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International Engagement Ready Communities Initiative: Troppe

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This presentation was delivered at NADO's 2018 Annual Training Conference, held in Charlotte, NC on October 13-16. For more information, visit: https://www.nado.org/events/2018-annual-training-conference/

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International Engagement Ready Communities Initiative: Troppe

  1. 1. International Engagement Ready Communities (IERC) Mark Troppe, CREC, mtroppe@crec.net
  2. 2. Agenda • Self Assessment • Project Background • Research Report Summary • Toolkit Overview 2 Research Report Summary Toolkit Overview Project Background Self Assessment
  3. 3. Poll Questions Strategy & Planning – Regional Approach 1. Which category would best describe your approach to FDI attraction and marketing? – EDD-Centered Approach – we focus on promoting our EDD – Regional Approach - we collaborate with multiple counties to market our region’s collective strengths – State Aligned - we rely mostly on the state’s FDI attraction and promotion activities – All of the above – we promote at multiple levels Strategy & Planning – Talking with Existing FOEs 2. Have you talked with existing foreign owned enterprises in your region to understand why they located there? (Yes/No) Connecting Exporters with Federal and state resources 3. Rate your EDD’s effectiveness at making companies aware of federal and state export assistance programs. (Scale of 0-5) 3
  4. 4. Poll Questions (cont.) Leveraging Partners to Generate FDI Leads 4. Please rate your EDD’s effectiveness at engaging key partners to promote your region and generate leads with foreign investors. (Scale of 0-5) Prospect Support 5. Please rate how well prepared your EDD is to connect a potential investor with resources and familiar faces. (Scale of 0-5) Aftercare and BRE 6. Do you have a formal Business, Retention and Expansion program in your EDD? (Yes/No) 7. Please rate your EDD’s effectiveness in delivering aftercare to existing foreign-owned enterprises. (0-5 Scale) 4
  5. 5. Project Background The International Engagement Ready Communities (IERC) initiative is a collaborative effort led by: the U.S. Department of Commerce’s Economic Development Administration (EDA), the International Trade Administration’s (ITA) SelectUSA, and the Trade Promotion Coordinating Committee (TPCC). 5 Goal: Produce a rigorous, validated set of tools for communities to support higher levels of international engagement—foreign direct investment (FDI) and exports—across the United States. This report was prepared using Federal Funds under award ED17HDQ3120097, from the EDA, U.S. Department of Commerce. This cooperative agreement with SRI International, Center for Regional Economic Competitiveness (CREC), and Stone & Associates was funded from 2017 to 2018.
  6. 6. Project Overview The IERC initiative includes two major products: – A research report that uses a rigorous qualitative and quantitative analysis to reveal determinants of regional success in FDI/exports, that assesses both economic assets and economic development policies and practices. – A practical toolkit that enables communities—regardless of their characteristics or assets—to design and execute effective FDI attraction and export promotion strategies. 6 Research Report • Executive Summary • Quantitative Analysis • Qualitative Analysis • Crosswalk of Findings Practical Toolkit • Strategy & Planning • FDI Attraction • Export Promotion
  7. 7. The research report and toolkit enable regions to design and execute effective practices in FDI attraction and export promotion. Project Highlights 7 Research Report Practical Toolkit The toolkit is informed by the research report and includes a number of interactive resources for communities: • Activities • Common and effective practices • Examples • Checklists • How to guides • Self-assessments • Resources The quantitative and qualitative analyses in the research report establish some determinants of inbound FDI and outbound exports. Specifically, to encourage international engagement communities must: • Define local assets • Develop a targeted regional strategy • Allocate long-term resources to business retention and expansion
  8. 8. Research Report Methodology 8 This combined quantitative and qualitative approach triangulates the data on FDI attraction and exports by capturing both measurable patterns of performance and specific case examples of policies and strategies in action. Cross-sectional regression analysis that uses a national dataset to capture FDI events and export performance at the regional level as the dependent variable, and demographic and economic controls (education, population density, unemployment, etc.), fixed assets (transportation, infrastructure, etc.), and regional policies (tax burden, state expenditures, etc.) as independent variables. Quantitative Analysis A focused literature review, conversations with subject matter experts, interviews with 40 stakeholders, and case studies from communities across the U.S. In combination this yields comprehensive information on effective practices in attracting FDI and expanding regional exports. Qualitative Analysis
  9. 9. Research Report Key Themes The keys to successful promotion of international engagement include: 9 Define influential local assets and specific regional strengths 1 Develop a targeted regional strategy that aligns with and leverages local assets 2 Allocate appropriate long-term resources for short- term and long-term regional economic development activities, including business retention and expansion 3 6.8M Jobs FDI provides over six million well-paid jobs $2.2T Exports accounted for 12% of GDP in 2016
  10. 10. Define Specific Local Assets Regions with existing international connections, strong industrial clusters and major companies in traded industries, good transportation infrastructure, low input costs, and available skilled workers are well-positioned for success in FDI attraction and export promotion. 10 Transportation infrastructure and strategic geographic proximity Industry concentrations, research institutions, major companies, exporters Low-cost inputs: labor, land, and energy Foreign market relationships and connections Available skilled labor 1
  11. 11. Develop a Targeted Regional Strategy Regions must make global engagement a priority, including: a sustained commitment, an appropriate investment of funding and staff time (recognizing that many regions have limited resources), and a long-term time horizon. 11 Collaborate at the regional levelUse unified and consistent messaging FDI • Leverage existing connections for leads • Provide robust support services (e.g., site readiness, worker training programs) • Offer financial and non-financial incentives Exports • Connect companies with export potential to existing federal and state resources • Collaborate with export ecosystem partners to fill service gaps 2
  12. 12. Allocate Resources Regions must recognize that it takes time and short-term and long-term resources to develop proactive strategies, build relationships, take targeted actions, and realize results from the effort. Political and financial support are essential for this work. 12 Coordinate a region-level approach to increase efficiency and eliminate duplicative efforts Create and maintain an effective business retention and expansion program Cultivate in-depth knowledge of and lasting relationships with existing regional companies 3
  13. 13. Research Report Unique Findings • Existing connections to foreign markets matter • The existing base of companies and foreign investors are a region’s biggest asset • M&A opportunities are too big to be ignored • Being specific and focused is required for success – Many regions promote the same broad clusters/sectors and general assets (e.g., quality of life, quality labor force, etc.) – need to distinguish from competing regions • Smaller regions may need to collaborate with neighbors • Exporters need connections to existing federal and state resources 13
  14. 14. Example Cases Great Falls, Montana Pulse crop fractionation http://usacompetes.com/fdi/outreach-and- marketing/fdi-marketing-and-outreach-plan/ 14 Chester County, South Carolina Regional collaboration http://usacompetes.com/fdi/outreach-and- marketing/cultivate-regional-brand/ Golden Triangle, Mississippi Leveraging cultural ties http://usacompetes.com/fdi/prospect-support-main- page-test/connecting-prospects-to-familiar-faces/ Louisville, Kentucky Proactive M&A strategy http://usacompetes.com/plan-strategize/developing-an-fdi- strategy-and-plan/what-can-communities-do-to-support- encourage-fdi-ma/
  15. 15. Toolkit Overview 15 Website Sections IERC Initiative Overview Strategy & Planning Promoting Exports Attracting FDI The IERC toolkit is available at www.usacompetes.com 1 2 3 4
  16. 16. IERC Initiative Overview 16 1 Initiative Overview Sections • About the Research Effort • The Research Team • Federal Partners
  17. 17. Strategy & Planning 17 2 Strategy & Planning Sections • Making the Case for International Engagement • Getting Prepared to Create a Plan • Developing an FDI Strategy & Plan • Developing an Export Strategy & Plan
  18. 18. Strategy & Planning 18 Example: Making the Case for International Engagement How do we make the case for an international engagement initiative? • FDI and export data and trends • Summary of benefits • Research reports • Resources 2
  19. 19. Strategy & Planning 19 Example: Developing an FDI Strategy & Plan How do we attract and support foreign investors who acquire firms in our region (M&A)? • Guidance • Real-life examples • Resources 2
  20. 20. Strategy & Planning 20 Example: Developing an FDI Strategy & Plan How do we develop an effective value proposition that distinguishes our region? • Practitioner quotes • Real-life examples of different value propositions and strategies • Resources 2
  21. 21. Promoting Exports 21 3 Exports Sections • Outreach & Marketing • Support Services • Grants
  22. 22. Promoting Exports 22 Example: Support Services What programs are available to help companies in my region increase exports? • Overviews of federal and state programs • Real-life examples • Links to more information 3
  23. 23. Attracting FDI 23 FDI Sections • Outreach & Marketing • Prospect Support • Incentives • Aftercare 4
  24. 24. Attracting FDI 24 Example: Outreach & Marketing How do we cultivate a regional brand that tells our story? • Video stories • Potential activities • Real-life examples • Resources 4
  25. 25. Attracting FDI 25 Example: Prospect Support How well do we support the investor once they decide to invest? • Self assessment questions 4

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