Business, Investment and Technology Services
EU-UNIDO Dialogue
on
Industrial and SME Policy Implementation
Nilgün Taş
Unit Chief and Deputy to the Director, BIT
Vienna, 6 May 2014
1
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
2
ISID aims




Creating shared prosperity
Safeguarding the environment
Multi-stakeholder partnerships
Addressing diversified needs of UNIDO Member
States
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
3
Common goals
UNIDO
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 SMEsexport and origin consortia, sustainable
supply chain development
CSR/Sustainable Sourcing
Enterprise Europe Networks
Missions for Growth/SME Envoys
European Cluster Alliance/Observatory
Innova Cluster Innovation Platform
EU 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
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
4
UNIDO’s MULTI-DIMENSIONAL APPROACH
MACRO
PRIORITY AREAS
INVESTMENT AND
TECHNOLOGY
PROMOTION
IMPROVING
COMPETITIVENESS
AND UPGRADING
PROMOTING
CLUSTERS AND
BUSINESS
LINKAGES
MESO
MICRO
Investment Policy and
Strategy Advice
Investment Promotion
Institutions
To mobilize investments and
forming regional networks
Creation and
Development of Enterprises
through special programs
EDIP, ICT services
Business Environment Policy
for competitive productive
industrial activities
Industrial Partnerships
through UNIDO’s ITPO and
SPX networks
Investment promotion
through IPAs
Capacity Building in
monitoring of industrial
performance, technology
foresight, cluster & export
consortia
Public Private and Business
Partnerships
link local industries to
global value chains
Upgrading & Restructuring
pilot projects and building
national consulting
capabilities
Industrial Upgrading
and Modernization
Policy
Clusters,
Business Linkages and
Export Consortia
Tools and Services
Investment planning,
technological upgrading and
innovation
Innovation Systems policy
and initiation of publicprivate innovation networks
Creation/Strengthening of
Support Institutions
BMOs, BDS, technical
centers, upgrading offices
Fostering
Inter-Firm Partnerships
and Cooperation
Transfer of Knowledge
and Methodologies
technology foresight,
CSR principles, etc.
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
5
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
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
6
ISID through Industrial Upgrading and
Modernization (IUMP)
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
7
Cameroon IUMP
EU financed pilot and follow up phases at € 3.6m and € 10m
Results achieved in the pilot phase
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
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
8
UEMOA Regional IUMP

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.
Estimated
Technical assistance to the
companies

Estimated
Amount (EUR)
%
Management
68
670,263
11%
Finance/Accounting
83
956,170
16%
Software
50
1,016,220
17%
Marketing
Technical ( production
processes)
69
954,344
16%
120
1,238,719
21%
Quality
88
1,158,215
19%
478
5,993,931
100%
Total

Number of
Actions
Investments in technology and
equipment
Production equipment and
Maintenance processes
Laboratory equipment
Rolling material
Hardware
Reducing impact on
environment
Energy saving equipment
Other-management improving
tools
TOTAL
Amount
(EUR)
% of total
Investment
14,101,147
910,407
313,837
212,117
66.6%
4.3%
1.5%
1.0%
76,208
831,891
0.4%
3.9%
4,744,679
21,190,286
22.4%
100.0%
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
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
9
Local production of essential medicines
Policy
• 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
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
10
C2C, Sustainable Supplier Development and Business Linkages
• 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
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT






Inclusive
Sustainable/CSR-focus
Pro-Poor
Ethical/Human Rights
Gender-balanced
Market Integration
(North-South)
11
C2C, Sustainable Supplier Development and Business Linkages
A few examples
Cluster to Cluster and
1 Buyers/Suppliers Business
Linkages
Cluster-to-cluster and
2 Sustainable Suppliers
Development
Sustainable Suppliers
3 Development and cluster
development
Creative Industry Clusters - EU/South
Mediterranean countries (Habitat…)
Automotive industry - Slovenia/RussiaSerbia-Belarus
Food Clusters - METRO AG
Germany/Egypt-Russia-India
Illy Coffee/Ethiopia
4
Cluster policy and development Furniture Clusters - Italy/Vietnam
and Cluster-to-cluster
(Livenza district/confindustria)
5
Sustainable Suppliers
Development/CSR
Textile clusters - H&M/Turkey……..
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
12
CULTURAL AND CREATIVE INDUSTRY CLUSTERS
IN 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
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
13
OBJECTIVE





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
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
14
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)
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
15
UNIDO Investment Monitoring Platform
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
16
Investment and Technology Promotion Offices (ITPO)
Beijing and Shanghai - People’s Republic of
China
Manama - Bahrain
Moscow - Russian Federation
Rome - Italy
Seoul - 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.
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
17
A growing global network
PROGRAMME COMPONENTS:
I.SPX enterprise profiling & benchmarking
II.SPX buyer engagement & opportunity development
III.Supplier development & policy advocacy
16 newly set-up
(since 2010)
5 under discussion
11 to be upgraded
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
18
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
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
19
Thank you for your attention
Contact
n.tas@unido.org
+43-1-26026-3474
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
20
UNIDO Methodologies and Tools-a Sample
Methodological Guide on
Restructuring, upgrading and industrial
competitiveness
Industrial Upgrading and Modernization
Programme (IUMP), Communication Tool
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)
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
21
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
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
22
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
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
23
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.
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
24
PROGRAMME COMPONENTS:
I.SPX enterprise profiling & benchmarking
II.SPX buyer engagement & opportunity development
III.Supplier development & policy advocacy
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
25
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
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
26
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
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
Burkina Faso
Burundi
Cameroon
Cape Verde
Ethiopia
Ghana
Kenya
Lesotho
Madagascar
Malawi
Mali
Mozambique
Niger
Nigeria
Rwanda
Senegal
Tanzania
Uganda
Zambia
27