APPENDIX 34
Memorandum submitted by the London Development
Agency
INWARD INVESTMENT
1. What is your annual expenditure and staffing
resource on inward investment promotion to your region?
£3,559,431 is this year's total expenditure
on inward investment (Inc staffing costs) and future levels are
expected to be a similar level.
Think London, the LDA funded dedicated inward
investment agency have a total of 55 staff. The LDA have a team
of four people in inward investment and business growth (UK and
Foreign owned) which equates to approximately 1.5 FTE working
on FDI.
2. What activities does the agency carry out
to promote inward investment into the region (such as overseas
offices, missions, information provision etc)?
Offices in China (Beijing), India (Mumbai) and
US (New York and San Francisco).
Think London also co-fund with UKTI one person
in Sao Paulo, Brazil Embassy.
Provision of information and lead generation
through event hosting and sponsorship both in selected overseas
markets and in London.
Hosting of UKTI inward missions where appropriate.
As part of the LDA led business growth programme
Investor development activities are undertaken which includes
account management of strategic companies already invested in
London.
3. Is the agency's inward investment promotion
carried out directly by the agency, or by another sponsored body?
Inward Investment promotion is carried out by
Think London on behalf of the LDA, with strategic involvement
by the LDA where necessary.
4. Which sectors and countries is the agency
particularly focused on?
Priority geographic markets: North America,
Japan, Australia, and Korea, France, Italy, Germany, Spain, Nordics,
Brazil, China, India, Russia.
Priority sectors are currently being reviewed,
the results of which we aim to have by the end of the summer 2007.
Beyond financial services and ICT, Initial findings suggest Biotech,
Environmental Technologies and Creative and possibly food industries
will be among the priorities for London.
5. How many inward investment projects has
the agency won in the last three years? How many of these have
created or saved jobs? In total, how many jobs have been created
or saved?
|
| 2004-05
| 2005-06 | 2006-07
| Total |
|
| Inward Investment successes | 88
| 119 | 88
(3 quarters)
| 294 |
| Jobs created | 2,056
| 2,854 | 2,147
(3 quarters)
| 7,048 |
|
6. Could the agency outline some examples of successful
inward investment projects, which the region has recently won,
and how these have impacted on the region?
Company Name: ZTE (UK) Ltd
Description of Company and investment:
ZTE is China's largest listed telecommunications equipment
provider. The company develops and manufactures telecommunications
equipment for fixed, mobile, data and optical networks, intelligent
networks and next generation networks, as well as mobile phones.
This was an expansion project. It set up its UK HQ in
North London in 2002 and decided to move westbound to be close
to the M4 Corridor.
Jobs Created/Safeguarded: 120.
Significance of investment:
This was an important expansion project due to the position
of ZTE in China's telecoms industry.
They are now working with BT to develop the world's
first 3G mobile handset compatible with BT Movio's broadcast mobile
TV and DAB digital radio service.
There are plans for future expansion.
Company Name: Sogeti UK Ltd
Description of Company and Investment:
Sogeti Transiciel is a French IT consultancy that is
part of the Cap Gemini Group, they employ over 14,000 people across
Europe and the states.
The Company started off in a serviced office with six
people and were looking to move into permanent offices at a later
stage. The investment was aimed at the middle market for smaller
organisations than Cap Gemini would normally target.
Jobs Created/Safeguarded: Started off with six, growing
to 100 over three years, with a further 200 consultants.
Significance of investment:
Significant job creation to a local workforce.
Company Name: Amgen
Description of Company and Investment:
North American Life Sciences Company.
The investment in West London is a Global RandD facility
for Amgen. It will focus on the development of products and bringing
these products to market.
Jobs Created/Safeguarded: 300 Jobs created.
Significance of investment:
This was a contestable project with Amgen considering
another European location. Winning the investment helps to strengthen
London and the South East of England as a major centre for Life
Sciences Research and Development.
7. What are the agency's future plans for inward investment
promotion, within the context of UKTI's new five-year strategy?
The LDA is in the process of developing a new Inward Investment
and Business Growth strategy (IIBG) which will form the future
plans of what the LDA, Think London and the network of business
growth organisations across London are tasked with delivering.
The London IIBG strategy will align with the UKTI new five year
strategy as well as with the Mayor of London's Economic Development
Strategy. We aim to be able to report on this strategy in the
2nd quarter of 2007-08.
TRADE PROMOTION
8. What trade missions to promote exports from the region
has the agency organised or taken part in over the last three
years?
9. How do you determine which missions to promote? Do you
ever co-operate with other RDAs in promoting joint missions? Do
you encourage/allow firms from outside your region to participate
in your missions?
Response for Q8 and 9: While the LDA does not handle trade
promotion directly, we are currently supporting UKTI trade team
London in its business planning and strategy review, and are actively
seeking opportunities for joint working going forward.
| 
