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When Business Parks Work in Tier 2 Cities: Romania and Elsewhere RCI IT Conference Zagreb, Croatia 16-17 May 2006. John Mennel USAID Enterprise Development & Strengthening Project Booz Allen Hamilton [email protected]. Romanian System of Business Parks. Romanian Business Parks - PowerPoint PPT Presentation
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When Business Parks Work in Tier 2 Cities: Romania and ElsewhereRCI IT Conference Zagreb, Croatia 16-17 May 2006
John MennelUSAID Enterprise Development & Strengthening ProjectBooz Allen [email protected]
2
Romanian System of Business Parks
Romanian Business Parks
Approximately 15 business parks, industrial parks and incubators in Tier 2 and 3 cities
Decentralized local management
Very wide range of services and models
Difference in success rates
– Top 3 parks have created 6000 jobs and $400M in direct investment
– Many of the bottom ten are not entirely active or operational
Timisoara
Cluj-Napoca
Brasov
Iasi
Bucharest
Arad
Ploesti
Sibiu
Constanta
Tg Mures
Craiova
Bacau
3
Why do entrepreneurs locate in business parks?
Unique Property Value
– Cost and type of facilities
– Availability and Lack of encumbrances
Unique Infrastructure
– Telecomms and Power
– Shared facilities and other services
Positive Cluster Effects
– Services providers and peer companies
– Education and training
Tax or Other Incentives
– Subsidized rent, power and telecomms
– Tax incentives
Facilities will only be a small part of the company creation decisionFacilities will only be a small part of the company creation decision
4
Why do entrepreneurs locate in business parks?
Tetarom Cluj-Napoca
Light industrial and office space use
Three phases of over 120 hectares
Land concessions for €1.5/m2/year
Over 40 tenants including Emerson Electronics, Ruwel
Unique Property Value
Unique Infrastructure
Positive Cluster Effects
Tax or Other Incentives
5
Why do entrepreneurs locate in business parks?
Technopolis Iasi
Significant shared space for meeting rooms, etc. Universities own part of space
Space rental for €8/m2/year; land negotiable
Adjacent to planned exhibition space
Largest tenant is Siemens VDO
Unique Property Value
Unique Infrastructure
Positive Cluster Effects
Tax or Other Incentives
6
Why do entrepreneurs locate in business parks?
Knowledge Oasis Muscat
Two technical colleges
Incubator
Below market rents
Subsidized electricity and telecommunications
Unique Property Value
Unique Infrastructure
Positive Cluster Effects
Tax or Other Incentives
7
Success Factors
Predictability and transparency of process
Facilities appropriate for initial anchor tenants
Low upfront cost
Provide appropriate city services
Park management with proper incentives
Park is only as attractive as the city
Thank You!
