EU -UNIDO Dialogue on Industrial and SME Policy Implementation Nilgün Taş Unit Chief and Deputy to the Director, BIT Vienna, 6 May 2014

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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

INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

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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


http://www.businessregistration.gov.vn/

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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)


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

[email protected]

+43-1-26026-3474


mailto:[email protected]

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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


EU -UNIDO Dialogue on Industrial and SME Policy Implementation Nilgün Taş Unit Chief and Deputy to the Director, BIT Vienna, 6 May 2014

Documents

smesimplementing industrial

development of enterprises

technology promotion

market access of smes

technology services

partnerships inclusive

innovation systemspolicy

greater market access