USAID Sustainable Local Development Project, November 2013

1. How municipalities target
potential investors

2. What do we expect to achieve …
New markets
?
New technologies
New jobs
New services

3. Let’s figure out what realistic targets are …


Traditional industries
Related industries that can benefit from
skills and infrastructure present in the
community
 Industries we wish to introduce into local
economy

Rather obvious practice on local level
is a negative definition: What we’re not
interested in.

4. Local factor conditions (sector-specific)
• Labor



Availability of labor
Skills, technical competences and work habits
Labor costs
• Land / property



Availability of market-ready land and premises
Availability and capacity of hard infrastructure
(Industrial) real estate costs
• Knowledge

Concentration of (and access to) specialized
knowledge an industry can benefit from

5. Local industrial culture (sector-specific)
• Industrial tradition & business sophistication




Existing companies, their performance and position
in value chain, supplier networks
Availability of specialized infrastructure
Industrial clusters and support agencies
“Brand value of the location”
• Education and training


Availability, capacity and quality of vocational,
professional and university-level education
Re/qualification training capacity
• Research & Development


R&D centers, Industrial design, Testing, etc.
Regional innovation system

6. Generating inquiries (and leads)
National
IPA
City
hall
Regional
IPA
Chamber of
Commerce
Industrial
Association
Companies

7. Practical example: City of Trnava / Slovakia
Trnava

8. Economic development strategy / 2002
Investment Attraction
Goals
Goal B.1
Goal B.1
PHYSICAL CONDITIONS
PHYSICAL CONDITIONS
FOR INVESTMENTS
FOR INVESTMENTS
Goal B.2
Goal B.2
LOCAL SUPPLIERS
LOCAL SUPPLIERS
BASE / /SUPPORT
BASE SUPPORT
Goal B.3
Goal B.3
COOPERATION BETWEEN
COOPERATION BETWEEN
PUBLIC SECTOR AND
PUBLIC SECTOR AND
BUSINESS
BUSINESS
Objectives
B.1.1 Outer
B.1.1 Outer
Ringroad
Ringroad
B.2.1 Mapping
B.2.1 Mapping
Opportunities
Opportunities
B.3.1 Economic
B.3.1 Economic
Development Unit
Development Unit
B.1.2 Preparation of
B.1.2 Preparation of
sites
sites
B.2.2 Initiation
B.2.2 Initiation
Meetings
Meetings
B.3.2 Communication
B.3.2 Communication
with companies
with companies
B.1.3 Medzihaj
B.1.3 Medzihaj
B.2.3 Assistance to
B.2.3 Assistance to
Suppliers
Suppliers
B.3.3 Catalogue of
B.3.3 Catalogue of
invest. opportunities
invest. opportunities
B.3.4 Marketing of
B.3.4 Marketing of
invest. opportunities
invest. opportunities

9. Investment attraction action plan
Goal B.1.:
To create physical conditions for investments –
preparation of land, buildings, technical
infrastructure.
Objective B.1.1. Outer ring road
The city hall in co-operation with other institutions and companies in
Trnava will use all possible opportunities to lobby for the quick
implementation of the governmental investment into an outer ring
road. This investment will not only make better access to the largest
industrial zone under preparation (Medziháj) but will also very much
help to general improvement of the city center and accessibility of
other smaller sites.
Objective B.1.2. Potential investment sites
The city will systematically monitor and prepare (physical planning,
ownership, roads, technical infrastructure) sites, suitable for foreign
direct investments (Zeleneč and others).
Objective B.1.3. Medzihaj
The city will continuously prepare the site Medzihaj (308 ha), primarily
as strategic industrial zone of national importance and in co-operation
with SARIO will actively promote it.

10. And how the plan worked:
• In 2002 City of Trnava decided to develop a “strategic
industrial zone” (304 ha) of national importance and
promote it actively in cooperation with SARIO.
• In January 2003 PSA (Peugeot-Citroën) decided to locate
€700 million investment in Trnava to establish new car
assembly facility (300.000 cars a year; 3.500 jobs).
• City provided land, guidance and assistance; National
government provided grant of €25 million for leveling terrain
and putting infrastructure on the site.
• In June 2003 construction works started; full operations of
the new plant had been launched in 2006.
• In 2005 PSA decided to expand the plant; invest additional
€350 and create 1.800 more jobs by 2010.
2006

11. Q&A