9370

50

Figure 7. Middle-sized IT-companies by postal code areas (Niederrhein Region)

Table 2. Middle-sized IT-companies in Niederrhein Region

3. Specific needs/requests of IT-companies

Definition of location factors.

A location factor is the reason for a factory’s or company’s placement (Figure

8).

51

Figure 8. Location factors

Footloose industries are those that are less dependent on factors that tie them to a specific geographical location (Figure 9).

Figure 9. Location factors: requests of IT-companies

Table 3. Requests of IT-companies

52

Table 3 (continued)

4. Case studies

Germany/Niederrhein Region

Company: SER Group.

SER Group is a European ECM manufacturer (enterprise content management), has over 1 Million users worldwide. The competitors are Open text, IBM.

SER Group has new headquarters in Bonn. Reasons are:

-availability of specialists, rent, salaries,

-well situated,

-highways,

-good transport infrastructure (Railway, bus station),

-hotels nearby,

-cooperation with the University of Bonn,

-attractive cluster for potential customers.

53

Russia/Nizhny Novgorod

Company: NSTL

Laboratory for software development NSTL was established in Nizhny Novgorod in 1996. Since 2000, the laboratory has been a division of Intel. At present it is the largest branch of the Intel Company in Russia, has 450 employees, head office of research and development. Main function is outsourcing of software development.

Reasons for Nizhny Novgorod are: Past:

-knowledge + innovation,

-high unemployment. Today/Future:

-knowledge + innovation,

-low expenses,

-own properties (Offices...),

-infrastructure,

-univeristies, for example Lobachevsky State University of Nizhny Novgorod,

-Intel Company Network (Future).

Russia/Ulyanovsk

Company: ITECH

ITECH is a full service digital company. It develops web projects, mobile and 3D virtual-reality applications; supports website and mobile applications, runs powerful PPC marketing campaigns, develops bespoke strategies etc.

Reasons for Ulyanovsk are:

-founder was born in Ulyanvosk,

-two big universities nearby (Ulyanovsk State University, Ulyanovsk State Technical University),

-Governmental support,

-big IT cluster in Ulyanovsk.

54

5. Advantages/Disadvantages of the regions

Advantages/Disadvantages of the Niederrhein Region

References

ITK-Konjunktur (2017). https://www.bitkom.org/Marktdaten/ITK-Konjunktur/ ITK-Markt-Deutschland.html [16.05.2017].

Bitkom (2017). https://www.bitkom.org/Presse/Pressegrafik/2016/ November/ 161110-Folie-2-Offene-Stellen-PG-druck.jpg [01.04.2017].

55

IT-Mittelstandsatlas. Bitkom (2017). https://www.bitkom.org/mittelstandsatlas [12.03.2017].

Spektrum (2017). http://www.spektrum.de/lexika/images/geogr/stan_fak_w.jpg [12.03.2017].

Harte und weiche Standortfaktoren (2017). https://digitaler-mittelstand.de/ trends/ratgeber/harte-und-weiche-standortfaktoren-wo-solls-hingehen-16403 [12.03.2017].

7 Location Factors For Manufacturing (2017). http://bpimm.weebly.com/the- 7-location-factors-for-manufacturing.html [30.03.2017].

Arzhenovskiy, I. Kiy, M. (2014). Regionalwirtschaft. Nizhnij Nowgorod: NNGASU.

Industrial location factors (2017) . http://www.bbc.co.uk/schools/gcsebitesize/ geography/economic_change/characteristics_industry_rev4.shtml [01.04.2017].

56

Regional location factors in the Mechanical Engineering

Ulyanovsk

Wind Parks.

It is targeted to install 14 wind power plants. The height of the plants – 88 meters, the length of the blades – 54 meters. The capacity of the first stage of the wind farm – 35 MW, the second – about 600 MW. 65 million euro will be invested in the construction. The share of renewable energy consumption in the region may increase up to 20-30% in the total fuel and energy balance.

The average annual wind speed is 7 meters per second. These are good values that allow us to recoup wind power projects in a reasonable time. The equipment will be imported from China.The blades and other components for them will be made domestically. Legrand company targets to build a new plant of low-voltage equipment that will provide wind power infrastructure. “Hempel” will produce specialized paints for the needs of this project. “AeroComposit-Ulyanovsk” will manufacture blades.

The investment agreement on the construction of a wind park in the Ulyanovsk region was signed in October 2015 under the terms of the International Investment Forum in Sochi. In November 2016, the executors were defined. This agreement was estimated by the Chairman of the Management Board of Rusnano, as “the birth of Russian wind energy”.

To sum up. The construction of the wind park in Ulyanovsk means that vacancies will be created, and local businesses will be loaded with orders. All in all, it will ultimately boost the local economy and will surely have positive results on the standard of living.

Ulyanovsk Heavy and Unique Machine Tools Plant (UZTS).

The works has produced about 10,000 metalworking machines. Many enterprises of Russia and CIS countries operate the products manufactured by the Ulyanovsk Heavy and Unique Machine Tools Plant. It has orders from Germany, Italy, Canada, the USA, France, Sweden, and Japan.

UZTS remains the leader in the supply of heavy and extra-heavy milling machines for all industries. Machine tools operate more than 3000 enterprises. Currently, UZTS is successfully mastering new technologies, which allows the company to increase production volumes.

57

Major important factors are:

-financial factor (investment, salary level, government support ),

-cost aspects (energy costs),

-transport infrastructure (railway connections, airport connections, telecommunication),

-availability of human resources and qualified personnel,

-climatic conditions.

-location: proximity to markets i.e. potential customers.

Minor factors are:

-risk of strikes,

-attitude of the population,

-environmental conditions.

Mönchengladbach

Industry structure: mechanical and electrical engineering/machinery, textile and clothing, TIMES branches (telecommunication, informationtechnology, multimedia, entertainment und security services), logistics, healthcare and medical technology.

Companies: stronghold of mechanical engineering in Germany; international market leaders.

Maex-online.

Maex-online is a competence-network for regional engineering companies. It has more than 140 members. Possibility to: get in contact with partner companies, enter new markets, reduce production costs, and create synergies. Maex-online is linked to other regional networks in NRW.

Appreciation of selected factors. Major important factors are:

- human capital (qualification and costs),

58

-scientific infrastructute (universities, research institutes, libraries etc.),

-physical infrastructure (roads, rails, airpotrs, harbors),

-information infrastructure (communication networks),

-energy (security of supply and costs),

-proximity to suppliers (expansion of relationship networks),

-proximity to customers (expansion of relationship networks),

-supporting and related industries (optimale conditions), e. g. Maschinenbaucluster Produktion NRW.

Minor important factors are:

-material resources (availability, quality and costs),

-asset resources (amount and costs of available capital).

Reason: global strategies of the firms, global purchasing of resources and global financial markets.

Investigation of a specific company. Company: SMS.

Questions: How important are the following factors for your site selection? How do you evaluate the quality of these factors in our region? The results of the survey are presented in Table 1.

Table 1. Location factors in the Mechanical Engineering, Mönchengladbach

Thus, the reasons for starting production in Mönchengladbach are: established engineering industry, existence of well connected industry networks, high satisfaction of regional engineering companies.

Nizhny Novgorod

Facts and figures of the selected branches (mechanical/electrical engineering) in Nizhny Novgorod.