MIRAFIORI CASE and the role of the cluster in business attraction policies Paola Elia Morris Torino, 8 November 2007 “Network of Automotive Regions”

MIRAFIORI CASE MIRAFIORI CASE and the role of the cluster in business attraction policiesand the role of the cluster in business attraction policies

Paola Elia Morris Torino, 8 November 2007

“Network of Automotive Regions”

4.3 million inhabitants = 7.4 % of the national total

9% of Italian GDP = more than € 118 bln

11% of the total national exports = € 35 bln

450,000 companies, 1,400 of which in the automotive

sector

1.8% GDP invested in R&D (national average: 1.1%)

over 700 foreign companies have already chosen to locate in Piemonte (Source: Unioncamere Piemonte 2007)

1www.centroestero.org

Torino and Piemonte: the economic background

Piemonte: Italian leading region in automotive

www.centroestero.org

1,400 companies - 75,000 workers

sector’s output: about €10 billion ( 40.6% of the national total )

40% of the national automotive suppliers and 33% of the

workforce located in the region

peaks of 75% for suppliers of modules and systems

about 70% of the automotive supply system

concentrates in the province of Torino

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Italian leading region for cooperation between companies and universities

“ “ There is fertile ground for new partnerships. The research There is fertile ground for new partnerships. The research centers of Motorola, GM and Microsoft, are bringing Torino in the centers of Motorola, GM and Microsoft, are bringing Torino in the

limelight. We want to be there, too ”limelight. We want to be there, too ”

MIT, Boston

“ “ We chose Torino for its quality of research: fantastic ”We chose Torino for its quality of research: fantastic ” Jennifer Tour Chayes, Microsoft


Politecnico business R&D Centre

labs and facilities dedicated to develop RTD projects and training in cooperation between Politecnico and both Italian and foreign companies

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http://www.content2point0.com/2006/files/microsoft-logo-large.jpg


Learning from the past…

The heritage: a traditional concentration of expertise and skills

in car-related activities and a long-standing specialization

Public/private partnership working for a renewed automotive

sector

The new regional strategies and guidelines are supporting the evolution towards a more innovative competitive sector– Internationalization and clustering: From concept to car, Automotive

Regions Network and FDI attraction policy – Diversification, Integration– Research & Development and Innovation– Technology-Platforms to promote a better integration between engineering,

electronics and telecommunications

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Mirafiori has been the largest industrial plant in Europelargest industrial plant in Europe since 1939 and was the symbol of car manufacturing in Torino with more than 50,000 workersCovering an area ofan area of 3,000,000 sqm3,000,000 sqm, the industrial complex was the most characteristic feature of southern Torino

After the crisis and reorganization of the automotive sector, a bilateral agreement was signed in 2005 between the bilateral agreement was signed in 2005 between the local institutions and Fiat based on the redevelopment of an area local institutions and Fiat based on the redevelopment of an area of 300,000 sqm. of 300,000 sqm.

This area will become the home of the new Mirafiori Technology Centre: a caa catalyst for innovation and researchtalyst for innovation and research on the industry new technological drive (eco-efficiency and environmental sustainability)

Designing the future: the new life of Mirafiori

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www.centroestero.org7

300,000 sqm. to promote integration between manufacturing, R&D activities and top-level training


Torino Nuova Economia SpA is a corporation set up by Piemonte Region, City of Torino, Province of Torino and FIAT SpA

Its mission is to increase the value of the old Mirafiori industrial plant purchased from FIAT

Its main objectives − To preserve the original industrial character of the area− To create facilities for further development of local economy− To fund and support R&D initiatives− To promote training programs

Corporation stock: € 67.000.000,00

The role of public-private partnership: T.N.E.

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R&D and training

Production and services

Advanced services

P

Smes and companies micro-co-generation light production applied research expansion of start-up

cluster hub mobility services financial services green areas

Politecnico and Design Center laboratories and facilities p/pp Galileo incubator exhibition and convention areas guesthouses

The development of the area


Mirafiori: the strategic actions

Creation of a dedicated fund−To bring financial resources and managerial skills to help SMEs grow in international markets and find new partners through commercial and technological agreements

Furthering SMEs size−To increase SMEs size in order to compete internationally

Supporting R&D and Innovation−To help R&D regional system through increased financial resources, the attraction of new talents and R&D investment

Creation of links between R&D and enterprises−To spread IPR and knowledge from public and private centers to SMEs

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The strategic role of location factors in Mirafiori

InfrastructuresR&D capacitiesSkills, education and trainingOpen-minded public administration/governmentSystem-cooperation between local stakeholdersIncentives and grantsClustering policies and opportunitiesPresence of multinational enterprises

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Place marketing and FDI attraction

Local economic developmentLocal economic development Investment attractionInvestment attraction

FDI international market

Financial M&A

Local market,actors and clusters


Productive

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FDI produce and are driven by intangible assets such as knowledge,

technology, know-how, access to market, they:

Strategic importance of FDI

z

““Il capitale straniero fa bene alla crescita”Il capitale straniero fa bene alla crescita”F.Onida, Il Sole 24 Ore,18.04.2007F.Onida, Il Sole 24 Ore,18.04.2007

z


create opportunities of qualified labour

improve companies competitiveness

foster technology transfer

increase the competitiveness of territories

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Strategic importance of clusters

Clusters help to become more successful in attracting FDI and to increase the economic value FDI generates.

First, cluster will be attractive because it provides established markets, suppliers, skilled employees, facilities for research

Second, the negotiations with foreign companies can move away from financial incentives alone and concentrate on the quality of the cluster-specific business environment and how it can be improved, especially when the competitiveness on financial packages is limited such as in the EU

Third, attracting FDI not only creates direct benefits through job creation. It also improves the quality of the location for the companies already present in the cluster, by adding relevant activity in the cluster and upgrading the business environment facilitating new investment

This will increase the sustained impact of the FDI attractionThis will increase the sustained impact of the FDI attraction


GM chooses Torino…

It is the first time that a leading foreign car

company chooses Italy for its R&D activities,

thanks to the presence in Piemonte of

a unique automotive clustera unique automotive cluster

a comprehensive value chaina comprehensive value chain

strong cross-sector competenciesstrong cross-sector competencies

a favourable business environmenta favourable business environment

…to locate GM Powertrain Europe headquarters and to set up its

design and engineering centre for diesel engines


World’s leading automotive companies in Piemonte


Piemonte: 10 years experience in attracting FDI


1997: Piemonte was the 1st Italian region to create an agency dedicated to attracting FDI. In 10 years, ITP supported over 90 companies in Piemonte

2007: To meet the new challenges of global competitiveness the Regional government creates Piemonte Agency for Investments, Export and Piemonte Agency for Investments, Export and Tourism, Tourism, a single organization devoted to strengthen the international development of the region by :

attracting foreign investment, talents and touristsattracting foreign investment, talents and tourists increasing the competitiveness of local companies on international marketsincreasing the competitiveness of local companies on international markets

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Piemonte Agency is a unique, free reference point

information on macroeconomic factors and local market

research of location opportunities

project funding and fund raising for investment

selection of financing and incentives

assistance in the relations with public & private

institutions, Universities, R&D Centers, Smes…

aftercare activities and retention of existing

companies

Inward investment advisory support


Thank you for your attention!


Thank you for your attention!

[email protected]

mailto:[email protected]

MIRAFIORI CASE and the role of the cluster in business attraction policies Paola Elia Morris Torino, 8 November 2007 “Network of Automotive Regions”

Documents

national automotive

province of torino

renewed automotive sector

network of automotive

automotive regions network

quality of research

national total

foreign companies