The Increasing Importance of Internationalized SMEs in the CEI region

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The Increasing Importance of Internationalized
SMEs in the CEI region

• Giorgia Giovannetti
• Università di Firenze and Area Studi ICE
• Giorgia.giovannetti_at_unifi.it

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18 Member States Albania, Austria, Belarus,
Bosnia and Herzegovina, Bulgaria, Croatia, the
Czech Republic, Hungary, Italy, Macedonia,
Moldova, Montenegro, Poland, Romania, Serbia,
Slovakia, Slovenia and Ukraine
A territory of 2.4 million square km and a
population of nearly 260 million.  9  EU and 9
non-EU Member Countries
Highly integrated, both trade and FDI
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Significant differences among countries, in terms
of growth, financial deepening, households
financial behaviour etc GDP growth 2003 - 2005
New members grow more
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Significant differences among countries, in terms
of growth, financial deepening, households
financial behaviour etc
Household financial behaviour by country1

• In Bulgaria and more recently Croatia, emergence
  of new savings flows is adding to the
  accumulation of wealth (financial and real)
• Investment of savings in real assets is slightly
  crowding out accumulation of net financial wealth
  in Serbia
• In Romania, individuals are increasingly betting
  on the convergence process benefiting from brisk
  macroeconomic prospects, rapidly expanding their
  standard of living

Accumulation of net financial and real wealth
Accumulation of net financial savings
Accumulation of net financial savings
Note (1) CEE 9 BG, HR, CZ, HU, PL, RO, SI, SK
and TK for Serbia, only deposits and bank loans
are included in the definition of wealth and
debt, respectively percentage changes for Serbia
refer to 2003-2005 period Source UniCredit Group
New Europe Research Network
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in relative terms Italy is a major partner
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Need for increasing internationalization
Shares of Italy and Germany on fast growing
markets
ASIA
CEECs
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Changes in export shares of Italy and Germany in
some CEI countries
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Imports from some CEI countries and FDI
increasing integration
Italy and Germany different geographical pattern
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Italy is specialised in production and export of
traditional manufacturing (different from Germany)
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Static specialization however does not mean that
Italy has not reacted .

• Within Italian sectors important changes
• Offshoring of low value added phases of
  production
• Quality upgrading, especially on traditional
  sectors and on UE markets

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clothing
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Financial situations of Italian SME
Production of Italian SME (annual change)
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Italian SMEs
Profitability (ROI) SMEs
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Italian SMEs
EBIT (billions euro) Manufacturing SMEs
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Italian SMEs
Profitability of SMEs and BIG a comparison
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A strategic answer
Skill upgrading a way out of price competition