Amazon, Intel and Nike are just a few of the brands that have decided to set up branches in Pomerania, a region in northern Poland. This was made possible thanks to an effective strategy for attracting foreign direct investment (FDI) and cooperation between institutions and investors. In terms of creating a friendly environment for FDI, Pomerania was awarded fifth place in the Mid-Sized European Regions of the Future 2023 — FDI Strategy category in the fDi Intelligence ranking.
Pomerania as a region for investments
Yet another award received by the Pomeranian Voivodeship proves that the region is attractive to foreign investors and is seen as a great location for business development. This view is shared by, among others, Bayer, Epam, Alteams Group, ThyssenKrupp, State Street, Aptiv, Lacroix, PwC, Nordea, Sii and Capgemini. An important contribution to the development of Pomerania was made by Invest in Pomerania, a local government initiative for the economic promotion of the region. Over the past ten years, it has implemented 172 FDI projects, creating 22,500 jobs. According to the fDi Markets database, the value of all projects announced in Pomerania amounted to $7bn.
World Bank evaluation
The report ‘Impact Evaluation of Invest in Pomerania’, co-produced with experts from the World Bank, was published last year. It indicates that since 2011, the gross value-added ratio for priority sectors has increased from 32% to 36%. This is also directly related to an increase in employment figures (48%) in key industries, which in turn contributed to a reduction in unemployment (4.5% at the end of last year). The nature of investments in the region was varied, with technology and business services projects located in the metropolitan area and manufacturing and logistics investments made in the sub-regions, along European transport corridors intersecting in the region. Particularly noteworthy are IT-BPO investments, whose multitude and quality have already been recognised by the fDi Intelligence committee, having placed fourth and 12th in the fDi X TNW Tech Cities of the Future 2020/21 and 2021/2022 rankings.
“Thanks to specialists from the World Bank and the estimation of FDI inflows, we can see just how much Pomerania has developed in recent years. The analysis shows that strategic actions in priority sectors increased FDI inflows by an average of 160% and the number of FDI-related jobs grew by 230%,” says Wojciech Tyborowski, director of Invest in Pomerania.
Sectors of the future
The World Bank study identified two investment groups. The first includes sectors that are already active and whose development is expected from the region’s growth perspective. This group includes, among others, the electromobility, SSC, BPO and IT industries. The aforementioned sectors are especially attractive for investments oriented at domestic customers and those looking to create a production and service centre for exports.
The second group of priority investments is made up of sectors with development potential and dynamic growth observed in recent times — the semiconductor and offshore wind industries. These investments should be based on a medium- and long-term perspective or treated as potential high-profit niches with an undeveloped potential. Behind the region’s attractiveness to semiconductor investors are its proximity to mature markets, well-developed research facilities and an extensive workforce with industry-related skill sets.
Huge development opportunities can be found in the renewable energy sector, where several significant investments have already been completed in Pomerania, translating into an installed RES capacity of 11.7 gigawatts (GW). Particularly noteworthy is the investment potential of Offshore Wind Farms, which stands at 28GW for the Polish Exclusive Economic Zone. In addition, the region is responding to a strong demand for highly specialised equipment and vehicles for the construction and operation of offshore wind platforms. The rich history of shipbuilding development and technological background can ensure integration between manufacturers and suppliers of cells and end products.
Pomerania — a great choice for investors
The strategy to support foreign capital inflows, as revised with the support of the World Bank, assumes better investor care. It envisages a continuous expansion of the region’s talent pool. In addition to pro-migration initiatives implemented for years to support the relocation of talented professionals from around the world, investment in reskilling has recently been introduced. To respond to the needs of the market, using suggestions from investors — which is unique not only in the country but also in Europe — a programme has been launched to provide qualifications needed for key industries.
In the long term, these ambitious objectives of the revised strategy are expected to result in an intensification of foreign capital inflows. A focus on key sectors and modern technology will undoubtedly play a key role. It is Pomerania’s ambition to create an even more FDI-friendly location that benefits both the region and investors.
To find out more about The World Bank Report on Pomerania, visit: https://investinpomerania.pl/en/knowledge-base/world-bank-report
This content was paid for and produced by Invest in Pomerania.