APPENDIX 19
Memorandum submitted by East of England
Development Agency
INQUIRY ON UKTI'S FIVE-YEAR STRATEGY
Response to Question 3
East of England International (EEI) delivers
trade development and inward investment in the region on behalf
of EEDA and sub-regional economic development partnerships in
the region. EEI is a limited-by-guarantee company that is led
by a board comprising directors nominated by EEDA, the sub-regional
partnerships and the private sector.
Responses to other questions
INWARD INVESTMENT:
1 For 2005-06, the last audited financial year, our
annual expenditure on inward investment direct costs of promotional
efforts and client case handling was £927,468. In addition
to this we spent £275,577 direct costs on a team delivering
overseas investor aftercare (investor development).
2 During 2005-06 we operated an East of England office
in San Jose, California, on behalf of the region. This office
will be closed with effect from 1 April 2007.
We do not initiate any of our own inward missions to promote the
region to inward investors, but we do work with UKTI network colleagues
to host missions initiated at consulates or embassies overseas
within the region.
Regarding information provision to international businesses, we
have a wide range of sector and sub-sector information sheets
and world class case studies of successful technology and R&D
intensive businesses already here which we use for marketing overseas
and developing company leads to investment projects. We compile
bespoke presentations in response to individual client projects
either working through UKTI London on their enquiry stream or
directly with clients on those that have approached EEI.
We also promote the region to business through major international
exhibitions in key technology sectors. For a number of years,
we have successfully made such exhibitions dual function through
a programme of involving regional businesses working with us at
these shows to featuring their products and services on the East
of England stand presence. This has resulted in success both for
trade and investment activities and in certain cases resulted
in very significant trade export contracts having been concluded
for some companies at the exhibitions.
3 See introductory paragraph above
4 We deliver to the East of England Regional Economic
Strategy (RES) on international strategy in respect of the following
main sectors:
— Life Sciences, including Healthcare and Biotechnology
— Technology, including Telecommunications and
ICT
— Automotive & Aerospace
— Food & Drink
— Energy & Environmental
In addition to our ongoing client demand from North American and
European markets, we are actively working with UKTI on the following
emerging markets
— China
— India
— New Zealand
— Australia
5 Our successes and jobs created or saved in the last
three years has been as follows:
| Successes
| Jobs Created or Safeguarded
|
| 2003-04 | 27
| 861 |
| 2004-05 | 29
| 1,625 |
| 2005-06 | 47
| 2249 |
6 Examples of key inward investment projects won by
EEI recently include:
Kodak Research, Cambridge
EEI attracted Eastman Kodak's European Research operation
to Cambridge in a tough competition with other European regions.
The head of the facility here has welcomed what they he sees as
the genuinely open and collaborative environment in Cambridge
to research and develop new technologies. Kodak is looking to
provide the University with funding for research and access to
the intellectual property generated for its own research purposes.
In addition to its primary mandate for research the facility is
tasked in identifying the hottest technology start-ups locally
with a view to further investment by the corporate team based
in Kodak HQ in Rochester, New York State.
EISAI, Hatfield
Eisai, which is one of the top 20 pharmaceutical companies
in the world, announced that it is to locate its European corporate
headquarters and manufacturing centre in Hatfield.
This announcement underlines Eisai's recognition of the region's
outstanding pharmaceutical and biotechnology strengths, both in
research and manufacturing. By locating in Hertfordshire, Eisai
will join and enhance Europe"s leading life sciences cluster.
David Marlow. EEDA's Chief Executive, said that Eisai's decision
to locate its operation in the region with the hundreds of jobs
it promises "will have a significant impact on the local
economy and on the future prosperity of the region"
Genzyme, Haverhill
Genzyme is a major bio manufacturing facility based in Haverhill,
Suffolk.
One of the world's foremost biotechnology companies, Genzyme is
dedicated to making a major positive impact on the lives of people
with serious diseases. Founded in Boston in 1981, Genzyme has
grown from a small start-up to a diversified enterprise with annual
revenues exceeding $2 billion and more than 8,500 employees in
locations spanning the globe.
As part of our ongoing investor development programme, we supported
their expansion project which will create 150 jobs at the site,
through extensive assistance on site and property alternatives
and benchmark costing.
Its investment will considerably enhance the prosperity of the
local community through additional job creation and further strengthen
the region's life sciences sector not only in terms of knowledge
base but through the message that it sends to other technology
companies that high-value manufacturing is productive and successful
in the region and the UK
7 Our future plans for inward investment promotion
are very closely aligned with UKTI"s new 5 year strategy
In particular:
(a) Our leading sectors and fasting growing businesses
all involve some degree of R&D intensive content. We have
always treated high value R&D intensive business as high priority
clients because of the significant economic value-added nature
of their investments and trade opportunities for the region. We
will be working with UKTI to extend the team"s focus on such
businesses to support the UKTI national strategy.
(b) Whilst we have a very strong sector based team
and client focus, we have recognised the importance of key emerging
markets such as China and India in the last few years and we have
already tasked senior members of our trade and investment teams
with focus on these key markets, extended the development of strategic
alliances we were already developing in two key regions of China.
We will work closely with the consular networks and UKTI in India
and China. A number of other countries in this region including
Japan, Korea, New Zealand and Australia are also presenting interesting
two-way trade and investment strategic alliance opportunities.
(c) The strategy of promoting London as the leading
financial centre only adds to our regional promotional effort
and we fully support this approach. We believe that a strong London
offers many benefits to the East of England region, not just because
of its close proximity but also because a strong financial centre
in London supports the extension of other financial sector activity
in other cities such as Norwich.
(d) With effect from 1 April 2007, EEI will no longer
have any overseas offices.
TRADE PROMOTION
8 During 2005-06 we were just completing the merger
process of the trade team into EEI. Prior to this, participation
in trade missions was fragmented and consisted of groups of clients
travelling with International Trade Advisers to meet needs.
Since forming EEI we have integrated such missions into our regional
business planning process and organised missions to Dubai, India
and China as well as a mission to promote opportunities with the
UN and Red Cross, New York. Planned for the remainder of the year
are missions to Romania, Japan and Toronto (jointly with the East
of England Multimedia Alliance.
Occasionally participation in missions follows exhibition at major
trade fairs. Following ITU 2006, exhibitors on the EEI stand took
the opportunity to travel together into Southern China. Exhibitors
expect large orders (£4 million) for the region as a result.
9 Combining the trade and investment teams in 2006-07
has led us to a more rigorous analysis of where to use our limited
resources in terms of trade missions organises.
As part of our business planning process EEI consults with other
business support agencies regarding a trade development strategy
for the region. This ensures that we take into account local strengths
and the needs of regional businesses. This is then matched with
UKTI national priorities re sectors and markets.
We have conducted joint marketing initiatives with London and
the South East in terms of inward investment promotion.
We informally plan joint trade missions with neighbouring regions;
we publicise and participate in other region's missions where
appropriate and vice versa.
30 January 2007
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