“Network of Automotive Regions”

MIRAFIORI CASE

and the role of the cluster in business attraction policies

Paola Elia Morris Torino, 8 November 2007

Torino and Piemonte: the economic background

over 700 foreign companies have already chosen to locate in Piemonte

(Source: Unioncamere Piemonte 2007)

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Piemonte: Italian leading region in automotive

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1,400 companies - 75,000 workers

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

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40% of the national automotive suppliers and 33% of the workforce located in the region

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peaks of 75% for suppliers of modules and systems

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about 70% of the automotive supply system concentrates in the province of Torino www.centroestero.org

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Italian leading region for cooperation between companies and universities

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

“ There is fertile ground for new partnerships. The research centers of Motorola, GM and Microsoft, are bringing Torino in the limelight. We want to be there, too ”

MIT, Boston “

We chose Torino for its quality of research: fantastic ”

Jennifer Tour Chayes, Microsoft

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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

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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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Designing the future: the new life of Mirafiori

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

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

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

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

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

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

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

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Its main objectives

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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

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Corporation stock: € 67.000.000,00 www.centroestero.org

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R&D and training

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

The development of the area Production and services

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

Advanced services

    cluster hub mobility services financial services green areas

P

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Mirafiori: the strategic actions

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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

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Infrastructures R&D capacities Skills, education and training Open-minded public administration/government System-cooperation between local stakeholders Incentives and grants Clustering policies and opportunities Presence of multinational enterprises www.centroestero.org

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Place marketing and FDI attraction Local economic development Investment attraction

Local market,actors and clusters FDI international market

Financial Productive M&A

To create conditions To maximize and promote strenghts To develop value proposition employment growth cluster know-how International mkt integration internal market social conditions technologies

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Strategic importance of FDI FDI produce and are driven by intangible assets such as knowledge, technology, know-how, access to market, they:

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create opportunities of qualified labour

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improve companies competitiveness

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foster technology transfer

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increase the competitiveness of territories

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

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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

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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 attraction www.centroestero.org

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GM chooses Torino… …to locate GM Powertrain Europe headquarters and to set up its design and engineering centre for diesel engines 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

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a unique automotive cluster

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a comprehensive value chain

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strong cross-sector competencies

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a favourable business environment

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World’s leading automotive companies in Piemonte 15 www.centroestero.org

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:

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To meet the new challenges of global competitiveness the Regional government creates

Piemonte Agency for Investments, Export and Tourism,

a single organization devoted to strengthen the international development of the region by :

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

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Inward investment advisory support Piemonte Agency is a unique, free reference point

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information on macroeconomic factors and local market

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research of location opportunities

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project funding and fund raising for investment

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selection of financing and incentives

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assistance in the relations with public & private institutions, Universities, R&D Centers, Smes…

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aftercare activities and retention of existing companies www.centroestero.org

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Thank you for your attention!

Thank you for your attention!

[email protected]

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