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Cross-border

economic

development

64

Cross-cutting themes in cross-border economic development

These companies develop their own strategies to integrate the cross-

border potential, as illustrated by the example of Basel. They do not

require the public authorities to implement special policies to encourage

them to do so, or are capable of contacting governments should

they need to do so (e.g. collaboration between the Territory of Belfort

employment service and the Swatch group when the latter established

a factory in Boncourt, Switzerland, close to the border with France).

Given the potential that cross-border development represents for SMEs,

support systems have been set up to guide them in the steps they take.

Crossing the border means managing a series of

factors that are crucial to a firm’s establishment:

accurate knowledge of the competitive environment, available

infrastructure, equipment and land, familiarity with regulations

(social, tax legislation, etc.), accounting expertise, tax optimisation

strategies, etc.

These administrative and forward-looking procedures, which are

extremely time-consuming and costly, are prerequisite steps for SMEs

as they draw up and implement their business plans. However, very

often SMEs do not have the necessary internal resources to carry them

out. It is therefore crucial for them to benefit from appropriate support

that reduces the cost and time devoted to these procedures as much

as possible.

Numerous players provide support and are part of an ecosystem

where each one brings its specific expertise.

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Regulatory, tax and accounting developments are usually

monitored by private consultants

, who increasingly specialise

in these cutting-edge engineering fields in cross-border areas

where the differentials are most significant.

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On the French-Swiss border:

EUREX Suisse, a fiduciary company

based in Geneva, offers personalised services to Greater Geneva

companies in the areas of accounting management, tax, auditing,

domiciliation and bi-location, etc.

Bi-location allows a business to locate its headquarters in one

country and part of its activities in the neighbouring territory in order

to enjoy the tax, geographical and cost advantages on both sides.

This solution is beneficial for Swiss businesses that wish to gain

easier access to the EU market.

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Matters relating to land, competitive data and human resources

are the preserve of chambers of commerce and industry

(CCIs) and economic development agencies.

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These organisations combine support to businesses in the

strict sense (help with financing, support for land and property

searches, facilitating access to international markets and European

programmes, support for innovation, management of clusters,

etc.) with general initiatives promoting territories’ attractiveness

and competitiveness (advisory services for the implementation of

economic policies, construction of territorial projects, territorial

marketing, etc.).

105

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The involvement of territorial authorities in these organisations’

governance explains why they “wear two hats” and play a

coordinating role, which enables them to act as an interface

between government and businesses, ensuring better feedback

of information to policy-makers.

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These players interact differently in France than they do in some

neighbouring countries, where CCIs and territorial authorities are

very separate (the CCIs represent only the interests of businesses

and have no public service remit).

The role of intermediary played by economic development agencies

and chambers of commerce and industry is crucial both for the

public sector and for SMEs.

SMEs gain a better understanding of public policy measures for

businesses, while territorial authorities gain access to a world that is

unfamiliar to them.

The lack of permeability between these two spheres is one of

the main challenges in economic development, especially when

it comes to targeting the real needs of businesses. For example,

financial aid is not necessarily what SMEs primarily look for

from the public authorities. Knowledge of framework conditions

and above all the identification of support resources, players

and their territorial coverage are what businesses that wish to

develop their cross-border activities most often say they need.

It is therefore essential that the complementarity of functions

of players providing support to businesses be assessed and

coordinated over time, given that the allocation of competences

is subject to the cycle of institutional reforms in France and the

neighbouring countries.

105

http://www.cner-france.com/Les-agences-de-developpement/Missions-des-agences