This is a UK trade and investment document

BRITAIN OPEN FOR BUSINESS GROWTH THROUGH INTERNATIONAL TRADE AND INVESTMENT CONTENTS FOREWORD

Foreword 1

Introduction: Trade, investment and the path to sustainable growth 2

1. New times, new focus 10

1.1 Targeting innovative and high growth SMEs 12

1.2 Bringing high value opportunities home 20

1.3 A pipeline of high quality inward investment 24 The Trade and Investment for Growth White Paper and The Plan for Growth set out the 1.4 Building strategic relationships 28 Government’s clear ambitions for trade and investment. We must ensure that the UK remains one of the top destinations for foreign direct investment. And we need to increase exports, especially to the high growth and emerging markets of the new global marketplace. 2. Britain in the world 32 Succeeding in international markets is central to our aim of rebuilding the economy at home Rt. Hon Dr Vince Cable Secretary of State for Business, Innovation in a balanced and sustainable way. 2.1 Seizing global opportunities 34 and Skills and President of the Board of Trade UK Trade & Investment (UKTI) has a vital role to play in realising our ambitions. This strategy 2.2 Promoting balanced and sustainable growth 42 sets out how UKTI will provide practical support to exporters and investors over the next five years. It marks a step change in the way that UKTI and the rest of government will focus its efforts, by adopting a proactive approach to bringing opportunities home, and focusing on Rt. Hon William Hague 2.3 Boosting the UK’s reputation 62 the export and investment markets that provide the best opportunities for growth. This First Secretary of State, Secretary of State strategy sets out major new initiatives to help more SMEs to export and help larger for Foreign and Commonwealth Affairs 3. Rising to the challenge 70 companies seeking to win major overseas contracts. It also sets out new programmes for attracting much needed inward investment. Appendix A: UKTI’s performance framework 76 UKTI will work right across Government, and forge new partnerships with the private sector, to deliver this strategy. We have set our sights high but are confident that UKTI, working Lord Green Appendix B: How UKTI will deploy its resources 78 alongside FCO and BIS, will rise to this challenge and send a clear message to the world Minister of State for Trade and Investment that Britain is open for business. Appendix C: What’s new? 80

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INTRODUCTION Introduction Trade, investment and the path to sustainable growth TRADE, INVESTMENT AND THE PATH TO SUSTAINABLE GROWTH

The recent global economic crisis has raised the question of how we in Britain will earn our living and our place in the world in the future.

Britain is not owed a living − we have to Succeeding in international markets is economy through an ambitious framework earn it. Our standing in the world and our central to rebuilding our economy at home. for trade and investment. As well as prosperity depend crucially on the getting the policy framework right, the The Government is focused on creating the restoration of our economic fortunes. Government will actively promote UK conditions for enterprise and growth – exporters and work to attract much needed We must rebalance our economy away from investing in a skilled workforce that can inward investment. This new UK Trade & growth built on unsustainable borrowing match the world’s best; funding a world-class Investment strategy, Britain open for and government spending, towards a more science and research base to underpin UK business, which builds on the ambitions broadly based, internationally competitive competitiveness and innovation; setting a described in The Plan for Growth, sets and low carbon economy that builds upon framework in which the UK’s global low out how the Government will provide our strengths and capabilities in the carbon and environmental goods and services practical support to exporters and inward innovative and high growth sectors, and can flourish; strengthening investment in UK investors over the next five years. UK Trade equips us to meet the demands of the 21st infrastructure; promoting the right domestic & Investment (UKTI), working with all parts Century. This will return the economy to environment in terms of regulation, taxation, of the Government – in particular with the strong, sustainable growth. It means planning, migration and access to finance; diplomatic network overseas − and with winning in ever more competitive world and creating the macroeconomic and partners in the private sector, has a central markets − securing new business overseas, financial stability which companies need to role to play in rebuilding the UK’s economic especially in the high growth and emerging plan and invest for the future. reputation, and in boosting confidence in markets of the global south and east − and The February 2011 White Paper, Trade and the UK as an international business partner attracting mobile international investment Investment for Growth, sets out the of choice. to bring prosperity and jobs to the UK. Government’s strategy to rebalance the

2 3 BRITAIN OPEN FOR BUSINESS UK Trade & Investment IMAGE COURTESY OF RAIL IMAGES 1500 Inward FDI Introduction Trade, investment and the path to sustainable growth Introduction1200 Trade, investment and the path to sustainable growth Exports GDP 900 The crisis of 2008-2009 hit trade and Trade and investment matter growth and higher levels of financial What is to be done Growth through inward investment investment hard. Global trade fell by 23 per International trade and investment drive performance, gain access to new ideas cent. UK trade and investment both fell and This five year strategy sets out how UKTI, UKTI will play a central role in delivering a economic and600 social change. Exporting not through exposure to international markets, have not yet fully recovered. But the in partnership with other Government whole of Government approach to attracting only enables companies to achieve a level and have greater resilience. potential for growth is huge. While the Departments and business, will work to inward investment to the UK by: of growth otherwise not possible but also Inward investment, accounting for European Union and the United States of realise the Government’s ambitions for • Creating a pipeline of up to increases productivity. Exporters account for 40 per cent of UK economic output, enables America remain the major markets for growth through trade and investment. 300 750 foreign direct investment projects 60 per cent of UK productivity growth and the UK economy to grow and create, or British companies, the most significant Growth through exports per annum, of which most would be firms that start to export experience, on maintain, employment. Foreign direct growth will come from the high growth and characterised as high quality, which average, a more than 30 per cent uplift in investment raises productivity by bringing emerging markets of Asia, Latin America We have two main ambitions: 0 benefit the UK economy through productivity. Exporting also stimulates new ideas, knowledge, technologies and and the Middle East. As for inward • Firstly, we will encourage productivity spillovers, and by bringing innovation, with UK-owned exporters better ways of working. It also stimulates investment, traditional markets such as the significantly more SMEs to export. new ideas and ways of working, as accounting for 70 per cent of UK business UK firms through competitive challenge. United States of America will remain the We will target a range of new services well as valuable knowledge and R&D. These companies experience stronger major sources for the UK, but the high at innovative and high growth SMEs – technologies. These projects will be R&D UK exports and stock of inward FDI compared to UK GDP growth and emerging markets will become including a major new approach to intensive and also promote growth increasingly significant over time. e-connectivity and programmes to and competition (see pages 24-27). UK exports and stock of inward FDI compared to UK GDP link SMEs to trade finance, credit insurance and venture capital – as • Targeting institutional investors, such as Key well as using existing award-winning Sovereign Wealth Funds and overseas 1500 bespoke products aimed at boosting pensions funds, to win investment for GDP export capability and breaking into new large scale infrastructure and Exports regeneration projects in the UK Inward FDI markets (see pages 12-19), and 1200 (see page 26). • Secondly, we will help bring high value opportunities home through a • Ministers will play an active role in programme of intensive support for developing and sustaining winning 900 larger companies seeking to win relationships with investors, as well as overseas contracts ranging from £250 with the UK’s top exporters, and these customers will be able to call on expertise £ billion million upwards – the market for very 600 large scale, high value projects, which and resources from across Government, to also bring major supply chain ensure they receive a seamless, opportunities for SMEs, runs into “one-stop” service (see pages 28-31). 300 trillions of pounds and covers a wide Making the most of the Olympics range of sectors (see pages 20-23). We will seize the once in a lifetime

potential of the London 2012 Olympics and 0 Paralympics. A major international business 1988 1993 1998 2003 2008 programme will aim to boost British exports Year and attract inward investment (see page 66). Source: IMF WEO April 2011, ONS Pink Book 2010, and UNCTADstat

4 5 BRITAIN OPEN FOR BUSINESS UK Trade & Investment Introduction Trade, investment and the path to sustainable growth Introduction Trade, investment and the path to sustainable growth

A whole of Government Why we must do this billion additional annual profit to the strategy for growth The benefits of international trade are actions of UKTI, up from £2.5 billion in 2007, equating to £22 additional profit for UKTI will not work in isolation. Its strategy huge but UK companies face legal, for the next five years builds on the Trade regulatory, cultural and financial barriers to every £1 spent on export promotion and £42 billion additional business. With and Investment for Growth White Paper. doing business overseas. Companies can Successful delivery demands a whole of also struggle to get access to business the significant involvement of UKTI’s Defence and Security Organisation (DSO), Government effort to promote exports and networks and contacts in remote markets. attract inward investment. This will be led These barriers often seem daunting. annual worldwide defence and security sales by UK companies are currently by the Minister of State for Trade and Without help to overcome barriers or Investment through the Cabinet’s Economic address market failure, businesses would running at £9 billion. In addition, nearly 50 per cent of inward investment Affairs Trade and Investment Sub- struggle to achieve their full potential. This committee. The Committee will oversee the means there is a need for cost effective projects coming to the UK are secured with the significant involvement of implementation of detailed action plans action to help UK businesses develop tackling policy issues inhibiting trade and their international potential and UKTI. In 2009/10 this investment brought or safeguarded almost 50,000 jobs and investment, and the removal of blockages to access new markets. In addition, the specific investment projects. highly competitive international delivered nearly £4 billion of capital marketplace means the Government has a expenditure to the UK economy. The UK’s overseas diplomatic network will critical role in helping to secure and We will build on this performance by be at the heart of this whole of Government effort. The renewed focus of the Foreign and maximise foreign direct investment. significantly enhancing the support Closer to home, UKTI will work hand-in- “When it is harder than ever for this Commonwealth Office (FCO) on commercial we provide for British companies as glove with the Department for Business, country to earn a living, we want to Targeted government action to support diplomacy, set out in the FCO Charter for they engage in international markets and Innovation and Skills (BIS) to build on the mobilise all the resources we can. It’s trade and investment delivers real and Business, will be an important enabler by for foreign partners investing in the UK’s great strengths in key sectors such as about what our Ambassadors, significant benefits. In the last twelve placing prosperity and growth at the heart UK economy. advanced manufacturing, professional and diplomats and hardworking staff at months UK companies attributed £6 of foreign policy, through bilateral relations business services and life sciences. We will UKTI do, day in and day out, in every and also through its work on the low carbon also forge a strong delivery partnership with country of the world.” economy and strategic security threats. The BIS and the Export Credits Guarantee whole overseas diplomatic network will Department (ECGD) to support small and David Cameron, Prime Minister lobby for the interests of UK businesses, medium sized enterprises. And we will also promote the UK’s economic reputation and develop partnerships across Government to attract inward investment. Government help UK business seize global opportunities Ministers will also systematically lobby for and attract inward investment, including a UK commercial interests on all overseas partnership with Infrastructure UK to market visits and in meetings with their a portfolio of large British infrastructure and counterparts in other governments. regeneration projects to institutional investors such as Sovereign Wealth Funds.

6 7 BRITAIN OPEN FOR BUSINESS UK Trade & Investment Introduction Trade, investment and the path to sustainable growth Introduction Trade, investment and the path to sustainable growth

This strategy sets out a new focus for new UKTI is changing to many more companies with the The 2010 awards were specifically times, with government action targeted Best trade promotion organisation in potential to grow through exporting. focused on initiatives to help SMEs to UKTI will become a more entrepreneurial where it counts the most and can deliver the developed world compete successfully in global markets. organisation. We will bring more private We will work with private sector experts the greatest benefit for the UK economy. In 2010, UK Trade & Investment was UKTI’s award was for its Gateway to sector expertise into strategic to create a new online self-help We have drawn on research, analysis and proud to be recognised by its peers as the Global Growth programme, which relationship management of major community for UK SME exporters, so empirical evidence to identify when and Best Trade Promotion Organisation targets innovative SMEs with two to ten exporters and inward investors. that they can support each other and where government action can make the from a Developed Country. The years export experience. This service A new private sector delivery partner, share experience as they seek to most difference. It is being published in biennial Trade Promotion Organisation offers a single route to a wide range of operating in England outside London, will internationalise their businesses. This parallel with a major economics paper (TPO) Network Awards, held at the World guidance and support from UKTI and be incentivised to land high quality new development will also provide a setting out the rationale for government Conference of TPOs, recognise private sector delivery partners, and is inward investment projects. A new continuous feedback loop so that action to support trade and investment. excellence in trade promotion and Tech City Investment Organisation, customers can tell us in real-time celebrate those organisations which tailored to meet the needs of individual headed by a leading technology how they value UKTI’s services. have demonstrated outstanding customers, to help UK companies reach a entrepreneur, will work to deliver performance in the use of innovative new level of international success. The investment to the new East London We will also work to ensure that and efficient systems and procedures award is a tribute to the hard work and innovation cluster and help to develop a government action to promote exporters in their export development initiatives. excellence of staff across the UKTI world-class technology hub which will and win inward investment is informed by network. It is also a challenge: we benefit the wider UK economy. the real concerns of business. The The TPO Network is hosted and managed need to show that this and other UKTI Minister for Trade and Investment will by the International Trade Centre programmes can materially help more We will also expand our use of the Global establish a new Strategy Task Force, (ITC). ITC is a joint agency of the United and more SMEs to become more and Entrepreneur Programme (GEP) to win with members drawn from the most Nations and the World Trade more successfully involved in more investment to the UK. Through GEP, innovative UK-based companies, to Organization (WTO) for business aspects international markets. This is not a UKTI brings together successful provide guidance on the future direction of trade development. business-as-usual strategy. entrepreneurs from around the world. of both UKTI and ECGD. These private sector dealmakers will help to attract new investment and some of the brightest and best entrepreneurs to the UK. Critically, we will develop new partnerships with key businesses Logo for TPO Network Awards 2010 UK trade and investment awarded winner for best which support SMEs, using their trade promotion organisation in the developed world networks to raise awareness of the benefits of exporting. In particular, we aim to develop partnerships with the UK’s major commercial banks, with the accountancy and legal professions, and with representative business organisations around the UK, to reach out

8 9 BRITAIN OPEN FOR BUSINESS UK Trade & Investment The following sections set out four 1. NEW TIMES pathways to growth:

1. Targeting services at innovative NEW FOCUS and high growth small and medium sized enterprises (SMEs) to Growth depends on trade and encourage more companies to export and help existing exporters investment; and recovering penetrate more high growth and from the recent economic crisis emerging markets. demands a proactive response 2. Winning high value opportunities from government to maximise in overseas markets for UK businesses the impact it makes with of all sizes. taxpayers’ money. 3. Delivering a pipeline of high quality inward investment and a drive to market large British infrastructure and regeneration projects to major foreign investors.

4. Building strategic relationships at the highest levels with the most significant inward investors, including overseas institutions such as Sovereign Wealth Funds, and with the UK’s top exporters and major overseas buyers.

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Around 20 per cent of small and medium sized enterprises (SMEs) export. This is a higher proportion than in France or Germany but below the European Union average of 25 per cent.

However, we know that exploiting overseas from exporting than non-users. They This is why we have put plans in place to markets plays a greater role in business understand the value of internationalising reach out to around 25,000 UK companies success among innovative and high growth and are better equipped to reap the each year, up from an average of 20,000 companies – those investing in R&D or holding benefits. UKTI’s customers say that: over the last three years. In doing so, UKTI intellectual property, and those which have will target its services towards innovative experienced annual growth of 20 per cent per • exporting enables them to achieve a level and high growth SMEs, where we can add annum over three years. These companies of growth otherwise not possible, the most value. We will work with these contribute disproportionately to the economy companies to build confidence and and benefit most from government help. For • they get exposure to new ideas, capability. But we aim to do even more: these firms, success in overseas markets is an • they improve the profile or credibility of research suggests that there are more important spur to growth and the creation of their businesses, SMEs which could export than sustainable jobs. This is even more pronounced currently do so. Our ambition is to among high technology firms, many of which • they reduce dependence on a single or encourage and support more and more are “born global”. small number of markets, of these companies to enter international markets. We will work at There is evidence that firms which work • they make better use of existing this in four ways: with UKTI grow in confidence and develop capacity, and higher growth expectations. Users of UKTI’s • they extend the life of their products. services consistently report greater benefits

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them to grow by entering new markets. In articles, videos and other content generated • Firstly, we will raise awareness of the • Fourthly, we will deploy our outsourced Developing potential and accessing addition to mentoring and action planning, by other users. We will pilot this online benefits of exporting, for example the network of International Trade Advisers new markets Gateway customers can attend business network with technology companies from late productivity uplift of over 30 per cent around England, through these and Based on our wide ranging experience of master classes, get help with market 2011, and roll it out more broadly in 2012. This experienced by new exporters, among a other business networks, to identify and working with companies of all sizes and in research and advice on language and network will also provide a real-time feedback wider number of companies by promoting target the companies with the best all sectors, but particularly with SMEs, we culture, and take up opportunities to loop for customers to comment on UKTI inspiring case studies of successful prospects for growth. We will forge will focus our support for UK companies in network with and learn from other services and make suggestions. exporters through the web – including an stronger links with the Greater London two ways: exporters. Gateway customers also receive imaginative use of social media − and in Authority and the Devolved Forging a partnership with ECGD specialist advice on protecting intellectual media coverage. Administrations of Scotland, Wales and • developing international trade property, export credit guarantees and SMEs need access to trade finance if they Northern Ireland to spread this approach • Secondly, we will run programmes of potential, to get more companies to managing foreign exchange. are to realise their potential and the recent across the whole of the UK. high impact regional events, across export, and economic crisis has shown that its Passport to Export and Gateway to Global England and with the Devolved availability cannot be taken for granted. The • accessing international markets, Growth are about taking companies on a Administrations, to raise awareness Government is therefore increasing its especially high growth and emerging journey to growth. To underpin these about opportunities in the high growth HOW UKTI USES SOCIAL MEDIA support for all exporters, especially SMEs, markets. services UKTI will develop a major new through an expanded range of products and emerging markets. • UKTI continues to be one of the leading • Many thousands of companies are approach to e-connectivity with SMEs, a aimed at widening access to the capital and • Thirdly, we will leverage the users of social media in government. networking on UKTI’s LinkedIn group, We will help companies develop their new partnership with ECGD to ensure credit insurance exporters need to make the communication channels of business which has over 6,700 members and is • Social media has enabled UKTI to reach potential through two main products: appropriate capital and credit insurance most of international trade opportunities. partners such as the British Chambers of currently growing at a rate of some and interact with new audiences. Passport to Export, focused on new-to- support and a new service to link UK Commerce, the Confederation of British 100 per week. The Exports Credits Guarantee Department export companies, and Gateway to Global companies with overseas venture capital. Industry, the Institute of Directors, Trade • Social media allows UKTI to provide (ECGD) has launched a Bond Support • The UKTI blog is a rich source of Growth, (see case study on page 16) aimed Associations, business schools and Local answers or contacts to customers, A new online community of Scheme to help exporters raise tender and personal trade and investment at helping experienced exporters diversify Enterprise Partnerships, to reach the high and receive feedback on its services UK companies contract bonds by sharing risks with banks experience and knowledge from into new markets. These are “portfolio growth and innovative companies with and initiatives, within minutes rather Reaching out to more clients involves new that issue bonds or counter-indemnities for UKTI staff and business people across services” which can be tailored to suit the the potential to benefit by exporting. We than days. ways of relating to them. Although face-to- export contracts. ECGD has also extended the globe. needs of a given client. Companies can will also develop outreach partnerships face contact is often the best way to help its short-term credit insurance to a wider • Twitter is used by UKTI staff on a access them not only online but also through with the UK’s major commercial banks • UKTI’s YouTube channel contains a wide companies realise their ambitions, e-delivery range of export goods, and is launching an corporate, team and individual basis. face-to-face contact with UKTI’s International and with the accountancy and legal variety of material, including UK sectoral must become a major part of the way we do Export Working Capital Scheme to The corporate channel had over 9,200 Trade Advisers based around England. professions. And we will plug into the showcases, opportunities in specific business. We are developing an online facilitate access to working capital for followers by 1 April 2011. business networks of communities with markets and ministerial speeches. Our Passport to Export service will enable network − a peer-to-peer self-help community specific export contracts, by sharing risks overseas connections and activities. companies to assess their readiness for − of UK companies, so that they can support with the banks on loans above £1 million. international business and help them build each other and share knowledge in order to In addition, a Foreign Exchange Credit international trade capability, through internationalise their businesses. The network Support Scheme will help exporters support with visits to potential markets, will be run by a business partner and the manage their exposure to foreign exchange mentoring from a local export professional online content will include financial, sector rate movements. and free action planning and customised and market data, as well as information based training. Gateway to Global Growth will on the practical experience and wisdom of the help more experienced exporters through a users. Registered users will be able to ask twelve month programme aimed at enabling questions of each other and comment on

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SKYLINE IFE LTD – GATEWAY TO GLOBAL GROWTH TRUECALL UKTI and ECGD will forge a close operating partnership to promote the new products to Successful exporters Skyline IFE Ltd took their around the world. Such deals have helped South London firm trueCall, whose UK businesses through UKTI’s trade network international business to a new level with help Skyline to forecast a sales growth of over product helps users block nuisance phone across England and in partnership with the from UK Trade & Investment’s (UKTI) Gateway 20 per cent for the financial year ending calls, has been working closely with Devolved Administrations. This new, to Global Growth programme. 2011 and have encouraged the company to UK Trade & Investment (UKTI) to help it structured relationship will not only enable expand overseas. The Suffolk-based company, established in further its global reach. government to present a “joined-up” offering 1980 by two former BBC broadcasters to Managing Director Dr Richard Barsby said: No bigger than an average paperback book, to exporters, but will also co-ordinate the bring professional broadcasting skills “The experience we’ve gained since the trueCall box plugs into your home management of relationships with mutual phone line and uses patented software to to commercial and corporate media, is a moving into a wider marketplace has given clients and share resources. This new check every incoming call, before letting leading supplier of in-flight entertainment us the confidence to raise our ambitions. partnership, to include the co-location of your phone ring. services. Its offering includes movies, audio, That is where we feel we can gain from head offices in the medium term, has the TV programme and music video channels, increased co-operation with UKTI both in In May 2009, trueCall enrolled on UKTI’s potential to improve customer services to UK special productions such as safety, training the UK, and overseas.” Passport to Export programme to develop exporters and produce operating efficiencies. an export strategy and ensure its readiness and destination programmes, interactive UKTI and ECGD will also work together to www.skyline-ife.com for the challenge of international trade. It passenger information software, and promote the Export Enterprise Finance then moved on to the Gateway to Global interactive menus. Guarantee (ExEFG) to SMEs. This scheme, Growth programme to identify and target Since enrolling on Gateway to Global Growth new overseas markets. which is designed to complement ECGD’s at the end of 2009, Skyline IFE has secured Export Working Capital Scheme, is due to be Company director Steve Smith said: “UKTI valuable new overseas business with launched by the Government in May 2011 has helped us hugely. It supported our visits companies such as Oman Air, Norwegian Air and will guarantee lenders who facilitate the to the Consumer Electronics Show (CES) in provision of short-term export finance lines of Shuttle and several other leading airlines the USA and the Technology Fair in Hong up to £1 million to exporting SMEs. Kong, where we had meetings that kicked off a round of negotiations to secure a Visit: www.ecgd.gov.uk major worldwide distribution agreement. “UKTI’s conference on trading in Mexico was also a great help, paving the way for our first export order to that country – the largest single order we have ever taken for trueCall. “UKTI is also assisting with our funding round. We recently took part in the UKTI-organised MobiTechFest Conference, which gave us an opportunity to pitch for investment to a group of top venture capital firms.” www.truecall.co.uk

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1.1 Targeting innovative and high growth SMEs 1.1 Targeting innovative and high growth SMEs

Linking SMEs up with overseas • An enhanced Overseas Market • A new prize for first time SME venture capital Other help for SMEs UKTI will also manage a range of other Introduction Service (OMIS), which exporters, to complement the Queen’s Many innovative and high growth SMEs face programmes to support SMEs in offers companies of all sizes a tailored Award for Enterprise (International an equity gap, which limits their ability to international markets: and chargeable package of expert help Trade), to be judged by a panel of flourish. In particular, they often struggle to through our global trade teams, including “dragons”, aimed at rewarding obtain venture capital, as this type of • A High Value Opportunities market entry strategies, access to local excellence and inspiring other investment has declined sharply in recent programme creating a pipeline of business networks, and wider political companies to export for growth. years. According to the British Venture major projects and contracts, which will and economic advice (see page 38). Capital Association, total venture capital include supply chain opportunities for From January 2012 these services will be investment in the UK declined by some £138 SMEs (see pages 20-23). • An online Business Opportunities complemented by the BIS Business million or 32 per cent between 2007 and Service providing several hundred global Coaching for Growth programme. This 2009. Early stage investment in this period • A programme of specialist support for sales leads every month − companies can service will provide coaching and support declined by £282 million or 65 per cent. The SMEs in innovative and technology sign up to receive online alert messages for high growth potential SMEs. An Government is now aiming to create a highly rich sectors, underpinned by a high about particular markets or sectors. important part of this offer will be to link competitive environment for venture capital impact Tradeshow Access Programme, (Visit: www.ukti.gov.uk) these SMEs to other relevant sources of alongside the active promotion of green advice in order to help deliver their growth and early stage investment, for example by • An online Overseas Security exports (see page 42 onwards). ambitions. UKTI will be a key partner by significant reform of the Enterprise Information for Business (OSIB) providing export support to these high Investment Scheme and Venture Capital • A new business service for SMEs in service, run jointly by UKTI and the FCO, growth potential firms. Trusts announced at the 2011 Budget, the defence and security sectors, giving access to up-to-date information which are subject to State Aid approval. including an interactive web presence and advice about political, economic and UKTI services are part of the Government’s Accessing venture capital remains a key with delivery partners, such as the targeting export advice, information and business security issues in overseas Solutions for Business portfolio of challenge facing innovative and high growth Technology Strategy Board, to identify and support to companies at key stages of markets. (Visit: www.ukti.gov.uk) business support. their development (see page 50). (Visit: www.businesslink.gov.uk). SMEs. Venture capital providers overseas support SMEs best placed to pitch to • Business mentoring for companies have the potential to plug the gap in the overseas investors at events both in the UK • Programmes of high impact UK taking their first steps into new markets UK market. UKTI will both facilitate and overseas. This new package will aim to regional events to raise awareness through a global network of experts introductions – thereby cutting costs for attract significant new investment for high about high growth and emerging called Catalyst UK (see page 68). SMEs − and work to attract this investment growth and innovative SMEs, and bring new markets, targeted at companies not yet to the UK. We will develop strategic venture capital operations to the UK. The doing business in those markets relationships with venture capital decision package is being developed for launch in (see page 36). makers across the world and make intensive the autumn of 2011. use of their networks to stimulate interest. We will also work to strengthen the links between overseas technology clusters such as Silicon Valley, where there are concentrations of venture capital operations, and UK technology hotspots such as Cambridge and Tech City in the East End of London. Alongside this we will work

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Very large scale, high value international projects and contracts offer enormous opportunities for UK businesses of all sizes.

The market runs into trillions of pounds. It cities in Saudi Arabia and low cost housing achieved. UKTI will focus on around fifty includes aerospace, telecommunications, in South Africa; energy projects in China; high value opportunities at any one time. civil engineering, medical services and and the Navi-Mumbai airport development We have formed new teams to pursue these education, and offers main contract and in India. Through Britain’s overseas opportunities, each bringing together supply chain opportunities for large diplomatic network, UKTI will access a vast expertise from across both the UKTI and the companies and SMEs. These opportunities amount of intelligence about these wider overseas diplomatic network, along come from foreign governments as well as opportunities and will offer UK-based with private sector business specialists. The from major overseas companies. There is a business an intensive level of support to Devolved Administrations and other perception and some evidence that the UK access them. Government Departments will also be has not been as successful as our UKTI is establishing a High Value involved. These teams will develop competitors in winning this business, Opportunities programme to undertake this structured relationships with the suppliers particularly outside the defence and work on a systematic basis. To support this of high value opportunities, who may be aerospace sectors. we have developed a clear methodology to major foreign contractors working on behalf Globally there are many hundreds of evaluate opportunities in terms of of other clients. They will also build strong opportunities in excess of £1 billion, each potential monetary value, UK capability, relationships with major UK suppliers and with individual projects of at least £250 accessibility and competitive position. This consortia in order to help them win these million in value, including, for example, the will enable us to prioritise effectively and opportunities. These suppliers and consortia development of transport networks in target UKTI resources to where the have an important role to play in pulling several high growth and emerging markets, greatest impact and value to UK through SMEs as part of their supply chains. in the USA and the Gulf; the building of new companies and supply chains can be

20 21 BRITAIN OPEN FOR BUSINESS UK Trade & Investment 1.2 Bringing high value opportunities home 1.2 Bringing high value opportunities home

The programme recognises the importance HIGH VALUE OPPORTUNITIES – UKTI/SHELL NIGERIA ENERGY UKTI/KLANG VALLEY MRT HIGH of nurturing relationships with a wide range SUPPLY CHAIN PROGRAMME VALUE OPPORTUNITY (HVO) of political and economic decision makers to build confidence in overseas markets, foster UKTI’s Energy Team has Out of over 200 UK companies involved in Through UKTI’s HVO Programme, we are collaboration among UK businesses and the programme: helping UK companies access opportunities identify further opportunities. The most been working alongside emerging from Malaysia’s Klang Valley Mass • more than 190 would like to have significant relationships with UK exporters Rapid Transit (MRT) system. The MRT project further contact with Shell and key will be co-ordinated by a new cross- Shell companies in was announced by the Prime Minister – Datak Nigerian players, government unit (see page 28). For specific Nigeria to forge Seri Najib Tun Razak in December 2010. projects we will also nurture productive • over 150 are interested in making Valued at over £9 billion, it is the largest relationships with overseas buyers and stronger commercial contact with more Nigerian companies, infrastructure project ever undertaken in many of these will be managed by our relationships between Malaysia, Two northeast-southwest radial Ambassadors and High Commissioners. • 75 are following up contacts on lines and one circle line will form a “wheel Success will be measured by the amount of UK and Nigerian firms. new supply chain relationships and spoke” around Greater Kuala Lumpur city. business won from a major opportunity and (partnerships, subcontracting, The first line is planned to commence in July 2011 from Sungai Buloh to Kajang, covering the impact on individual businesses. The programme has involved matching franchising, technology exchanges), the skills and expertise of UK supply 60km, with 35 stations. UKTI’s HVO initiative Ministers and senior diplomats will lobby in • 60 intend to follow through with market chain companies with potential Nigerian has co-ordinated UK and overseas activities so support of specific campaigns. Our reviews and further visits to Nigeria, partners in areas such as HSE/training, that UK companies understand the competitors are not shy to take this and opportunities emerging from this project and approach; nor should we be. front-end engineering design, well and drilling services, and fabrication and • 15 have formed major new partnerships are well-placed to compete. At present: construction. with Nigerian companies. • detailed analysis has identified business opportunities in multiple sectors, including A series of interactive workshops has been To date, some £240 million of new rail, construction, engineering consultancy, held in the UK and Nigeria, with contracts have been awarded to creative industries, and financial services, representatives from Shell and other participating UK companies, with international oil companies in Nigeria potential business up to 2016 estimated • over 50 UK companies from UK SME’s to presenting on major capital and operational to be between £600 million and £3 billion. FTSE 100 companies have been engaged, project opportunities and local market • multiple UK companies now positioned for conditions. Such has been their success high value contracts, and that a new round of workshops has been • a UKTI/RIA mission of UK rail companies scheduled for 2011. will meet local stakeholders in Kuala Lumpur during the Rail Solutions Asia conference in May 2011. UK companies have already successfully engaged in business opportunities emerging from the Klang Valley MRT project, it is hoped that further success stories will emerge as this early stage project moves forward.

22 23 BRITAIN OPEN FOR BUSINESS UK Trade & Investment 300 250 200

1.3 A pipeline150 of high quality inward investment 1.3 A PIPELINE OF HIGH QUALITY 100 INWARD INVESTMENT 50 0 European UnionOtherUSA EuropeCanadaJapanOtherAustralasia AmericasRestNear & Oceania of & Asia Middle East ChinaAfricaIndia UKTI will play a central role in delivering a whole of Government approach to attracting high quality foreign direct investment.

The UK remains among the top three lead efforts across Government to keep this The main global drivers for the investment destinations in the world for inward investment flowing by focussing on the that companies make are access to talent; investment. In fact, the 2010 European markets of real opportunity. financial considerations, including Attractiveness Survey by Ernst & Young opportunities to reduce cost; access to The major mature economies will remain the once again confirmed the UK as the best global value chains; and innovation. main sources of foreign direct investment for location in Europe for foreign direct the UK in the medium term, with the United investment. But after several decades when States of America consolidating its position the UK has had a pre-eminent position, the as the top source for most sectors. However, economic situation means that the inward investment from the major high competition to win internationally mobile growth and emerging markets will become investment is increasingly fierce. UKTI will increasingly significant over time. Stock of UK inward foreign direct investment (£ billion)

Stock of UK inward FDI in 2009 (£ billion)

352

18 54

Canada Other Europe 0.6 159 European Union China 21 4 11 Japan USA Near & Middle East 1.8 India Rest of Asia

1.1 18 Africa

Other Americas 13 Australasia & Oceania

Source: BIS from ONS Foreign Direct Investment statistical bulletin, on 31 December 2009

24 25 BRITAIN OPEN FOR BUSINESS UK Trade & Investment

Source: BIS from ONS Foreign Direct Investment statistical bulletin, on 31 December 2009 1.3 A pipeline of high quality inward investment 1.3 A pipeline of high quality inward investment

Alongside these is the rising strength of defined by respected academic research, Support for inward investment in England will HIGH QUALITY INVESTMENT PROJECTS – MITSUBISHI POWER SYSTEMS EUROPE companies in high growth and emerging benefit the UK economy through productivity be provided by a new national UKTI-led service markets. UKTI will deploy a portfolio of tools spillovers, and by bringing new ideas and outsourced to the private sector, and through UK Trade & Investment (UKTI) In late 2007, MPSE was incorporated as create this exciting opportunity for the and strategies to address the needs of these ways of working, as well as valuable strong partnerships with the Greater London worked closely with Japan’s a UK company, in London, and it has grown development of world-class offshore wind companies. We will give investors added knowledge and technologies. They are Authority and the Devolved Administrations of Mitsubishi Heavy Industries rapidly ever since. UKTI has continued to technology in the UK. We have been work with MPSE as the company working with UKTI for some time and we value through: generally R&D intensive, promote growth Scotland, Wales and Northern Ireland. The (MHI) to help it establish a and competition, and are focused in sectors private sector delivery partner will be researched the potential to set up a UK look forward to further growing our • co-ordinated,systematic and enhanced dedicated UK-based European offshore wind turbine R&D and future offshore wind business with UK-based where the UK is strong because of its incentivised to attract high quality inward project and key account management, headquarters for its power manufacturing facilities. This included partner and supply chain businesses.” comparative advantage. investment projects, on a “payment by results” providing information on the breadth and • strong relationships with ”hot house” basis, to agreed service standards. The quality system business, Mitsubishi MHI, through MPSE, announced in For potentially lower value and less R&D depth of UK manufacturing capability and clusters (science parks, academic of this service will be verified independently by Power Systems Europe (MPSE). December 2010 that it had acquired intensive projects we will introduce a lighter facilitating top-level meetings. institutions and companies), customer surveys. Artemis Intelligent Power, and had chosen touch, “fast track” service, while recognising On announcing their intention to invest in a Scotland as the location for its UK R&D • focused deployment of business the wider reputational importance of providing This service will establish a strong local UK wind turbine R&D project in February centre. This could represent an investment specialists, and a good service to all clients. Overall we will presence and support inward investment 2010, Senior Executive Vice President of up to £100 million over five years. aim to sustain a pipeline of around 750 foreign opportunities presented by Enterprise Zones, • bespoke business propositions. Ichiro Fukue and MPSE CEO Akio Fukui www.mhips.com direct investment projects per annum over the working closely with the relevant Local said: “MPSE is delighted to be working in next five years, of which 500 would be Enterprise Partnership. UKTI, with the private partnership with the UK Government to We will use in depth market analysis and characterised as high quality by 2014/15 (up sector delivery partner, will actively explore predictive targeting to drive the way we from an annual average of 630 and 280 with each Local Enterprise Partnership how GLOBAL ENTREPRENEUR PROGRAMME (GEP) deploy our in-house resources, drawing respectively over the last three years). they can most effectively help to land new significantly on private sector expertise. investments − in particular, by building • GEP seeks to enable entrepreneurs and • Since its inception in 2004, GEP has As well continuing to attract high quality Our analytical technologies enable us to relationships with investors and providing local early-stage technology companies to helped to land over 150 projects, and foreign direct investment, the Government will understand the potential for investment knowledge and information on why their offer globalise their businesses from a UK hub. raise in excess US$200 million of from individual companies and benchmark also target institutional investors, including funding. to investors is internationally competitive. • GEP has a team of internationally specific locations in the UK – in terms of Sovereign Wealth Funds and overseas They may also help investors deal with local successful entrepreneurs known as • Impressively, the successful sector capability, quality of infrastructure pensions funds, to win investment for major issues, such as planning, site locations and “Dealmakers”, based in the UK and development of the GEP business and the cost of doing business − against UK projects. There will be a major drive to utilities, and have an important role in overseas who are able to offer their model has helped to secure 120 foreign other global destinations being actively attract this investment into large scale sustaining relationships with investors once a insight and experience, and provide direct investment projects since considered by these companies. This is infrastructure and regeneration projects. UKTI project is up and running. access to trusted global networks. 2008/2009. turn enables us to produce bespoke will work with Infrastructure UK and other business propositions for investors. Government Departments to identify a portfolio • Having a global or strategic • GEP has facilitated the introduction of of these investment opportunities. Enhanced, headquarters in the UK allows GEP over 50 highly skilled individuals who UKTI currently has a significant impact on strategic relationship management of the most clients to capitalise on benefits such as have either taken up board positions or nearly 50 per cent of inward investment significant inward investors, including > $200m a competitive tax regime, an educated advisory roles with client companies. projects coming to the UK. To maximise our institutions, will be at the heart of this focus. workforce, well developed intellectual impact we will focus our resources primarily Ministers will take an active role and UKTI is property protection, easy access to Funding over on winning high quality investment projects, creating a cross-government unit to co- financial markets, and excellent support 150 projects based on clear assessments of likely return ordinate this work (see page 28). for international growth opportunities. on investment. High quality projects, as

26 27 BRITAIN OPEN FOR BUSINESS UK Trade & Investment 1.4 BUILDING STRATEGIC 1.4 Building strategic relationships RELATIONSHIPS

Any delivery organisation needs to develop and sustain excellent relationships with its customers – and this includes Government Departments.

Key account management, or intensive client experience, will co-ordinate this work at relationship management, has long been a vital the highest level. Ministers will play an and successful part of working with the important part in helping to develop and defence and security sectors. For these clients sustain winning relationships with major UKTI has in depth relationships with senior investors, including institutions such as executives from major companies, in order to Sovereign Wealth Funds, and in supporting understand and address the strategic issues top exporters. In this, UKTI will adopt best they face when exporting their products and practice from private sector professional services. Senior managers in our Defence and services organisations. Security Organisation provide single points of This new approach will ensure that major contact for clients in these sectors, supported investors and exporters, whose decisions by a dedicated secretariat. This approach is and business success will deliver significant also a feature of how we do business with a benefits to the UK economy, receive a number of FTSE 100 companies, where our consistent and joined-up service from senior directors provide single points of contact Government. It will also enable the whole of for these clients. Government to be harnessed for the drive to Key account management establishes a win large scale inward investment and high forum for strategic dialogue with existing or value business overseas for our exporters. potential customers. This dialogue ensures This will enable the Government to tackle UKTI is regularly updated on the company’s rapidly any policy issues inhibiting trade and priority campaigns and can provide support investment, and clear blockages to specific accordingly. It improves communications investment projects. Ministers will also lead and establishes an environment in which efforts to develop relationships with major UKTI can more effectively help companies overseas procurers or buyers, to win very that are bringing new products to market or large scale projects or contracts for UK are breaking into new markets. In the companies, as part of the High Value future, a new cross-government Strategic Opportunities programme. Relations Unit based in UKTI and under a leadership with extensive private sector

28 29 BRITAIN OPEN FOR BUSINESS UK Trade & Investment 1.4 Building strategic relationships 1.4 Building strategic relationships

TENCATE – ADVANCED ARMOUR GAMESA – RELATIONSHIP MANAGEMENT Dutch company TenCate TenCate, which specialises in bespoke what our various options would entail.” Spanish firm Gamesa, Gamesa decided to develop its offshore London – an investment worth some 150 lightweight composite armour solutions for Since the acquisition, UKTI has helped wind business in the UK in January 2010, million Euros. the defence and security industry, first Advanced Armour has TenCate to pursue business opportunities in one of the world’s when The Crown Estate announced plans to Gamesa Chairman Jorge Calvet said: approached UKTI for assistance in 2008 Australia, as well as referring the company develop huge wind farms off the British “The UK’s resolute decision to enact an secured a strong after identifying the establishment of a leading wind-turbine to its Defence & Security Organisation (DSO) coast to help the country meet its renewable ambitious offshore plan, along with its UK operation as being key to its global foothold in the UK for further assistance in overseas markets. manufacturers, has made energy targets. support for foreign investment and the expansion plans. The company subsequently UKTI has worked closely with Gamesa at all availability of large ports – which are defence market with decided that a friendly acquisition of a “Having established ourselves firmly in the major investments in stages of the process, helping them to essential in this business – convinced us to successful, established UK firm would allow UK, we are keen to make the most of our the support of UKTI. research potential investment locations, base the global headquarters of our offshore it to get to market quicker and forged a deal new status as a UK company to pursue the UK with the help providing useful information and contacts activity in the UK. This will involve sizeable with AML UK Ltd in early 2010, retaining business around the world,” explains of UKTI. and facilitating high level meetings. investments in coming years and will largely the same staff. Minshall. “We couldn’t have asked for a better service from UKTI and the DSO team In October 2010, Gamesa announced its generate local, skilled and sustainable jobs.” Matt Minshall, Head of Defence Co- Their support has been invaluable.” intention to develop and manufacture its www.gamesa.es ordination at TenCate, says: “It was very www.tencateadvancedarmour.com offshore wind turbines in the UK and to set useful to bounce ideas off the UKTI team, as up its global offshore wind centre in it was able to give us a realistic idea of

OPENGEAR Support from UK Trade In 2010, the Brisbane-based remote IT Opengear has also opened an online shop to management solutions company decided to deal with smaller UK orders, and the Slough & Investment (UKTI) invest in the UK to reach a wider market, office will serve as a base from which to enter helped Australian ICT including Europe. Co-founder Bob Waldie the Chinese market in the future. contacted UKTI after recommendations from “Setting up an overseas office can be company Opengear to associates, and was delighted with the complex,” says Bob. “The UKTI team knows result. UKTI were able to guide Opengear where the potential hurdles are and is there open an office in Slough, through the process of locating an office, to help you through. They don’t babysit you, enabling it to move into moving an Australian engineer over to the they give you a road map and the information UK, opening a UK bank account and finding you need to make informed decisions. the UK and Europe. an accountant. The company began the Without UKTI, the process would have taken moving process in September 2010 and was much longer.” open for business in January 2011. www.opengear.com IMAGE COURTESY OF GETTY IMAGES

30 31 BRITAIN OPEN FOR BUSINESS UK Trade & Investment It also depends on rebalancing the economy away from dependence on a few sectors towards a more broadly based, low carbon economy that exploits our existing strengths in the innovative and high growth sectors of the 21st 2. BRITAIN IN THE WORLD century. That is why we need to underpin the four pathways to Britain’s economic growth depends on exporting growth outlined in the previous more and attracting much needed inward investment. sections with a systematic and campaigning focus on:

1. The markets where there are real global opportunities – shifting focus towards the high growth and emerging markets of the new global economy,

2. Promoting the UK as a leading edge player in the sectors that matter most to our future economic success, and

3. Boosting the UK’s economic reputation to build confidence in UK companies across the world and establish Britain as an international business partner of choice – sending a clear signal to the world that Britain is open for business.

32 33 BRITAIN OPEN FOR BUSINESS UK Trade & Investment 2.1 SEIZING GLOBAL 2.1 Seizing global opportunities OPPORTUNITIES

The recent economic crisis and globalisation have shifted economic weight east and south. This means the emerging powers in Asia, Latin America and the Gulf are now essential to our interests.

The middle class in these countries is • performance of UK businesses relative to Africa, South Korea, Taiwan, Thailand, expanding rapidly, creating new commercial competitors, Turkey, UAE and Vietnam. We will also opportunities. These countries are also target Hong Kong, both as a market in its own home to some of the biggest state equity • market match with UK capability, and right and as a springboard into the mainland investors and buyers of sovereign debt. Our • the presence of active local partners keen China market. engagement with them is critical for our to strengthen trading links with the UK. The Ernst & Young ITEM Club’s report on economic growth and prosperity. The Outlook for UK Exports, published in UKTI, working with the FCO, deploys a range These criteria enable us to assess the February 2011, highlights the importance of of criteria to prioritise its focus on emerging importance of a market, the potential for high growth and emerging markets, forecasting and high growth markets, including: growth and the need for the Government to an annual growth in the value of UK goods and help British business interests. This means we services exported to the BRIC countries (Brazil, • market size and potential for growth, can prioritise our resources in a systematic way Russia, India and China) of 11.7 per cent over the next ten years. Overall, the report forecasts • the Government’s assessment of their to achieve results. We will target our efforts on a period of robust growth in British exports by strategic political and economic the following priority markets to increase 8.5 per cent each year over the coming decade, importance, opportunities for UK businesses and help to realise the Government’s ambition of doubling after a long period of underperformance. Many • an assessment of the security situation, trade with many of these markets over the next of these markets are also valuable sources of • strength of scientific, technical and five years:Brazil, China, Colombia, Egypt, inward investment. research base, India, Indonesia, Malaysia, Mexico, Qatar, Russia, Saudi Arabia, Singapore, South

34 35 BRITAIN OPEN FOR BUSINESS UK Trade & Investment 250

200

150

2.1 20Seizing global opportunities 2.1 Seizing global100 opportunities

50

15 0 European UnionUSA Other EuropeJapan CanadaOther AmericasAustralasia & OceaniaRest ofNear Asia & Middle EastIndia Africa China SCALE Because of distance and unfamiliarity, the high We need to make a real step change in our the intelligence provided by the overseas Developed markets inward investment for the UK, and they will around one hundred further countries and growth and emerging markets can pose levels of trade with these markets, and to do so diplomatic network. In addition, we will Successful companies of all sizes know the work to overcome any barriers to trade territories. Around the world, the UK’s Heads significant challenges to UK businesses of all we will need to be ambitious, reaching out to showcase individual companies which have importance of nurturing the markets where which prevent UK firms from reaching their of Missions will lead a campaigning “whole 10 sizes. Diversity of culture, coupled with issues new businesses beyond those already familiar been successful in high growth and emerging they have already achieved results. In 2009, full potential. of Embassy” approach to promoting UK around intellectual property and local business with UKTI. We will do this by building on highly markets, to encourage others to access economic growth. Even where demand is more than 70 per cent (£277 billion) of the Global footprint practices, can lead to a lack of confidence and regarded initiatives such as the Asia Task these markets. UK’s total exports went to the European smaller and there is no dedicated local trade UKTI’s overseas footprint, with a presence in reluctance on the part of British exporters to Force’s “Doing Business in Asia” events and Union, North America, Japan and and investment expertise, the Embassy or The UK Border Agency (UKBA) has premium 96 markets accounting for 98 per cent of explore5 opportunities beyond developed “Partner Middle East” events. We will work Australasia, and these markets generated High Commission will lobby for UK business visa services in most of UKTI’s priority high global GDP, is determined by the demand for economies. UKTI will increase the proportion of hand-in-glove with partners such as Trade 77 per cent of our new investment projects. interests. In addition, partnerships with growth and emerging markets. These are our services from UK businesses, an its overseas resources in high growth and Associations, who have customers or members So we will continue to maintain a business organisations, such the China-Britain currently in place in 14 countries, including assessment of trade flows and growth rates, emerging markets, where we can provide UK who would benefit from the advice and support proportionate presence in these and other Business Council, the UK-India Business Russia, China, Nigeria, Kuwait and Brazil. the proven sources of inward investment and companies0 and potential foreign investors with we can bring. In doing so, we will also team up developed markets. As elsewhere, our Council and overseas Chambers of SaudiVietnam ArabiaIndiaRussiaKoreaChina AustraliaBrazilQatarMexicoTurkeyIndonesiaJapanSingapore GermanyUS FranceUK UKBA will also introduce chargeable, fast an evaluation of the productivity of our teams. access to information and advice to support with private sector partners who are already teams at Embassies, Consulates and High Commerce, will extend UKTI’s reach. track and mobile biometric services for This presence is kept under constant review them in engaging with these markets. We will successful in these markets, who can provide Commissions will provide UK exporters with businesses in other priority markets in line and resource levels are adjusted routinely to move more resources to high growth and complementary services. We will also provide valuable introductions and market with demand. ensure value for money. Beyond these markets emerging markets over the lifetime of this authoritative, impartial reports on the latest intelligence. They will identify business Forecast average annual import growth, 2011-16 and share of global GDP (PPP), 2016 UK businesses and foreign investors can draw strategy, to match both the opportunities and political, economic, security and scientific opportunities for UK companies. They will the demands from our customers. developments in these markets by drawing on on the FCO’s wider diplomatic presence in continue to seekUK exports out and by win destination, high value 2009 (£ billion) Australia Forecast average annual import growth (2011-16) Forecast share of global GDP (2016) UK exports by destination in 2009 (£ billion) Taiwan

15 Key Turkey 6 30 China Mexico 188 Canada Other Europe US Italy Spain 8 India Korea European Union China 10 67 8 Japan Canada 18 Indonesia USA 24 Japan Near & Middle East 5 Germany Indonesia India Rest of Asia Percentage Canada Russia Spain 5 15 Brazil Turkey 11 Africa Korea UK Taiwan Other Americas 8 France Australia Italy 0 Australasia & Oceania US UK Saudi Arabia Singapore India China KoreaRussia Japan Turkey Qatar Brazil France Vietnam Mexico Singapore Indonesia Australia Germany Saudi Arabia Vietnam Mexico

Source: IMF WEO April 2011 France

36 37 BRITAIN OPEN FOR BUSINESS UK Trade & Investment UK

Brazil

Russia

Germany

Japan

India

US

China Page39

2.1 Seizing global opportunities 2.1 Seizing global opportunities

Overseas Market Introduction Service specialist resources. These major contracts To support the aim of strengthening the UK’s DEVELOPED MARKETS – UKTI IN THE USA One of the most important ways in which we often cross sector boundaries and play an relations with the fastest growing areas of will help UK businesses break into new important role in pulling through SMEs as the world the Government has established an The USA has been one of the placed to provide in depth market Similarly, UKTI helped UK chocolatier markets is through our Overseas Market part of supply chains. Emerging Powers Committee, under the UK’s top five export markets advice, information and assistance. Chokolit secure a USA distributor after National Security Council, to bring greater providing funding for it to attend Introduction Service (OMIS). OMIS is a flexible Commercial diplomacy since 1948. UK companies helped in this way package of support offered by our global trade structure and coherence to its efforts and a trade fair in New York and supplying Government will lead business delegations include global translations agency teams and open to both first time and have a greater impact across Government. Today it remains not only the UK’s market research as part of the Overseas to high growth and emerging markets, Translate Media, which recently experienced exporters. Our overseas staff This committee is chaired by the Foreign largest single market, but also the Market Introduction Service (OMIS). bringing together senior Ministers and opened an office in New York after have local language skills, detailed market Secretary, with the Secretary of State for leading destination for British overseas business leaders to unlock potential for UK UKTI helped it to research the USA Company founder Louis Barnett said: “The knowledge and extensive political and Business, Innovation and Skills as deputy, investment. companies and demonstrate to investors that market and identify potential clients. OMIS report provided useful information commercial contacts that can open up and draws its members from across Britain is open for business. In particular, we UKTI is often the first point of contact on the marketplace and listed many business opportunities for large and small Government. UKTI will support its work on Managing Director Rupert Evans said: will expand the involvement of SMEs in trade for UK businesses interested in doing potential partners. companies. Typically, this chargeable service strategic foreign policy to improve the UK’s “UKTI has played an important role in delegations. These delegations are powerful business in the USA, especially SMEs, brings together market and sector advice with engagement with emerging powers and to us securing some key clients in the “We also benefited from a free return tools for driving export and investment and offers them a wide range of an analysis of market entry strategies, as well ensure that the whole of Government USA – which now represents our flight to the USA from British Airways growth, in support of day-to-day government resources and services. Based in eight as support during overseas visits and the promotes British commercial interests in fastest-growing market.” through a partnership with UKTI.” commercial diplomacy across all markets, led locations, UKTI’s USA team is well identification of potential business partners, these countries. overseas by our Ambassadors and High along with wider political, security, economic Commissioners. As well as leading trade and scientific advice available from the ARA – SELLING THE BENEFITS OF CHARGEABLE SERVICES delegations, Ministers across Government overseas diplomatic network. This service – in will take the opportunity provided by all Information contained in an UKTI trade mission to China, which hotels, and provided interpreters, making addition to the broader support of the overseas overseas visits, to both emerging and provided invaluable insights and allowed the whole process much easier. network, for example, through the Global Overseas Market Introduction developed markets, to promote British the company to hold fruitful meetings. Science and Innovation Network − is also Service (OMIS) report helped the “We are now talking to another Chinese commercial interests. available to UK companies seeking Aircraft Research Association In June 2010, a Memorandum of company and hope, with UKTI’s help, to opportunities for outward investment, or We will use these opportunities, along with (ARA) form a key partnership Understanding was signed between become involved with another Chinese looking to develop strong overseas bilateral government-to-government bodies in China to grow their ARA and Chinese organisation, AVIC aircraft project in due course. Our future partnerships, in order to realise their potential. such as Joint Economic and Trade Committees Aerodynamics Research Institute, which in China is looking very promising indeed.” (JETCOs), to campaign for better market access international business. subsequently spawned a commercial UKTI will extend the successful OMIS model www.ara.co.uk for UK companies across all our priority Bedford-based ARA, which provides the contract for ARA. by piloting two new chargeable services in markets. An integrated commercial diplomatic aerospace industry with high quality 2011/12. Firstly, we will pilot a Global OMIS Business Development Executive Nigel effort will ensure that the Government aerodynamic services and facilities, to provide longer term support for larger Corby says: “UKTI’s local teams in China enhances relationships with emerging powers commissioned the report in 2009 to identify customers who want to make significant use are very knowledgeable. They offered us to generate trade and investment benefits for the potential Chinese market in computational of UKTI services across the globe to secure an insight into the Chinese market, were the UK. In particular, deepening trade ties with aerodynamics, wind tunnel model design and multiple orders. Secondly, we will develop able to get us access to companies, India and China remains a clear priority for the manufacture, and wind tunnel testing. and pilot a new bespoke service, linked to a identify who we needed to speak to, and British Government. “success fee” for UKTI, to help companies After the report highlighted several even set up meetings for us. They also win major trade contracts through an potential Chinese clients, ARA went on an took care of logistics, such as flights and intensive level of support using dedicated,

38 39 BRITAIN OPEN FOR BUSINESS UK Trade & Investment Page40 Page41

2.1 Seizing global opportunities 2.1 Seizing global opportunities

PRIME MINISTER’S VISIT TO INDIA PRIME MINISTER’S VISIT TO CHINA PRIME MINISTER’S VISIT TO EGYPT, KUWAIT, QATAR AND OMAN In July 2010, the Prime Minister led a major UK delegation to In November 2010, the business tax, collaboration in India. During the visit, the UK and Indian governments agreed Prime Minister, supported telecommunications, low carbon In February 2011, the Prime Minister, initiatives, energy and education. to review the mandate, composition and structure of relevant by leading figures from accompanied by UK Minister for Trade and Investment, Lord Green, and a existing bilateral bodies in the area of trade, investment and business, culture and During the Summit, trade and investment deals worth over £1 billion were signed, group of senior UK business figures, economic co-operation. education, went on the including a £750 million agreement for visited Egypt, Kuwait, Qatar and Oman. largest ever UK Government Rolls-Royce to supply China Eastern Moreover, a number of major contracts As part of the UK’s commitment to They also announced the launch of the In Egypt, key business activities Airways with Trent 700 aero-engines for were signed between UK and Indian develop its special relationship with India-UK Infrastructure Group, which delegation to China. included meeting the Minister of 16 A330 Airbus aircraft. companies. They included a £700 million India, both Prime Ministers announced aims to harness private-sector Finance and the Governor of the agreement between BAE Systems, the creation of the India-UK CEO Forum expertise to help identify barriers to As well as a UK/China Summit, the visit There was also an agreement to increase Central Bank, and co-chairing a Rolls-Royce and Hindustan Aeronautics – the first meeting of which was held in investment in infrastructure and featured a number of bilateral high the value of bilateral trade to US$100 round-table meeting involving the Limited to supply 57 Hawk trainer aircraft to London in February 2011. present potential solutions. level engagements on a range of billion a year by 2015. Within this, the UK Egyptian business community. India – supporting over 200 jobs in the UK. business issues. Discussions included intends to raise exports to China to US$30 The visit to Kuwait saw the signing the further opening of the Chinese billion per year over the same period. of bilateral Memoranda of market, additional co-operation on Understanding (MOU) on trade and IPR protection, competition policy, economic co-operation and civil consumer protection, trading standards, nuclear energy. A target to double bilateral trade by 2014 was also agreed, while Shell and BP signed strategic co-operation agreements. In Qatar, an MOU was signed between the UK and Qatari Olympic Associations, while Centrica finalised a gas supply agreement with Qatargas. Opportunities for infrastructure investment were also highlighted. The Oman visit included meetings with the Minister of Commerce and Industry and a conference promoting bilateral trade.

40 41 BRITAIN OPEN FOR BUSINESS UK Trade & Investment Page42

2.2 PROMOTING BALANCED 2.2 Promoting balanced and sustainable growth AND SUSTAINABLE GROWTH

The UK needs to rebalance its economy away from growth built on unsustainable borrowing and government spending, and over-reliance on a few sectors, towards a more broadly based economy that builds upon our strengths across a range of innovative and high growth sectors.

There are many areas of economic activity of major industries, Sector Advisory Groups Significantly the review highlights that where the UK has a comparative will ensure that UKTI has a balanced global opportunities are increasingly international advantage or has the potential overview of business priorities. Sector generated where sectors overlap. This to establish one. UKTI, in partnership with Advisory Groups and their chairs give a underlines the need for sector teams, business and other Government great deal of their time and energy on a across the UKTI network and from other Departments, will focus action on the pro-bono basis, advising on UKTI’s priorities Government Departments, to work sectors where the UK has the strongest within their sectors; scoping new seamlessly with one another to respond capabilities, in overseas markets which opportunities; hosting inward VIP visitors; to global demand. A prime example is have the highest potential for growth, to and contributing towards government-to- providing health and wellbeing solutions help UK companies win business and attract government dialogue. Membership of these for an ageing population, as this brings high quality inward investment. groups is drawn from some of our major together pharmaceuticals, medical devices, companies, as well as from SMEs with a healthcare services, training, construction, This work will be overseen by a small strong international focus. financial services, design and technology. number of new Sector Group Task Forces, with membership recruited from major Prioritising sectors UK-based businesses. In addition, Sector UKTI, in partnership with BIS, has reviewed Advisory Groups, consisting of some 200 how it targets its sector based support, to business figures, will continue to provide ensure value for money from its resources. detailed business input, validation and This review has mapped UK capabilities challenge to UKTI’s activities in respect of against the projected evolution of global their individual industries. Covering a range demand, across a broad range of sectors.

42 43 BRITAIN OPEN FOR BUSINESS UK Trade & Investment 40 8000000 35 7000000 30 2.2 Promoting balanced and sustainable growth 60000002.2 Promoting balanced and sustainable growth 25 20 5000000 15 4000000 By bringing10 together expertise from across UKTI will also showcase the capabilities Applying this approach, and building on the Advanced Defence and security Infrastructure Healthcare and Services sectors, we will amplify the impact UK and excellence of the UK, to buyers and measures set out in The Plan for Growth, 3000000manufacturing life sciences business5 has on global markets and attract investors from priority markets, through high UKTI will focus primarily on 18 priority inward investment to these sectors. Thus quality events in the UK and overseas. In sectors, which fall into five groupings. These 2000000Aerospace Defence Construction Healthcare Creative industries UKTI will0 work with businesses and other addition through an improved Tradeshow sectors, identified in the recent review, are Agrifood Security Environment and water Industrial biotechnology Education, skills Government-5 Departments to facilitate the Access Programme, to be launched in 2012, underpinned by two cross-cutting areas 1000000Automotive Transport (airports, Pharmaceuticals and and training formation of cross-sector consortia. These UKTI, working in partnership with Trade – Technology and Low Carbon − whose marine, ports, railways) medical biotechnology Financial services consortia are an increasing feature of doing Associations, will provide an enhanced breadth means that they drive, and enable, Chemicals -10 0 Professional and businessEdu,Finance inskills the globalPharma & marketplace trainingServicesSecurityCreative & andEnvironment Healthcare Transport IndustriespackageChemicalsConsumer of Aerospacesupport & WaterManufacturing for SMEs & in innovativeLeisureAutomotiveICTEnergyIndustrial all the otherAgrifoodConstruction Retail Biotechsectors (see & sector Logistics table RetailEnergy & LogisticsManufacturingEdu,FinanceEnergy skillsChemicals & trainingAutomotiveICTConstructionPharmaAgrifoodCreative &Services HealthcareEnvironmentAerospace IndustriesConsumerIndustrialTransport & & Water LeisureSecurity Biotech business services building them is therefore an important and high growth sectors. opposite). aspect of the High Value Opportunities Retail programme (see page 20), with significant Technology supply chainUK opportunities market share forand SMEs. growth in exports by sector, 2009 Low carbon

UK market share and growth in exports by sector in 2009 Global demand by sector in 2010 and projected increase in global demand by 2014 Key Key 40 8,000 UK share of global exports Market value 2010 35 Growth in UK exports in Added value to 2014 last three years 7,000 30 6,000 25

5,000 20

15 4,000 Percentage 10 Market value ($bn) Market value ($bn) 3,000

5 2,000 0

1,000 -5

-10 0 ICT ICT Finance Security Services Energy Transport Agrifood Energy Finance Agrifood Services Security Chemicals Aerospace Chemicals Aerospace Transport Automotive Construction Automotive Manufacturing Construction Retail & Logistics Manufacturing Creative Industries Industrial Biotech Retail & Logistics Industrial Biotech Edu, skills & training Consumer & Leisure Creative Industries Consumer & Leisure Pharma & Healthcare Environment & Water Edu, skills & training Pharma & Healthcare Environment & Water

Source: PA Consulting from WTO and UN International Trade Centre Source: PA Consulting

44 45 BRITAIN OPEN FOR BUSINESS UK Trade & Investment 2.2 Promoting balanced and sustainable growth 2.2 Promoting balanced and sustainable growth

1. Advanced Manufacturing decades, Asia and the Middle East are employment in the EU. Food, soft drinks and (d) Chemicals world. UKTI will focus support on high Manufacturing is the third largest area of predicted to be the largest customers for Scotch whisky exports reached a record The UK remains one of the world’s top impact events in priority markets and the activity in the UK economy – after professional commercial aerospace products and the UK £14.3 billion in 2010. We are regarded as a chemical producing nations, with £55 billion UK, as well as inward and outward trade and business services and retail − representing will be able to build on its existing market global leader in agrifood technology and sales in 2009. We occupy third place in missions. Through the new High Value just over 12 per cent of the UK economy. penetration. UKTI will work closely with innovation, particularly in food safety, Europe and sixth place globally, with a Opportunities programme we will also seek Around 25 per cent of manufacturing industry to identify opportunities and target traceability, functional foods and science and consistent trade surplus. Around 90 per cent to leverage supply chain opportunities for companies are in high technology industries, support to help UK companies make the novel foods. These core attributes will be in of companies in this sector export their leading companies and SMEs in this sector. most of these markets. UKTI’s presence at demand in the new global food market. UKTI which make intensive use of capital, products. The UK chemicals sector has It is estimated that £100 billion will need to major international air shows, such as and the Department for the Environment, knowledge and R&D, and require a specialist significant growth potential given current be invested in low carbon energy generation Farnborough and Paris, will provide Food and Rural Affairs (Defra) will work in workforce. These characteristics apply across levels of demand from the developing and offshore transmission networks alone. platforms for UK SMEs to meet with key partnership with industry to ensure the food the aerospace, agrifood, automotive, world. It has a number of strengths, UKTI will work with the Department for overseas buyers. UKTI will also intensify and drink sector is able to take full advantage chemicals and energy sectors, where including pharmaceuticals, organic fine Energy and Climate Change to attract work with larger UK-based companies to of the potential for growth through overseas companies depend on long-term investment chemicals, basic materials chemistry, investment to the UK for low carbon energy help SMEs access supply chain trade. We will use the overseas diplomatic decisions to develop processes and buy chemical engineering, and industrial solutions, to help the UK to meet its target opportunities in priority markets. network to identify global market equipment. The UK has world-class capability biotechnology. The sector has research of generating 15 per cent of energy opportunities for firms of all sizes. across these sectors but companies in these The global space industry is worth around strengths in chemical biology, materials and requirements from renewable sources by areas need to compete in – and win £160 billion and is forecast to grow globally (c) Automotive supramolecular chemistry. Significant 2020. In particular, we will work to secure investment from − international markets, in opportunities exist for chemicals to act as a by 5 per cent a year over the next twenty The automotive sector provides the UK with investment to build Britain’s offshore order to flourish. Both the aerospace and catalyst for reducing greenhouse gases years. There is growing demand for its number one manufacturing export. In wind capability. automotive sectors, for instance, export some through the materials and services it e-connectivity, mobile communications and addition, clients around the world choose 70 per cent of their products. provides to downstream user industries. broadcasting, alongside consumer demand the UK for its world-class automotive UKTI will increase its focus on UK strengths In The Plan for Growth, the Government for instant access to real time navigation and research institutions and design engineering and global opportunities in these areas and sets out a number of actions to improve the weather data. The UK has the right mix of services, and associated test facilities and work in support of UK supply chain efforts business environment for UK-based skills to win a disproportionate share of this proving grounds. The UK is also at the to win business in priority markets. manufacturers, including the UK’s first business. There are considerable cutting edge of low and ultra low carbon Technology and Innovation Centre, which will opportunities in high growth and emerging developments, from battery, fuel cell and (e) Energy markets for sales of satellites and other enable businesses to access state-of-the-art motor manufacturing, to infrastructure UKTI will support the UK’s oil, gas and services, as well as opportunities for equipment and skills and funding for higher deployment. The growing demand for power industries, alongside the growing collaboration. UKTI will work with the apprenticeships to improve the skills base. personal transportation from the new number of companies in the low carbon relevant space agencies and with business to Measures are also being taken through the middle class of Asia, alongside the adoption energy sub-sectors. UK companies, building promote the UK’s strengths and to maximise tax regime and other business support of low carbon vehicle technologies and on experience in areas like the North Sea, the opportunities for UK companies. mechanisms to make the UK a more attractive intelligent transport systems and services in are successfully delivering the most location for manufacturing. UKTI will promote (b) Agrifood mature markets, represent significant challenging energy projects around the these benefits to attract higher levels of opportunities for UK-based automotive Global shifts in diet across the world, from manufacturing and related R&D investment. companies. In both areas, UKTI will work grain-based to more sophisticated and varied with industry to showcase UK strengths and diets, offer large opportunities for UK food (a) Aerospace actively support UK-based companies in companies. The UK food and drink sector The UK has a 17 per cent share of the global their drive to win business overseas. aerospace market. Over the next two ranks fourth in terms of product sales and

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MOVIRTU – SUPPORTING SELECTAMARK SECURITY SYSTEMS PLC HYPERTAG INNOVATIVE COMPANIES Support from UKTI helped security firm on markets such as Australia, France Proximity marketing and Wi-Fi, “Hypertags” can send content potentially license its technology and sell Selectamark more than double its export and Singapore. Movirtu delivers innovative specialists Hypertag such as videos, games, music and its product worldwide. Managing Director turnover in less than a year. “This helped us immensely to find the right vouchers direct to mobiles quickly and for Jonathan Morgan said: “UKTI’s funding of Mobile Identity Selectamark’s forensic crime reduction distributors and launch products,” explains has cited UK Trade free. By simply activating the appropriate the stand enabled us to attend MWC. The Management (MIM) system SelectaDNA links criminals to crime Managing Director Andrew Knights. & Investment support as technology on their phones within range cost of exhibiting at MWC can be solutions for the wireless scenes, using a virtually invisible synthetic “UKTI support also enabled us to arrange of a Hypertag unit, consumers can receive prohibitively high, so having this support DNA solution to mark personal property. market visits and attendance at overseas being vital to its content to their handset. Hypertags have really makes a difference. UKTI also telecommunication market. Each batch is unique in its DNA make up exhibitions, which led to a wave of interest international business been used by global brands such as introduced us to journalists that will and, once registered on the Selectamark’s in SelectaDNA. strategy. Coca-Cola, Ford, Nokia, Vodafone and hopefully write about us and give us Support from UK Trade & Investment (UKTI) secure database, provides irrefutable “It’s such an advantage to be able to tap New Look in over 600 campaigns in more further exposure.” enabled Movirtu to secure US$5.5 million in evidence of property ownership. than 34 countries. into the UKTI network, as we don’t have the www.hypertag.com venture capital funding from specialist fund The family-run company, based in Orpington, time and resource to find overseas The Norwich-based company provides In 2010, Hypertag won a place on the TLcom Capital LLP. approached UKTI after identifying the export distributors on our own. Our export market location and context relevant mobile UKTI stand at Mobile World Congress potential of SelectaDNA. It subsequently couldn’t exist, and we wouldn’t have moved The company won a competition to exhibit marketing to consumers’ devices when (MWC) 2010 in Barcelona – a leading enrolled on the Gateway to Global Growth at the speed we have done, without UKTI.” on the UKTI stand at Mobile World Congress. and where they want it. Using short range event on the industry calendar. This programme, and commissioned Overseas The competition was run in conjunction with www.selectadna.co.uk mobile technologies such as Bluetooth Market Introduction Service (OMIS) reports enabled it to meet companies that could the Digital Communications Knowledge Transfer Network (DCKTN) and gave Movirtu HUDDLE BACARDI LIMITED invaluable exposure to the international mobile market which led to the VC funding. Huddle, an online collaboration application Subsequently, in September 2009, Huddle Tradall SA decided to dispute the decision Serdar Pala, Area Manager for Turkey & for business, first established its relationship UKTI helped Tradall SA, returned to the USA, and UKTI invited after discovering that the ingredients were Jordan at Tradall, said: “Since UKTI “The Mobile World Congress was an with UK Trade & Investment (UKTI) in 2007, co-founder Andy McLoughlin to a course part of the Bacardi Limited on a list approved by the EU and signed by became involved in our case, although the excellent experience for us,” said Ramona when UKTI provided financial assistance to run by business incubator The Hatchery. group, to overcome all the member countries, including Turkey two botanicals still feature on the Liberoff, Executive Vice President of help the company attend the Office 2.0 Following a month of training, McLoughlin as an associate member country. negative list, alcohol products have been Marketing, Strategy and Planning at conference in San Francisco. pitched the company to a panel of venture problems in exporting its given a special exemption. UKTI was Movirtu. “Having a spot on the excellent At the event, Huddle officially launched its capitalists in New York. Tradall subsequently commissioned Bombay Sapphire Gin brand crucial to us solving the problem, and UKTI stand enabled us to meet many product in the USA and showcased its an Overseas Market Introduction Service “Through The Hatchery, I made a pitch to Turkey. were able to do so much earlier than international companies. features and functions. Attending the to potential investors and customers,” (OMIS) report from UKTI in Turkey in order anticipated. I hope we never encounter conference enabled the firm to gain visibility he says. “This helped us to secure more to bring the case to the attention of the “If we hadn’t had the support of UKTI and this problem again, but if we do, I won’t in the USA, meet potential partners and than US$10 million of funding, led by an relevant Turkish ministry officials and the DCKTN to attend the event, we might In September 2009, the Turkish hesitate to call UKTI.” start building relationships with the media. American VC fund. Support from UKTI and request that they reconsider the decision. not have met TLcom and secured their Ministry of Agriculture stopped the Huddle then went on a UKTI-sponsored The Hatchery was instrumental in allowing Some four months after UKTI got involved www.bacardilimited.com investment, which has been so crucial to sale of the UK-made gin, as two of the Web 2.0 trade mission to the USA in 2008, us to meet investors in New York and with the case, a Turkish government our expansion. It also resulted in us key botanical ingredients that go into where it met major players in the Silicon Silicon Valley.” committee decided to lift the export ban. attracting new customers.” making it were banned. Valley community, including business social www.huddle.com www.movirtu.com network LinkedIn, with whom it went on to form a partnership.

48 49 BRITAIN OPEN FOR BUSINESS UK Trade & Investment 2.2 Promoting balanced and sustainable growth 2.2 Promoting balanced and sustainable growth

2. Defence and security The overseas security market is a rapidly potential. Through its High Value resources. The industry has leading edge Sustainability Fair (FIMAI) in Brazil and middle class in the high growth and emerging UK defence and security exports are expanding, highly competitive, multi-billion Opportunities programme (see page 20) capabilities to deliver a transition to a low GLOBE, North America’s largest biennial markets – in particular, the BRIC countries and currently running at around £9 billion per pound sector with annual sales for UK UKTI will identify global infrastructure carbon built environment. sustainability event. We will prioritise the the Gulf region – is driving significant companies running at £1.6 billion. The projects, including supply chain BRIC economies, North America, the Middle investment in healthcare. This growth is annum and the defence sector supports UKTI will work to position the UK as a world market has expanded by an average 10 per opportunities for SMEs, and offer UK-based East and Australia, as well as selected underpinned by major breakthroughs such as some 65,000 highly skilled export related leader in the construction industry. We will, cent per annum over the last three years business support to access them. European markets, where the UK is well human genome sequencing and developments jobs. Britain remains the second most for instance, showcase companies helping to and this is set to continue. It offers a wide placed to exploit its relative global advantage. in ICT. These drivers are redefining how global successful defence exporter, behind the The UK’s own infrastructure also needs deliver the London Olympics, in order to range of opportunities, encompassing healthcare and life sciences are structured and USA, holding a 20 per cent share of the substantial investment to underpin growth develop opportunities for UK firms in future (c) Transport global market and, as the Government’s 2010 homeland security, counter-terrorism, operate. Partnerships are being established and help to rebalance the economy. Some sporting events, including the Sochi 2014 Both developed and high growth markets are Strategic Defence and Security Review commercial security, border and transport across sectors to reduce costs and extend £200 billion of infrastructure investment is Winter Olympics, the 2014 Football World responding to increasing city congestion, and highlighted, these exports help to strengthen security, fire protection and safety. UKTI market reach. likely to be needed over the next five years. Cup in Brazil, the Rio 2016 Summer Olympics, a need to move freight and people efficiently, the UK’s strategic relationships. UKTI’s DSO will work with the Home Office and The Government is committed to ensuring as well as the future Football World Cups in by investing heavily in their transport High level engagement with major inward Defence and Security Organisation (DSO), in other agencies to promote UK expertise that this new infrastructure is delivered and Russia and Qatar. We will also help UK infrastructure. The UK transport sector enjoys investors on high quality investment prospects partnership with the Ministry of Defence across this growing sector, through major published the National Infrastructure Plan companies to win high value opportunities in a global reputation for spearheading is crucial for our ability to attract investment for (MOD), Home Office and other Government exhibitions and events both in the UK and in (visit: www.hm-treasury.gov.uk) in October construction around the world by accessing innovation and delivering first class the life sciences sector in the UK. In partnership Departments, will provide co-ordinated the growing markets of Asia, Latin America 2010 to outline national priorities. The need intelligence through our overseas network. sustainable products and services, including with BIS and DH, UKTI will work to ensure that support for the defence and security and Australia. is great and UKTI, in partnership with consultancy, plant, equipment and specialist we deliver the best operating environment for industries to maintain and improve the UK’s (b) Environment and Water UKTI DSO will also reach out to the Infrastructure UK, will target institutional finance. The UK is therefore well placed to those investing in this crucial sector. leading position in the global marketplace. The UK is a global leader in environmental estimated 10,000 SMEs in the defence and investors, including Sovereign Wealth Funds, respond to these opportunities. Likewise, the improvement, with innovative product and (a) Healthcare As well as sustaining our most important security sectors through a new business to win investment to major UK infrastructure UK is looking for overseas investment in its technology developments, which can help The UK is a world leader in healthcare, existing markets in the Middle East and the service, at the heart of which is an open, and regeneration projects (see page 26). transport infrastructure and we will market other countries to meet the challenge of ranking second after the USA. The NHS USA, UKTI DSO will promote UK capability in content-rich interactive web presence. This the opportunities to major overseas investors, (a) Construction managing scarce resources and mitigating brand is a unique selling point and creates a the newer high growth and emerging defence will provide a wide range of export-related including institutions such as Sovereign Representing an annual output of £107 climate change. The UK has a world-class platform for exporting into the global and security markets, such as Brazil, Turkey, advice and information, alongside clear links Wealth Funds. Through its overseas network, billion, the UK construction industry water industry, drawing on over 30 years healthcare market. The UK also has an India, Malaysia, South Korea and Australia. It to the MOD for those seeking to sell to our UKTI will identify major international transport comprises more than 300,000 companies. It experience of developing integrated water excellent track record in all aspects of will provide support across the full range of armed forces (www.ukti.gov.uk/ projects and work with the industry to help it is in this sector, above all, that UKTI’s resource management solutions and healthcare provision, from constructing and UK defence products, from major platforms defencesecurity/supportforsmes.html). win these opportunities for large companies readiness to facilitate consortia of UK techniques, and flood modelling expertise. running hospitals, through to the provision of such as fast jets and future warships, through (see pages 52 & 53 for case studies). and SMEs, such as the £7 billion Klang Valley companies will be most critical. UK Other UK strengths include waste primary care facilities. We have a strong to systems and sub-systems, and training and Mass Rapid Transit rail system in Malaysia. 3. Infrastructure companies, with their high-end consulting, management, air pollution control, land medical technology sector and we are a support services. UKTI DSO will work in Emerging and high growth markets need to design and engineering capabilities remediation and environmental 4. Healthcare and Life Sciences leading player in areas of e-health. UKTI will partnership with the Ministry of Defence to expand their infrastructure rapidly to ensure stretching across many disciplines, have instrumentation and monitoring. work in partnership with the Department of improve the up-front consideration of Demand for healthcare offers major growth they can sustain economic growth. The shown themselves strongly placed to address Health (DH) and with industry to support the “exportability” in its acquisition process. This A programme of activities in the UK will focus opportunities in both developed and in high construction, environment and water, and these trends and compete on a global scale. establishment of an entrepreneurial NHS will help UK defence suppliers sell their on bringing overseas buyers to leading growth and emerging markets. This is driven by transport sectors are vital to any They have shown global leadership in Global brand, which will underpin the drive products to overseas buyers, as well as to the environmental tradeshows, such as an ageing population in the USA, Japan and modernising economy and offer enormous developing industrial processes which reduce by UK healthcare related businesses to win UK armed forces, and can reduce MOD Sustainability Live. Overseas events will Europe; the impact of critical conditions such as opportunities to UK companies. These costs, create safer working environments, orders in high growth and emerging markets. procurement costs. include trade missions and shows such as the AIDS, obesity and alcohol abuse; and greater sectors also have huge low carbon and reduce the use of energy, materials and International Industrial Environment and interest in individual wellbeing. The burgeoning

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2.2 Promotingpromoting balanced and sustainable growth 2.2 Promoting balanced and sustainable growth

INDIGOindigo VISIONVision – UKTIuKti DEFENCEdefence & SECURITYsecurity ORGANISATIONorganisation INDIAN CONTRACTS Edinburgh-based IndigoVision designs and manufactures In an increasingly This is especially so since the customer and in supporting the final discussions for major defence deals will be a foreign between the companies and the Indian large scale IP security management systems for use in competitive world market government who will expect certain government. airports, city centres, ports, rail systems, casinos and prisons. for defence exports, an support and assurances from the supplier A unique aspect of such deals is that DSO government to underpin the deal. effective and enduring support extends beyond conclusion of the partnership between In 2010, two major contracts were placed contract. The bilateral Defence Equipment IndigoVision,indigoVision, whose products include UK industry and UKTI DSO by India following UKTI support – the Co-operation Memorandum of control centre management software, sales of Hawk trainer aircraft by BAE Understanding, which provides the dome cameras and network video is an essential prerequisite SYSTEMS and AW101 VVIP helicopters framework for many defence purchases, recorders, exports to over 80 countries, for success. by Agusta Westland. The conclusion of facilitates UK Government support to its with its largest markets being Northnorth these contracts reflected the long- Indian counterpart by aiding oversight of Americaamerica and the Middle East.east. standing defence equipment relationship the delivery and subsequent support of IndigoVisionindigoVision is a frequent user of UKTIuKti between the UK and India and the equipment as it enters service DSOdso services. Itit takes advantage of involvement of UKTI DSO in facilitating with the customer’s armed forces. inward missions to the UKuK organised the necessary government-to-government by DSOdso to provide briefings to overseas understandings that underpin the sale, customers, with IndigoVision’sindigoVision’s in-country teams then continuing the dialogue locally. Thethe company also makes HOME OFFICE SCIENTIFIC DEVELOPMENT BRANCH EXHIBITION full use of UKTIuKti staff in overseas Postsposts to organise seminars and briefings for UKTI DSO reshaped the UK Traditionally a small public security potential end users. Asas a direct result of security sector exhibition exhibition at RAF Halton aimed primarily one such seminar in Vienna, IndigoVisionindigoVision at the UK law enforcement community, signed several new contracts. landscape by working in it was held for the first time at partnership with the Home Farnborough from 16-18 March 2010 Chiefchief Executiveexecutive Officerofficer Oliveroliver Vellacott Office Scientific Development and saw nearly a 100 per cent increase says: “UKTI“uKti enables us to reach quality in exhibitor numbers. customers. Theythey have pulling power that Branch (HOSDB) to transform we would never have on our own and their annual exhibition. Some 250 delegates from 53 countries, having their name behind us helps us including government ministers from seven

build quality brand recognition more countries, attended and transformed the than if we showed up out of the blue.” exhibition into an international showcase for the UK security sector. The DSO team’s www.indigovision.com work resulted in over 300 service deliveries to UK companies and significantly raised the profile of the UK security sector.

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(b) Pharmaceuticals and Medical 5. Services (b) Education, Skills and Training Corporation and regional promotional bodies. closely with the Lord Mayor of London and have access to the highest calibre Biotechnology “Services” represents a wide span of UK The UK’s education, skills and training sector UKTI will work closely with TheCityUK and Ministers across Government to maximise graduates from British universities and Changes taking place in the global excellence, from architecture to insurance, generates exports of some £14 billion a year. other partners to promote the UK around the the benefits for UK financial services from attract the very best from the global talent biopharmaceuticals industry, with the and education to retail. UKTI will prioritise UKTI will focus on high impact events in the world as the international partner of choice their overseas visits. pool. The industry has an excellent for the provision of financial services reputation for world-class training and increasing outsourcing of R&D and a trend its support for the services grouping based UK and overseas, such as the BETT Show (the (d) Professional and Business Services towards moving activity to the high growth on the uniqueness of what UK companies largest educational ICT show in the world), expertise, and as the location of choice for continuous professional development. companies seeking a global presence and Professional and business services comprise and emerging markets, are presenting new have to offer and the potential for trade and the Education Show, and events in Asia, the UKTI will work with BIS and the wishing to raise finance. UKTI, along with a broad range of activities which account for challenges and opportunities for the UK. UKTI investment growth. Gulf and central Europe. In particular, we will Professional and Business Services Group, TheCityUK and other industry partners, has some 15 per cent of UK GDP. Exports from will foster international collaboration to focus on: teaching and learning resources; to tackle issues affecting international (a) Creative Industries identified six priority markets − China, India, these areas have doubled over the last promote shared intellectual property, vocational training; English language training; market access for this sector, and promote The UK has one of the largest creative sectors the Gulf, Russia, Brazil and Turkey − where its decade, from around £20 billion in 2000 to information exchange, research partnerships, corporate training; and major infrastructure UK excellence to priority markets. We will in the world, contributing £17.3 billion in overseas network will focus efforts to help £40 billion in 2009, and the UK professional and licensing of technology, especially in the developments, such as new schools, colleges also work with the Ministry of Justice to exports. Film, TV, music, fashion, media, open up new opportunities. UKTI will also services trade surplus was £6.4 billion in 2009. high growth and emerging markets. We will, and universities, across the Middle East, Asia promote the UK’s world beating business advertising and design significantly enhance use high impact events to encourage UK for example, build on the new “Bio-Bridge” Pacific and the Americas. The UK remains highly competitive in arbitration and commercial law services. initiative, which seeks to bring China and the “Brand Britain”. UKTI will work in partnership financial services firms to develop their professional services expertise and The UK’s universities have a global UK together in a successful R&D partnership with the Department for Culture, Media and businesses overseas. We will also work provision around the world. UK companies reputation for excellence. UKTI will work to create shared, world-class intellectual Sport (DCMS) and others to raise awareness with the British Council, on a one-stop shop property and medicines. We will also work to of the UK’s creative offer and use major initiative, to provide an enhanced service to help SMEs seize opportunities provided by events in the UK and overseas to maximise help UK universities internationalise. We the trend towards larger companies the export and investment potential for this will also work in partnership with outsourcing R&D. important area of the economy. Universities UK to develop a programme to (c) Industrial Biotechnology UKTI will deliver a series of showcasing support these activities. activities, in partnership with the industry, The use of biological processes in industry before and during the 2012 London (c) Financial Services has a number of economic and environmental Olympics to maximise export opportunities The UK is the world’s leading international benefits which may help the UK to move for UK creative companies. In partnership financial centre, with access to an unrivalled away from traditional oil and gas derived with the Chinese Ministry of Commerce and concentration of international firms, capital, products. This technology also has the the advertising, architecture and design professional advice and highly skilled potential to reduce carbon emissions, sectors, we will utilise the annual Trade in people. The financial services sector improve energy efficiency and reduce waste Services Congress in Beijing as a platform accounts for around 10 per cent of UK GDP generation. The UK has extensive capability for business-to-business activity, ensuring and will remain an important source of in this sector but SMEs and start-up that UK companies have access to both key growth for the UK economy, based on the companies often face prohibitive costs government contacts and potential business strengths of the City of London and other associated with the capital assets needed to opportunities. In the UK, we will leverage important regional centres. test new biotechnologies. UKTI will work opportunities such as the London Design with SMEs in this sector to help them seize The expertise of the UK’s financial services is Festival and London Fashion Week to opportunities in global markets and facilitate widely recognised around the world. It is provide platforms to connect UK SMEs with collaboration with larger global players to promoted through the cross-industry umbrella key international buyers and to showcase overcome the cost barriers. body, TheCityUK, with the City of London UK strengths to international media.

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(e) Retail sectors in Europe. UK companies and UKTI will work to strengthen the links closely with the overseas network of the The UK has the third largest retail sector in organisations are well connected and they between key technology clusters overseas, Foreign Office to promote green growth, we the world, with a turnover of £321 billion in have a global outlook, which will enable them such as Silicon Valley in the USA, and will identify new opportunities coming out 2008. There will be significant opportunities to continue to seize global opportunities and technology hotspots in the UK such as of international agreements and overseas for UK retailers to expand overseas as two attract overseas investment. The greatest Cambridge and Tech City in the East End of governments’ policies on carbon reduction. opportunities lie in areas of cross-sector London, where the private sector will be billion people join the global middle class Aid funded business over the next twenty years from high growth activity, including for example the delivery of incentivised to land investment. Through the Working with aid agencies offers substantial and emerging markets. We already see smart grid infrastructure and broadband, newly created Tech City Investment opportunities for UK companies. Multilateral strong demand for UK luxury brands such as intelligent transport systems and e-health. Organisation, headed by a leading agencies such as the United Nations and the Mulberry, Burberry and Osprey, and a technology entrepreneur, we aim to create The global market for communication and World Bank currently spend about £90 billion growing demand for high quality British food. an iconic global technology hub which will broadcast technology, consumer and every year on everything from tents to Additionally, major British retailers such as support the wider development of the UK as industrial electronics, software products and telecommunications. The most sought after Tesco have achieved significant growth by a world leader in technology. enterprise systems, will continue to evolve expertise is in the healthcare, construction, expanding into overseas markets. and extend to new and emerging areas, such (b) Low Carbon consultancy, ICT, environmental and transport By 2012 UKTI will develop a new programme as Cloud Computing, Machine-to-Machine The global trade in low carbon and sectors, all of which are areas in which the to enable retailers to take full advantage of (M2M) and The Internet of Things (IoT). This environmental products and services is UK is strong. Much of the implementation of international opportunities and to help them to global market is set to grow to around £2 estimated at £3 trillion a year and is set to aid funded projects is contracted out to the overcome barriers to growth in overseas trillion by 2014 and in 2010 its value to the rise to £4.3 trillion by 2015. Many UK private sector. British companies can win markets. To support this new programme we UK economy was £132 billion. companies and institutions have developed business to deliver successful projects for aid will develop retail sector expertise among our UKTI’s new Global Technology Task Force will environmental solutions and technologies, agencies, resulting in people in developing teams based in Embassies and High support innovative and high growth which are in great demand across the world. countries gaining sustainable assets and Commissions in priority markets, and work with companies to maximise their export A green export campaign will position the UK improving their quality of life. BIS and the retail sector to identify where joint as a leading provider of low carbon solutions potential. It will also deploy the UK’s But businesses need to know − and be known action can gain advantage for UK business. in markets where it is clear we can gain research, development and innovation base, by − the right people in the right places to advantage. The campaign, involving trade in partnership with the Technology Strategy break into this market. Working with the 6. Cross-cutting sectors missions and showcasing events linked to Board and the Global Science and Innovation Department for International Development, The scope and influence of some areas of overseas visits by Ministers, will be used to Network, to attract new entrepreneurs and UKTI’s Aid Funded Business Service will help economic activity − such as technology and generate positive media coverage for UK substantial inward investment to the UK, UK businesses find their way through this low carbon, where the UK has important business. Initially we will prioritise China, including venture capital and angel funding. complex world by alerting businesses to the competitive advantages − is so wide that it India, Brazil and the west coast of North opportunities through visits and online cuts across all sectors. These cross-cutting We will also work in partnership with the America, where research has identified the support, by working closely with aid agencies, sectors create capability within sectors, Department for Culture, Media and Sport to greatest immediate business potential. which lead to innovations in products develop a marketing plan for the digital and by organising a range of highly and services. industries. All our cross-government UKTI will work with the Knowledge Transfer informative workshops. partnerships will be used to tackle barriers Networks, Technology Strategy Board, (a) Technology to innovation and promote UK capability Global Science and Innovation Network and Technology based innovation is one of the key through overseas trade missions and major the wider scientific community, to help drivers of economic growth. The UK has one UK exhibitions. create an export pipeline of innovative of the largest and fastest growing technology green technologies and services. Working

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2.2 Promoting balanced and sustainable growth 2.2 Promoting balanced and sustainable growth

EAST LONDON TECH CITY PHARMATRUST • Tech City was launched by Prime expanding from some 15 firms in 2008 • UKTI is working closely with overseas Minister David Cameron to build on the to nearly 250 today. technology companies looking to set Support from UKTI helped Canadian healthcare and existing cluster of technology up and expand in Tech City, and has • Benefits include access to Europe’s medical device company PharmaTrust establish its companies in East London to create a established the entrepreneur-led Tech largest business angels and venture world-leading technology centre. City Investment Organisation to take European headquarters in London. capital community; priority area status this forward. Recent successes • At its heart is Shoreditch – increasingly for super-fast broadband deployment; include Italy’s Buongiorno and the location of choice for budding access to like-minded technology The firm, which produces a remote Peter Suma, President of PharmaTrust, Australia’s SAE, both major digital entrepreneurs. innovators and companies; competitive pharmacy dispensing technology, started said: “UKTI outperformed all of our media firms, alongside a programme property costs; world-class transport exploring the potential of the UK in 2007 expectations, offering practical support • Tech City brings together young web of activity to help Tech City based links and close proximity to four of the after deciding that it would be an ideal and advice every step of the way. We are and technology companies and aspiring companies internationalise their world’s leading universities – launchpad into the rest of Europe, the very positive about our future both in the innovators who were originally business. Cambridge, Oxford, Imperial and UCL. Middle East and Africa. PharmaTrust then UK and in Europe.” attracted to the area by cheap rents and got in touch with the UKTI team in www.pharmatrust.com the vibrant social scene. • Tech City is supported by major global Toronto to discuss its market entry plans. companies such as BT, Cisco, Facebook, • It is home to one of the largest Intel, Google, McKinsey & Co, Qualcomm, As well as providing an overview of concentrations of small, fast-growing Silicon Valley Bank and Vodafone. doing business in the UK, UKTI helped digital technology companies in Europe, the company to meet a range of key players in the British healthcare industry, including heads of pharmaceutical GREEN EXPORTING colleges, NHS executives and politicians. UKTI is helping Berkshire- As well as securing contracts in regulatory matters.” He added: “As a It also provided advice on incorporation, Mozambique and Brazil, Regenatec UK business overseas, it’s sometimes how to recruit and pay staff, opening a based technology firm recently signed a licensing agreement in difficult to know where to begin. But, bank account and finding premises. Regenatec to access new China and has formed a partnership in for less than the cost of a private In May 2010, PharmaTrust opened its opportunities overseas. India – the company’s most advanced consultant, we have been able to sales office in London – its first outside overseas market. access the highest quality of advice and of Canada. It is now looking to expand to support from in-country UKTI staff.” Regenatec designs, manufactures and Bill Courtenay-Smith, Director of the West Midlands and is in discussions installs conversion equipment that allows Regenatec, said: “We have had strong www.regenatec.com with potential customers in Europe after commercial diesel engines to run on support from UKTI in building a market attending a key trade show in Portugal, biofuel. The equipment can be fitted to for our technology in India. As well as again with UKTI support. existing vehicles, reducing their carbon introducing us to potential customers footprint by 80 per cent. and investors that we may not have been able to access on our own, they have UKTI support has helped the innovative pointed us in the right direction to secure company grow into a global business. licences and helped us to deal with other

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2.2 Promoting balanced and sustainable growth 2.2 Promoting balanced and sustainable growth

LONDON FASHION WEEK (LFW) DUSKY MOON On the eve of LFW in autumn VIP buyers from ten countries and nearly 50 Corsham-based baby product manufacturer, Dusky Moon, 2010, the British Fashion press visitors from across the globe. International orders amounted to £28.9 has broken into an impressive number of overseas Council launched The Value of million, while an estimated £36.5 million markets in its first two years of business with help from the UK Fashion Industry report worth of media coverage was generated in UK Trade & Investment (UKTI). (co-sponsored by UK Trade & overseas press. Investment), which redefined The company, responsible for inventing and “The support we’ve been given by UKTI, the fashion sector and developing the award-winning Dream and in particular by our International Trade estimated its worth at over £21 Tubes, the world’s first portable, soft and Adviser, has been fantastic and instrumental cosy bed guard that prevents young children in our export success,” says Allerton. billion to the UK economy. from falling out of bed at night, has brought “We have had advice on markets, help with > £21bn relief and reassurance to parents worldwide LFW saw over 60 designers present their developing exhibition materials and, collections on the catwalk, while a further with exports to 44 countries. It has a range crucially, invaluable information on managing 200 designers exhibited at Somerset House. The worth of the UK fashion of new products in development and has distributors and our overseas business. We UKTI assisted an extensive international recently launched Dream Stickers, a sector to the UK economy are keen to break into even more markets buyers and press programme, involving 68 creative and elegant wall art for children’s and have recently been supported on visits to IMAGE COURTESY OF MAYER GEORGE VLADIMIROVICH IMAGE COURTESY OF MAYER bedrooms or bathrooms. Dubai, Russia and the USA.” Run by mothers Amanda Allerton and www.duskymoon.co.uk SKARAMOOSH LTD Venetia Fuller, Dusky Moon has received extensive support with its international after using services offered under UKTI’s He continues: “There are other markets TV production company strategy from UKTI’s Passport to Export Passport to Export and Gateway to Global we would like to explore, and having had Skaramoosh, a specialist in programme, on which it enrolled in 2009. Growth programmes. the experience of the knowledgeable, high animated children’s quality support available from UKTI gives Managing Director Daniel Slight says: programmes, formed a vital me the confidence to do so.” “UKTI’s support has allowed us to LONDON DESIGN FESTIVAL (LDF) partnership in Singapore after investigate markets which we would not www.skaramoosh.co.uk UKTI supported a five day programme, The programme also included a working with UK Trade & have gone to otherwise and which UKTI showed its support Investment (UKTI). produced a number of valuable contacts. for British design which included funding for three British conference highlighting the outcomes We must have had the equivalent of Design Embassies. These aimed to of the UKTI-led creative industries businesses with the LDF provide comfortable and inspiring business programme at the Shanghai The company, based in London and around £10,000 of support over the last places in which to conduct business Expo, and an exhibition focused on Tunbridge Wells, secured a Singaporean few years.” in September 2010, which meetings between overseas buyers, the emerging digital design sector. studio partner, Sparky Animation, to help “In particular, its help to visit Singapore saw over 200 events press (including a high level Chinese Initial anticipated business resulting develop its children’s TV series Mr Moon, was a key factor in our securing major across London over a ten delegation), and UK design firms across from these activities is in the region and received investment from the investment at a time when we were a diverse range of specialisms. of £280,000. Singapore Media Development Authority, stretched for travel funds.” day period.

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2.3 BOOSTING THE 2.3 Boosting the UK’s reputation UK’S REPUTATION

The Prime Minister has made it clear that British business should have no more vocal champion than the British Government.

That is why promoting the UK’s commercial UKTI will champion the breadth of the UK’s interests around the world is at the heart of capability to generate the innovation the Government’s foreign and economic needed for the economy to be rebalanced policies. All our work to promote the UK’s for sustainable growth. We will do this reputation will be supported by one strong through high impact sector showcasing national brand – as part of a broad range of events, where we work in partnership with activities sponsored by the Government to private sector sponsors, to market the UK’s promote Britain around the world and sector strengths and bring overseas buyers deliver long-term economic and tourism and UK suppliers together. The UK is widely benefits for the whole of the UK – due to be perceived as having a strong business launched later in 2011. environment, with an honest and trustworthy approach, and good To yield long-term benefits for the UK international connections. This makes it a economy, this activity needs to improve springboard for growth. However, the UK is perceptions both at home and overseas. seen as weaker in innovation and Reputation influences investment decisions technology, and the strength and and affects the ability of UK companies to sophistication of British manufacturing is do business overseas. We need to tackle a widely underestimated. widespread lack of self-belief at home, as well as promoting Britain’s diverse strengths around the world.

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2.3 Boosting the UK’s reputation 2.3 Boosting the UK’s reputation

Perception lags behind reality, at home and SHANGHAI EXPO FARNBOROUGH AIRSHOW abroad, making a compelling case for showcasing innovation and technology in Shanghai Expo (May-October 2010) was a UKTI delivered an extensive The stand hosted a series of market In addition, UKTI hosted civil aerospace order to break down barriers to growth. programme of events at the presentations covering countries such as delegations from South Korea and India, unique opportunity for the UK to demonstrate Brazil, Canada, China, India, Japan, organised a briefing on the Chinese Image is certainly a barrier to growth in its commitment to a long-term partnership Farnborough International Mexico, Russia, South Korea and the COMAC C919 programme and provided advanced manufacturing. The UK is often Airshow in July 2010. USA. These provided UK firms with high support to Farnborough International Ltd’s not seen as a modern manufacturing nation with China. quality market information and introduced Meet the Buyer event, where 46 and too often finds it difficult to attract them to key contacts. international aerospace buyers held 800 young people to work in this sector. Yet projecting Britain as a magnet for ideas, The UKTI stand was a major business meetings with 159 suppliers. advanced manufacturing, one of the largest innovation and investment.” networking area and hub located in In partnership with the Aerospace & sectors in the UK economy by share of GDP Defence Knowledge Transfer Network, Some £31 billion of new business was UKTI facilitated over 150 events over the the heart of the UK Pavilion at the and supporting 128,000 businesses − of UKTI also delivered capability announced at the show, which attracted course of the Expo, involving hundreds of show, with over 30 staff from UKTI’s which 92 per cent are SMEs − is central to presentations on the stand covering 120,000 trade visitors. UK firms and 1,000 Chinese companies. overseas a meeting UK companies rebalancing the economy for sustainable different aspects of advanced The programme, the biggest of its kind from the aerospace, airports and growth. The Government’s Framework for engineering, including opportunities for ever organised by UKTI, enabled them to defence sectors to help them explore Advanced Manufacturing sets out a UK aerospace companies to move into gain new insights and leads, form new overseas markets. collaborative approach for the next ten the offshore wind and nuclear sectors. relationships, tap into key networks and years to achieve a resurgence of win contracts. By the end of Expo, UKTI manufacturing and establish the UK’s China had tripled its pipeline of TECHNOLOGY WORLD 2010 reputation as a leading European exporter of investment projects to nearly 200, high value manufactured goods and so much and introduce our innovative media coverage enhanced the UK ’s Over 800 UK science and technology delegates services. In support of the Government’s It successfully promoted bilateral business to a fantastic calibre of reputation as being innovative and ambition for growth, UKTI will work with trade and investment and demonstrated met with over 200 international buyers and delegates. Technology World also enabled forward thinking, while the UKTI-led partners in government and industry to that the UK is a leader in innovation R&D-led organisations to form vital links online campaign attracted over 235 technologists from over 50 countries at the promote UK capability to a global audience. and creativity. with other high-tech firms to boost product million page views. Our global trade promotion and showcasing The cutting-edge UK Pavilion, aka the UK Trade & Investment annual premier technology innovation. Jo Finch, Events Manager for activities provide an excellent platform to “Dandelion”, promoted the UK ’s showcase, Technology World, held in partnership the land speed record BLOODHOUND SSC puncture myths and change opinions. strengths across a wide range of sectors. project, which aims to inspire the next Attracting eight million visitors, including with UK Nanoforum at ExCeL London. generation of scientists and engineers, the Chinese Premier Wen Jiabao, its stated: “Technology World has been very design scooped the Royal Institute of The delegates toured exhibitions, is a unique opportunity. We have generated a useful in several ways. For example, we’ve British Architects (RIBA) Lubetkin Prize attended conference sessions and took lot of interest and made some key contacts. met with two SMEs that have offered and was awarded the Gold Medal in part in one-to-one business meetings. support to our project in critical areas.” “We’ve also been able to secure some the category that is considered Projected business generated so far is invaluable practical advice about the best Technology World 2011 will be held “best in show”. Liu Xiaoming, Chinese £35 million. way to enter new markets. I can’t think of on 16-17 November 2011. Visit Ambassador to the UK, said: “The Dan Fleetcroft, Design Director at Bromley anywhere else where we would have been www.technologyworld.uk.com for Dandelion will go a long way towards Technologies Ltd, said: “Technology World able to make so many useful contacts, learn more details.

64 65 BRITAIN OPEN FOR BUSINESS UK Trade & Investment 2.3 Boosting the UK’s reputation 2.3 Boosting the UK’s reputation

Making the most of the London 2012 International business UK icons project Olympic and Paralympic Games programme for London 2012 A series of creative images which feature past We will seize the once in a lifetime UK icons and how these innovations have potential of the London 2012 Olympic and • British Business Embassy at Lancaster • Host2Host – UKTI’s flagship Olympics translated into the icons of today and tomorrow. Paralympic Games to enhance Britain’s House − a unique venue in which to do legacy programme and a brand for reputation. The Olympics will be a defining business during the Games, chosen to promoting UK capability and expertise moment for the UK; a chance to showcase appeal to a target audience of investors around the world (not confined to 2012, but the best of Britain and win a lasting with whom we want to build relationships. positioning UK business to win supply economic legacy. The potential is great. The venue will feature high profile business contracts in other nations hosting major Working in partnership with other agencies, events and showcase UK capability to sporting events, such as the 2014 Winter UKTI is leading efforts to capitalise on the overseas buyers, with a view to rolling out Olympics in Russia and 2016 Olympic British Business Embassies at future Games in Brazil). Games to boost British exports and attract 5000 years ago, ancient Britons raised a Olympic events in Russia and Brazil, and at inward investment. • CompeteFor – an online “brokerage service” UK architecture. Creating inspiring sites since 3000 BC. giant circle of megaliths and created other major global or domestic events. for buyers and potential suppliers, which is Stonehenge, one of the world’s most • British Business Club – an online club already converting international expressions famous landmarks. Today, the work of designed to reach out to UK and overseas of interest into investment deals. cutting edge UK architects such as Lord companies, including SMEs, to harness Richard Rogers continues to attract the

excitement and interest around the Games. crowds, with his O2 arena now the world’s Companies will be able to hear about most successful music venue. events, meet other businesses and track business developments around the Games.

• Springboard to Success UK Suppliers’ Directory – an online and print marketing tool showcasing 450 UK companies and promoting UK capability to international buyers for major sporting and other global events. When a UK engineer developed the Penny • UK Innovation Showcase – a digital Zero emissions in 1890, zero emissions in 2011 Farthing over a century ago, he showcase of innovative products, services revolutionised popular transport. Today, UK and technologies, to be available from scientists are putting the finishing touches June 2012. to the world’s first hydrogen fuel cell motorbike – a development that is set to introduce a new age of sustainable travel.

66 67 BRITAIN OPEN FOR BUSINESS UK Trade & Investment 2.3 Boosting the UK’s reputation 2.3 Boosting the UK’s reputation

Catalyst UK We have around 100 advocates on board Business Ambassadors barriers to market access, and lead business the last decade The Duke has developed Right around the world there are people already and aim to grow the network to 500 The Prime Minister has invited around delegations of SMEs. They will contribute to strong relationships with opinion formers and with a strong affinity for Britain, including by summer 2012. New members will join by thirty of the UK’s most respected leading government-to-government dialogue in our decision makers across many of our priority generations of Britons who have moved to invitation, following nomination by our business people and academics to work priority markets. Closer to home they will global markets. These winning relationships other countries and many thousands of overseas network, UK trade bodies and closely with the Government to promote form a Council of Business Ambassadors to yield real benefits for the UK economy and business people from overseas who have alumni networks. They will be recognised the UK’s economic reputation around the advise the Minister for Trade and The Duke’s presence around the world helps studied here, traded with British companies, and influential voices in their sectors or world and to help UK businesses, Investment on the future development of to send a strong signal that Britain is open or invested in Britain. We are recruiting a markets and will bring valuable know how especially SMEs, make the most of the Government’s strategy for promoting UK for business. His Royal Highness will global network of these “advocates for and insights to share with less experienced overseas business opportunities. exporters and winning inward investment. continue to undertake a range of activities, Britain” from the business and academic exporters. In this way they will mentor including visits to priority markets and When travelling on business, these UK Special Representative for communities. The Catalyst UK network is companies, especially SMEs, taking their engagements around the UK, in support of Business Ambassadors will carry out priority International Trade and Investment made up of people who are trusted in their first steps into new markets. Among those the Government’s ambitions for growth assignments to support the Government’s HRH The Duke of York, as UK Special fields and can make a compelling case for that are already on board, we have CEOs of through exporting and inward investment. promotion of trade and investment. They Representative for International Trade and investing in the UK and doing business with FTSE 100 companies and established will lobby for British business interests Investment, represents a unique resource to UK companies. entrepreneurs. around the world, for instance, to remove promote Britain’s commercial interests. Over

68 69 BRITAIN OPEN FOR BUSINESS UK Trade & Investment 3. RISING TO THE CHALLENGE

70 71 BRITAIN OPEN FOR BUSINESS UK Trade & Investment 3 Rising to the challenge 3 Rising to the challenge

UKTI will continue to develop its learning We will do this by capturing information • sponsoring UKTI promotional campaigns programmes to meet the needs of this through our Customer Relationship and activities, including a new prize for strategy with a clear focus on building Management system about the businesses first time SME exporters, successful relationships with trade and we help and, through our Performance and • providing free or discounted products investment clients, giving people the right Impact Monitoring Survey (PIMS), we will and services for businesses, skills to win inward investment, and continue to survey 1,000 users and • acting as a channel for UKTI services, communicating with confidence and non-users on a rolling basis each quarter. conviction. We will undertake a skills This independently run survey provides • providing case study information and audit across our global network in both qualitative and quantitative participating in events, and summer 2011, to establish a clear measurements of performance. This is The Government’s ambitions for trade and investment • promoting the reputation of the UK picture of current capabilities and identify backed up by an annual programme of demand better ways of working from UKTI around the world. the gaps in knowledge and expertise independent economic impact we need to address, in order to deliver assessments to ensure that we are

the new strategy. providing value for money. We also We will establish a new Commercial undertake an annual programme of Development Unit within UKTI to focus on To underpin new business methods, such as economic research, to provide evidence building these partnerships for success in a strategic relationship building with top on the benefits to business and the UK systematic way. This Unit will also focus on inward investors and exporters, we will economy from trade and investment. No opportunities to improve and extend aspire to emulate the best of the private And reaching out to more businesses organisations such as the China-Britain innovation cluster in Shoreditch. These new other trade and investment promotion chargeable services such as our Overseas sector professional services organisations, demands new ways of relating to them. Business Council, UK-India Business Council partnerships will be test beds for developing organisation has the capacity to Market Introduction Service. which are recognised for their expertise in That is why we are upgrading our web and the Asia Task Force. We are a more entrepreneurial culture in UKTI understand its performance and impact as managing client relationships. Our aim will presence and deploying a full range of establishing a new ASEAN-UK Business through greater use of private sector talent Developing our people well as UKTI, and we will publish our social media to reach new audiences and it Council and will work to establish other and expertise. be to bring further recognition for UKTI as a UKTI has a strong commitment to learning survey results and research on our is why we are creating a new online partnerships for the Middle East, North leading edge delivery organisation, which There is significant potential to develop and development with a clear business website in an easy to read format. peer-to-peer self-help community of UK Africa and Latin America. Around England adds real value to its clients. further business partnerships in order to focus. We have developed a range of exporters. Alongside a high quality web we have successful agreements in place raise awareness of the benefits of exporting corporate programmes with private sector Enterprise and performance presence, we are focusing on building with Trade Associations and Chambers of and the attractiveness of the UK as an specialists. Our approach is modular, with UKTI places strong emphasis on high quality, delivery partnerships with the private sector Commerce to deliver our trade services. We investment destination. We are, for flexible programmes which can be tailored independent monitoring and evaluation of to boost productivity, developing our people also have a new private sector partner for instance, developing formal partnerships to meet the needs of individual teams its activities. We are taking steps to to ensure we have the right skills to serve foreign direct investment services in the with the UK’s major commercial banks to around the world. These aim to improve enhance our evaluation mechanisms, to our customers, and building world-class English regions, incentivised to land high reach out to more companies with the client engagement in order to raise quality, focus more on assessing the impact and evaluation systems to drive up performance. quality projects to agreed quality standards. potential to grow through exporting. We will manage expectations and achieve higher value for money of what we deliver. In this This means that all services in the English Partnerships for success focus on areas where business can best levels of customer satisfaction. Surveys of way we can track progress against regions, for which UKTI is responsible, are help UKTI deliver value for its customers our customers indicate that our learning objectives and identify the activities which As well as galvanising the whole of delivered through private sector and where these partnerships can help both programmes have improved levels of have the greatest impact. This will help us Government behind this effort, UKTI will organisations. In addition we have UKTI and the business partner achieve their satisfaction and perceptions of the quality to understand better the needs of different build strong delivery partnerships with the appointed a private sector partner, to work objectives. There are opportunities to of the services we provide. customers and inform a programme of private sector to amplify its impact. We will on a “payment by results” basis, to win involve business in: continuous improvement, future service build on existing partnerships with overseas investment for the new Tech City development and resource allocation.

72 73 BRITAIN OPEN FOR BUSINESS UK Trade & Investment 3 Rising to the challenge 3 Rising to the challenge

A challenge for the whole of What UK customers can expect and we will publish the results on To find out more about our services, What inward investors can expect Devolved Administrations and with the Mayor Government from UKTI our website. We also commit to using customers should visit the UKTI website from UKTI of London through London & Partners. This This strategy will deliver a new focus for UKTI is committed to helping its this information to improve our customer www.ukti.gov.uk or call our enquiry UKTI is committed to playing its part in will provide a single network of support for service. In addition we promise to take service +44 (0)20 7215 8000. the UK which seeks to be seamless to the new times, with government action targeted UK-based customers grow their making the UK the best inward where it counts the most, to deliver new businesses internationally. We aim to customer feedback seriously and work investment location in the world. We company. Further support is available through hard to correct any failure in service. We specialist teams based at our headquarters jobs and new opportunities. It will make a support UK firms of all sizes, from SMEs aim to provide a world-class service to significant contribution to rebalancing our to large multinationals, regardless of will act in the best interests of our foreign owned companies considering the and by the UK’s overseas diplomatic network, customers and respect commercial including markets where there is no economy for sustainable growth, by their experience of selling to overseas UK as a potential location. Also, we aim to focusing government help towards the markets. We do this through a range of sensitivities. We will strive to offer help existing investors to maximise their dedicated investment team. impartial advice at all times and, in the innovative and high growth companies of services which can be tailored to meet business potential using the unique assets UKTI is committed to a high standard of event that we do not agree with a the future, encouraging more companies to the needs of our customers. As well as of the UK. We will help companies to grow service. We will work hard to provide a customer’s plans, we will explain our export and helping more experienced working with individual companies we internationally, offering export advice and consistently high quality service across our reasoning clearly and honestly. exporters to seize the opportunities will help groups of companies to access the use of our trade services. UK and overseas networks. We will aim to presented by high growth and emerging trade opportunities. We charge for some UKTI is committed to transparency Our offer is to provide bespoke, accurate achieve 80 per cent success in client markets. It will focus proactively on of these services but many are free. They when it charges for its services. We and unbiased advice and information, perceptions of quality and satisfaction as “bringing opportunities home”, for are delivered by our network of will always explain the charges we make delivered rapidly, as part of an ongoing our minimum for all our work, and 90 per companies of all sizes, by galvanising the International Trade Advisers based for our services. dialogue with the company. We provide cent for intensive support. resources and expertise of the whole around England – customers in potential investors with information about An independent company will ask our overseas diplomatic network. It will develop Scotland, Wales and Northern Ireland can UKTI is committed to providing a the UK as a business location, benchmarked customers how we are shaping up a pipeline of high quality inward investment get access to support through the prompt response to customer against other countries as appropriate. All through a quarterly survey and we will flowing into the UK from around the world Devolved Administrations − and by our enquiries. The first point of contact for of our work is tailored to the company’s publish the results on our website. and market a portfolio of key investment overseas network, which covers 96 our customers in England is their local specific requirements. We will also build We also commit to using this information to opportunities to the most significant markets in 162 locations around the International Trade Adviser. Customers close relationships with existing investors improve our future service. We will act in investors. Additionally, it will support and world. Further support is available should receive a response to an in the UK, to understand their plans for the best interests of our customers and co-ordinate the work of Ministers, senior through specialist teams based at our enquiry within five working days but growth and the challenges they face in respect commercial sensitivities. Government officials and Ambassadors to headquarters and by the UK’s overseas we will strive to do so sooner. Thereafter achieving them. We will seek out UK-based build winning relationships with the most diplomatic network. our customers should expect clear We offer one contact point with a timescales for further service delivery. In solutions to support them. guaranteed personalised service for significant investors, exporters and overseas UKTI is committed to a high standard buyers. In these and other ways outlined in the event that we cannot deliver to time One Global Network and One Solution companies. To find out more about our of service. We will work hard to provide this strategy, UKTI and the whole of we will always contact our customers to for Business. We can assist clients support for inward investors, visit the UKTI a consistently high quality service across Government will rise to the challenge of let them know. throughout their investment journey, from website www.ukti.gov.uk/invest or our UK and overseas networks. We will these times and send a signal to the world their global headquarters to their UK contact our Investment Services Team aim to achieve 80 per cent satisfaction UKTI welcomes feedback from that Britain is open for business. subsidiary and third markets. UKTI’s on +44 (0)845 539 0419 or by e-mail at ratings from our customers or 90 per cent customers. Please write to our Director dedicated investment professionals in 33 [email protected]. where we provide intensive one-to-one of Business Development, UKTI, Europa key markets and our network of support. An independent company will Building, 450 Argyle Street, Glasgow Investment Advisers around England are ask our customers how we are GL2 8LG. here to assist – working closely with the shaping up through a quarterly survey

74 75 BRITAIN OPEN FOR BUSINESS UK Trade & Investment APPENDIX A: Appendix A UKTI’s performance measurement framework UKTI’SUKTI’s PERFORMANCEperformance MEASUREMENTmeasUremenT FRAMEWORKframeworK

We will measure the impact of what we do on the business performance of the exporters Definitions and investors we serve. Thethe goals set out below are our aspirations for 2014/15.

Trade Inward investment Trade Inward investment Businesses assisted – Businesses will be Number of involved successes – Criteria UK economy productivity and GDp growth; innovation productivity and GDp growth; innovation counted against the measure only once a defining an involved inward investment (policy aim) year, even if they receive support in more success have been set out by the than one overseas market. Businesses will International Business Development Forum Business outcomes £ additional profit attributed to uKti and return on £ Gross Value added for investment projects and return only be counted against the goal if the details (IDBF), formerly known as the Committee on taxpayer £s spent (baseline £6 billion and £22 to £1) on taxpayer £s spent (new measures) of the support given are supplied to an Overseas Promotion (COP), and agreed with total jobs created and taxpayer cost for each job Jobs created per investment and taxpayer cost for each independent market researcher carrying out the Devolved Administrations. (new measures) job (new measures) our Performance and Impact Monitoring Number of “high quality” and “good Survey (PIMS). Businesses surveyed will be quality” projects – Academic research Intermediate % improvement in medium term productivity and profit % significant influence on location the in uK or scale selected at random. business impacts (goal 75% for intensive support and 60% for other and scope of project (goal 70%) defines these projects as those associated tailored support) Innovative businesses assisted – PIMS with a positive impact on UK productivity, in respondents will be asked about the particular through knowledge spillovers and no. of businesses assisted that increase r&D (goal 3,000) characteristics of their businesses, including increases in knowledge intensive economic Outputs (business % reporting “significant business benefit”, eg. barriers % overcoming barriers (goal 60%) R&D activity and other key indicators of activity. Projects are assessed as having benefit) to new business overcome; changed behaviour resulting innovation, and will be classified as high, medium or low indicators of value, and in improved business strategy; increased skills (goal 70%) innovative if they report these characteristics. they are then classified according to the The indicators used for this classification are number and quality of the indicators present. % helped to access high value opportunities agree uKti taken from the Community Innovation Survey had a significant favourable influence (new measure) and are designed to capture innovation in Activity – volume no. of businesses assisted (goal 25,000) and subsets of: no. of “involved successes” (goal 750) and subsets of: service sectors as well as in manufacturing. Full details are available at: www.ukti.gov.uk/ (productivity • no. of innovative businesses (goal 20,000) • no. of high quality successes (goal 500) measures) uktihome/aboutukti/ourperformance/ • no. expecting substantial growth (goal 12,000) • % high or good quality projects (goal 90%) performanceimpactandmonitoringsurvey.html

Activity – quality % quality assessment (goal 80% and 90% for intensive % quality assessment (goal 80% with 90% for intensive and satisfaction support) support) % satisfaction (goal 80% with 90% for intensive support) % satisfaction (goal 80% with 90% for intensive support)

76 77 BRITAINBritain OPENopen FORfor BUSINESSBusiness UK Trade & Investment Percentage of UKTI’s total resources deployed on Trade Support and Foreign Direct Investment FDI Support

Key of which, Sector Specific Support equals Trade support 23% FDI support Trade Support APPENDIXAppendix B Appendix B: How UKTI will deploy its resources

Of trade support, HOWHow UKTI WILLwIll DEPLOYdeploy sector specific ITSITs RESOURCESresoUrces support is 18% 77%

Inin line with other Government Departments, For every £3 we spend, £2 goes to providing UKTi resources 2010-11 to 2014-15 (£m) Percentage of UKTI’s total resources deployed overseas and in the UK UKTI’suKti’s resources will be reduced over the support overseas, helping UK companies to d next five years. We will be ruthless in 2010-11 2011-12 2012-13 2013-14 2014-15 export and attracting foreign direct investment. targeting resources to where they will We spend around £1 in every £3 overseas in Key deliver value for the UKuK economy and the Overseas network running costs 204 200 195 185 170 c high growth and emerging markets, such as 4% tax payer. We will drive up our productivity Other resources 146 141 136 129 125 China, India and Brazil. The balance will Overseas delivery developed markets and generate additional income to put back Overseas delivery high growth b shift in favour of these markets over the 19% into service delivery. income -5 -7 -8 -9 -11 and emerging markets lifetime of UKTI’s five year strategy. UK delivery net resource position 345 334 323 305 284 a £1 in every £5 is used across the whole Support network to deliver services through private

sector partners. In the UK, private sector 55% delivery accounts for £4 in every £5 we spend. 22% Forfor every £4 we spend, £3 goes to helping Just four pence in every £1 is spent on UKuK businesses to export, and £1 to attracting Percentage of UKTI’s total resources deployed on Trade Support and Foreign Direct Investment administrative support. foreign direct investment to the UK.uK. FDI Support Forfor every £5 spent on trade support, around Key £4 is used to provide direct support for of which, Sector Specific Support equals Trade support individual companies. Aroundaround £1 in every £5 23% is used to support groups of companies (in FDI support Trade Support specific sectors).

Of trade support, sector specific © Crown Copyright 2011 support is 18% You may re-use this information (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence visit www.nationalarchives.gov.uk/doc/open-government-licence/ 77% or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected] Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. Any enquiries regarding this publication should be sent to us at: [email protected] or telephone: + 44 (0)20 7215 8000 (Monday-Friday 09.00-17.00) This publication is also available from our website at www.ukti.gov.uk

78 79 Percentage of UKTI’s total resources deployed overseas and in the UKBRITAINBritain OPENopen FORfor BUSINESSBusiness UK Trade & Investment d

Key c 4% Overseas delivery developed markets Overseas delivery high growth b 19% and emerging markets UK delivery a Support

55%

22% APPENDIX C Appendix C: What’s new? WHAT’S NEW?

A summary of new activities announced in this strategy is provided here. • Premium visa services to be rolled • New Tech City Investment • British Council – to develop an out in more priority markets by the UK Organisation, headed by a leading enhanced one-stop service for UK Border Agency in line with demand. technology entrepreneur, tasked with universities seeking to internationalise. creating an iconic global technology hub in • Pilot chargeable Global Overseas • MoJ (Ministry of Justice) – to promote • Free business mentoring for • Regional support services for inward the East End of London. Four pathways to growth Market Introduction Service providing the UK’s world beating business companies taking their first steps into investors in England delivered by an Pathway 1: Targeting innovative and long term support to larger companies • New programme of support for UK arbitration and commercial law services. new markets, through a global network of incentivised private sector partner. high growth SMEs making significant use of UKTI services to retailers to enable them to seize advocates for Britain (Catalyst UK), from • DCMS (Department for Culture, Media • Develop new SME outreach • New “fast-track” services for less secure multiple orders. From autumn 2011. opportunities for global growth. From autumn 2011. and Sport) – to develop a marketing plan partnerships with business R&D intensive investment projects. spring 2012. • Pilot chargeable bespoke service for the digital industries and raise organisations, business schools, foreign • Prize for first time SME exporters, to Summer 2011. linked to a “success fee” to help UK • We will we forge strong partnerships global awareness about the UK’s diaspora business networks and major be judged by a panel of “dragons”, aimed Pathway 4: Building strategic relationships companies win major trade contracts, across Government, to promote growth creative industries. businesses. at recognising excellence and inspiring through an intensive level of support through exports and inward investment, other companies to export for growth. • Key account management of the most • DfID (Department for International • Create online peer-to-peer self-help using dedicated, specialist resources. with: Autumn 2011. significant inward investors and the UK’s Development) – to help UK companies community for UK exporters. Pilot with From spring 2012. top exporters, through a new cross- • Defra (Department for the Environment, compete for aid-funded business. technology companies from late 2011 and Pathway 2: Bringing high value government Strategic Relations Unit. • Intensive use of commercial Food and Rural Affairs) − to ensure the roll out more broadly in 2012. opportunities home Boosting the UK’s global reputation From summer 2011. diplomacy by the UK’s entire overseas food and drink sector is able to take full • Partnership with the Export Credits • High Value Opportunities programme diplomatic network linked to new FCO advantage of the potential for growth • Growing the global Catalyst UK Guarantee Department (ECGD) to offering intensive support for larger Underpinning the four pathways Charter for Business. through global trade. network of “advocates for Britain” from promote an expanded range of capital and companies seeking overseas contracts Seizing global opportunities 100 to 500 by summer 2012. ranging from £250 million to more than Promoting balanced and sustainable • DECC (Department for Energy and Climate credit insurance products. • Systematic deployment of resources • International business programme for £1 billion, with supply chain opportunities growth Change) – to attract investment to the UK to the new priority high growth and London 2012 Olympics and Paralympics • Linking SMEs up with overseas for SMEs. • Programmes of specialist support for for low carbon energy, in particular to emerging markets of Asia, Latin America, to create a lasting economic legacy for venture capital. New programme to be new priority sectors, overseen by new build offshore wind capability. Pathway 3: A pipeline of high quality the Gulf and Russia. Britain. Roll out has commenced. launched in autumn 2011. Sector Group Task Forces with members inward investment • MOD (Ministry of Defence) – to improve • Intensified use of government-to- recruited from major UK-based the up-front “exportability” in its Rising to the challenge • Improved Tradeshow Access • Enhanced bespoke service for foreign government relations to overcome businesses. Starting summer 2011. acquisition process, to help UK defence • Create Strategy Task Force, with Programme, delivered in partnership with direct investors, including tailored barriers to trade with priority markets, in suppliers sell their products to overseas members drawn from the most innovative Trade Associations. From spring 2012. business propositions, to create a pipeline • New Global Technology Task Force, partnership with UK business buyers as well as the UK armed forces. UK-based companies, to provide guidance of high quality inward investment projects. working in partnership with the Technology • Business service for defence and organisations. From autumn 2011. on the future direction of both UKTI and Strategy Board and Global Science and • DH (Department of Health) – to establish security SMEs, including an interactive • Portfolio of large scale UK ECGD. Autumn 2011. • Establish ASEAN-UK Business Innovation Network, to attract new an entrepreneurial NHS Global brand, to web presence. infrastructure and regeneration Council and work to establish other entrepreneurs and substantial inward underpin the drive by UK healthcare • Publish performance results online projects to be marketed to overseas • Programmes of high impact UK partnerships for the Middle East, North investment, including venture capital and related businesses to win orders in high (our impact on business performance of institutional investors in partnership with regional events to raise awareness Africa and Latin America. Scoping work angel funding. growth and emerging markets. the exporters and investors we serve) in an Infrastructure UK. about high growth and emerging has commenced. easy to read format. From summer 2011. markets. Commencing autumn 2011.

80 81 BRITAIN OPEN FOR BUSINESS UK Trade & Investment UK Trade & Investment is the Government Department that helps UK-based companies succeed in the global economy. We also help overseas companies bring their high quality investment to the UK’s dynamic economy – acknowledged as Europe’s best place from which to succeed in global business. UK Trade & Investment offers expertise and contacts through its extensive network of specialists in the UK, and in British embassies and other diplomatic offices around the world. We provide companies with the tools they require to be competitive on the world stage. For further information please visit www.ukti.gov.uk or telephone +44 (0)20 7215 8000.

Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation and Skills, and the Foreign and Commonwealth Office) accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned.

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Published May 2011 by UK Trade & Investment May 2011 © Crown Copyright URN 11/871

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