilia-Romagna Region/University 11

SPRINT-ER UNIT: STRUCTURE NETWORK Chambers of Commerce Italian Trade Commission EMILIA-ROMAGNA REGION SIMEST Banks Ministry of Economic Development SACE Entreprenurial Associations Custom experts Universities International Representatives 12

SPRINT-ER UNIT: ORGANIZATIONAL CHART EMILIA-ROMAGNA REGION ICE BOLOGNA D. G. PRODUCTIVE ACTIVITIES, TRADE, TOURISM SACE Fairs and events SMEs aggregation Administration UNIONCAMERE Network referent Sprint-ER Director Project Special China SIMEST COMMUNITY MANAGER 9 Chambers of Commerce 25 DESKS ABROAD 13

SPRINT-ER UNIT: INTERVENTION LINES Export and industrial collaboration promotion Filière and aggregate form approach R&D system internationalisation Territorial marketing Trade fair system internationalization Advanced education on internationalisation Economic diplomacy 14

SPRINT-ER UNIT: SERVICES & TARGET COUNTRIES SERVICES • Information and consulting • Financial and insurance assistance • Advanced training • Customs and logistics assistance • Foreign investors assistance • Promotional activities within the regional territory • Promotional activities towards target countries Brasil – Russia – India - China TARGET COUNTRIES Turkey - South Africa USA - Japan - Israel 15

SPRINT-ER UNIT: ACTIVITIES (2007) • 127 EVENTS REALIZED BY THE SPRINT-ER NETWORK 452 workshops, forum, promotional events, congresses, training activities, seminars 430 trade fairs participation 412 incoming missions - 19 out-going missions 425 institutional events 4 Territorial partnerships in Europe and Asia 4 Country presentations on India, Brazil and Turkey • 500 SMEs HAVE USED THE NETWORK’S SERVICES ABROAD • OVER 2500 SMEs HAVE BEEN INVOLVED IN TERRITORIAL ANIMATION ACTIVITIES 16

SPRINT-ER UNIT: ACTIVITIES (2008) • Presentation of project “Mechanics in BRICS Countries” at territorial Sprint units – 9 events • Territorial presentation of Sprint-ER units network and of SIMEST and SACE services– 9 events • Saudi Arabia – Participation to fair and pre-fair activities • China – seminars, incoming delegations, pre-feasibility studies, outgoing missions, managerial education, territorial partnerships • Turkey – territorial animation, outgoing and incoming missions • India – Institutional and economic missions • Russia – Trade fairs 17

SPRINT-ER UNIT: ACTIVITIES BY TYPE (2008) Activities by type 120 100 80 60 105 40 38 20 40 7 0 F I 6 ME 7 MU P W F Total I ME MU P W 38 7 6 7 105 40 18

SPRINT-ER UNIT: ACTIVITIES BY SECTOR (2008) 19

SPRINT-ER UNIT: ACTIVITIES BY COUNTRY/SECTOR (2008) 20

SPRINT-ER UNIT: PROGRAMME 2008 -2010 CONTEXT and GOALS • Export as driving force of regional development • Identification of new business opportunities for regional SMEs • Supporting international industrial collaboration, JV, • TT operations, research of suppliers of quality • Strengthen territorial partnership towards Asia NEW INTERVENTION PRIORITY 1. Focus Asia and China 2. Focus mechanic sector INTERVENTION MODALITY • Regional promotional program • Intervention program with ICE • Call for proposal for SMEs aggregation FINANCIAL ALLOCATION PER YEAR € 10. 000 21

SPRINT-ER UNIT: SPECIAL CHINA PROJECT (2008 -10) • China Net – encourage matching between demand/supply aggregated according to supplier sectors between regional and Chinese SMEs. Support to the creation of a centre for quality control and logistics for procurement management • Collaboration with Tongji University of Shanghai - coordination of activities related to the promotion of entrepreneurial collaborations as well as to R&D through a service centre • China Desk – first assistance to SMEs at Sprint-er • China Training – entrepreneurial training about China • China Info Point – advanced trade fair services for China in Shanghai at the regional services centre • Forum for Italy-China industrial cooperation • College of China Association 22

SPRINT-ER UNIT: CO-FINANCED TRADE FAIRS PROJECTS YEAR 2005 • International promotion of regional trade fair system • Cibus, Mia and Dolce Italia • Cibus-Vinitaly China 2006 • Sistema arte e antiquariato • Cersaie 2006 • Ambiente multiutilities Mosca e Shanghai • Cosmoprof Shanghai • R 2 B 2005 YEAR 2006 YEAR 2007 • International promotion of mechanics-agroindustry trade fair system • Cibus-Vinitaly Russia 2007 • Cibus-Vinitaly Cina 2007 • l Workshop Sia Guest Dubai • Saie 2007 • Polo Ambiente multiutilities • II Workshop Ecomondo Mosca • A Leather Bridge with Africa • Sh Contemporary 2007 • Shanghai Children Books fair • R 2 B 2006 • International promotion of regional trade fair system • Cosmoprof Guangzhou 2008 • Vinitaly/Cibus Russia 2008 • Vinitaly/Cibus Cina 2008 • SAIE e CERSAIE • Italian Architecture and interior design • Cosmoprof Shanghai 2009 • Arte Fiera 2009 • SIA Guest Dubai • SH Contemporary • SAIE Spring • ECOMONDO Mosca • Expo Build and Ceramics • R 2 B 2007 23

SUPPORT TO SMEs AGGREGATION: FINANCIAL MEASURES The Region has created 2 financial measures to support SMEs aggregation Permanent SMEs aggregation Export consortium call for proposal 2002 2003 Temporary SMEs Aggregation (TSA) call for proposal 2004 2005 2006 2007 SMEs 729 750 788 950 939 Consortium 27 28 29 32 32 31 Call for proposal 2004/2005 Call for proposal 2006 Call for proposal 2007 18 TSA 137 SMEs 32 TSA 314 SMEs 54 TSA 418 SMEs 24

SPRINT-ER: METHODOLOGY Step 1 Clustering Concept Step 2 Matching Step 3 Networking Step 4 International cooperation Regional Economic research upon enterprises DB diplomacy, filiere and Foreign institutional targeted countries enterprieses DB partnership Definition of Identifying Conference Task forces per bilateral and speakers building country Format Identifying Event realisation Yearly event identification Conference Study and Follow-up location and multilateral themes Exhibition timing b 2 b Business Enterprises Networking Business matching opportunities matching endorsment meetings description 25

LESSONS LEARNED FIRST LESSON SECOND LESSON THIRD LESSON “Do NOT underestimate the challenge, even stronger “Regionalism vs. Centralism: “Top-down vs. bottom up policies: regions need for internationalisation strategies” synergy not dichotomy” the need for a policy mix strategy” THE REGIONAL GOVERNMENT’S ROLE TOGETHER WITH NATIONAL AUTHORITIES TOWARDS: STRATEGIES The strategic objective (maintaining and increasing the foreign trade share of the Region’s economy ) is actively pursued by: • promoting the active presence of SMEs on emerging international markets in terms of export development, production investments and industrial collaborations (joint ventures, technology transfer and the development of trade networks) through B 2 B meetings, shared projects, market researches; • promoting the region as a whole by staging large-scale promotional events; • attracting foreign direct investment in high technology, knowledge-based sectors; • implementing “economic diplomacy” as a means of furthering the above points. • • • Definition of a consensus strategy • Clustering, matching and networking of SMEs on a specialised integrated filière basis • Internationalisation of the trade fair system as a platform for world wide business • • Internationalisation of R&D and high-tech start-ups Selection of priority country targets Export promotion through promotional actions and big events Regional economic diplomacy as an accompanying measure 26

LESSONS LEARNED FOURTH LESSON FIFTH LESSON “Territorial vs Sectorial: from a cluster “Money makes the difference” approach to the specialised filières” TOOLS Policy instruments and financial leverage • • • LIMITED budget requirement for transparency an accountability • one-stop-shops for SMEs in Emilia-Romagna and in the priority countries: information and business promotion joint promotional projects in priority countries through networking in market penetration financial support to cluster of enterprises export securitisation, patents and intellectual property rights protection guaranteeing (Region as guarantor through loan consortiums) FDI attraction in high-tech sectors • • Italy suffers of budget deficiency compared to other EU countries (e. g. UK Gov. Budget for promotional events is around 120 Meuro, Italy is 60 Meuro). Giving that is even more necessary the accuracy in spending money public support cannot replace entrepreneurial risks obligation to avoid overlapping of public interventions the importance of maximising public funding by collaborating with foreign/international institutions interested to co-finance the initiatives clear objectives and careful planning help. According to objectives planning can be oriented to mix costly projects with cheaper ones 27

CONTACTS EMILIA-ROMAGNA REGION Policies for the internationalization of SMEs Unit Viale Aldo Moro, 44 40127 Bologna (Italy) Tel: + 39 051 6396420 Fax: +39 051 6396512 e-mail: sportelloestero@regione. emilia-romagna. it www. sprint-er. it – www. ermesimprese. it HEAD OF UNIT: Ruben Sacerdoti 28