Global Location Trends - IBM

Investment Example:
John Deere establishes European
Technology & Innovation Center
US agricultural machinery manufacturer
John Deere announced that it is to open a
new European Technology & Innovation
Center in Kaiserslautern, Rheinland-Pfalz.
The center is expected to be operational
by spring 2010 and will employ up to
200 engineers. Kaiserslautern was selected
due to the potential to recruit from local
universities with highly specialized research
operations, and because of its location
between existing John Deere factories.
IBM Global Business Services 7
Foreign investment into Germany
In a global economic environment shaped by uncertainty and declining
investment activity, Germany attracted substantial levels of foreign investment.
With 26,700 jobs created from 709 foreign investment projects, 2008 was a
year when Germany significantly improved its relative position as a destination
for investment. The headline results suggest that the concerted efforts of
recent years to moderate wage growth, reduce taxes and improve the business
environment have enhanced the country’s competitiveness, with the country
now ranked as the world’s 9 th largest recipient of foreign investment. Indeed,
in a context where companies have looked to consolidate activities in more
stable and mature locations, Germany has been a key beneficiary.
Jobs
30,000
25,000
20,000
15,000
10,000
5,000
0
2003 2004 2005 2006 2007 2008
Jobs Projects
Figure 4. Evolution of approximate job creation vs. attracted projects in Germany
The improved relative position of Germany was particularly pronounced in Industrial
Machinery and Equipment, with almost 4,000 jobs created in this sector from foreign
investment in 2008 compared to a little over 1,000 in 2007. Business Services and ICT
also saw significant growth, with job creation in the former growing approximately
40% from 2007 to 2008 and the latter growing more than 100%.
800
700
600
500
400
300
200
100
0
Projects