This week, the First Minister has flown out to the city of Chongqing in China to promote economic opportunities for Wales. He is being accompanied on this mission by a group of Welsh firms looking to increase their international links with one of the world’s fastest growing economies.
Certainly, there is a need for Welsh business to be out there selling their products and services, with the latest statistics for Wales showing a decrease in the value of exports for Wales of £401 million in 2007 as compared to 2006.
In particular, it looks as though trade with EU countries is being hit the most, accounting for nearly two thirds of the decline in exports last year. This makes the development of links with emerging economies such as China even more important in the future.
Perhaps more worryingly in terms of our ‘competitors’ around the UK, other relatively poor regions, such as the Yorkshire and Humberside, North East of England, Northern Ireland and Scotland actually experienced an increase in exports in 2007.
The question is whether the Welsh Assembly Government could be doing more in this area or whether firms need to be proactive themselves in ensuring that they take the first step towards internationalisation. Perhaps the problem in terms of changing the export profile in Wales is that three sectors dominated by large firms – namely metals, chemicals and energy – account for 60 per cent of all Welsh export activity and are more dependent on international demand rather than any internal business support that can be provided.
On the other hand, it doesn’t mean that a greater focus cannot be placed on emerging sectors such as environmental industries, biotechnology, creative industries and internationally traded services to ensure that we maximise their potential for export performance.
To be fair, International Business Wales – the Assembly body responsible for this area – has a range of programmes available to support those businesses which have already made the decision to develop their international links.
For example, its International Business Opportunities Programme identifies innovative Wales-based companies and matches them with specific overseas opportunities, joint ventures and strategic alliances. Next week, they are organising a series of events to make firms aware of the support available from International Business Wales and to bring together a group of experts who will be offering individual advice to businesses.
In addition, IBW has organised a range of trade missions in 2008 to locations all over the globe, including California, India, Canada, Singapore, Las Vegas, Saudi Arabia, Israel, Hong Kong, New York, Japan, Sweden, Norway, Spain, Singapore, Malaysia, Germany, China and South Africa.
So, perhaps it could be argued that it is up to the owner-managers of individual firms to take full advantage of the availability of these programmes and to ensure that they are signed up for support.
However, it could also be argued that despite high profile overseas visits to New York and China by our leading politicians, the whole area of internationalisation is not being taken seriously enough by policy-makers.
Whilst such trips are essential in securing overseas investment into Wales, they probably do very little overall in getting Welsh firms through the doors of international customers.
For example, the Assembly Government and the former Welsh Development Agency drew down over £250 million of European grants under the Objective 1 programme for economic development and business support, and yet less than 2.5 per cent of this went on promoting the international activities of Welsh companies to ensure that our business sector is in a position to go out and compete with the rest of the world.
Given that the new round of European Structural Funding will be looking for more substantial projects, then there is certainly the opportunity for increased funding to go towards improving the internationalisation capacity and capability of Welsh businesses.
Only last week, a major £50 million innovation programme launched the new round of European funds. Yet, there is no point in developing new products and processes if we cannot sell these across the globe.
Many countries are certainly open for business – it now up to the Welsh Assembly Government to draw down more resources, alongside the business community, to ensure that more Welsh firms become international players on the world stage.
Certainly, there is a need for Welsh business to be out there selling their products and services, with the latest statistics for Wales showing a decrease in the value of exports for Wales of £401 million in 2007 as compared to 2006.
In particular, it looks as though trade with EU countries is being hit the most, accounting for nearly two thirds of the decline in exports last year. This makes the development of links with emerging economies such as China even more important in the future.
Perhaps more worryingly in terms of our ‘competitors’ around the UK, other relatively poor regions, such as the Yorkshire and Humberside, North East of England, Northern Ireland and Scotland actually experienced an increase in exports in 2007.
The question is whether the Welsh Assembly Government could be doing more in this area or whether firms need to be proactive themselves in ensuring that they take the first step towards internationalisation. Perhaps the problem in terms of changing the export profile in Wales is that three sectors dominated by large firms – namely metals, chemicals and energy – account for 60 per cent of all Welsh export activity and are more dependent on international demand rather than any internal business support that can be provided.
On the other hand, it doesn’t mean that a greater focus cannot be placed on emerging sectors such as environmental industries, biotechnology, creative industries and internationally traded services to ensure that we maximise their potential for export performance.
To be fair, International Business Wales – the Assembly body responsible for this area – has a range of programmes available to support those businesses which have already made the decision to develop their international links.
For example, its International Business Opportunities Programme identifies innovative Wales-based companies and matches them with specific overseas opportunities, joint ventures and strategic alliances. Next week, they are organising a series of events to make firms aware of the support available from International Business Wales and to bring together a group of experts who will be offering individual advice to businesses.
In addition, IBW has organised a range of trade missions in 2008 to locations all over the globe, including California, India, Canada, Singapore, Las Vegas, Saudi Arabia, Israel, Hong Kong, New York, Japan, Sweden, Norway, Spain, Singapore, Malaysia, Germany, China and South Africa.
So, perhaps it could be argued that it is up to the owner-managers of individual firms to take full advantage of the availability of these programmes and to ensure that they are signed up for support.
However, it could also be argued that despite high profile overseas visits to New York and China by our leading politicians, the whole area of internationalisation is not being taken seriously enough by policy-makers.
Whilst such trips are essential in securing overseas investment into Wales, they probably do very little overall in getting Welsh firms through the doors of international customers.
For example, the Assembly Government and the former Welsh Development Agency drew down over £250 million of European grants under the Objective 1 programme for economic development and business support, and yet less than 2.5 per cent of this went on promoting the international activities of Welsh companies to ensure that our business sector is in a position to go out and compete with the rest of the world.
Given that the new round of European Structural Funding will be looking for more substantial projects, then there is certainly the opportunity for increased funding to go towards improving the internationalisation capacity and capability of Welsh businesses.
Only last week, a major £50 million innovation programme launched the new round of European funds. Yet, there is no point in developing new products and processes if we cannot sell these across the globe.
Many countries are certainly open for business – it now up to the Welsh Assembly Government to draw down more resources, alongside the business community, to ensure that more Welsh firms become international players on the world stage.
Comments
The DC metro area is bursting at the seams with biotechnology R&D, NIH (National Instituted of Health) with a billion dollar budget is located 30 minutes drive from my office, and then there’s the American Type Culture Collection (ATCC) also located just 30 minutes from my office. Did I mention that biotechnology is BIG here? Make that MEGA big – far bigger than New York City. Bigger than a boil on the tip of a blue whale, yes, that MEGA BIG.
Did I forget to mention my office is located near the United States Patent and Trademark Office (USPTO) where I frequently conduct F2F interviews with Patent Examiners; did I forget to mention that I have drafted some VERY valuable biotech patents on behalf of one of an American top 100 (if not top 10) agriculture-biotech companies? One of the patents was so valuable that the client paid for it to be filed in some 30 countries around the world (I wrote this patent while working at a top Chicago IP law firm).
I would love to represent a Welsh biotech start up before the USPTO, and can help them realize their dream of conquering the largest and best patent protected market in the world, the USA. One patent here covers all 50 states of the Union – one filing fee (far less than the cost of filing in the EU), one Federal patent law system, and what’s more Welsh clients/inventors do not require US citizenship for me to file their patents in the USA (at the USPTO). Clients don’t pay for air flight tickets to prosecute their patent cases F2F with Patent Examiners (something that really up-to-speed US firms do, like Texas Instruments). Can’t beat a F2F meeting with the Patent Examiner handling a case – and I do them without having to fly to DC and without passing on hotel costs, because I am located five minutes from the USPTO campus in Alexandria near DC.
As an aside Dylan, I have mentioned to my partners that we need to develop a relationship with a well known academic/entrepreneur in Wales.
Dr. Christopher Wood (Welsh scientist/US lawyer/US registered patent attorney)
Wood and Eisenberg, PLLC
www.woodeisenberg.com
www.premierpatents.com (aimed at small inventors)
can he not stick to Glyn's blog?