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Business, Investment and Technology Services
EU-UNIDO Dialogue on
Industrial and SME Policy Implementation
Nilgün TaşUnit Chief and Deputy to the Director, BIT
Vienna, 6 May 2014
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Outline
Inclusive and sustainable industrial development (ISID)
Common goals for industries and SMEs Implementing industrial and SME policies for
greater market access and partnerships
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ISID aims
Creating shared prosperity Safeguarding the environment Multi-stakeholder partnerships Addressing diversified needs of UNIDO Member
States
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Common goalsUNIDO EU
Improve business environments for SMEs
Reduce regulatory burdens; Think Small First/updated SBA
Upgrade SMEs to integrate into domestic, regional and global value chains-IUMP, 3ADI,….
COSME, Horizon 2020, innovation, skills instruments
Develop clusters and business linkages to improve market access of SMEs-export and origin consortia, sustainable supply chain developmentCSR/Sustainable Sourcing
Enterprise Europe NetworksMissions for Growth/SME EnvoysEuropean Cluster Alliance/ObservatoryInnova Cluster Innovation PlatformEU CSR Strategy/EU Retail Forum
Promote entrepreneurship and an entrepreneurial culture
Entrepreneurship 2020 Action Plan
Matching market access needs of European SMEs with foreign investment needs of developing Member States
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PRIORITY AREAS
INVESTMENT AND TECHNOLOGY PROMOTION
IMPROVING COMPETITIVENESS AND UPGRADING
PROMOTING CLUSTERS AND
BUSINESS LINKAGES
Investment Policy and Strategy Advice
Investment Promotion Institutions
To mobilize investments and forming regional networks
Industrial Partnerships through UNIDO’s ITPO and
SPX networks
Business Environment Policy for competitive productive
industrial activities
Capacity Building in monitoring of industrial
performance, technology foresight, cluster & export
consortia
Industrial Upgrading and Modernization
Policy
Creation and Development of Enterprises
through special programs EDIP, ICT services
Upgrading & Restructuring pilot projects and building
national consulting capabilities
Tools and Services Investment planning,
technological upgrading and innovation
Fostering Inter-Firm Partnerships
and Cooperation
Public Private and Business Partnerships
link local industries to global value chains
Clusters, Business Linkages and
Export Consortia
Creation/Strengthening of Support Institutions BMOs, BDS, technical
centers, upgrading offices
Transfer of Knowledge and Methodologies
technology foresight, CSR principles, etc.
Innovation Systems policy and initiation of public-
private innovation networks
Investment promotion through IPAs
MICRO
UNIDO’s MULTI-DIMENSIONAL APPROACH
MESOMACRO
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Improve business environments for SMEs Reducing regulatory burdens on SMEs
Company registration reduced from 15 days to 3.5 days in Viet Nam; SME savings on new and amendment registrations per annum: ~US$ 8 million per annum since 2010; on-line registration at www.businessregistration.gov.vn (funded by Norway and Switzerland)
New phase to enable registration of “Foreign Invested Enterprises”, under similar circumstances
Market entry and transparency improved with on-line access to records of over 830,000 enterprises, including annual financial statements (160,000)
SME Development Plan created 320,000 new enterprises
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ISID through Industrial Upgrading and Modernization (IUMP)
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Cameroon IUMP
UPGRADING QUALITY and STANDARDS
Institutional and regulatory review and competitive positioning studies for priority sectors; agro-food and business services
Awareness raising on quality of 1000 individuals from public and private sectors and development and validation of a national quality plan
Training of 80 national consultants on the UNIDO upgrading methodologies
Training of 40 national consultants as lead auditors to support companies in international certification
Diagnostic studies and upgrading plans for 15 enterprises
Support the creation and capacity building of the National Standards Body (ANOR)
Technical assistance to 15 enterprises to implement upgrading plans
Accreditation of three laboratories
Establishment of a Subcontracting and Partnership Exchange Centre (SPX)
Certification of 13 companies in ISO 9001, 14000 and 22000 standards
EU financed pilot and follow up phases at € 3.6m and € 10mResults achieved in the pilot phase
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At the enterprise level, diagnostics studies for 116 firms and provision of technical support to 99 firms in management and production improvements
For €6 millions of firm level technical assistance, firms invested over €21 millions on new technologies and equipment.
Second phase– €12 million will support 800 SMEs in the areas of quality, production processes, management and market access.
EU-UNIDO on regional IUMP for CEMAC at €6 million in design
Investments in technology and equipment
Estimated Amount
(EUR)% of total
Investment
Production equipment and Maintenance processes 14,101,147 66.6%Laboratory equipment 910,407 4.3%Rolling material 313,837 1.5%Hardware 212,117 1.0%Reducing impact on environment 76,208 0.4%Energy saving equipment 831,891 3.9%Other-management improving tools 4,744,679 22.4%
TOTAL 21,190,286 100.0%
Technical assistance to the companies
Number of Actions Estimated
Amount (EUR)%
Management 68 670,263 11%
Finance/Accounting 83 956,170 16%
Software 50 1,016,220 17%
Marketing 69 954,344 16%Technical ( production processes) 120 1,238,719 21%
Quality 88 1,158,215 19%
Total 478 5,993,931 100%
UEMOA Regional IUMP
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Local production of essential medicinesPolicy• AUC PMPA Business Plan implementation in
partnership with WHO, UNAIDS and the private sector• Public-private dialogue on sector strategy development
(e.g. Ghana, Kenya, Viet Nam, Zimbabwe) Institutions• Specialized courses in industrial pharmacy, support to
business membership organizations, medicines regulatory authorities, and quality control laboratories
Enterprise• Assessing feasibility of local production, technical
advice and training
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C2C, Sustainable Supplier Development and Business Linkages
Inclusive Sustainable/CSR-focus Pro-Poor Ethical/Human Rights Gender-balanced Market Integration
(North-South)
• Cluster development for ISID– Collective efficiency and Innovation– Market Access, Profitability, quality/safety/sustainability– Linking buyers and suppliers (manufacturers & retailers)– Cluster-to-cluster partnerships– Export/quality Consortia– Formal industrial sectors (Competitiveness/market
access/Sourcing)– Micro enterprises/farms (Pro-poor income generating
approach including youth/women empowerment)
• Development objectives– improving income, jobs and food security– Diversification– Value addition and integration– Consumer protection– Social, Economic and Environmental Sustainability (CSR)
and Human Rights
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1Cluster to Cluster and Buyers/Suppliers Business Linkages
Creative Industry Clusters - EU/South Mediterranean countries (Habitat…)
2Cluster-to-cluster and Sustainable Suppliers Development
Automotive industry - Slovenia/Russia-Serbia-Belarus
3Sustainable Suppliers Development and cluster development
Food Clusters - METRO AG Germany/Egypt-Russia-IndiaIlly Coffee/Ethiopia
4 Cluster policy and development and Cluster-to-cluster
Furniture Clusters - Italy/Vietnam (Livenza district/confindustria)
5 Sustainable Suppliers Development/CSR Textile clusters - H&M/Turkey……..
C2C, Sustainable Supplier Development and Business LinkagesA few examples
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CULTURAL AND CREATIVE INDUSTRY CLUSTERSIN THE SOUTHERN MEDITERRANEAN REGION*
Partner Countries: Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine, Syria and Tunisia. Currently, EU cooperation with Syrian authorities (government entities) is suspended
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EU-funded (EUR5 million) and UNIDO/Italy (EUR600K) Foster entrepreneurial cooperation in Cultural and
Creative Industries (CCI) through the promotion of promising CCI pilot initiatives, demonstrating contribution to inclusive growth
Establish business linkages between South Mediterranean and EU clusters and support institutions and between international buyers and local suppliers (Already with French Habitat)
Demonstrate the benefit of adopting a cluster approach, and promote new employment opportunities and inclusive growth in the region
CCI Clusters will be encouraged to adopt values and practices related to social inclusion, fair trade, sustainable development
OBJECTIVE
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Investment, Technology, Innovation and Entrepreneurship Services and Networks for Business Partnerships for ISID
Entrepreneurship Development programs for women and youth employment
Access to finance for enterprise creation Investment Promotion Fora ( e.g. Africa –EU business Forum 2014) Network of Investment Promotion Agencies (IPAs), AfripaNet Investment and Technology Promotion Offices (ITPOs) International Technology Centers (ITCs) Subcontracting and Partnership Exchanges (SPX)
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UNIDO Investment Monitoring Platform
IMP
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Investment and Technology Promotion Offices (ITPO)Beijing and Shanghai - People’s Republic of China Manama - BahrainMoscow - Russian Federation Rome - ItalySeoul - Republic of Korea Tokyo - Japan Yerevan - Armenia
• ITPOs broker investment and technology agreements between developed, developing countries and with economies in transition
• ITPOs assist investors and technology suppliers in the ITPO host countries to find potential partners aboard and offers unique services to entrepreneurs and institutions.
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A growing global network
11 to be upgraded
5 under discussion
16 newly set-up (since 2010)
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PROGRAMME COMPONENTS:I. SPX enterprise profiling & benchmarkingII. SPX buyer engagement & opportunity developmentIII. Supplier development & policy advocacy
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In summary, UNIDO-EU collaboration on SMEs address diverse needs by:
Creating favorable business environments for investments, technology transfer and innovation in third countries
Enable global SME partnerships by closer linkages between UNIDO and EU programs on: Industrial Upgrading and Cluster development ITPOs, ITCs, SPXs and networks of IPAs Enterprise Europe Networks Missions for Growth SME Envoys
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Thank you for your attention
+43-1-26026-3474
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The UNIDO Approach to Cluster Development
REAP: UNIDO’s CSR Programme – Reaching out to SMEs Worldwide
Adding Value to Traditional Products of Regional Origin: A Guide to Create a Quality Consortium
ITPO Highlights, Investment promotion advocacy publication
The UNIDO Approach to Sustainable Supplier Development
(Upgraded) Computer Model for Feasibility Analysis and Reporting (COMFAR)
Promoting PPPs: An Innovative Business Model to Foster Pro-Poor Growth through ITC
Global Value Chains, Local Clusters and Corporate Social Responsibility
Training Manual for Export Consortia Promoters
Investment Monitoring Platform (IMP)
Methodological Guide on Restructuring, upgrading and industrial competitiveness
Industrial Upgrading and Modernization Programme (IUMP), Communication Tool
UNIDO Methodologies and Tools-a Sample
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ISID through Industrial Upgrading and Modernization (IUMP) IUMP acts on three interrelated levels: helping formulate policies
to create a conducive business environment, developing support institutions and markets for services and upgrading enterprises
IUMP focuses on upgrading industrial sectors based on domestic comparative advantage to sustain existing jobs and create new employment for women and men for shared prosperity
IUMP helps upgrade technologies and implement innovative solutions, while ensuring compliance with international standards on quality, quantity and safety to access markets
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ISID through Industrial Upgrading and Modernization (IUMP)
IUMP works to replace environmentally unsustainable production patterns with smart solutions to ensure efficient resource management, reduction of waste and pollution and improved industrial energy efficiency
IUMP builds up partnerships and strengthens industrial governance by aligning domestic and foreign private sector, institutions, the financial sector, academia, civil society and other development partners along a clear and unified goal
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Survey of Enterprises in Selected ACP Regions UNIDO Africa Investment Promotion Agency Network (AfrIPANet) The programme (2008-2012) was supported by the African,
Caribbean and Pacific Group of States (ACP) and European Union Commission and funded through the 9th European Development Fund (EDF).
Long term objective “to support African countries to maximize the impact of foreign and domestic investment on sustainable and equitable growth and poverty reduction; to enhance competitiveness of the manufacturing and services sectors in order to capture export markets and achieve greater integration with global value chains and regional economic markets.”
Results: Capacity building for national counterparts, including Investment Promotion
Agencies (IPAs); Production of the Investment Monitoring Platform (IMP) (7000 companies in data
bank); Publication of 2 Investment Reports (2011, 2013) Regional harmonization of investment strategies through relevant bodies.
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PROGRAMME COMPONENTS:I. SPX enterprise profiling & benchmarkingII. SPX buyer engagement & opportunity developmentIII. Supplier development & policy advocacy
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ITPO Services Information Fast Lane
On screened bankable industrial business opportunities in developing countries On legal and economic environment On investment financing and technology supply sources
Industrial Partnership Promotion Establishing/maintaining contacts with host country institutions and business community Advisory services at each stage of the investment cycle Targeted investment/technology promotion events (investment fora, technology exhibitions) Facilitating business contacts between project sponsors and potential foreign investors
Investment/Technology Promotion Delegate programme On the job training in investment promotion techniques for Delegates from developing countries Assistance in promotion of a portfolio of screened investment/technology projects Business negotiations and follow-up as a contact point
Business negotiations One-to-one meetings Tours of project sponsors and of potential investors Country presentation tours
Global Forum ITPO Network meets periodically to exchange views, lessons learnt, exchange opportunities for cooperation
on sectoral and geographic programmes, projects and investment and technology opportunities
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What is the IMP? Global web-based tool to analyse,
research, and share investment data Data and knowledge sharing for the
public and private sector Initially launched for 19 African
countries Hosts in-depth data on almost 7,000
companies in the target countries
Burkina FasoBurundiCameroonCape VerdeEthiopiaGhanaKenyaLesothoMadagascar
MalawiMaliMozambiqueNigerNigeriaRwandaSenegalTanzaniaUgandaZambia
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT