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I’m so glad today to present this theme that I work on it in this several months ,
regarding the existing of the corona virus I tried to focus on my research and
Hamdollah I manage to finish it
For a starter my research is about the clusters as an engine of fdi I did follow a
structural outline for my presentation an introduction , theoretical background ,
methodology , results and discuss and finally a small conclusion
Introduction
Before starting my theoretical background I try to highlight my research starting
with a model example of clusters which is the silicon valley, this cluster it’s the
premier tech cluster in the world. It is home to some strong companies such as
apple and Google
Now and then every company big or small need to have a strong home base ,that
present for her a safe house and the Cluster can help its members, and their
organizations, to gain more gratitude, credibility and respect.
The foreign direct investment is an important factor that can fuel and facilitate
economic development and even increase the competitiveness in the cluster as
shown in the silicon valley exemple
so this lead us to our main problematic: How does cluster attract foreign direct
investment in the Moroccan context?
To field my problematic I did followed some steps strating with the objective I
need to achieve in my research: 1- Explore the effect and link of clusters and fdi
2- Explore the incentive made by a cluster to attract foreign direct investment
Theroitical background
this phenomenon was analyzed as early in the end of the 19th century by Alfred
marshal Then it had been defined by many authors including Michael porter
who first used the term cluster in an economic sense and context
What was arises from my research. Most definitions use three elementary factors
to define a cluster:
1- Geographical concentration of interdependent companies
2-Interaction between the companies and functional relations
3- Supra sectorial dimension of clusters that embrace both horizontal and
vertical connections
Clusters and public policies: the public policies have been introduced in a large
number of industrialized countries to encourage and support the emergence of
industrial or technological clusters.
The initial resources of an area these aren't always material but they can be
a series of conditions which facilitate stating a business
the ability to launch a new business is to know well the culture of the area
the companies are required to provide specialized services and products,
increased quality and collaboration to meet higher requirements, the firm
have no escape from the competition so the only key to win this challenge is to
evolve and provide varied products and services.
The market conditions in the theory represent an influence for the cluster
evolution but in an interconnected way, they affect each other without a need
or a customer to increase the initial demand due to the competitive nature of the
clusters
Related and supporting industries describe the factors that allow cluster
firms to evolve and maintain their competitive advantages, to innovate
more important factors such as university and research centers that may
provide new technology needed in production processes.
Research on this interconnection between these two has shown that FDI
and cluster are interrelated with each other, both having an effect. FDI
allows the clusters to grow and evolve In Country of Host. In contrast,
clusters played an important role in foreign direct investment attraction
Alferd marshal did also define the link between cluster and fdi as shown in
the slide
Production in industrial districts allows firms (especially small and medium-
sized firms) to specialize, exploir joint infrastructure and mimic competitors'
best technological and organizational solutions.
Given that the number of clusters typically increases along with economic
development, they are considered catalysts of economic growth, factors that
stimulate innovation and export as well as attract foreign investment
(Szymoniuk, 2003) so clusters are crucial for attracting foreign investors.
I tried to briefly present my first section of literature review and I did come up
with 3 proposition for my problematic:
Methodology
As for the second section the methodology I choose to work on a qualitative
approach for simple reason that I want to explore ideas, thoughts and meanings,
and This type of research did enables me to gather in-depth insights and work
with Literature review Survey published by other authors
In this matter I did choose the case study as my method for the qualitative
approach TO generate new ideas and to analyses the case using relevant
theories concepts from my theoritical studies, I also use a single case study and
secondary data because of THE CONSEQUENCES the pandemic condition but
to be honest those report and documentation that I manage to collect helped me
to structure my recherché and to obtain the results needed
This structure present the environment of the case study, I choose to work on
industrial pole to be more specific the tangier automotive city cluster
It was Launched in 2013 under the National Pact of Industrial Emergence, the
Industrial Platform of Tangier Automotive City (TAC) is part of the deployment
of a Moroccan offer for the activities associated to the “world Trades of
Morocco,” specifically for the automotive industry.
This cluster did reshape the ecosystem in morocco it did host many of
Foreign suppliers specialist on the Original Equipment Manufacturer for
the parent company in morocco which is Renault this investment where
incredible and increasing over the years
so what makes those investors invest in morocco and what can TAC offer to
this foreign investors, we dig in some report and article to find those results
starting with
Results:
The sub contraction which is the first key for clustering area in morocco the
first project start in 2009 named the PNEI aims to attract prime contractors to
the industriel market.
The sub contraction was necessary to create the tangier automotive city cluster
who did attract OEM that increase production of the automotive industry
this increasing was remarkable since the creation of tangier automotive city
back in 2013, the Moroccan government and AMICA (Moroccan
Automotive Industry and Trade Association) set up 6 ecosystems to attract
Tier 2 and Tier 3 of OEMs supplier to increase the production of parent
company in morocco. Those ecosystems are as follows:
Wiring Ecosystem: involves the production of cables to improve vehicle
connectivity and injection systems. Global operators active in wiring in
Morocco include: Yazaki, Delphi, and other supplier
Metal & Stamping Ecosystem: focuses on steel, tooling products for the
automotive industry. Global operators active in metal fabrication in
Morocco include: PSA, Renault, GMD and other suppliers
Battery Ecosystem: aims at further developing lead recycling activities and
improving the sourcing of other sector inputs to enhance stakeholder
competitiveness. Battery operators active in Morocco include: Electra,
Maribat and other supliers
Vehicle Interior and Seat Ecosystem: it include different components, such as
textiles,and glass. Global operators active in vehicle interior and seat
production in Morocco include: Faurecia, GMD and other oem’s
Power-train & Engine & Transmission Ecosystem: covers cast iron casting,
aluminum die-casting, aluminum pressure injection, aluminum refining and
engine machining. Global operators Mecaplast.
Truck and Industrial Vehicle Body Ecosystem: relates to the manufacturing,
assembly, transformation and fitting out of buses, trucks and industrial vehicles.
This ecosystem seeks to foster local integration of truck, industrial vehicle and
automobile manufacturers. Principal operators include: Scania Morocco
and Irizar.
Since the creation of this cluster that group different foreign suppliers it is
clearly from the graphs the increasing of several factors such as number of
employees , number of fdi inflows .. and the most investment where up to
France since the creation of this cluster
Main conclusion
TO sum up this results and discussion morocco improve his automotive
environment by the change of his ecosystem, the creation of a cluster ( TAC)
specialist on OEMs suppliers helped Renault company to improve it production
and exportation in morocco
As a result the Foreign direct investments increased in morocco , create a
massive competitiveness since the creation of the cluster and also it help for the
augmentation of number employees and other factors
The government offers to the foreign inverters facilities and subsides to
encourage them to invest and also attract more suppliers without neglecting the
fact that Renault is a principal incentive in regards to attracting foreign direct
investments
CONCLUSION
we can conclude that FDI is an important factor in the Moroccan cluster
and also manage to change a hall ecosystem in a positive way the incentive
for attracting investors are numerous but unfortunately despite these
positive incentives there are some negativities that Morocco must work on
for a better future in the automotive sector
and about my limits We can’t generalize our research because we only did
one case study
so I did come up to the end of my thesis and thank you for the attention
This plan was followed by some incentive to attract investors such as:
Attracting more supplier: by Support employee training and develop a
training program in accordance with the requirements of the automotive sector
Attracting more manufactures: by a High-level logistics and High-quality
training programmes.
Attracting specialized manufacturers: by Real estate offer according to
international standards.
Improving General conditions: by Creation of Integrated Industrial
Platforms such as my case study tangier automotive city, and offering
general services such as telecoms, banking
this plan was a successful for the morocco automotive industry and did
improve the production of cars such as the graphs show us.
the presence of renaiult in morroco and the incentive made by the government
such high level logistics real estate offer and the creation of the plateform tac
enchane the strategy of relocation for the suppliers of Renault such as The group
GMD specializing in mechanics and the groupe SEALYNX specialized in
rubber
yes it exist for example the determinant model that was defined by Sölvell:
named the actors that can influence cluster development but I choose to work on
this model because it’s designed to help understand the competitive advantage
that nations or groups possess due to certain factors available to them, those
factors can present the act of government or the cluster itself to improve a
country's development and even as we said in the result it allow us to extract the
main strengths that represent incentive for Foreign direct investment .