uk presentation general

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The UK as Investment Destination and the UK Technology SectorTerry MankertzMike Bartley

Introduction to UKTI

UK Trade & Investment (UKTI) is the government department with a lead role for developing trade overseas and inward investment in the UK. UKTI has a presence in over 100 overseas markets working to support UK businesses and overseas investors.

UKTI has more than 1,200 staff in over

100 overseas markets

The Investment Services

Team (IST) delivers inward

investment support to

overseas entities. With HQ,

IST support the ‘UK First’

proposition: identifying

location opportunities across

the 39 LEPs, London,

Scotland, Northern Ireland

and Wales.

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UK Economy – Key Facts

• UK population is 62.3 million (Source: ONS, 2012)

• Seventh largest economy in the world. GDP of US$2,445 billion (Source: World Bank, 2012)

• The UK received the highest number of foreign direct investment (FDI) projects in Europe in 2011 (Source: Ernst & Young, 2012)

• The UK is a member of the European Union, the world’s largest trading entity, with nearly 500 million consumers and a GDP of approximately US$17,600 billion (Source: IMF, 2012)

• The UK is one of the most competitive locations in Europe for business and personal taxation.

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The UK is the number one European location for HQ Foreign Direct Investment (FDI) projects between 2010 and 2012 with almost twice as many as the nearest European country,

Germany.

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Source: fDi Markets, a service from the Financial Times

Why Invest in the UK

• Easy to set up and operate... also to exit

• Transparent legal and regulatory environment

• World-class international transport links

• Rich, diverse and cosmopolitan UK market: customers, product innovators, suppliers and partners are easily accessible

• Equally accessible for nascent, emerging and developed economies

• Entrepreneurial culture

• Well-educated, motivated and flexible workforce

• UK labour regulations are among the most business-friendly in Europe

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The UK has been a major part of our global success, it has a good business climate, an excellent talent pool & is open to new technologies.Stephen Yeo, Marketing Director for Panasonic Computer Products Europe

We have always benefited from the UK's dedicated and highly skilled workforce.Eric Le Corre, Managing Director, Michelin UK

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UK Government Measures for Attracting Inward Investment

• Cutting corporation tax to 20% by 2015

• Committed to remaining one of the most open countries in the world for ease of doing business

• Major investment in education and training to create an more flexible and educated workforce

• Introduction of the “Patent Box”: 10% tax rate for profits attributable to patents. R&D tax credits.

• Ongoing investment opportunities through the Life Sciences Investment Organisation, Tech City and other R&D ‘clusters’

• Visas for entrepreneurs and investors

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Plans for

£250bn in infrastructure

investment

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Leading Wi-Fi Locations 2013

Source: Wi-Fi Alliance 2013

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Rank Country Wi-Fi Hotspots

1 South Korea 186,759

2 UK 182,634

3 USA 129,329

4 China 104,106

5 France 35,432

6 Taiwan 24,148

7 Russia 16,829

8 Japan 15,735

9 Germany 15,092

10 Sweden 9,546

Average monthly broadband subscription cost

• Source: World Economic Forum, 2012

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Country Cost (US$)

UK 24.55

Italy 24.58

France 26.00

Spain 27.68

Ireland 28.90

Netherlands 29.82

Germany 36.81

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Industry Clusters

Enterprise Clusters• Benefit from operating in geographical clusters in close proximity to research establishments, special business support functions and other companies.

• The UK is home to a number of well established ICT clusters. The following maps highlight the intensity of these clusters across the UK.

Source: UKTI – Map for Investors

UK ICT Industry Clusters

Employment Clusters Student Clusters

Source: UKTI – Map for Investors


• The most intense clusters of ICT companies can be found in Greater London and the South East of England.

• Scotland and the North West also feature as leading destinations for enterprise within the sector.

• Northern Ireland plays host to a large number of ICT employees.

• Cities including London, Manchester, Leeds, Birmingham and Glasgow host universities that offer higher education in ICT.

• There are many centres of excellence across the UK, with notable clusters in London and the South East.


Manchester

• Europe’s second largest digital and media hub, with sector clusters such as Media City UK and Sharp Project supporting the eco-system of anything from Film & TV through to 3D Animation and gaming.

• 153 different languages spoken.

• £60m invested in digital infrastructure, allowing speeds of up to 100mbps.

• Central transport hub with multiple frequent flights to Paris, Dusseldorf and Montreal amongst others.

• In the last decade Manchester has seen its population grow by 19%, more than double the national average of 7.1% (2011 Census).


Liverpool

• Liverpool is home to more than 50,000 graduates, with 64% of university students remaining in Liverpool after graduation.

• Two international airports within 45 minute drive time of city centre.

• SCEE’s games testing HQ located in Liverpool. Games studios by the lies of SetGo and Magenta also located there.

• Home to 3,000 Creative and Digital businesses, employing over 23,000 people.

• Vibrant, cosmopolitan region, home to 1.5m people.


Birmingham

• City Centre Enterprise Zone.

• Birmingham has a multi cultural / lingual working population of 1 million and is the youngest city in Europe, with under 25’s accounting for nearly 40% of its population.

• 31 languages spoken includes 4,700 foreign nationals registered for work who have multilingual capability and technical IT skills.

• GVA amounts to over £2 billion for the digital and creative sector

• Companies with a presence include: IBM, BBC, CapGemini, Fujitsu, EDS, Northrop Grumman, Sun Microsystems, Oracle, QinetiQ, LogicaCMG, Serco, Delcam, AT&T and Ricoh.


Bristol

• City Centre Enterprise Zone.

• The creative industries in Bristol employ around 9,000 people, making up 12% of all businesses in the city.

• Bristol is home to 1,350 creative businesses, including the multiple Oscar-winning Aardman Animations, Endemol West and many other independent film and production companies.

• Bristol is the world capital of the wildlife and environmental film industry - responsible for 25% of this sector's global output. The BBC’s Natural History Unit is based there.


Brighton

• 16,000 people employed in Creative Industries.

• The City hosts the annual Develop in Brighton Conference, attracting more than 1,500 games developers from more than 20 countries around the world.

• Brighton’s businesses include Relentless Software, iCrossing UK, Plug-in Media, Epic Group plc

• The Brighton Fuse research project will pilot new ways to support further growth in the local and national Creative, Digital and IT [CDIT] cluster.


Newcastle-upon-Tyne

• The creative and digital industry in and around Newcastle employs over 8,000 people in 1,755 businesses and has an annual turnover of over £866m.

• Well connected digital infrastructure, with Newcastle airport an international hub to Europe, Middle East and Africa.

• ‘The Hub’, 2yrs rent free on 10yr lease/ 12mths free on 5yr lease.

• With over 90,000 graduates per year from the surrounding regions and 5 Universities, the Newcastle area is a fantastic base to recruit new talent.

• Around half of all graduates in the region choose to stay in the Newcastle area for work


Scotland

• The ICT industry in Scotland encompasses a wide array of companies operating across all disciplines including financial services, life sciences, energy, games, and public sector: offering software solutions and services, embedded software, business consultancy, data storage, wireless technologies, e-commerce and web development.

• Global players such as Amazon, Cisco, IBM, Oracle, Dell, BT, Agilent, Real Time Worlds, Sword Group and JP Morgan are located in Scotland The value of Scotland’s software industry is approximately £4 billion

• More than 1000 Scottish-based companies work in the sector

• The industry employs more than 105,000 people in Scotland

• The sector has seen year-on-year sales grow by 10-20 percent over the last 2 years


Wales

• Wales has 40,000 people employed in the IT function with over 12,000 directly involved in the ICT industry.

• There are over 1,500 operations in Wales – among them Fujitsu Services, BT, Mitel, Logica, Cassidian, General Dynamics UK, SAIC, Sony UK, Logica and IBM, contributing around £1 billion to the Welsh economy annually.

• From universities in Wales, there are over 1,000 graduates a year into computer-related studies together with a further 2,500 a year in IT related disciplines.

Supporting the UK Journey

• Early stage guidance and advice as soon as you start to

consider the UK• UK Market and industry information• Connections to key networks

• Assistance with all set-up needs and tasks• Finding the right location in UK and the right business

accommodation• People and Partner search • Connectivity to Professional Services

• On-going support after the “Opening Ceremony”• Support throughout the UK company life-cycle• Light-touch or full relationship

1. Planning and Strategy

2. Implementation & Set-Up

3. Growth and Development

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The To Do List

• Market research/fact finding/building a business case

• Company incorporation• Addressing tax and accounting

obligations/issues• Set up a commercial (/personal) bank account• Secure any Intellectual Property• Adhere to UK employment law• Address staff recruitment• Address Immigration issues if applicable• Source commercial property/negotiate lease• Address fit out of property• Obtain insurances• Consider PR/build contact networks• Build Sales Pipeline

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Questions?

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Contacts

• Terry Mankertz – Senior Sector Lead: Software, Creative and Media.

• [email protected]

• +44 (0) 7887 794223

• Dennis McGlynn – Investment Adviser


• +44 (0) 7557 490294

• Michael Dunn – Investment Adviser


• +44 (0) 7557 490307

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