http://www.nwda.co.uk/pdf/IntlnStrategy_ExecSummary

An Internationalisation Strategy and Action Plan for England’s Northwest Executive Summary

September 2008

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Introduction

We have a vision for the Northwest of England, and our place in the modern world.

We want to see dynamic, sustainable businesses in our region, bringing prosperity to all parts of the community.

Businesses based on enterprise, innovation and skills.

Above all, international businesses, with close links with other countries.

Internationalisation already plays a critical role in the Northwest’s economy and many of the region’s key assets including its companies, cities, universities, sports clubs, culture and areas of outstanding natural beauty have a global reputation.

The Northwest has the opportunity to enhance its role in the global economy, making the most of the opportunities created by new global markets, but for that to happen, we need more businesses to sell their goods and services overseas. We need more investment coming in from overseas and we need closer research links with other innovative economies.

That is why the Northwest International Business Forum has come together, to develop an Internationalisation Strategy and Action Plan for the region.

The Forum, which includes businesses which export from the Northwest, as well as overseas investors, UK Trade and Investment and the Northwest Regional Development Agency, has been looking at the role that the Northwest plays in the global economy, and the challenges and opportunities that globalisation brings with it.

Internationalisation means raising businesses’ awareness of emerging global markets, and the opportunities and challenges that they bring. It means helping Northwest businesses compete overseas, and it means enabling businesses to make the most of international trade, as well as inward investment into the region.

The Internationalisation Strategy and Action Plan is part of a wider Regional Economic Strategy, which aims to make the Northwest more enterprising and to reduce the output gap that exists between the Northwest and the rest of England.

We believe that businesses in the Northwest have the opportunity to maximise their potential by exploiting global markets, creating jobs and benefiting all communities in the region.

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Why international business is important to the Northwest

Already, international business plays a crucial role in the Northwest.

In 2006, international exports of goods and services were worth £29.7 billion, or a quarter of the value of the regional economy.

There are already just over 2,000 foreign businesses directly investing in the Northwest, employing 347,000 people, and accounting for 17% of the region’s economy.

Many global businesses and supply chains are controlled from the Northwest.

The region’s businesses and research institutions play an important role in global innovation.

Over 25,000 overseas students are currently studying in our universities.

We are a major international transport hub – 28 million people pass through our airports every year, and 30 million tonnes of international freight go through our leading ports.

Over 190,000 people have chosen to settle in the Northwest from overseas since 2000, bringing with them a wealth of talent, skills and experience.

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The Northwest and the world

Challenges and Opportunities The global economy is changing fast.

The balance of economic activity is shifting, with high growth markets led by China and India growing rapidly in terms of GDP and the foreign direct investment they both attract and provide.

Economic activity is becoming more specialised, as production chains become more flexible.

The need is increasing to develop skills in the local labour force, and to attract highly-skilled workers from overseas.

Pressure on energy resources is increasing, while the effects of climate change and other environmental impacts of economic activity are of increasing concern.

For all these reasons, we are seeing fundamental changes in technology, production and trading patterns. The global economy of tomorrow will not be the same as today’s. The Northwest region can either take advantage of the potential to increase global output and find new sources of wealth, or it can lose out.

The fruits of global growth will not be shared equally. Some economies and regions will benefit more than others, and some sectors will expand as others contract.

We can’t take for granted our international reputation, our ability to attract investment and skilled people, or the ability of our businesses to take advantage of global markets. We need to work to ensure that individuals and businesses in the Northwest can take advantage of the opportunities that globalisation creates.

What the Strategy aims to achieve

The Internationalisation Strategy for England’s Northwest therefore has three main objectives.

It aims to develop the sectors of the regional economy that are internationally competitive.

It aims to maximise the region’s international potential in terms of science and innovation, research and development, and education.

It also aims to target countries that are strategically important for the Northwest, in terms of inward investment and trade.

These objectives will be supported by co-ordinated efforts to promote the Northwest’s assets internationally, and to enhance the region’s international connections.

Finally, the Internationalisation Strategy is intended to contribute to sustainable development in the Northwest.

Its recommendations are intended to support sustainable economic growth and employment, by increasing the number of inward investors, creating new jobs and safeguarding existing ones, and improving productivity through international trade. It also aims to help tackle climate change, by promoting the Northwest’s expertise in energy and environmental technologies, and to promote sustainable production by reducing inefficiencies in regional, national and international supply chains.

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Where we need to take action

The Strategy recommends six specific areas of action, in order to help the Northwest make the most of the global economy.

1. Developing internationally competitive sectors

This includes attracting inward investment to the region’s priority sectors and helping these sectors and other high growth companies gain access to international markets, attract and retain workers with the skills they need to compete, develop international supply chains, and take advantage of the latest research and development around the world, to help them innovate.

2. Maximising the international potential of science and innovation, research and development, and education in the region

This includes working with UKTI on its project to pinpoint and showcase excellence in UK research establishments, identifying clusters of excellent research establishments in the Northwest and help them attract investment from overseas and find international partners, and working with the British Council and the region’s universities to encourage overseas students to come to the Northwest, and Northwest students to gain experience overseas.

3. Targeting strategically important countries

5. Enhancing the region’s international connections

Given the region’s strengths, countries such as France, Germany and the USA are likely to remain as key markets for businesses in priority sectors for the Northwest, while high-growth markets led by China and India will offer increasing opportunities. We will work with UKTI to target these countries, through marketing activities, trade delegations, presence at trade exhibitions and inward investment activities.

This includes increasing the number of international transport connections through the region’s ports and airports, targeting international alumni networks with key messages about the Northwest, attracting major international events, business visitors and tourists and making the most of the opportunities presented by London 2012, building on the region’s Black and Minority Ethnic community links, and making the most of political and civic links with key regions around the globe.

4. Promoting the Northwest’s assets internationally This includes developing an international business marketing plan for the Northwest, to promote the region’s key assets and its advantages as a place to do business, and identifying specific international opportunities relevant to the region, which it can target through UKTI’s new international and sector marketing campaigns.

6. Influencing the European Union and UK Government’s international policies and programmes The UK’s international policies have a significant impact on the Northwest, as do EU programmes. The region needs to take more of a lead in lobbying UK and EU policymakers regarding specific policies and programmes, to ensure that they help businesses in the Northwest become more competitive internationally.

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How will we know we’ve succeeded?

The Strategy includes clear targets, to help measure progress. These targets cover three areas: inward investment, international trade, and university engagement.

Inward investment

International trade

University engagement

Increasing the number of inward investment projects (from 112 a year in 2006/07, to 150 a year by 2009/10).

Helping an extra 2,000 businesses either to become exporters or to enter new markets by 2009/10.

Helping universities become more involved in international research projects.

Increasing the number of inward investment projects that are researchintensive (from 7% of the total in 2006, to 17% by 2009/10), and that provide above-average salaries (the target is for a quarter of these projects to pay above ÂŁ30,000 a year on average, compared to the 2006 average wage in the Northwest of ÂŁ21,000).

Contributing to national UKTI targets to help an extra 20,000 UK businesses every year benefit from international trade and an extra 200 businesses a year increase their involvement in research and development.

Encouraging more international students to take advantage of wider business and cultural opportunities that are available to them during their time in the region.

Increasing the proportion of inward investment projects that come from new, high-growth markets (from 8% currently to 17% by 2009/10).

Monitoring Finally, we in the Northwest region will continue to monitor and research global economic trends, and the opportunities and risks that they bring. We will also measure our trade and investment performance, and benchmark ourselves against other UK and European regions.

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Actions

The key actions supporting this framework are set out below. Lead organisations have been identified for each action.

Objectives And Actions

Lead Organisation

Objective 1: Developing internationally competitive sectors 1.1 Attract inward investors to the region’s sectors

UKTI/NWDA/SRPs

1.2 Help companies in priority sectors to access international markets

UKTI/RCOs

1.3 Help knowledge/R&D-intensive businesses to internationalise

UKTI

1.4 Help companies develop their international supply chains

UKTI/NWDA

1.5 Help companies access global innovation

UKTI/RCOs/HEIs

1.6 Help sectors to develop an internationally comparable skills base

RSP

Objective 2: Maximising the international potential of the region’s science & innovation, R&D and education assets 2.1 Implement the UKTI R&D Programme in the Northwest

UKTI/NWDA

2.2 Identify and target international opportunities for research concentrations

NWDA/HEIs

2.3 Develop international student programmes

HEIs

Objective 3: Targeting strategically important countries 3.1 Develop plans for priority high-growth markets

NWDA/UKTI/SRPs

3.2 Work with UKTI to influence and maximise opportunities for the Northwest

from the UK’s high-growth market programme

UKTI/NWDA

3.3 Undertake high-level regional trade delegations to China, India and other

high-growth markets to promote inward investment and trade

UKTI/NWDA

3.4 Support Northwest UKTI country market teams

UKTI

3.5 Maximise the opportunities from Shanghai Expo 2010

NWDA

Objective 4: Promoting the Northwest’s assets internationally 4.1 Develop an international business marketing plan for the Northwest to

promote the region’s key assets and its advantages as a place to do business

NWDA/SRPs

4.2 Identify specific international opportunities relevant to the region which it can

target through the UKTI’s new “UK plc” and sector marketing campaigns

UKTI/NWDA

Objective 5: Enhancing the region’s international connections 5.1 Increase the number of international transport connections

NWDA/SRPs

5.2 Target Northwest international alumni networks with key messages about

the region

HEIs/NWDA

5.3 Attract major international events, business visitors/tourists and capture the

international opportunities presented by London 2012

NWDA/ENC/Tourist Boards

5.4 Maximise the benefits of in-migration to the Northwest

Migrant Workers NW

5.5 Build on the region’s international BME community links

EMBF

5.6 Reinforce political and civic linkages with key global regions

NWDA/SRPs/LAs

Objective 6: Influence the European Union and UK Government 6.1 Influence national UKTI five-year strategy

NWDA

6.2 Implement the Business Support Simplification Programme (BSSP)

Globalisation workstreams

NWDA

6.3 Monitor/influence the UK government’s trade policies/negotiations

NWDA

6.4 Lead European programmes and access funding streams

NWBO

6.5 Influence EU policies and legislation

NWBO

SRPs – Sub-Regional Partnerships | RCOs – Regional Cluster Organisations | HEIs – Higher Education Institutions | RSP – Regional Skills Partnership ENC – England’s North Country | EMBF – Ethinic Minority Business Forum | LAs – Local Authorities | NWBO – North West Brussels Office

The Northwest Regional Development Agency PO Box 37 Renaissance House Centre Park Warrington WA1 1XB Tel: +44 (0)1925 400 100 Fax: +44 (0)1925 400 400 www.nwda.co.uk www.enw.co.uk/invest www.enw.co.uk/visit

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