3. Keith@Blackey.net
Why FDI
• Nations are increasingly competing against each
other to attract strategic global investments that
support economic growth & fund economic
transformation.
• Competition for Foreign Direct Investment (FDI)
is intense & success is increasingly determined
by the ability of a country to develop &
implement a range of policies, regulations &
standards that create a superior business &
investment climate.
4. Keith@Blackey.net
UK FDI Benefits
1. Increased capital
2. Increased employment
3. Infrastructure investment
4. Increased productivity
– 1 % rise in output of foreign firms in a
particular industry will raise technical
progress by 0.53 % in domestic firms in that
industry.
• Hubert & Pain (2000), ‘Inward Investment and Technical Progress in the UK
Manufacturing Sector’, National Institute of Economic and Social Research.
Available at: http://www.niesr.ac.uk/pubs/dps/dp175.pdf
5. Keith@Blackey.net
UK FDI Benefits
5. ‘Clean’—service sector 60 % of FDI
6. Access to ‘Best Practices’
– 3/4 of FDI in the UK comes from EU, USA or
Japan
7. Increased local market competition
8. Increased technology transfer.
6. Keith@Blackey.net
UK FDI Benefits
9. Increased employee training
10.Increased corporate tax revenues
11.More stable that FPI
– “Bolted down and cannot leave easily at first
sign of trouble.”
7. Keith@Blackey.net
UK FDI Benefits
12.Faster growth
– FDI growing faster than world GDP
12.Increased market for SEE products
13.Limits ability of governments to pursue
bad policies.
8. Keith@Blackey.net
UK FDI Benefits
15. ‘Fast track’ to priority industries:
• ICT
• Business Services
• Life Sciences (bio/pharma)
• Environmental Technology
• Media
• Women-owned
• High-Tech Engineering:
– Automotive
– Aeronautical
– Marine.
10. Keith@Blackey.net
SEE Location Benefits
1. Common language
2. Reduced financial risk—diversified
lending & investment.
3. Be part of a dynamic business climate
• By 2012, SEE will be one of top 15 regions
in the world in terms of labor productivity,
competitiveness and employment rates.
11. Keith@Blackey.net
SEE Location Benefits
4. European-centric time zone
5. Rapid/easy access to EU, Middle East &
African markets
• Highest rate for exporting in the UK—£28
billion exported annually
• Heathrow (largest traffic volume
international airport in Europe) & Gatwick
• Dover, Southampton, Portsmouth
• Channel Tunnel.
12. Keith@Blackey.net
SEE Location Benefits
6. Reduced manufacturing & distribution
risks
7. Access highly skilled, motivated workers
• 88% of working age population holds some
form of qualification
• 73,000 new graduates per year.
13. Keith@Blackey.net
SEE Location Benefits
8. Sell to a thriving local market
• 22nd
largest economic region in the world
• Largest population of any UK region, with
approximately 8 million residents
9. Be part of 2012 Olympic Games
festivities & economic boom
10.Access global capital—London is EU
financial center
14. Keith@Blackey.net
SEE Location Benefits
11. Free, confidential re-/location advice
12. Grow your R&D edge
• Partner w/ 24 universities including
Oxford
• Region gets 25 % of national R&D
expenditure
11. Take advantage of flexible employment
regulations.
15. Keith@Blackey.net
SEE Location Benefits
14. Take advantage of Enterprise Hubs &
Global Regions programs
15. Low utility costs
16. Attract employees:
• Ideal living environment
• Moderate living costs
• Easy access to London, major towns,
rural and coastal areas.
16. Keith@Blackey.net
SEE Location Benefits
17. Connect to the world w/ advanced
telecommunications infrastructure
18. Take advantage of attractive business
climate
• Government-focused economic & social
growth area.
17. Keith@Blackey.net
SEE Location Benefits
19. Join industry leaders
• ICT: 2nd highest Information &
Communication Technology (HW, SW, e-
commerce, telecom, electronics) market
growth in Europe
• Lifesciences:
• World’s top 12 pharmaceutical companies
• 2nd to USA in developing new medication
• Aerospace: 2nd largest in world.
18. Keith@Blackey.net
SEE Location Benefits
20. Similar business culture
21. Positive attitude & affinity to US
22. Follow the leaders—UK is largest
recipient of US investment in Europe for
over 36 years.
20. Keith@Blackey.net
Keith Blackey
• 15 Reasons why the
UK Benefits from
Foreign Direct
Investment (FDI)
• 22 Benefits to
Locating in
South East England
