The nation offers a highly educated, trained and multilingual work force, among other aspects.
While the economy has been hit hard by the economic downturn of the past several years, public officials are working to see that Belgium continues to thrive.
Consequently, the federal government decided in January to reinforce research-based industries by considering 50 percent income tax reductions for researchers collaborating with universities and public research institutions. The new law is expected to be implemented next January.
The goal is to give companies relief so that they are more able to expand operations and hire new staff. The number of researchers allowed by the company will not be limited.
The measure has implications for research-driven companies, and particularly those that are transferring technology from university research to commercial applications. Analysts point out that companies participating in cross-border collaboration and European programs should benefit the most from the tax advantage.
“No doubt that the biotech sector, with its many spinoffs and entrepreneurial companies that are closely linked with university research, will benefit from this support,” said Jacques Viseur, secretary general of the Belgian Bioindustries Association. “It is also important that income tax privileges can cover salaries of researchers, technicians and other people involved in research departments, and not only limited to Ph.D.s or high-level scientists.”
High-Tech Advantages
Both Wallonia and Flanders are hot beds for high-tech activity. Flanders boasts of both its DSP Valley, a technology network organization that has been instrumental in promoting the region as a center of excellence, and its member-companies.
DSP Valley, the Flemish equivalent of California’s Silicon Valley, focuses on the design of hardware and software technology for digital signal processing systems.
The list of member-companies is impressive, including Ionic Systems, Target Compiler Technologies, Philips ITCL, Philips SPECS, Philips DPS, Sirius Communications and Lacteal Microelectronics.
“DSP Valley offers a virtually unlimited range of opportunities to specialist organizations, as long as they have sufficient critical mass,” said Jos Raets, general manager of Philips ITCL. “The success of DSP Valley is based on bringing together the knowledge and R&D expertise of academic and research institutions, and the entrepreneurial and commercial skills of international companies.”
Wind River Systems International, an Alameda, Calif.,-based company involved in the Mars exploration project, is also located in DSP Valley.
Wallonia shines in its concentration of biotech companies. The region is already home to International Brachytherapy (IBt), which has announced its second generation radiotherapeutic implants for the treatment of prostate cancer.
The company recently received the European CE Mark certification, a symbol that indicates conformity to the legal requirements of the EU Directive with respect to safety, health, environment and consumer protection.
Wallonia offers a central location in Europe, close links to universities conducting research and development, and proximity to high-tech companies producing, among other things, medical radioisotopes and particle accelerators, said Laurence Goemare, a corporate officer for IBt.
IBt has also received various incentives and assistance from the Office of Foreign Investment and its partners, he added.
Logistics Advantages
Raising Wallonia’s profile has been the surge of activity in the region’s logistics industry. Today, Liege is a worldwide hub for air cargo circumventing the globe.
Its airport and highway network led Polar Air Cargo, a subsidiary of Purchase, N.Y.,-based Atlas Air Worldwide Holdings Inc., to develop its activities from the Liege Bierset Airport.
In November, Polar relocated the starting point of all outbound flights to India from Amsterdam to Liege. Those flights now leave Liege every Monday, Wednesday and Saturday for Mumbai and Chennai, with a stopover in Dubai, United Arab Emirates.
“As we continue to grow in Liege, it makes sense to move these flights,” said Hendrik Falk, vice president of sales for Europe, the Middle East, India and Africa for Polar. “From Liege, Polar Air Cargo now provides scheduled service to the United States, Asia, the Middle East, the Indian subcontinent and northern Europe.”
Liege Airport, an all-cargo facility with no congestion, is an ideal location to expand connections between Europe and India. From Liege, Polar can also offer timely and convenient trucking connections throughout continental Europe.
Capital Advantages
Brussels has long been touted as offering many advantages, given the fact this capital city (of both Belgium and the European Union) is one of the cheapest capitals in Europe for commercial real estate. The work force is highly multilingual compared with other European capitals.
Lore Internet Systems, a provider of Internet solutions for international businesses based in Herndon, Va., found these aspects attractive. The company recently opened a state-of-the-art data center facility in Brussels.
“Most of e-business in Europe occurs within this region and the Brussels facility is central to Lore’s other markets, including Frankfurt, Paris, London and Amsterdam,” said Michael Velotta, CEO of Lore.
Lore plans to offer most of its North American services in this new market.
Lore’s core businesses in Europe are commercial Web site and e-mail hosting. With the new data center, the company said it will be able to provide mirrored, redundant Web sites for many of its North American customers that perform business in Europe.
The new data center occupies more than 50,000 square feet and can accommodate Internet traffic in excess of 1 gigabit per second.
— Karen E. Thuermer
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