1. cardiff
cardiff
EmployEE
SurvEy
tranSport
facilitiES
buSinESSES
Shopping
culturE
vibrant
public
pEoplE
linkS
clEanlinESS
city
StrEEtS
wElSh
capital
grEEn
infraStruturE
nightlifE
parking
walES
community dEvElopmEntmodErn
friEndly
rESidEntS
traffic
congEStion
EmploymEnt
invEStmEnt
opportunitiES
travEl
cardiff
buSinESS
School
cardiff
buSinESS
partnErShip
cardiff
CU CBS Employment Report AW.indd 1 03/04/2011 21:42
Client
Project
Sheet
Cardiff University, Cardiff Business School
Cardiff Employee Survey
Report Cover
Shortlisted for
‘The Best of Welsh
Design Awards 2011’
mobile: 07515353340
twittering: @NeilMAsher
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2. Client
Project
Sheet
mobile: 07515353340
twittering: @NeilMAsher
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Cardiff University, Cardiff Business School
Cardiff Employee Survey
Internal Pages Spreads
Cardiff Business School is one of the leading
business and management schools in the UK.
In the most recent UK Government Research
Assessment Exercise, it was ranked 4th in
the UK for the quality of its research. 70%
of the School’s research is considered to be
internationally excellent or world leading.
Its academics work with leading blue-chip,
global businesses such as Tesco, Nestle,
Hewlett Packard and Johnson & Johnson, and
with international public sector and not-
for-profit organisations such as the United
Nations, International Labour Organisation
and Department for Communities and
Local Government. The School educates
2,600 students each year, delivering a broad
portfolio of undergraduate, postgraduate and
postgraduate research degrees.
The Cardiff Business Partnership (CBP)
consists of leading employers in the
Capital of Wales. Its mission is to
represent businesses in the Capital,
ensuring that the views of enterprise
are at the heart of the development
of Cardiff as a competitive global
location. The Partnership aims to
identify key issues facing the Capital’s
economy. Through its members, the
Partnership has the unique ability to
go beyond advocacy to action.
The Partnership also serves as a resource of expertise
and creative thinking for policy makers, media and
others concerned with taking forward the Cardiff and
Welsh economy. The Partnership seeks to influence
policy by presenting the views of leading businesses,
sponsoring research, and bringing together experts
and leaders in city development.
CBP and Cardiff Council have entered a collaborative
arrangement with Cardiff Business School, which
will spearhead leading research aimed at helping to
improve the competitiveness of Cardiff.
itS mEmbErS includE:
admiral
boomErang
frEShwatEr
grantthornton
hugh JamES SolicitorS
lEgal & gEnEral
mEdiawalES
pricEwatErhouSEcoopErS
principality building SociEty
S a brain & co.
tata
tESco
www.cardiffbusinesspartnership.com
2 Cardiff Business sChool and Cardiff Business PartnershiPcardiff EmployEE SurvEy
CU CBS Employment Report AW.indd 2 03/04/2011 21:42
As the capital of Wales, Cardiff is seen as
the economic powerhouse of the nation.
The population of the greater Cardiff area,
including the Vale of Glamorgan, grew at
around 0.5% pa over the period 2002-09 and is
projected to continue to grow at this rate until
2013. Cardiff’s growth has outpaced the rest of
Wales and is expected to continue to do so for
the next decade. One of the biggest group of
respondents came from the financial services
sector: in 2011, Cardiff has approximately
30,000 people employed in financial services
and thousands more in business services. The
businesses of Cardiff have seen a continual
demand for labour which has outstripped
local supply for many years. This has led to the
growth of the Cardiff city region: over 70,000
people commute from the Valleys and further
across South Wales to work in Cardiff each day.
This report summarises some key findings from
a major survey of employees working in Cardiff.
The research and analysis has been conducted
by Cardiff Business School in conjunction with
Cardiff Business Partnership. The survey is the
first to look at how people feel about Cardiff as a
place to work.
The primary finding from the research is
that people report very positively on their
employment and Cardiff as a city. The vast
majority of respondents (95%) wanted to
continue to work in Cardiff for at least the
immediate future and over two-thirds (68%)
indicated that they believed their longer-term
futures were in Cardiff.
In the following pages we explore these findings
in detail. In particular, we will look at what it is
that people like about Cardiff and what they
want to see the city invest in over the coming
years. We also focus on the commuting patterns
of respondents and how commuting workers
from different parts of south east Wales had
different opinions on the city's future direction
and priorities.
introduction
walES
cardiff
population
all pEoplE agEd 16-64 (%)
SErvicE SEctor
groSSwEEkly pay (£)
Economically activE % of population
figurES, StatSwalES and nomiS (2008)
2999300
680750
167800
486.2
451.1
68.9 74.2
72.863.4
336200
4 Cardiff Business sChool and Cardiff Business PartnershiPcardiff EmployEE SurvEy
CU CBS Employment Report AW.indd 4 03/04/2011 21:42
3
The city of Cardiff has a
diverse economic base
and is a major regional
employer, drawing 70,000
people from outside the
city to work each day. This
survey examined the views
of employees within the
service sector: the sector
employs 167,800 people
and is of considerable
importance to the Welsh
economy. It is therefore
constructive to explore the
structure of the industry in
terms of its employees and
attempt to glean insight
into their thoughts on work
and the city.
This report presents the findings from
a research project conducted by Cardiff
Business School and Cardiff Business
Partnership. The project examined employees’
perceptions of Cardiff as a place to work
and asked them what they wanted from
the city in the future. Over 640 individuals
responded to the survey of which the majority
were employees from the Cardiff Business
Partnership firms.
ExEcutivE Summary
moSt pEoplEwErE
attractEdtothE city by
‘thE Job itSElf’but othEr
big attractionS arEthE
nightlifE and Shopping
facilitiES.
drivingtowork is By
farthe most Common
method oftransPort
regardless ofwhere
PeoPle live.
half ofthe
resPondentswould
liketo Beworking
fortheir Current
emPloyer in Cardiff,
But in a more senior
Position, in 15years'
time.
Congestion is
a ConCern for
those surveyed,
with most seeing
CitytransPort
infrastruCture as
a key investment
need overthe next
deCade.
of those surveyed
want to keeP
working in Cardiff
for at least the
immediate future,
withover65%
indiCatingthatthey
wishtokeePworking
intheCityforthe
foreseeaBlefuture.
kEy
findingS
ababababab
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ababababab
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95%
65%
 



1⁄2
CU CBS Employment Report AW.indd 3 03/04/2011 21:42
The survey examined whether people
wanted to continue working in Cardiff, based
on their experiences to date. There was an
overwhelmingly positive response to this
question. 95% of respondents wanted to
continue working in Cardiff for at least the
immediate future, with 68% saying they wanted
to continue for the foreseeable future. The 5%
who said that they did not want to keep working
in Cardiff were asked their reasons for wanting to
leave: personal reasons and better standard of
living were the major responses given.
what rESpondEntS think
of cardiff aS a placE to work
5%
No
68%
Yes
keep workiNg
iN Cardiff?
do You waNt to
yes,for the
foreseeaBle
future
27%
Yes yes,at least
for the
immediate
future
5
CU CBS Employment Report AW.indd 5 03/04/2011 21:42
The positive response continues when we
consider respondent views on where they would
like to be working and for whom in 15 years'
time. Close to half of the respondents would
like to be working for their current employer in
Cardiff, but in a more senior position, in 15 years'
time. This suggests considerable satisfaction
on the part of many employees with both their
employer and city of employment.
Respondents commonly reported that they
'enjoy working with colleagues’and had an
‘enjoyable working environment'. A number
of other features were mentioned, including
stimulating work and flexible working
arrangements.
Another positive factor for a significant minority
was working close to home.
When examining commuting it seems that car/
motorbike is the primary means for getting to
work, with over 51% of respondents reporting
this type of transport use.
Many of those who took part in the survey (62%)
chose more than one method of commuting,
with train and walking being the most common
combination. More detail on commuting
patterns will be presented later in this report.
6 Cardiff Business sChool and Cardiff Business PartnershiP
g2026
where
would you
like to Be
working
in fifteen
years' time?
what do you
like aBout
working
for your
Current
emPloyer?
getting to work
48% working in a more senior
rolewithyour Current
emPloyer in Cardiff
28% good Pay
22%
walk
8%
CyCle
16%
Bus
22%
train
51%
Car / motorCyCle5% workingwithyour
Current emPloyer
outside Cardiff
43% work is stimulating
7% working in a similar
joB, But for another
emPloyer, in Cardiff
58% enjoyaBleworking
environment
4% working in a similar
joB, But for another
emPloyer, outside Cardiff
69% you enjoyworking
with Colleagues
9% doing a ComPletely
different joB in Cardiff
48% youwork Closeto home
9% no Change inyour
Current CirCumstanCes
29% good Career ProsPeCts
13% doing a ComPletely
different joB outside
Cardiff
42% flexiBleworking
arrangements
34% training oPPortunities
cardiff EmployEE SurvEy
CU CBS Employment Report AW.indd 6 03/04/2011 21:42
8 Cardiff Business sChool and Cardiff Business PartnershiP
cardiff cardiff?
Job, facilitiES
family, friEndS
walES, proximity
It is important to understand why
people choose Cardiff as a place
to work, as this helps to explain
what it is about the city that is
attractive. One reason for working
in Cardiff is that people were
born here or have lived here since
childhood (32% of respondents)
or that they were initially brought
to the area by a job (24%).
To explore this further, more detail
was requested from respondents:
one of the key findings is that
people come originally because
family or friends are in Cardiff. Many
respondents reported that they
were not originally from Cardiff but
came here when they met their
partner (11%).
The positive impact of Cardiff’s
higher education institutions is
also clear from the data, with more
than a tenth of people reporting
that they chose to stay on after
graduation (13%). People also
allude to facilities and the size of
the city itself: “The main reason was
for a better work/life balance and to
be near friends and family”.
what
attractEd
pEoplE to
why did
you dEcidE
to work in
32%
you’ve always lived in
or around Cardiff
24%
you aPPlied for a joB
and it haPPenedto Be
in Cardiff
10%
you likedthe City
and deCidedto look
for a joB here
13%
you Cameto
Cardiffto study
and deCidedto stay
11%
you moved hereto
Bewith a Partner/
family
9%
other
cardiff EmployEE SurvEy
CU CBS Employment Report AW.indd 8 03/04/2011 21:42
7
51%
Car / motorCyCle
There was a wide distribution of earnings among
the respondents. Although 27% fell into the
£15,000 to £20,000 bracket, over 41% of those
surveyed earn in excess of £25,000.
The survey was distributed to around 5,000 employees of the
member firms of Cardiff Business Partnership. 648 completed
questionnaires were returned (response rate of 12.96%). There
is a broad split amongst sex and age with a slight skew towards
women and respondents aged 24-39. 42% of the sample are
under 30 years of age: given that Cardiff has a young population,
the sample is thought to be representative.
annual earnings
sex Profile of resPondents age Profile of resPondents
rESpondEntS’ profilE
< £10k
£10k-15k
£15k-£20k
£20k-£25k
£25k-£30k
£30k-£40k
> £40k
££££££££££££££££££££££££££££££
££££££££££££££££££££££££££££££
££££££££££££££££££££££££££££££
££££££££££££££££££££££££££££££
££££££££££££££££££££££££££££££
££££££££££££££££££££££££££££££
££££££££££££££££££££££££££££££
27%
16%
14%
12%
11%
3%
£££
malE
fEmalE
57%
43%
25-39
18-24
40-54
55-64
65+
11%
57%
26%
5%
CU CBS Employment Report AW.indd 7 03/04/2011 21:42
9
32%
Better emPloyment
elsewhere
36%
48%
21%
9%
Better standard of
housing elsewhere
Personal reasons
Better Cultural offer
elsewhere
Better leisure offer
elsewhere
21%
6%
ProBlems in Commuting
Cost and availaBility
of housing
dangErouS
city living
ExpEnSivE
£££££££££
commuting
parking /
congEStiontranSport
ba what pEoplE don’t likE
]
rEaSonS you
don’t want
to kEEp
working in
cardiff
ba
CU CBS Employment Report AW.indd 9 03/04/2011 21:42
cardiff EmployEE SurvEy10 Cardiff Business sChool and Cardiff Business PartnershiP10 Cardiff Business sChool and Cardiff Business PartnershiP
what
don't you
likE about
working in
cardiff?
2% 12%
19%
21%
29%
54%
3%
unfriEndly
city
poor
houSing
choicE
outSidE of
work, it'S
hard to gEt
around thE
city
lack of
EmploymEnt
opportunitiES
lack of
promotion
lack of
clEanilinESS
congEStion
poor
cultural
offEr
6%
9%
othEr
While the picture painted in the survey is broadly positive,
it is important to reflect on the negatives. Although only
5% of those surveyed said they did not want to continue
working in Cardiff, it was important to explore the reasons
behind their desire to leave. By far the most important
motivation for wanting to leave was personal reasons,
followed by the perceived better standard of living
elsewhere.
More generally, to give a more rounded picture of Cardiff,
we also asked all those surveyed what concerns they had
about working in the city. The largest area of concern for
respondents was congestion, with over half the people
(54%) in the survey highlighting this. This appears to refer
specifically to the problem of getting in and out of the city
to work since only 9% of respondents said that getting
around the city outside work was a problem. The other
most significant concern was the lack of cleanliness (29%).
When the more detailed, qualitative comments provided
by individual respondents were explored, concerns about
transport were raised again. Almost 80% of comments
were about the problems with transport and infrastructure.
Along with congestion, the other major area of concern
is parking, with numerous respondents expressing
annoyance with the limited parking available and cost
of parking in the city centre. A number of respondents
thought that buses and trains did not provide effective
alternatives to driving, with a typical comment being:
"There is no train connections leaving at a suitable time that
will get me into work for 9".
Early
cloSing
hourS
crimE
25%
22%
cardiff EmployEE SurvEy
CU CBS Employment Report AW.indd 10 03/04/2011 21:42
location and commuting
home of resPondents
Approximately 70,000 people
commute into Cardiff to work each
day. We undertook a spatial analysis of
respondents using data provided on
post-codes. Of those surveyed, 57%
were from the greater Cardiff area. The
remaining respondents come from as
far afield as 60 miles away, indicating an
extensive travel to work area.
outSidE cardiff
living in cardiff
58%
42%
BRIDGEND
PENARTH
CAERPHILLY
PONTYPRIDD
RHONDDA CYNONTAF
BRECON BEACONS
CARDIFF
THEVALE OF GLAMORGAN
CF3
CF10 41
CF11 45
CF14 59
CF15 18
CF23 31
CF24 69
CF3 32
CF48 12
CF5 60
CF62 19
CF63 12
CF64 31
CF72 14
CF23
CF24
CF83
CF32
CF14
CF15
CF37
CF40
CF43 CF45
CF47
CF42
CF71
CF61
CF34
CF35
CF62 CF63
CF64
CF72
CF10CF11CF5
CF38
CF36
CF31
CF33
CF39
CF44
CF48
CF81
most Common
PostCodes of
resPondents
12 Cardiff Business sChool and Cardiff Business PartnershiPcardiff EmployEE SurvEy
CU CBS Employment Report AW.indd 12 03/04/2011 21:42
11
thE futurE of thE city rEgion
ProjeCts you think the City needs to invest in
what issues should the City ConCentrate
on over the next 10 years
0%
10%
20%
30%
40%
50%
60%
transPort
in the City
transPort
to other areas
retail
faCilities
sPorting
faCilities
Parks & green
sPaCes
residential
develoPment
0 10 20 30 40 50
Creating more joBs
Creating more
graduate joBs
easier Commute
to work
Better transPort
in the City
imProved health
of residents
addressing soCial
exClusion
making the City
safer
more things to do
in the City
attraCt Better
shoPs
more Bars/
restaurants
Better digital
CommuniCations
Cleaner
environment
PuBliC
serviCes
The development of Cardiff’s
infrastructure must be at the
heart of long term economic
strategy. Examining the views
expressed by those that work
and live, and/or commute into
the city, means that important
development priorities can be
identified.
Those surveyed expressed clear
views about the issues that
need the city's attention. Public
services are cited by over 50%
and this is closely followed
by transport in general, both
in the city and its hinterland.
Along with the physical
infrastructure, nearly one third
of respondents wanted to see
investment in parks and green
spaces.
CU CBS Employment Report AW.indd 11 03/04/2011 21:42
what don't you like aBout working in Cardiff?
13
Most attracted
thejobitself
thejobitself
thejobitself
thejobitself
thejobitself
thejobitself
Localenvironment
citynightlife,pubs,bars&restaurants
thejobitself
thejobitself
standardofliving
Postcode
cF10
cF11
cF14
cF15
cF23
cF24
cF3
cF48
cF5
cF62
cF63
Postcode
cF3/14/23
cF10/24/11
cF62/63/5
cF15/48
£10k - £20k
66.7
63.0
50.0
40.0
38.7
37.3
42.4
60.0
30.5
16.7
33.3
congEStion
30.9
26.3
25.6
24.4
£20k - £40k
30.8
26.1
39.7
33.3
51.6
52.2
48.5
30.0
45.8
50.0
25.0
hard city to
gEt around
4.6
4.7
5.5
14.6
over £40k
2.6
10.9
10.3
26.7
9.7
10.4
9.1
10.0
23.7
33.3
41.7
lack of EmploymEnt
opportunitiES
6.9
6.7
16.5
4.9
poor
houSing
4.1
2.7
3.0
4.9
lack of
promotion
10.1
9.8
17.7
7.3
poor
cultural offEr
2.3
2.0
1.2
0.0
crimE
13.4
16.9
10.4
12.2
lack of
clEanlinESS
14.3
19.2
11.6
17.1
night
facilitiES
10.1
11.4
6.7
14.6
Most coMMon Method oF transPort
Walking
Bus
Walking
Bus
car/Motorcycle
Walking
train
train
train
car/Motorcycle
cycle
Residential location is a
key factor in explaining the
methods of transport used
to commute. Although car/
motorcycle dominated the
modes of transport overall,
walking or bus was a strong
preference for those from
Central Cardiff (CF24, CF14,
CF11, CF10). Contrary to this,
CF23 in central Cardiff saw
larger numbers driving to work.
Train was the preferred travel
option for commuters from the
Valleys.
In terms of earnings there are
significant differences between
respondents according to
residential area. Respondents
from Central Cardiff reported
lower than average earnings
with both CF11 and CF14
having around 5% of those
surveyed earning less than
£10,000 per annum. The only
other area surveyed which
had a higher percentage of
low earners was CF48 (Merthyr
Tydfil) with 20%. At the other
end of the scale CF62 and CF63
have the highest percentage
of respondents earning
over £40,000. Over 40% of
respondents from Barry (CF63)
earned over £40,000.
When looking at what attracted
people to Cardiff, there is little
difference between areas
with the exception of two:
the first is CF63, where the
standard of living was the most
attractive factor in coming to
Cardiff, while people living in
CF3 indicated that the local
environment was the most
attractive factor.
Clear geographical patterns
also emerge when exploring
the factors that concern people
about the city. Those from city
areas such as CF11 and CF14
have concerns with cleanliness
and crime. Almost all areas
have some degree of concern
with congestion, but it appears
that those living right in the
city centre (CF23, CF24) feel this
the most. This is an interesting
finding as it is in these areas
where most people walk to
work. The other interesting
detail is that, out of all areas,
the farthest postcode in this
selection, CF48 (Merthyr Tydfil),
appears to have the least
concern with congestion.
*ForthepurposeofthisanalysispostcodesweregroupedbydistancefromCardiffcitycentre
CU CBS Employment Report AW.indd 13 03/04/2011 21:42
Shortlisted for
‘The Best of
Welsh Design
Awards 2011’

3. 5Cardiff Business sChool and Cardiff Business PartnershiP
wales and the uk in the inward investment game
table 1: Percentage of uk inward investment Projects**won
(excluding london)
*Source: uKTi and Fdi MarKeTS™ FroM The Financial TiMeS** ThiS iS new inveSTMenTS.
5Cardiff Business sChool and Cardiff Business PartnershiP
Welsh and global inward investment
flows have seen a steep downturn
over the last decade. What has been
disappointing for Wales is that there
appears to have been a continuous fall
in levels since 2003. There is a further
concern for Wales; this is the improving
performance of other regions in the UK,
particularly Scotland, whose activity
during the late‘90s was far below Wales'
but has now improved to lead the UK
(outside London).
If the figures are considered in terms
of overall inward investment projects
won, Scotland has become the number
one ranked region in the UK (excluding
London). At the same time Wales has
gone from number two in the UK in
2003 to second from bottom in 2010.
Table 1 shows Welsh performance
compared to all regions.
Some background needs to be given
when contrasting the performance
of Wales with other regions. Figures
published by the Welsh Assembly
Government (WAG 2010) suggest
that the number of "foreign owned
enterprises active in Wales" is smaller
than that in any English region. There
were around 1000 in 2007, rising to 1100
in 2009 and falling back to 1000 in 2010.
They employed around 139,000 people
in 2010, 11,000 fewer than in the peak
year, 2009.
2003-04
2005-10
av % 8.5
av % 9
rank 1
rank 1 -
scotland
2003-04
2005-10
av % 3
av % 3.3
rank 6
rank 10 g
southwest
2003-04
2005-10
av % 2.5
av % 3.7
rank 8
rank 7 i
east anglia
2003-04
2005-10
av % 4.5
av % 5
rank 4
rank 3 i
west midlands
2003-04
2005-10
av % 7.5
av % 3.5
rank 2
rank 9 g
wales
2003-04
2005-10
av % 6.5
av % 6.8
rank 3
rank 2 i
northwest 2003-04
2005-10
av % 3.5
av % 3.7
rank 6
rank 5 i
north east
2003-04
2005-10
av % 2
av % 3.7
rank 9
rank 6 i
yorkshire & humber
2003-04
2005-10
av % 3.5
av % 3.5
rank 8
rank 8 -
east midlands
2003-04
2005-10
av % 4
av % 4.3
rank 5
rank 4 i
northern ireland
Client
Project
Sheet
Cardiff University, Cardiff Business School
Selling Wales: Report
Internal Page Detail
mobile: 07515353340
twittering: @NeilMAsher
https://vimeo.com/neilmasher

4. Client
Project
Sheet
Cardiff University, Cardiff Business School
Selling Wales: Report
Internal Page Spreads
Shortlisted for
‘The Best of Welsh
Design Awards 2011’
mobile: 07515353340
twittering: @NeilMAsher
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selling Wales: the role of agencies in attracting inward investment6
The aim of the analysis was to
interview key personnel from
all the agencies involved in
inward investment attraction
to the Cardiff city region.
It became clear that there
is a delineation of control
and activity. Therefore the
interviews needed to be
undertaken across agencies
at different spatial levels in
order to establish why certain
tasks were taking place. Table
2 gives a profile summary of
the respondents involved and
Figure 1 shows the relationship
between the agencies
operating within the Cardiff
city region.
the research
selling Wales: the role of agencies in attracting inward investment6
15
12
6
5
key Point
method
lack of communication
interview
Practitioner*
key Point
method
misinformation
interview / Questionnaire
firm
key Point
method
consistency in communication
interview / Questionnaire
government / council
key Point
method
lack of resource
interview
Policy imPlementation*
welsh government
ukti
ibw cardiff and co
dePartment of economy
andtransPort
caPitalwales
cardiff council
table 2: Profile of resPondents
*SoMe oF TheSe reSpondenTS are no longer worKing in The agencieS, buT were in ThoSe roleS
during The period (2004-2011).
Figure 1: agency STrucTure
* agencieS have been coded a-g For The purpoSeS oF conFidenTialiTy
** arrowS repreSenT coMMunicaTion FlowS idenTiFied by reSpondenTS.
10575 CU CBS InwardInvest Report v9.indd 6 20/01/2012 12:23
7Cardiff Business sChool and Cardiff Business PartnershiP
attraCting
inward investment
ComPetition
amongst agenCies
Since the 1960s and the true advent of globalised
multinationals, there has been critical debate
amongst scholars and practitioners alike on
how best to attract inward investment. During
the early‘90s, Europe saw vast numbers of firms
moving into nations to take advantage of the
growing wealth of the trading bloc. The impact
of inward investment on local economies has
been studied in some depth with the notable
works of Hill and Munday (1992), Blomstrom
et al (2000) and Driffield (1999) identifying the
impact of firm“spillovers”on local development.
With these advantages of inward investment
accepted by politicians, many governments
concerned themselves with developing inward
investment friendly policies. During the early‘90s,
firms’location decisions appeared to be driven
purely by economic factors, with“winning”regions
offering the lowest possible cost base through
both tax incentives and grant schemes (Bellak and
Leibrecht, 2005).
During the early‘90s Wales was seen as a highly
successful region in attracting inward investment
- its low cost base and English speaking work
force were seen as critical factors in its success
(Cooke and Morgan, 1998). As relative operating
costs began to rise the firms once flocking to the
country began to leave. They were drawn first to
Eastern Europe. Over the last decade, the growth
of China and India as power houses of low cost
business has meant developed regions in Europe
have had to compete even harder to attract firms.
Today, policies to attract inward investment into
developed nations vary by locality yet there are
some common practices identified by Guimon
(2009) with a strong focus on highly skilled work
forces and local amenities. As a result, it has
been accepted that“marketing of place”plays
an important role in attracting investment in
developed nations, over and above tax incentives.
With large numbers of regions and countries all competing for inward
investment, intense competition has arisen between agencies. With so
much to gain, pressure has been put on governments (and economies)
to be as competitive as possible. This pressure is a double edged sword as
although it can lead to efficiency and productivity improvements, too much
pressure can generate a so called“race to the bottom”. Here nations trying
to reduce wage bills and offering more competitive (expensive) packages
of support can effectively produce poor welfare outcomes. Charlton (2003)
provides a useful framework to understand this competition for inward
investment.
The matrix describes the associated consequences of different types of
inward investment strategy. For example, if a region attempts to take an
investment from where it is naturally more efficient, the overall economy
will suffer while a smaller area may benefit (top left corner). Although the
original matrix allows comparisons between regions it is also possible to use
it to analyse investments within the same region. If one agency attempts
to offer incentives over and above another agency, the result is a loss of
overall welfare of the region (bottom left corner). This competitive analysis
of inward investment suggests that while some competition is healthy, too
much can create substantial welfare losses.
7Cardiff Business sChool and Cardiff Business PartnershiP
investment Poaching
domestiCwelfare gain?
internationalwelfare
loss?
healthy comPetition
domestiCwelfare gain?
internationalwelfare
gain?
beggarthy neighbour
domestiCwelfare loss?
internationalwelfare
loss?
winner’s curse
domestiCwelfare loss?
internationalwelfare
gain?
Figure 3: charlTon'S FraMeworK
10575 CU CBS InwardInvest Report v9.indd 7 20/01/2012 12:23
17Cardiff Business sChool and Cardiff Business PartnershiPCardiff Business sChool and Cardiff Business PartnershiP 17Cardiff Business sChool and Cardiff Business PartnershiP
annex 1 - new inward investment, uk and wales
wales
key
uk
uk ranking
Percentage
9.2
6
2005-06
new jobs
uk uk
34,077 36,526
9.3
4
2006-07
new jobs
8.3
6
2007-08
new jobs
6.4
4
2009-10
new jobs
6.2
7
2008-09
new jobs
ukwales
3,743 45,051
ukwales
2,185 35,111
ukwales
3,431 53,358
inward investment -
new jobs 2005/06 - 2009/10
Source: uK Trade & induSTry
noTe: (1) analySiS baSed on Secured
projecTS, aS per uKT&i eligibiliTy
criTeria
wales
3,132
wales
3,379
10575 CU CBS InwardInvest Report v9.indd 17 20/01/2012 12:23
selling Wales: the role of agencies in attracting inward investment12
2000 20042002 2006 20082001 20052003 2007 2009
A number of individuals
contrasted the poor
performance in Wales with the
relative success that Scotland
has had in the recent past. It is
useful to look at the Scottish
case to put these comments
into context. Existing data on
Scottish inward investment
attraction have been examined
to show trends over the
course of the last eight years.
Respondents’comments
on the work of SDI (Scottish
Development International)
have also been analysed.
There are two sets of data to
contrast. First is the type of
inward investment actually
being attracted. To this end this
research contrasts the figures
on R&D investment. This is
high value activity associated
with the greatest economic
spillover to the wider economy.
The second measure is the
aggregate numbers in terms
of actual projects that have
chosen to invest.
the case of scotland
inward
investment,
wales v sCotland
5
10
15
20
0
9
7
3
4
8
10
12
16
9
14
2
1
2
2
5 5
1
2
6
3
number of r&d inward investment Projects
*auThorS' conSTrucTion, daTa acceSSed FroM oFFice oF naTional STaTiSTicS (onS)
% of inward investment Projects against uktotal
*auThorS' conSTrucTion, daTa acceSSed FroM oFFice oF naTional STaTiSTicS (onS)
2000 20042002 2006 20082001 20052003 2007 2009
12
10
8
6
4
2
0
10
9
11
9
8 8
6
10
6 6
2 2
3 3
5
5
7
9
7
9wales
key
scotland
10575 CU CBS InwardInvest Report v9.indd 12 20/01/2012 12:23
13Cardiff Business sChool and Cardiff Business PartnershiP
If we look at the two nations there are similar
trends across the period. Although there were
significant declines between 2004 and 2005, the
Scottish bounce back has been much greater than
Wales' and the flows have held up well during the
period 2007-2009.
There has been a positive trend in Scotland in
terms of both numbers and value, in particular
in the most sought-after sector, global financial
services2
. A number of respondents from different
agencies argued that the Scottish model was
successful at the expense of the Welsh:
the case of scotland
Another respondent expressed a similar view.
“Overthelastthreeyearswehave
seentheSDI[ScottishDevelopment
International]rampuptheiroverseas
work,theyhaveaverycleargoalof
wheretheywanttobeandhowthey
wanttogetthere,anditseemstome
thatthispressurehaspossiblycaused
asqueezeonsomeofthetargetswe
originallyhad.IBWcouldnotcompete
withthem,itistooslow,everything
hastobedoublecheckedandput
throughtoomanypeople’sdesks.”
“WhyisWalesingeneralnot
attractingasmuchFDI?
Shortanswer,Scotland,longanswer
organisation.Scotlandisstreamlined,
theyareveryefficient.Iknowguys
workingthere,theyareverysavvy
andmoreimportantlythanthat
theyknowpeopleinUKTI[United
KingdomTradeandInvest]…..they
haveanofficewedon’t.”
Scotland has also been accused by some
respondents of“copying”a similar approach in
terms of branding to that used by the WDA during
the mid‘90s.
SDI has reportedly advertised heavily in overseas
markets where Wales was once strong, namely
the USA and the Far East. There is also a common
belief that Wales in general will struggle for the
foreseeable future against such a strong brand.
2
http://www.ukti.gov.uk/uktihome/media/news/100745.html
10575 CU CBS InwardInvest Report v9.indd 13 20/01/2012 12:23
19Cardiff Business sChool and Cardiff Business PartnershiP
table 2: inward investment – new jobs overthe lasttenyears
2000-01 2001-02
6.3% 11.3%
7 1
wales
4,520
uk
71,488
wales
3,872
uk
34,087
2002-03 2003-04
11.8% 15.9%
3 1
wales
4,083
uk
34,396
wales
4,064
uk
25,463
2006-07 2007-08
9.3% 8.3%
4 6
wales
3,379
uk
36,526
wales
3,743
uk
45,051
2008-09 2009-10
6.2% 6.4%
7 4
wales
2,185
uk
35,111
wales
3,431
uk
53,358
2004-05
6.5%
9
wales
2,593
uk
39,592
2005-06
9.2%
6
uk
34,077
wales
3,132
key new jobs ranking againstthe uk's 12 geograPhic areasyear wales uk Percentage
10575 CU CBS InwardInvest Report v9.indd 19 20/01/2012 12:23

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