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An Analysis of the Present Situation of Lublin According to Key Elements

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An Analysis of the Present Situation of Lublin According to Key Elements An analysis of the present situation of Lublin according to key elements The object of the contract is completed under the project co-financed by the European Fund of the Regional Development within the Regional Operational Program of the Lubleskie Province for 2007-2013. Table of contents Diagnosis of the socio-economic situation of the city 4 General information on the city of Lublin and the Lubelskie Province 4 Diagnosis within the scope of the economic and socio-demographic situation of Lublin 5 Internationalization potential of Lublin 23 Analysis of the innovation potential of the city 28 Analysis of local conditions of investing in Lublin 42 Analysis of international and Polish examples of regional development stimulation 55 3 Diagnosis of the socio-economic situation of the city 1 The statistical yearbook of General information on the city of Lublin provinces, http://www.stat.gov.pl/gus/ and the Lubelskie Province 5840_21 76_PLK_HTML.htm Key observations concerning the city and the province 2 Demographic yearbook, r Lublin is the biggest Polish city at the right side of the http://www.stat.gov.pl/gus/5840_ Vistula River (more than 348 thousand of citizens; the rocznik_demograficzny_PLK_HTML.htm number of citizens of the Province exceeds 2 m.) r The number of citizens of the Lublin Metropolitan Area is more than twofold bigger than the number of Lublin citi - zens (c. 713 thousand citizens). r Lublin is located at the course of two transit routes con - necting EU countries with the Eastern Europe. r Lublin is characterized by a favorable distance to the east - ern border with the Ukraine and Belorussia (the distance between Lublin and Lviv is slightly farther than 200 km). r The Lubelskie Province is characterized mainly by agricul - tural areas. Climate and soil conditions cerate favorable conditions for agricultural areas. The Lubeskie Province covers the area of c. 25 thousand km 2, which constitutes 8% of the country’s territory (3rd among provinces in terms of the area). Its territory com - prises 20 districts (including 4 district cities) and 213 communes. The rural communes (171) dominate in the Province, while the rural-urban communes and urban communes remain in the minority (22 and 20 respec - tively). The biggest cities of the Province include: r Lublin r Chełm r Zamość r Biała Podlaska Lublin is the biggest city of the Province and at the same time the biggest one at the right side of the Vistula River. In 2010, the Lubelskie Province was populated by more than 2 m. 1 Lublin – the capital city of the Lubelskie Province comprising 147 km 2 – is populated by more than 4 348 thousand people. 2 The population density of the city amounts to 2 363 persons per km 2. The Lublin Metropoli - tan Area (LOM) covers the following districts: lubelski, lubartowski, łęczyński, świdnicki and Lublin. The area covers c. 4221 km 2, the population number of LOM 3 http://www.stat.gov.pl/vademecum/ amounts to 713 thousand persons 3. The population den - vademecum_lubelskie/portret_obszaru_ sity of the LOM is almost twofold bigger than the den - metropolitalnego/lubelski_obszar_ metropolitalny.pdf sity of the Province. The Lubelskie Province neighbors on the Mazowieckie, Świętokrzyskie, Podkarpackie and Podlaskie Provinces. In the east, the province borders on Belorussia and the Ukraine. The eastern border of the Province is also the eastern border of the European Union. More than 70% of land at the area of the Lubelskie Province is used as arable land (the result exceeds the country’s average by 10 percentage points), 3.6% is cov - ered with developed and urbanized area (the country’s ratio is higher and amounts to 5%). The Lubelskie Province is characterized by high quality soil and favor - able conditions (including climate ones) conducive to agricultural production. The conducted desk research analysis (secondary sources) concerning the socio-economic situation of the city and the region proved that the presented in litera - ture approaches to the assessment of investment at - tractiveness of the regions are different. The differences result mainly from the number and component indica - tors describing the tendency to invest in a given region, as well as from the adopted assessment methods and Diagram 1. Areas covered by a description interpretation of obtained results. of the socio-economic situation Diagnosis within the scope of the economic and the socio-demographic situation of Lublin Economy Research and Demography Developmnet Based on the data provided by the Client, strategic studies Socio-e conom ic related to the region, own study of Deloitte and other potential sources, the socio-economic potential of the Lubelskie Infrastructure Education Province and the city of Lublin was presented. The analysis 5 was carried out in the division into specified areas, presented Labor marke t in the figure below, determining the total assessment of the economic and socio-demographic situation of Lublin. Source: Own study of Deloitte 4 GUS (The Central Statistical Economy Office), www.stat.gov.pl Key observations concerning the city and the province r Data of the Polish Central Statistical Office show that the Lubelskie Province has the lowest GDP value per capita among the provinces in the country. r The Lubelskie Province has a relatively low share in the generation of the GDP. r The largest percentage of economic entities registered in the Register of Businesses (REGON) is represented by trade and construction. At the end of 2010, in the national official register of economic entities of the national economy (REGON) of the Lubelskie Province, more than 162 thousand eco - Figure 1. Number of entities nomic entities were registered (excluding individual of the national economy farmers). The entities of the Lubelskie Province consti - registered in REGON according tute c. 4% of all entities registered in the country. 4 The to selected GDP sections in 2010 biggest share of economic entities registered in REGON in the Lubelskie Province is represented by trade (more than 37%) and building (c. (in thousands) 14 %), as well as industrial processing (c. 9%). Trade; vehicle repair 50.9 Construction 19.2 Industrial processing 13.2 Professional, educational and technical activity 11.8 Transport and storage management 11.6 Other service activity 11.2 Health care and social assistance 9.1 Financial and insurance ac tivity 5.6 Service of the real estate market 4.4 Source: Data of GUS (The Central Statistical Office), 6 Vademecum Samorządowca (Vade mecum of the member of the local government), the Lubelskie Province The biggest enterprises in Lublin include: 5 GUS (Central Statistical Office), r Emperia Holding S.A. (distribution of groceries and Statistical yearbook of provinces 2011, FMCG) p. 90 r Tabal Sp.J. (metallurgy) r Faelbud S.A. (concrete prefabricated elements) r Spółdzielnia Pszczelarska APIS (mead) r PERŁA – Browary Lubelskie S.A. (brewing industry) r Herbapol Lublin S.A. (herbal and food products) r SIPMA S.A. (machines and agricultural devices) r Pol-Skone Sp. z o.o. (door and window frames) r Zakłady Chemiczne Permedia S.A. (non-organic pig - ments). At the end of 2009, the Lubelski Province generated GDP of PLN 51 082 m. The product generated in the Lubelskie Province, placed it tenth among provinces. The gener - ated product value of the Lubelskie Province constituted 3.8% of GDP. 5 The diagram below presents a ranking of provinces according to their share in the GDP generated Diagram 2. Ranking of provinces in the country in 2009. according to the share in the GDP generated in the country, 2009 Opolskie 2.20% Podlaskie 2.30% Podlaskie 2.30% Świętokrzyskie 2.60% Wrmińsko-Mazurskie 2.80% Podkarpackie 3.80% Lubelskie 3.80% Zachodniopomorskie 3.80% Kujawsko-Pomorskie 4.80% Pomorskie 5.70% Łódzkie 6.10% Małopolskie 7.40% Dolnośląskie 8.20% Wielkopolskie 9.50% 7 Śląskie 13.10% Mazowieckie 21.90% Source: Data of the Central Statistical Office (GUS) 5 Ibidem, s. 91 In 2009, GDP per one capita in the province amounted to PLN 23 651. Analyzing the GDP value per capita, the 7 Ministry of the Regional Lubelskie Province was placed last in terms of the value Development, „Poland 2011” Report of the indicator (position 16). In 2010, the value of the GDP per capita generated in the Lubelskie Province con - stituted c. 67% of the country’s average. 6 An aspect significant for the economy is constituted by di - rect foreign investments, which allow for faster develop - ment of regions. In the years of 2007-2010, one could observe a systematic drop of the stream of foreign invest - ments in the whole country, which was connected with aversion towards risk following the global financial crisis. In the period between 2007-2010, the Lubelskie Province placed ninth among the beneficiaries (provinces) of di - rect foreign investments in the scale of the whole coun - try, generating annual average revenue at the level of EUR 250 m 7. Demography Key observations related to the city and the province r The Lubelskie Province is characterized by a majority of people inhabiting rural areas over the population inhabit - ing urban areas. r Both the Lubelskie Province and Lublin are characterized by a population drop caused by a decrease in births and adverse migration balance. r The main directions of migration (emigration) for a per - manent stay in 2010 were the Mazowieckie, Pod - karpackie and Małopolskie Provinces. Among the foreign directions, the dominating continents are the European and the American ones. Among the European countries, the Lublin region emigrants most frequently choose Ger - many, Great Britain and Italy. r Among emigrants, there dominate people possessing 8 secondary and higher education. At the end of 2010, the Lubelskie Province was inhabited by more than 2 m.
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