For the first time since 2000, optimism for the global economy and Europe seems to be in the winds. According to the Global Business Policy Council’s October 2004 FDI Confidence Index, published by A.T. Kearney, a majority of executives surveyed indicate Western Europe has regained lost ground as a preferred location for foreign direct investment (FDI).
The United Kingdom moved up to No. 4 in 2004, compared with No. 7 in 2003; France ranked No. 6 in 2004, compared with No. 11 in 2003; and Italy ranked No. 9 in 2004, compared with No. 12 in 2003. Germany was ranked No. 5 in the 2004, the same ranking it held in 2003.
European countries are keenly aware that to maintain competitiveness and, more importantly, lay the groundwork for future growth, they must build on their advantages in advanced manufacturing.
Countries across Europe are emphasizing the benefits high-tech industries can offer.
Britain’s Future
Sheffield in England’s South Yorkshire, a region long known for coal and steel, is now home to Boeing’s joint research facility with Sheffield University, a central feature of an Advanced Manufacturing Park in South Yorkshire.
The university’s link with Boeing is creating one of the most advanced facilities for metals-cutting technologies in the world.
Bioscience is a leading strength for the United Kingdom based on its early start in DNA research. Today, the UK ranks No. 2 in the world (behind the United States) in biotechnology. Giving it a boost are key chemical and pharmaceutical companies with operations there such as GlaxoSmithKline and AstraZeneca.
“In England, Cambridge has long been a hub for such activity, particularly drug discovery,” said Johanna Pitman, vice consul for trade at the British Consulate General in Boston. “Oxford is known for work in vaccines and antibodies.”
Other growing centers are Manchester, York, Newcastle and Liverpool. Add to that ongoing research at Imperial College and the University of London.
“London has done especially well because of its geographic concentration of biotech companies and the trade shows that are held there,” Pitman said.
Scotland is particularly noted for its early work in stem cell research, which led to the cloning of Dolly the sheep. Centers for advanced work are found in Edinburgh, Dundee and Aberdeen.
Northern Ireland, with its Queen’s University and Belfast University, is also making contributions in animal and food science.
The two universities are also focused on nanotechnology.
Robert Brown, director of Nanotec NI, stressed how Northern Ireland’s nanotechnology program focuses on job creation.
“We are cherry-picking nanotechnologies to carefully decide which are the most viable for commercialization and economic growth,” he said.
Northern Ireland’s industry strength lies in aerospace, pharmaceuticals, data storage and textiles. Nanotechnology applications have uses in all of these.
Brown said he sees particular opportunities for nanotechnology advancement with Seagate, which manufacturers 30 percent of the world’s hard drives from its location in Derry.
“Seagate is probably Europe’s highest volume nanotechnology producer,” he said.
Meanwhile, in Wales, experts at Cardiff University’s Manufacturing Engineering Centre (MEC) are establishing world standards in microengineering.
“This achievement is at the leading edge of world engineering practice,” said Stefan Dimov of the MEC.
MEC is one of the most advanced product development centers in Europe, providing advanced systems and methods in prototyping and tooling. Spinoff work in nanotechnology is already fostering industrial growth.
Q-Chip in Cardiff is now a viable commercial company.
Continental Europe Advances
Ongoing developments in the Meuse Rhine Triangle — a region that encompasses the Aachen area of Germany, Liege and Hasselt in Belgium, and Maastricht in the Netherlands — are advancing the life sciences and automotive sectors.
Boosting the life sciences sector is a steady supply of venture capital, together with incubator facilities and a nucleus of companies such as Dyax, Eurogentec, Gr,nental, Medtronic/
Bakken Research Centre, Biomed, Boston Scientific Corp., DSM, Eurogenetics, Minntech Corp., Datascope Corp., Probiox and Zentech.
Universities contributing to life sciences research include RWTH Aachen, University de Liege, Maastricht University and Limburg University Center Hasselt.
Automotive research is ongoing at Ford’s European research lab in Aachen, as well as the Flanders Engineering and Test Center and the automotive high-tech park near Spa-Francorchamps.
Innovations in energy are also finding their place in the Meuse Triangle. An example is Solland Solar Energy, a startup company that is producing the newest generation of solar energy cells at the cross-border industrial zone Avantis in Heerlen, the Netherlands.
Solland will manufacture solar cells that are used by its clients to produce solar panels. Representing an investment of 20 million euro, the project was one of the largest for a startup company in the Netherlands last year.
Hannover, Germany, also offers strengths in the automotive sector, as well as in laser technology, life sciences and production technology.
Giving a boost is the EXPO Park Campus launched by the “Plug & Work” relocation initiative in Hannover. The campus currently consists of 37 companies.
The adjacent University of Applied Science and Arts and the Vocational Multimedia College of Lower Saxony supplement the diverse infrastructure available on the site.
Luxembourg continues to attract Internet service and e-commerce providers from the United States that are expanding into the European Union.
These companies, which include the Tunes Inc. unit of Apple Computer, cite the value-added tax rate in Luxembourg, which at 15 percent is the lowest in the EU.
Mediterranean Advancements
Anchored in automotive-related industries, electronics and food processing, Bologna, Italy, is seeing new sectors flourish, including bioscience, multimedia and logistics.
Bologna has the highest concentration of Ph.D.s in Europe. The University of Bologna is increasing cooperation with the private sector.
AlmaCube, the University of Bologna’s incubator, promotes and sustains entrepreneurship for startup companies.
Also available are special technology transfer programs in industries such as metal structures, innovative polymers and ceramic products, and microtechnologies and nanotechnologies.
The University of Bologna is also coordinating several programs in the life sciences sector. Asclab focuses on stamina cells in cooperation with two universities, the Institute of Cognitive Sciences and Technologies Rome and three private research organizations.
Spain is focusing on growing its R&D expertise. Spanish biotechnology firm Genetrix, together with the university hospital of La Paz in Madrid, is leading a worldwide study into the possibilities of therapy with adult stem cells for the treatment of inflammation of the intestine.
After four years of research, Genetrix has become the first Spanish biotech company to be given permission by the Spanish Agency for Medicinal Products to develop medication from stem cells.
Three major Barcelona research institutes are forming the new Biomedical Alliance of Barcelona, which is expected to make up a powerful center for research in southern Europe.
It will include research programs, infrastructure and more than 2,500 scientists from the August Pi i Sunyer Biomedical Research Institute, the Scientific Park of Barcelona and the Biomedical Research Park of Barcelona.
More than 20 biotech startups have been formed in Catalonia during the past two years, including Oryzon Genomics, Advancell and Crystax.
The region now accounts for 60 percent of all Spanish pharmaceutical production.
The industrial environment and a strong scientific base have recently boosted the attraction of major foreign biotech companies.
Three science parks focused on biotechnology — Barcelona Science Park, Barcelona Biomedical Research Park and Biocampus UAB — are pioneering research centers.
Numerous life sciences research groups, universities and 180 hospitals are increasingly working with the industry.
Biotech and big pharmaceutical companies such as Amgen, Invitrogen, Innogenetics, Cytyc and Actelion have invested in Catalonia.
Pfizer recently strengthened its presence in Catalonia with the opening of the new global Epidemiology Centre in Sant Cugat del Valles.
The quality and know how of local scientists were important factors when it came to locating the center in Catalonia, according to Pfizer. The center’s main activity will be research into the use and effects of medication on the population.
In Catalonia, the government has developed a number of programs and policies, one of which is the new Research and Innovation Plan 2005-2008, the result of its success with Innovation Plan 2001-2004.
As a consequence, Dow Chemical announced last year a new investment of more than 200 million euro during the next two years for a plant in Tarragona to produce plastics made from polyethylene derivatives.
Sony expanded its plant in Barcelona last year to manufacture its new series of flat TV screens.
Sharp also announced recently an expansion of its manufacturing plant near Barcelona where LCD screens are produced.
Currently, Spain is focusing on research and development in the life sciences, environmental and energy advancement, IT, and nanotechnology industries.
Spanish CIEMAT (Research Center for Energy, Environment and Technology) researchers, for example, have employed industrial-scale techniques using solar energy for water decontamination.
This solar photocatalytic technique is being used to solve a huge problem — water used to wash pesticides packages in Almeria, Spain.
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