Małopolskie Voivodeship Ranked Fourth in Investment Attractiveness Ranking of Polish Regions in 2010

The Gdańsk Institute for Market Economics has announced publication of “The 2010 Investment Attractiveness of Polish Voivodeships and Subregions Report”. It constitutes one of the most important Polish reports evaluating the efforts of regions to create an investment offer and to build a competitive advantage for the regional economy.

Małopolska – Always in the Lead

The comparative analysis of Polish Voivodeships presented by the Institute has been long-awaited by institutions responsible for economic promotion, investor services, as well as by regional authorities and observers of the Polish investment market. In 2010 Małopolska was ranked fourth in Poland in respect of investment attractiveness – after Śląskie, Dolnośląskie and Mazowieckie Voivodeships. It was one place higher than in 2009, when Wielkopolska was ahead of us. This is Małopolska’s best position since 2005 (third place) and is undoubtedly a reason for satisfaction, showing that we are maintaining a permanent position among leading Polish Voivodeships.

If we look at the individual components of the above mentioned evaluation, we can see which features create the strengths of Małopolska. In terms of “resources and work costs” Małopolska is second (after Śląsk); when it comes to “activities aimed at investors” the region is fifth – taking into account that in this category Małopolska was seventh last year and eleventh (!) in 2008, this means significant progress in the area of gaining new investors for the region. In respect of “transport accessibility” (7th place), “market capacity” (5th place), “economic infrastructure” (5th place), and “social infrastructure” (2nd place), Małopolska is permanently among the top Polish Voivodeships.  The “common security” category constitutes the only weak point, with Małopolska in 10th position (however, ahead of Dolnośląskie, Mazowieckie or Śląskie).

In the (report) authors’ opinion, in the majority of categories, Małopolska has maintained its position, making the most significant progress in the category comprising activities aimed directly at investors: the preparation and promotion of the regional investment offer, direct contacts with the business environment, international cooperation, and investor service system in the region.  Such a significant change regarding the Voivodeship position in this category is even more satisfying, as the poor marks obtained two years ago were one of the reasons for establishing the Business in Małopolska Centre (Małopolska Regional Development Agency joint-stock company, Małopolskie Voivodeship, and Kraków Technology Park) and for commencing initiatives aimed at investors (such as the “Invest in Małopolska” project, the media campaign in CNN, the new Internet website and economic missions to Asia, USA and Western Europe). 

Kraków Subregion – Good and Still Improving

The GIME report also assesses economic and social phenomena affecting the economic attractiveness of subregional structures. From the area of Małopolska, the Oświęcimski and Krakowski subregions were included in the classification. The Krakowski subregion is ranked in the top ten in respect of “technologically advanced activity” (2nd place), “service activity” (4th place). In the category of “industrial activity” the subregion is 9th (8th place – Oświęcimski subregion). The main “weak points” of the subregions are “the low crime detection level” and “the high remuneration level”. The ambiguity of the last criterion allows for positive evaluation of investment attractiveness of the Kraków agglomeration, particularly in the context of the last enthusiastic evaluation conducted by international institutions. Additionally, the specific character of the subregion compels it to promote investments based on new technologies and knowledge, with limited possibilities of creating an investment offer for large and very large industrial and production undertakings. In this (sub)contest, the areas located in the vicinity of Katowice, Rybnik or Łódź are difficult to beat.

What are the Perspectives for Investment Attractiveness of Małopolska?

Not all factors affecting the evaluation of the Małopolska investment offer may be changed within a year or two, e.g.: the condition of transport infrastructure, resources of SSE areas, local fair and exhibition areas. Furthermore, certain factors – e.g. the proximity of the eastern border of the country, can never be changed. It will be difficult to deal with factors that have both advantages and disadvantages – thus a high remuneration level leads to a high market capacity (resulting from the affluence of the local community), but also high work costs. The citizens of Małopolska would probably not mind being ranked 16th in Poland in this respect – with the highest income level.

We will definitely focus on such elements listed in the GIME report which lie within the competencies of authorities and regional institutions – the promotion and quality of investor services, creating an attractive property offer, and indirectly – the size and quality of the labour market. These are further objectives of the economic institutions of Małopolska, the Business in Małopolska Centre and regional authorities.