Cross-border
economic
development
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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.).
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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.
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http://www.cner-france.com/Les-agences-de-developpement/Missions-des-agences