Support to the Development of Greenfield investments in Lithuania

1. Support to the Development of Greenfield investments in Lithuania “Marketing and promotion of the industrial parks” Training session leader:Paul Baker, ECORYS Hotel Reval, Vilnius, 19 September 2006

2. Strategic Marketing – brief overview Developing a joint approach Motivation and purpose Investment promotion functions Allocating functional responsibilities in the context of a joint approach Mechanisms for Content

3. Marketing and Promotion Marketing & Promotion Attraction

4. The Business Concept Whom (“FDI Target Market”) What (“Location Value Proposition”) How (“Delivery Approach”) The Organisation Concept Resources Structure Controls and Rewards The Core Processes Product (Solution) Development Resources (Stakeholder) Development Changes & Transformation FDI Strategic Marketing

5. FDI Strategic Marketing

6. Mutual reinforcement of FDI promotion activities Avoid negative consequences of multiple marketing strategies Wasteful competition to attract the same investment Duplication of effort and utilisation of resources Too many agents approaching potential investor Confusion of key messages Reasons for adopting a joint approach

7. Deliver a clear and coherent message Enhance the ‘professionalism’ of the services provided Overcome resource limitations and lack of capacity Improve information flows, oversight and management of the system Purpose of a joint approach

8. Main functions of an IPA

9. Resource assessment – national level • National level IPA (LDA) • Natural point of contact for initial investor enquiries • Involvement in defining and building national image • Better access to government networks (e.g. overseas foreign representation) • Able to provide greater choice to investors through broader scope of investment opportunities and locations • Able to direct investment leads to the region(s) that are most suitable

10. Resource assessment – local level • Local Agency / Industrial Zone Management • Provide local facilitation services (planning and construction, local utilities, recruitment etc.) • Inform and ‘promote’ foreign investments to local communities • Provide aftercare services (particularly where they concern ‘local’ issues) • Keep Informed of developments in the business and therefore encourage re-investment • Assist development of linkages to local businesses (suppliers etc.)

11. Allocation of functional responsibilities • IPA (LDA) should take lead role in activities of: • Investment marketing and lead generation • Investment facilitation (pre-establishment phase) • Support to investment decision • Industrial Zones should take lead in: • Investment facilitation (establishment phase) • Investment servicing (operational phase)

12. Cooperation mechanisms and protocols • Where local investment attraction priorities are similar: • a transparent mechanism for allocating investment prospects to individual industrial zones is required; • Where local investment attraction priorities are dissimilar: • resources should be allocated to generate investment prospects that reflect the range of different priorities of industrial zones. • The IPA and IZ management agencies should identify priority activities for mutual cooperation and develop an implementation plan that should be integrated within their respective Business Plans.

13. Coordination mechanism • Broad context: part of overall coordination of the country’s investment promotion system • Narrow context: coordination between national IPA (LDA) and FDI-related activities of IZ management agencies • Scope of activities: • Setting guideline and protocols for marketing and promotion activities • Setting guidelines and protocols for information sharing • Administering procedures to handle disputes • Monitoring and benchmarking performance